LIGHT & WONDER INC (LNW) Stock Fundamental Analysis
USA - NASDAQ:LNW - US80874P1093 - Common Stock
85.74 USD
+0.59 (+0.69%)
Overall LNW gets a fundamental rating of 5 out of 10. We evaluated LNW against 135 industry peers in the Hotels, Restaurants & Leisure industry. LNW scores excellent on profitability, but 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
LNW had positive earnings in the past year.
LNW had a positive operating cash flow in the past year.
Of the past 5 years LNW 4 years were profitable.
LNW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of LNW (5.38%) is better than 71.11% of its industry peers.
With an excellent Return On Equity value of 49.72%, LNW belongs to the best of the industry, outperforming 94.07% of the companies in the same industry.
LNW has a Return On Invested Capital of 11.43%. This is in the better half of the industry: LNW outperforms 76.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LNW is significantly below the industry average of 15.67%.
The last Return On Invested Capital (11.43%) for LNW is above the 3 year average (10.25%), which is a sign of increasing profitability.
| 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's Profit Margin of 10.92% is fine compared to the rest of the industry. LNW outperforms 79.26% of its industry peers.
In the last couple of years the Profit Margin of LNW has declined.
LNW has a Operating Margin of 24.71%. This is amongst the best in the industry. LNW outperforms 88.89% of its industry peers.
In the last couple of years the Operating Margin of LNW has grown nicely.
LNW has a Gross Margin of 71.63%. This is amongst the best in the industry. LNW outperforms 85.93% of its industry peers.
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
LNW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for LNW has been reduced compared to 1 year ago.
Compared to 5 years ago, LNW has less shares outstanding
The debt/assets ratio for LNW is higher compared to a year ago.
2.2 Solvency
LNW has an Altman-Z score of 1.99. This is not the best score and indicates that LNW is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.99, LNW perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
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.
With a Debt to FCF ratio value of 14.67, LNW perfoms like the industry average, outperforming 47.41% of the companies in the same industry.
A Debt/Equity ratio of 6.86 is on the high side and indicates that LNW has dependencies on debt financing.
With a Debt to Equity ratio value of 6.86, LNW is not doing good in the industry: 63.70% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.86 | ||
| Debt/FCF | 14.67 | ||
| Altman-Z | 1.99 |
ROIC/WACC1.23
WACC9.29%
2.3 Liquidity
A Current Ratio of 1.77 indicates that LNW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.77, LNW belongs to the top of the industry, outperforming 80.74% of the companies in the same industry.
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 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
LNW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.28%, which is quite good.
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.
The Revenue has been growing slightly by 3.93% in the past year.
LNW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.95% yearly.
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.
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 Y53.59%
EPS Next 2Y38.65%
EPS Next 3Y33.77%
EPS Next 5Y21.44%
Revenue Next Year6.59%
Revenue Next 2Y7.22%
Revenue Next 3Y6.89%
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.
4. Valuation
4.1 Price/Earnings Ratio
LNW is valuated rather expensively with a Price/Earnings ratio of 21.65.
Compared to the rest of the industry, the Price/Earnings ratio of LNW indicates a somewhat cheap valuation: LNW is cheaper than 68.15% of the companies listed in the same industry.
LNW is valuated rather cheaply when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.09 indicates a correct valuation of LNW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LNW indicates a rather cheap valuation: LNW is cheaper than 83.70% of the companies listed in the same industry.
LNW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.65 | ||
| Fwd PE | 12.09 |
4.2 Price Multiples
65.19% of the companies in the same industry are more expensive than LNW, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LNW indicates a somewhat cheap valuation: LNW is cheaper than 72.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.75 | ||
| EV/EBITDA | 10.31 |
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.
LNW's earnings are expected to grow with 33.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.4
PEG (5Y)N/A
EPS Next 2Y38.65%
EPS Next 3Y33.77%
5. Dividend
5.1 Amount
No dividends for LNW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:LNW (10/3/2025, 11:21:54 AM)
85.74
+0.59 (+0.69%)
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 Change3.61%
Market Cap7.20B
Analysts75.79
Price Target107.55 (25.44%)
Short Float %7.25%
Short Ratio5.19
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)-2.55%
PT rev (3m)-3.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.67%
EPS NY rev (1m)-1.6%
EPS NY rev (3m)-2.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.65 | ||
| Fwd PE | 12.09 | ||
| P/S | 2.25 | ||
| P/FCF | 21.75 | ||
| P/OCF | 11.78 | ||
| P/B | 10.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.31 |
EPS(TTM)3.96
EY4.62%
EPS(NY)7.09
Fwd EY8.27%
FCF(TTM)3.94
FCFY4.6%
OCF(TTM)7.28
OCFY8.49%
SpS38.08
BVpS8.36
TBVpS-44.2
PEG (NY)0.4
PEG (5Y)N/A
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
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-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 | 1.99 |
F-Score5
WACC9.29%
ROIC/WACC1.23
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 Year6.59%
Revenue Next 2Y7.22%
Revenue Next 3Y6.89%
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%