LIGHT & WONDER INC (LNW) Stock Fundamental Analysis
USA - NASDAQ:LNW - US80874P1093 - Common Stock
75.89 USD
+0.04 (+0.05%)
75.65 USD
-0.24 (-0.32%)
Taking everything into account, LNW scores 5 out of 10 in our fundamental rating. LNW was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. While LNW belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. LNW is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year LNW was profitable.
LNW had a positive operating cash flow in the past year.
Of the past 5 years LNW 4 years were profitable.
Of the past 5 years LNW 4 years had a positive operating cash flow.
1.2 Ratios
LNW has a Return On Assets of 5.38%. This is in the better half of the industry: LNW outperforms 71.64% of its industry peers.
LNW's Return On Equity of 49.72% is amongst the best of the industry. LNW outperforms 93.28% of its industry peers.
With a decent Return On Invested Capital value of 11.43%, LNW is doing good in the industry, outperforming 76.87% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LNW is in line with the industry average of 10.67%.
The 3 year average ROIC (10.25%) for LNW is below the current ROIC(11.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.38% | ||
| ROE | 49.72% | ||
| ROIC | 11.43% |
ROA(3y)23.43%
ROA(5y)13.57%
ROE(3y)148.45%
ROE(5y)N/A
ROIC(3y)10.25%
ROIC(5y)N/A
1.3 Margins
LNW has a better Profit Margin (10.92%) than 79.10% of its industry peers.
LNW's Profit Margin has declined in the last couple of years.
LNW has a Operating Margin of 24.71%. This is amongst the best in the industry. LNW outperforms 88.81% of its industry peers.
In the last couple of years the Operating Margin of LNW has grown nicely.
Looking at the Gross Margin, with a value of 71.63%, LNW belongs to the top of the industry, outperforming 86.57% of the companies in the same industry.
In the last couple of years the Gross Margin of LNW has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.71% | ||
| PM (TTM) | 10.92% | ||
| GM | 71.63% |
OM growth 3Y22.93%
OM growth 5Y12.62%
PM growth 3Y-15.12%
PM growth 5YN/A
GM growth 3Y-0.43%
GM growth 5Y0.59%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LNW is still creating some value.
The number of shares outstanding for LNW has been reduced compared to 1 year ago.
LNW has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LNW is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.91 indicates that LNW is not a great score, but indicates only limited risk for bankruptcy at the moment.
LNW has a Altman-Z score (1.91) which is in line with its industry peers.
The Debt to FCF ratio of LNW is 14.67, which is on the high side as it means it would take LNW, 14.67 years of fcf income to pay off all of its debts.
LNW has a Debt to FCF ratio (14.67) which is comparable to the rest of the industry.
LNW has a Debt/Equity ratio of 6.86. This is a high value indicating a heavy dependency on external financing.
LNW has a Debt to Equity ratio of 6.86. This is in the lower half of the industry: LNW underperforms 64.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.86 | ||
| Debt/FCF | 14.67 | ||
| Altman-Z | 1.91 |
ROIC/WACC1.34
WACC8.52%
2.3 Liquidity
LNW has a Current Ratio of 1.77. This is a normal value and indicates that LNW is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of LNW (1.77) is better than 80.60% of its industry peers.
LNW has a Quick Ratio of 1.51. This is a normal value and indicates that LNW is financially healthy and should not expect problems in meeting its short term obligations.
LNW has a better Quick ratio (1.51) than 77.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.28% over the past year.
Measured over the past 5 years, LNW shows a small growth in Earnings Per Share. The EPS has been growing by 5.53% on average per year.
Looking at the last year, LNW shows a small growth in Revenue. The Revenue has grown by 3.93% in the last year.
Measured over the past years, LNW shows a small growth in Revenue. The Revenue has been growing by 5.95% on average per year.
EPS 1Y (TTM)19.28%
EPS 3Y5.53%
EPS 5YN/A
EPS Q2Q%23.33%
Revenue 1Y (TTM)3.93%
Revenue growth 3Y13.98%
Revenue growth 5Y5.95%
Sales Q2Q%-1.1%
3.2 Future
Based on estimates for the next years, LNW will show a very strong growth in Earnings Per Share. The EPS will grow by 21.44% on average per year.
The Revenue is expected to grow by 4.85% on average over the next years.
EPS Next Y53.59%
EPS Next 2Y38.65%
EPS Next 3Y33.77%
EPS Next 5Y21.44%
Revenue Next Year6.37%
Revenue Next 2Y7%
Revenue Next 3Y6.58%
Revenue Next 5Y4.85%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.16, the valuation of LNW can be described as rather expensive.
Based on the Price/Earnings ratio, LNW is valued a bit cheaper than the industry average as 69.40% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.89, LNW is valued a bit cheaper.
LNW is valuated reasonably with a Price/Forward Earnings ratio of 10.70.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LNW indicates a rather cheap valuation: LNW is cheaper than 85.07% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LNW to the average of the S&P500 Index (22.99), we can say LNW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.16 | ||
| Fwd PE | 10.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LNW is valued a bit cheaper than 68.66% of the companies in the same industry.
76.87% of the companies in the same industry are more expensive than LNW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.25 | ||
| EV/EBITDA | 9.64 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of LNW may justify a higher PE ratio.
A more expensive valuation may be justified as LNW's earnings are expected to grow with 33.77% in the coming years.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y38.65%
EPS Next 3Y33.77%
5. Dividend
5.1 Amount
LNW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
75.89
+0.04 (+0.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners64.73%
Inst Owner ChangeN/A
Ins Owners0.57%
Ins Owner Change4.78%
Market Cap6.37B
Revenue(TTM)3.20B
Net Income(TTM)349.00M
Analysts75.56
Price Target107.55 (41.72%)
Short Float %7.28%
Short Ratio5.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-20.31%
Min EPS beat(2)-22.6%
Max EPS beat(2)-18.02%
EPS beat(4)1
Avg EPS beat(4)-12.63%
Min EPS beat(4)-35.43%
Max EPS beat(4)25.54%
EPS beat(8)4
Avg EPS beat(8)9.18%
EPS beat(12)5
Avg EPS beat(12)59.1%
EPS beat(16)9
Avg EPS beat(16)3638.55%
Revenue beat(2)0
Avg Revenue beat(2)-5.74%
Min Revenue beat(2)-6.52%
Max Revenue beat(2)-4.96%
Revenue beat(4)0
Avg Revenue beat(4)-3.52%
Min Revenue beat(4)-6.52%
Max Revenue beat(4)-1.11%
Revenue beat(8)4
Avg Revenue beat(8)-0.74%
Revenue beat(12)8
Avg Revenue beat(12)0.98%
Revenue beat(16)11
Avg Revenue beat(16)-1.16%
PT rev (1m)0%
PT rev (3m)-4.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.79%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.16 | ||
| Fwd PE | 10.7 | ||
| P/S | 1.99 | ||
| P/FCF | 19.25 | ||
| P/OCF | 10.43 | ||
| P/B | 9.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.64 |
EPS(TTM)3.96
EY5.22%
EPS(NY)7.09
Fwd EY9.35%
FCF(TTM)3.94
FCFY5.2%
OCF(TTM)7.28
OCFY9.59%
SpS38.08
BVpS8.36
TBVpS-44.2
PEG (NY)0.36
PEG (5Y)N/A
Graham Number27.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.38% | ||
| ROE | 49.72% | ||
| ROCE | 13.64% | ||
| ROIC | 11.43% | ||
| ROICexc | 11.7% | ||
| ROICexgc | 53.22% | ||
| OM | 24.71% | ||
| PM (TTM) | 10.92% | ||
| GM | 71.63% | ||
| FCFM | 10.35% |
ROA(3y)23.43%
ROA(5y)13.57%
ROE(3y)148.45%
ROE(5y)N/A
ROIC(3y)10.25%
ROIC(5y)N/A
ROICexc(3y)11.23%
ROICexc(5y)N/A
ROICexgc(3y)64.46%
ROICexgc(5y)N/A
ROCE(3y)12.23%
ROCE(5y)N/A
ROICexgc growth 3Y87.73%
ROICexgc growth 5Y32.71%
ROICexc growth 3Y57.06%
ROICexc growth 5Y29.38%
OM growth 3Y22.93%
OM growth 5Y12.62%
PM growth 3Y-15.12%
PM growth 5YN/A
GM growth 3Y-0.43%
GM growth 5Y0.59%
F-Score5
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.86 | ||
| Debt/FCF | 14.67 | ||
| Debt/EBITDA | 4.19 | ||
| Cap/Depr | 77.56% | ||
| Cap/Sales | 8.76% | ||
| Interest Coverage | 2.85 | ||
| Cash Conversion | 53.08% | ||
| Profit Quality | 94.84% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 1.91 |
F-Score5
WACC8.52%
ROIC/WACC1.34
Cap/Depr(3y)65.3%
Cap/Depr(5y)54.63%
Cap/Sales(3y)8.72%
Cap/Sales(5y)9.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.28%
EPS 3Y5.53%
EPS 5YN/A
EPS Q2Q%23.33%
EPS Next Y53.59%
EPS Next 2Y38.65%
EPS Next 3Y33.77%
EPS Next 5Y21.44%
Revenue 1Y (TTM)3.93%
Revenue growth 3Y13.98%
Revenue growth 5Y5.95%
Sales Q2Q%-1.1%
Revenue Next Year6.37%
Revenue Next 2Y7%
Revenue Next 3Y6.58%
Revenue Next 5Y4.85%
EBIT growth 1Y8.22%
EBIT growth 3Y40.12%
EBIT growth 5Y19.32%
EBIT Next Year97.12%
EBIT Next 3Y33.14%
EBIT Next 5Y17.9%
FCF growth 1Y174.05%
FCF growth 3Y-13.04%
FCF growth 5Y5.31%
OCF growth 1Y379%
OCF growth 3Y-2.65%
OCF growth 5Y2.97%
LIGHT & WONDER INC / LNW FAQ
What is the fundamental rating for LNW stock?
ChartMill assigns a fundamental rating of 5 / 10 to LNW.
What is the valuation status for LNW stock?
ChartMill assigns a valuation rating of 7 / 10 to LIGHT & WONDER INC (LNW). This can be considered as Undervalued.
Can you provide the profitability details for LIGHT & WONDER INC?
LIGHT & WONDER INC (LNW) has a profitability rating of 7 / 10.
What is the valuation of LIGHT & WONDER INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LIGHT & WONDER INC (LNW) is 19.16 and the Price/Book (PB) ratio is 9.08.
What is the financial health of LIGHT & WONDER INC (LNW) stock?
The financial health rating of LIGHT & WONDER INC (LNW) is 4 / 10.