LIGHT & WONDER INC (LNW) Stock Fundamental Analysis
USA - NASDAQ:LNW - US80874P1093 - Common Stock
89.07 USD
+0.64 (+0.72%)
89.07 USD
0 (0%)
LNW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 134 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 not valued too expensively and it also shows a decent growth rate.
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
Looking at the Return On Assets, with a value of 5.38%, LNW is in the better half of the industry, outperforming 71.64% of the companies in the same industry.
LNW's Return On Equity of 49.72% is amongst the best of the industry. LNW outperforms 94.03% of its industry peers.
With a decent Return On Invested Capital value of 11.43%, LNW is doing good in the industry, outperforming 76.12% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LNW is significantly below the industry average of 15.68%.
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 Profit Margin of 10.92%. This is in the better half of the industry: LNW outperforms 79.10% of its industry peers.
In the last couple of years the Profit Margin of LNW has declined.
Looking at the Operating Margin, with a value of 24.71%, LNW belongs to the top of the industry, outperforming 88.81% of the companies in the same industry.
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 85.82% 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.
The debt/assets ratio for LNW is higher compared to a year ago.
2.2 Solvency
LNW has an Altman-Z score of 2.02. 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 (2.02) 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.
Looking at the Debt to FCF ratio, with a value of 14.67, LNW is in line with its industry, outperforming 48.51% 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.
LNW's Debt to Equity ratio of 6.86 is on the low side compared to the rest of the industry. LNW is outperformed by 64.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.86 | ||
| Debt/FCF | 14.67 | ||
| Altman-Z | 2.02 |
ROIC/WACC1.23
WACC9.28%
2.3 Liquidity
A Current Ratio of 1.77 indicates that LNW should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.77, LNW belongs to the best of the industry, outperforming 80.60% 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.
The Quick ratio of LNW (1.51) is better than 77.61% 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.
LNW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.53% yearly.
The Revenue has been growing slightly by 3.93% in the past 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
LNW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.44% yearly.
LNW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.85% yearly.
EPS Next Y56.09%
EPS Next 2Y39.82%
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
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
A Price/Earnings ratio of 22.49 indicates a rather expensive valuation of LNW.
66.42% of the companies in the same industry are more expensive than LNW, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.30, LNW is valued at the same level.
Based on the Price/Forward Earnings ratio of 12.35, the valuation of LNW can be described as correct.
82.84% of the companies in the same industry are more expensive than LNW, based on the Price/Forward Earnings ratio.
LNW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.49 | ||
| Fwd PE | 12.35 |
4.2 Price Multiples
65.67% of the companies in the same industry are more expensive than LNW, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LNW is valued a bit cheaper than 74.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.59 | ||
| EV/EBITDA | 10.55 |
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.
LNW has a very decent profitability rating, which 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 2Y39.82%
EPS Next 3Y33.77%
5. Dividend
5.1 Amount
LNW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
89.07
+0.64 (+0.72%)
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 Change8.18%
Market Cap7.48B
Analysts75.79
Price Target107.55 (20.75%)
Short Float %5.55%
Short Ratio4.43
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)-4.62%
PT rev (3m)-3.25%
EPS NQ rev (1m)-14.33%
EPS NQ rev (3m)-6.71%
EPS NY rev (1m)-0.67%
EPS NY rev (3m)1.75%
Revenue NQ rev (1m)-2.79%
Revenue NQ rev (3m)-1.17%
Revenue NY rev (1m)-1.24%
Revenue NY rev (3m)-0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.49 | ||
| Fwd PE | 12.35 | ||
| P/S | 2.34 | ||
| P/FCF | 22.59 | ||
| P/OCF | 12.24 | ||
| P/B | 10.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.55 |
EPS(TTM)3.96
EY4.45%
EPS(NY)7.21
Fwd EY8.1%
FCF(TTM)3.94
FCFY4.43%
OCF(TTM)7.28
OCFY8.17%
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 | 2.02 |
F-Score5
WACC9.28%
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 Y56.09%
EPS Next 2Y39.82%
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 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%