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LIGHT & WONDER INC (LNW) Stock Fundamental Analysis

NASDAQ:LNW - Nasdaq - US80874P1093 - Common Stock - Currency: USD

85.29  -0.81 (-0.94%)

After market: 85.29 0 (0%)

Fundamental Rating

5

Overall LNW gets a fundamental rating of 5 out of 10. We evaluated LNW against 134 industry peers in the Hotels, Restaurants & Leisure industry. While LNW has a great profitability rating, there are some minor concerns on its financial health. LNW is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year LNW was profitable.
In the past year LNW had a positive cash flow from operations.
LNW had positive earnings in 4 of the past 5 years.
LNW had a positive operating cash flow in 4 of the past 5 years.
LNW Yearly Net Income VS EBIT VS OCF VS FCFLNW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B 3B

1.2 Ratios

The Return On Assets of LNW (6.16%) is better than 75.37% of its industry peers.
LNW's Return On Equity of 54.19% is amongst the best of the industry. LNW outperforms 94.78% of its industry peers.
The Return On Invested Capital of LNW (13.90%) is better than 81.34% of its industry peers.
LNW had an Average Return On Invested Capital over the past 3 years of 10.25%. This is below the industry average of 13.97%.
The last Return On Invested Capital (13.90%) for LNW is above the 3 year average (10.25%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.16%
ROE 54.19%
ROIC 13.9%
ROA(3y)23.43%
ROA(5y)13.57%
ROE(3y)148.45%
ROE(5y)N/A
ROIC(3y)10.25%
ROIC(5y)N/A
LNW Yearly ROA, ROE, ROICLNW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 200 300

1.3 Margins

LNW has a better Profit Margin (10.48%) than 76.87% of its industry peers.
In the last couple of years the Profit Margin of LNW has declined.
The Operating Margin of LNW (24.33%) is better than 88.06% of its industry peers.
LNW's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 71.18%, LNW belongs to the best 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 RankSector Rank
OM 24.33%
PM (TTM) 10.48%
GM 71.18%
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%
LNW Yearly Profit, Operating, Gross MarginsLNW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 100

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5

2. Health

2.1 Basic Checks

LNW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
LNW has less shares outstanding than it did 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.
LNW Yearly Shares OutstandingLNW Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
LNW Yearly Total Debt VS Total AssetsLNW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.2 Solvency

An Altman-Z score of 2.34 indicates that LNW is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.34, LNW is doing good in the industry, outperforming 67.16% of the companies in the same industry.
The Debt to FCF ratio of LNW is 10.94, which is on the high side as it means it would take LNW, 10.94 years of fcf income to pay off all of its debts.
LNW has a Debt to FCF ratio of 10.94. This is in the better half of the industry: LNW outperforms 60.45% of its industry peers.
LNW has a Debt/Equity ratio of 6.26. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of LNW (6.26) is worse than 65.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 6.26
Debt/FCF 10.94
Altman-Z 2.34
ROIC/WACC1.73
WACC8.04%
LNW Yearly LT Debt VS Equity VS FCFLNW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B 6B 8B

2.3 Liquidity

LNW has a Current Ratio of 1.57. This is a normal value and indicates that LNW is financially healthy and should not expect problems in meeting its short term obligations.
LNW's Current ratio of 1.57 is fine compared to the rest of the industry. LNW outperforms 75.37% of its industry peers.
LNW has a Quick Ratio of 1.35. This is a normal value and indicates that LNW is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.35, LNW is doing good in the industry, outperforming 71.64% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.57
Quick Ratio 1.35
LNW Yearly Current Assets VS Current LiabilitesLNW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

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5

3. Growth

3.1 Past

LNW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 55.60%, which is quite impressive.
The Earnings Per Share has been growing slightly by 5.53% on average over the past years.
Looking at the last year, LNW shows a small growth in Revenue. The Revenue has grown by 7.26% 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)55.6%
EPS 3Y5.53%
EPS 5YN/A
EPS Q2Q%6.82%
Revenue 1Y (TTM)7.26%
Revenue growth 3Y13.98%
Revenue growth 5Y5.95%
Sales Q2Q%2.38%

3.2 Future

LNW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.60% yearly.
Based on estimates for the next years, LNW will show a small growth in Revenue. The Revenue will grow by 4.85% on average per year.
EPS Next Y53.4%
EPS Next 2Y36.68%
EPS Next 3Y33.38%
EPS Next 5Y20.6%
Revenue Next Year7.49%
Revenue Next 2Y7.45%
Revenue Next 3Y6.52%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
LNW Yearly Revenue VS EstimatesLNW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1B 2B 3B 4B
LNW Yearly EPS VS EstimatesLNW Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 10 -10 20 30

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6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 22.74, LNW is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of LNW indicates a somewhat cheap valuation: LNW is cheaper than 64.93% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LNW to the average of the S&P500 Index (26.35), we can say LNW is valued inline with the index average.
LNW is valuated correctly with a Price/Forward Earnings ratio of 12.37.
Based on the Price/Forward Earnings ratio, LNW is valued a bit cheaper than 79.85% of the companies in the same industry.
LNW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.19.
Industry RankSector Rank
PE 22.74
Fwd PE 12.37
LNW Price Earnings VS Forward Price EarningsLNW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, LNW is valued a bit cheaper than 67.91% of the companies in the same industry.
72.39% of the companies in the same industry are more expensive than LNW, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 20.16
EV/EBITDA 9.67
LNW Per share dataLNW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20

4.3 Compensation for Growth

LNW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LNW has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as LNW's earnings are expected to grow with 33.38% in the coming years.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y36.68%
EPS Next 3Y33.38%

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0

5. Dividend

5.1 Amount

LNW does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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LIGHT & WONDER INC

NASDAQ:LNW (6/20/2025, 8:00:00 PM)

After market: 85.29 0 (0%)

85.29

-0.81 (-0.94%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)05-07 2025-05-07/amc
Earnings (Next)08-05 2025-08-05/amc
Inst Owners69.15%
Inst Owner ChangeN/A
Ins Owners0.54%
Ins Owner Change5.22%
Market Cap7.20B
Analysts76.84
Price Target111.31 (30.51%)
Short Float %5.83%
Short Ratio4.35
Dividend
Industry RankSector 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)1
Avg EPS beat(2)3.76%
Min EPS beat(2)-18.02%
Max EPS beat(2)25.54%
EPS beat(4)1
Avg EPS beat(4)-10.28%
Min EPS beat(4)-35.43%
Max EPS beat(4)25.54%
EPS beat(8)4
Avg EPS beat(8)-0.85%
EPS beat(12)6
Avg EPS beat(12)4749.38%
EPS beat(16)10
Avg EPS beat(16)3680.74%
Revenue beat(2)0
Avg Revenue beat(2)-3.03%
Min Revenue beat(2)-4.96%
Max Revenue beat(2)-1.11%
Revenue beat(4)1
Avg Revenue beat(4)-1.5%
Min Revenue beat(4)-4.96%
Max Revenue beat(4)1.55%
Revenue beat(8)5
Avg Revenue beat(8)0.96%
Revenue beat(12)9
Avg Revenue beat(12)1.63%
Revenue beat(16)11
Avg Revenue beat(16)-2.31%
PT rev (1m)-2.18%
PT rev (3m)-4.76%
EPS NQ rev (1m)-0.54%
EPS NQ rev (3m)-1.57%
EPS NY rev (1m)0%
EPS NY rev (3m)2.7%
Revenue NQ rev (1m)0.52%
Revenue NQ rev (3m)-1.18%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)-0.4%
Valuation
Industry RankSector Rank
PE 22.74
Fwd PE 12.37
P/S 2.24
P/FCF 20.16
P/OCF 11.14
P/B 11.61
P/tB N/A
EV/EBITDA 9.67
EPS(TTM)3.75
EY4.4%
EPS(NY)6.89
Fwd EY8.08%
FCF(TTM)4.23
FCFY4.96%
OCF(TTM)7.66
OCFY8.98%
SpS37.99
BVpS7.35
TBVpS-34.3
PEG (NY)0.43
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 6.16%
ROE 54.19%
ROCE 16.59%
ROIC 13.9%
ROICexc 14.31%
ROICexgc 62.02%
OM 24.33%
PM (TTM) 10.48%
GM 71.18%
FCFM 11.14%
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
ROICexcg growth 3Y87.73%
ROICexcg 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-Score7
Asset Turnover0.59
Health
Industry RankSector Rank
Debt/Equity 6.26
Debt/FCF 10.94
Debt/EBITDA 3.4
Cap/Depr 80.06%
Cap/Sales 9.01%
Interest Coverage 2.82
Cash Conversion 56.62%
Profit Quality 106.25%
Current Ratio 1.57
Quick Ratio 1.35
Altman-Z 2.34
F-Score7
WACC8.04%
ROIC/WACC1.73
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)55.6%
EPS 3Y5.53%
EPS 5YN/A
EPS Q2Q%6.82%
EPS Next Y53.4%
EPS Next 2Y36.68%
EPS Next 3Y33.38%
EPS Next 5Y20.6%
Revenue 1Y (TTM)7.26%
Revenue growth 3Y13.98%
Revenue growth 5Y5.95%
Sales Q2Q%2.38%
Revenue Next Year7.49%
Revenue Next 2Y7.45%
Revenue Next 3Y6.52%
Revenue Next 5Y4.85%
EBIT growth 1Y17.29%
EBIT growth 3Y40.12%
EBIT growth 5Y19.32%
EBIT Next Year91.68%
EBIT Next 3Y30.93%
EBIT Next 5Y17.78%
FCF growth 1Y169.19%
FCF growth 3Y-13.04%
FCF growth 5Y5.31%
OCF growth 1Y322.76%
OCF growth 3Y-2.65%
OCF growth 5Y2.97%