INTERNATIONAL GAME TECHNOLOG (IGT) Stock Fundamental Analysis
NYSE:IGT - GB00BVG7F061 - Common Stock
16.29 USD
+0.48 (+3.04%)
16.29 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to IGT. IGT was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of IGT get a neutral evaluation. Nothing too spectacular is happening here. IGT has a bad growth rate and is valued cheaply. This makes IGT very considerable for value investing!
1. Profitability
1.1 Basic Checks
IGT had positive earnings in the past year.
IGT had a positive operating cash flow in the past year.
Of the past 5 years IGT 4 years were profitable.
IGT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IGT has a Return On Assets (2.83%) which is comparable to the rest of the industry.
IGT has a better Return On Equity (17.85%) than 76.30% of its industry peers.
IGT's Return On Invested Capital of 7.27% is fine compared to the rest of the industry. IGT outperforms 61.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IGT is significantly below the industry average of 16.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 17.85% | ||
| ROIC | 7.27% |
ROA(3y)2.5%
ROA(5y)0.97%
ROE(3y)17.02%
ROE(5y)-5.38%
ROIC(3y)7.65%
ROIC(5y)6.46%
1.3 Margins
With a decent Profit Margin value of 10.21%, IGT is doing good in the industry, outperforming 75.56% of the companies in the same industry.
In the last couple of years the Profit Margin of IGT has grown nicely.
IGT has a Operating Margin of 25.12%. This is amongst the best in the industry. IGT outperforms 89.63% of its industry peers.
IGT's Operating Margin has improved in the last couple of years.
IGT's Gross Margin of 45.71% is in line compared to the rest of the industry. IGT outperforms 45.19% of its industry peers.
In the last couple of years the Gross Margin of IGT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.12% | ||
| PM (TTM) | 10.21% | ||
| GM | 45.71% |
OM growth 3Y9.13%
OM growth 5Y15.18%
PM growth 3Y5.43%
PM growth 5YN/A
GM growth 3Y-0.98%
GM growth 5Y2.02%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), IGT is creating some value.
IGT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for IGT has been reduced compared to 5 years ago.
Compared to 1 year ago, IGT has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of IGT is 5.72, which is a neutral value as it means it would take IGT, 5.72 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.72, IGT is doing good in the industry, outperforming 78.52% of the companies in the same industry.
A Debt/Equity ratio of 3.33 is on the high side and indicates that IGT has dependencies on debt financing.
IGT's Debt to Equity ratio of 3.33 is in line compared to the rest of the industry. IGT outperforms 43.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.33 | ||
| Debt/FCF | 5.72 | ||
| Altman-Z | N/A |
ROIC/WACC1.29
WACC5.65%
2.3 Liquidity
A Current Ratio of 2.48 indicates that IGT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.48, IGT belongs to the top of the industry, outperforming 90.37% of the companies in the same industry.
IGT has a Quick Ratio of 2.43. This indicates that IGT is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.43, IGT belongs to the best of the industry, outperforming 91.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.48 | ||
| Quick Ratio | 2.43 |
3. Growth
3.1 Past
The earnings per share for IGT have decreased strongly by -12.73% in the last year.
Measured over the past years, IGT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.63% on average per year.
The Revenue for IGT has decreased by -33.52% in the past year. This is quite bad
IGT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -9.03% yearly.
EPS 1Y (TTM)-12.73%
EPS 3Y-21.54%
EPS 5Y9.63%
EPS Q2Q%-67.5%
Revenue 1Y (TTM)-33.52%
Revenue growth 3Y-14.99%
Revenue growth 5Y-9.03%
Sales Q2Q%-45.36%
3.2 Future
IGT is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -10.95% yearly.
The Revenue is expected to grow by 16.47% on average over the next years. This is quite good.
EPS Next Y-46.15%
EPS Next 2Y-9.58%
EPS Next 3Y-10.95%
EPS Next 5YN/A
Revenue Next Year0.75%
Revenue Next 2Y1.07%
Revenue Next 3Y1.36%
Revenue Next 5Y16.47%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.31, the valuation of IGT can be described as reasonable.
Based on the Price/Earnings ratio, IGT is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.06. IGT is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.65 indicates a reasonable valuation of IGT.
Based on the Price/Forward Earnings ratio, IGT is valued cheaper than 85.19% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.69. IGT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.31 | ||
| Fwd PE | 11.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IGT is valued a bit cheaper than 71.85% of the companies in the same industry.
IGT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. IGT is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.31 | ||
| EV/EBITDA | 9.78 |
4.3 Compensation for Growth
IGT has a very decent profitability rating, which may justify a higher PE ratio.
IGT's earnings are expected to decrease with -10.95% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.18
EPS Next 2Y-9.58%
EPS Next 3Y-10.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.91%, IGT is a good candidate for dividend investing.
IGT's Dividend Yield is rather good when compared to the industry average which is at 4.01. IGT pays more dividend than 94.07% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, IGT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.91% |
5.2 History
The dividend of IGT decreases each year by -0.01%.
IGT has paid a dividend for at least 10 years, which is a reliable track record.
IGT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-0.01%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
IGT pays out 68.60% of its income as dividend. This is not a sustainable payout ratio.
IGT's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP68.6%
EPS Next 2Y-9.58%
EPS Next 3Y-10.95%
16.29
+0.48 (+3.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner Change-0.49%
Ins OwnersN/A
Ins Owner Change0%
Market Cap3.29B
Analysts72.73
Price Target19.57 (20.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.91% |
Yearly Dividend0.8
Dividend Growth(5Y)-0.01%
DP68.6%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)98.59%
Min EPS beat(2)12.91%
Max EPS beat(2)184.28%
EPS beat(4)2
Avg EPS beat(4)19.69%
Min EPS beat(4)-80.94%
Max EPS beat(4)184.28%
EPS beat(8)5
Avg EPS beat(8)20.76%
EPS beat(12)7
Avg EPS beat(12)0.06%
EPS beat(16)11
Avg EPS beat(16)38.21%
Revenue beat(2)0
Avg Revenue beat(2)-5.04%
Min Revenue beat(2)-8.06%
Max Revenue beat(2)-2.02%
Revenue beat(4)0
Avg Revenue beat(4)-3.45%
Min Revenue beat(4)-8.06%
Max Revenue beat(4)-1.74%
Revenue beat(8)4
Avg Revenue beat(8)-0.78%
Revenue beat(12)7
Avg Revenue beat(12)0.25%
Revenue beat(16)10
Avg Revenue beat(16)1.02%
PT rev (1m)-2.46%
PT rev (3m)-18.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-40.58%
EPS NY rev (1m)12.27%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.31 | ||
| Fwd PE | 11.65 | ||
| P/S | 1.15 | ||
| P/FCF | 3.31 | ||
| P/OCF | 2.9 | ||
| P/B | 2.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.78 |
EPS(TTM)1.44
EY8.84%
EPS(NY)1.4
Fwd EY8.58%
FCF(TTM)4.92
FCFY30.18%
OCF(TTM)5.61
OCFY34.46%
SpS14.21
BVpS8.12
TBVpS-5.51
PEG (NY)N/A
PEG (5Y)1.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 17.85% | ||
| ROCE | 9.21% | ||
| ROIC | 7.27% | ||
| ROICexc | 7.91% | ||
| ROICexgc | 12.81% | ||
| OM | 25.12% | ||
| PM (TTM) | 10.21% | ||
| GM | 45.71% | ||
| FCFM | 34.6% |
ROA(3y)2.5%
ROA(5y)0.97%
ROE(3y)17.02%
ROE(5y)-5.38%
ROIC(3y)7.65%
ROIC(5y)6.46%
ROICexc(3y)8.23%
ROICexc(5y)6.95%
ROICexgc(3y)25.25%
ROICexgc(5y)21.43%
ROCE(3y)9.69%
ROCE(5y)8.2%
ROICexcg growth 3Y-19.39%
ROICexcg growth 5Y-0.9%
ROICexc growth 3Y0.35%
ROICexc growth 5Y13.64%
OM growth 3Y9.13%
OM growth 5Y15.18%
PM growth 3Y5.43%
PM growth 5YN/A
GM growth 3Y-0.98%
GM growth 5Y2.02%
F-Score5
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.33 | ||
| Debt/FCF | 5.72 | ||
| Debt/EBITDA | 6.4 | ||
| Cap/Depr | 106.82% | ||
| Cap/Sales | 4.91% | ||
| Interest Coverage | 3.76 | ||
| Cash Conversion | 132.94% | ||
| Profit Quality | 338.91% | ||
| Current Ratio | 2.48 | ||
| Quick Ratio | 2.43 | ||
| Altman-Z | N/A |
F-Score5
WACC5.65%
ROIC/WACC1.29
Cap/Depr(3y)71.25%
Cap/Depr(5y)60.8%
Cap/Sales(3y)9.74%
Cap/Sales(5y)8.64%
Profit Quality(3y)292.14%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-12.73%
EPS 3Y-21.54%
EPS 5Y9.63%
EPS Q2Q%-67.5%
EPS Next Y-46.15%
EPS Next 2Y-9.58%
EPS Next 3Y-10.95%
EPS Next 5YN/A
Revenue 1Y (TTM)-33.52%
Revenue growth 3Y-14.99%
Revenue growth 5Y-9.03%
Sales Q2Q%-45.36%
Revenue Next Year0.75%
Revenue Next 2Y1.07%
Revenue Next 3Y1.36%
Revenue Next 5Y16.47%
EBIT growth 1Y-31.79%
EBIT growth 3Y-7.23%
EBIT growth 5Y4.78%
EBIT Next Year61.74%
EBIT Next 3Y20.59%
EBIT Next 5Y25.02%
FCF growth 1Y45.39%
FCF growth 3Y5.99%
FCF growth 5Y6.24%
OCF growth 1Y11.07%
OCF growth 3Y1.74%
OCF growth 5Y-1.18%