LIGHT & WONDER INC (LNW) Stock Fundamental Analysis
NASDAQ:LNW - US80874P1093 - Common Stock
92.18 USD
+2.14 (+2.38%)
92.18 USD
0 (0%)
LNW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 131 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.
In the past year LNW had a positive cash flow from operations.
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 71.76% of its industry peers.
Looking at the Return On Equity, with a value of 49.72%, LNW belongs to the top of the industry, outperforming 93.89% 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 76.34% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LNW is significantly below the industry average of 15.79%.
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
The Profit Margin of LNW (10.92%) is better than 77.86% of its industry peers.
LNW's Profit Margin has declined in the last couple of years.
LNW has a better Operating Margin (24.71%) than 88.55% of its industry peers.
LNW's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 71.63%, LNW belongs to the best of the industry, outperforming 87.02% 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.
LNW has less shares outstanding than it did 1 year ago.
LNW has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LNW has a worse debt to assets ratio.
2.2 Solvency
LNW has an Altman-Z score of 2.04. 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.
The Altman-Z score of LNW (2.04) is comparable to the rest of the 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.
LNW's Debt to FCF ratio of 14.67 is in line compared to the rest of the industry. LNW outperforms 48.85% of its industry peers.
A Debt/Equity ratio of 6.86 is on the high side and indicates that LNW has dependencies on debt financing.
LNW has a Debt to Equity ratio of 6.86. This is in the lower half of the industry: LNW underperforms 64.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.86 | ||
| Debt/FCF | 14.67 | ||
| Altman-Z | 2.04 |
ROIC/WACC1.21
WACC9.46%
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.
LNW's Current ratio of 1.77 is amongst the best of the industry. LNW outperforms 80.92% 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.
The Quick ratio of LNW (1.51) is better than 77.86% 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.
LNW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.53% yearly.
LNW shows a small growth in Revenue. In the last year, the Revenue has grown by 3.93%.
The Revenue has been growing slightly by 5.95% on average over the past years.
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 Y57.15%
EPS Next 2Y38.9%
EPS Next 3Y34.24%
EPS Next 5Y21.44%
Revenue Next Year7.93%
Revenue Next 2Y7.81%
Revenue Next 3Y6.72%
Revenue Next 5Y4.85%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 23.28, LNW is valued on the expensive side.
LNW's Price/Earnings ratio is a bit cheaper when compared to the industry. LNW is cheaper than 65.65% of the companies in the same industry.
When comparing the Price/Earnings ratio of LNW to the average of the S&P500 Index (27.24), we can say LNW is valued inline with the index average.
LNW is valuated correctly with a Price/Forward Earnings ratio of 12.95.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LNW indicates a rather cheap valuation: LNW is cheaper than 81.68% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.82. LNW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.28 | ||
| Fwd PE | 12.95 |
4.2 Price Multiples
LNW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LNW is cheaper than 63.36% of the companies in the same industry.
74.05% 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 | 23.5 | ||
| EV/EBITDA | 10.7 |
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 34.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y38.9%
EPS Next 3Y34.24%
5. Dividend
5.1 Amount
No dividends for LNW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
92.18
+2.14 (+2.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners67.16%
Inst Owner ChangeN/A
Ins Owners0.54%
Ins Owner Change7.17%
Market Cap7.78B
Analysts76.84
Price Target112.76 (22.33%)
Short Float %4.91%
Short Ratio4.01
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)1.31%
PT rev (3m)-0.77%
EPS NQ rev (1m)-9.94%
EPS NQ rev (3m)-2.76%
EPS NY rev (1m)0%
EPS NY rev (3m)2.44%
Revenue NQ rev (1m)-1.95%
Revenue NQ rev (3m)-0.79%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.28 | ||
| Fwd PE | 12.95 | ||
| P/S | 2.43 | ||
| P/FCF | 23.5 | ||
| P/OCF | 12.73 | ||
| P/B | 11.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.7 |
EPS(TTM)3.96
EY4.3%
EPS(NY)7.12
Fwd EY7.72%
FCF(TTM)3.92
FCFY4.26%
OCF(TTM)7.24
OCFY7.86%
SpS37.89
BVpS8.32
TBVpS-43.98
PEG (NY)0.41
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 | 2.04 |
F-Score5
WACC9.46%
ROIC/WACC1.21
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 Y57.15%
EPS Next 2Y38.9%
EPS Next 3Y34.24%
EPS Next 5Y21.44%
Revenue 1Y (TTM)3.93%
Revenue growth 3Y13.98%
Revenue growth 5Y5.95%
Sales Q2Q%-1.1%
Revenue Next Year7.93%
Revenue Next 2Y7.81%
Revenue Next 3Y6.72%
Revenue Next 5Y4.85%
EBIT growth 1Y8.22%
EBIT growth 3Y40.12%
EBIT growth 5Y19.32%
EBIT Next Year95.22%
EBIT Next 3Y31.72%
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%