SCIENTIFIC GAMES CORP (SGMS) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:SGMS • US80874P1093

58.07
+1.32 (+2.33%)
At close: Apr 28, 2022
58.07
0 (0%)
After Hours: 4/28/2022, 8:26:43 PM
Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to SGMS. SGMS was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. SGMS has a bad profitability rating. Also its financial health evaluation is rather negative. SGMS is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

0

1. Profitability

1.1 Basic Checks

  • In the past year SGMS was profitable.
SGMS Yearly Net Income VS EBIT VS OCF VS FCFSGMS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 0 200M -200M 400M -400M 600M

1.2 Ratios

Industry RankSector Rank
ROA 4.52%
ROE N/A
ROIC N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
SGMS Yearly ROA, ROE, ROICSGMS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 0 10 -10 20

1.3 Margins

Industry RankSector Rank
OM 13.15%
PM (TTM) 12.35%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
SGMS Yearly Profit, Operating, Gross MarginsSGMS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 0 20 -20 40 60

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2

2. Health

2.1 Basic Checks

  • SGMS has more shares outstanding than it did 1 year ago.
  • SGMS has a better debt/assets ratio than last year.
SGMS Yearly Shares OutstandingSGMS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 20M 40M 60M 80M
SGMS Yearly Total Debt VS Total AssetsSGMS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2B 4B 6B 8B

2.2 Solvency

  • Based on the Altman-Z score of 0.37, we must say that SGMS is in the distress zone and has some risk of bankruptcy.
  • A Debt/Equity ratio of -3.83 indicates that SGMS is not too dependend on debt financing.
Industry RankSector Rank
Debt/Equity -3.83
Debt/FCF N/A
Altman-Z 0.37
ROIC/WACCN/A
WACCN/A
SGMS Yearly LT Debt VS Equity VS FCFSGMS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 0 2B -2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 1.78 indicates that SGMS should not have too much problems paying its short term obligations.
  • SGMS has a Quick Ratio of 1.68. This is a normal value and indicates that SGMS is financially healthy and should not expect problems in meeting its short term obligations.
Industry RankSector Rank
Current Ratio 1.78
Quick Ratio 1.68
SGMS Yearly Current Assets VS Current LiabilitesSGMS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 500M 1B 1.5B 2B

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4

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 166.95% over the past year.
  • The Revenue has been growing slightly by 5.80% in the past year.
  • Measured over the past years, SGMS shows a decrease in Revenue. The Revenue has been decreasing by -5.67% on average per year.
EPS 1Y (TTM)166.95%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%200%
Revenue 1Y (TTM)5.8%
Revenue growth 3Y-13.82%
Revenue growth 5Y-5.67%
Sales Q2Q%-23.75%

3.2 Future

  • Based on estimates for the next years, SGMS will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.52% on average per year.
  • The Revenue is expected to grow by 0.78% on average over the next years.
EPS Next Y-61%
EPS Next 2Y-8.45%
EPS Next 3Y-7.2%
EPS Next 5Y13.52%
Revenue Next Year-10.08%
Revenue Next 2Y-0.9%
Revenue Next 3Y-0.83%
Revenue Next 5Y0.78%

3.3 Evolution

  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
SGMS Yearly Revenue VS EstimatesSGMS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B
SGMS Yearly EPS VS EstimatesSGMS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 5 -5 -10

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1

4. Valuation

4.1 Price/Earnings Ratio

  • SGMS is valuated rather expensively with a Price/Earnings ratio of 18.49.
  • The average S&P500 Price/Earnings ratio is at 28.39. SGMS is valued slightly cheaper when compared to this.
  • With a Price/Forward Earnings ratio of 47.42, SGMS can be considered very expensive at the moment.
  • SGMS's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.72.
Industry RankSector Rank
PE 18.49
Fwd PE 47.42
SGMS Price Earnings VS Forward Price EarningsSGMS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 17.68
SGMS Per share dataSGMS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 -20

4.3 Compensation for Growth

  • SGMS's earnings are expected to decrease with -7.20% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.45%
EPS Next 3Y-7.2%

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0

5. Dividend

5.1 Amount

  • No dividends for SGMS!.
Industry RankSector Rank
Dividend Yield N/A

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SCIENTIFIC GAMES CORP / SGMS FAQ

What is the fundamental rating for SGMS stock?

ChartMill assigns a fundamental rating of 5 / 10 to SGMS.


What is the valuation status for SGMS stock?

ChartMill assigns a valuation rating of 4 / 10 to SCIENTIFIC GAMES CORP (SGMS). This can be considered as Fairly Valued.


What is the profitability of SGMS stock?

SCIENTIFIC GAMES CORP (SGMS) has a profitability rating of 6 / 10.


What is the financial health of SCIENTIFIC GAMES CORP (SGMS) stock?

The financial health rating of SCIENTIFIC GAMES CORP (SGMS) is 6 / 10.


What is the earnings growth outlook for SCIENTIFIC GAMES CORP?

The Earnings per Share (EPS) of SCIENTIFIC GAMES CORP (SGMS) is expected to decline by -61% in the next year.