INTERNATIONAL GAME TECHNOLOG (IGT) Stock Fundamental Analysis
NYSE:IGT - New York Stock Exchange, Inc. - GB00BVG7F061 - Common Stock - Currency: USD
IGT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. IGT has an average financial health and profitability rating. IGT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
IGT had positive earnings in the past year.
In the past year IGT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: IGT reported negative net income in multiple years.
In the past 5 years IGT always reported a positive cash flow from operatings.
1.2 Ratios
IGT has a Return On Assets of 1.20%. This is comparable to the rest of the industry: IGT outperforms 42.75% of its industry peers.
With a decent Return On Equity value of 8.30%, IGT is doing good in the industry, outperforming 64.12% of the companies in the same industry.
IGT's Return On Invested Capital of 7.49% is in line compared to the rest of the industry. IGT outperforms 58.78% of its industry peers.
IGT had an Average Return On Invested Capital over the past 3 years of 6.39%. This is below the industry average of 10.79%.
The 3 year average ROIC (6.39%) for IGT is below the current ROIC(7.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.2% | ||
| ROE | 8.3% | ||
| ROIC | 7.49% |
ROA(3y)2.79%
ROA(5y)0.27%
ROE(3y)22.55%
ROE(5y)-9.81%
ROIC(3y)6.39%
ROIC(5y)4.72%
1.3 Margins
With a Profit Margin value of 3.21%, IGT perfoms like the industry average, outperforming 49.62% of the companies in the same industry.
With an excellent Operating Margin value of 25.33%, IGT belongs to the best of the industry, outperforming 88.55% of the companies in the same industry.
In the last couple of years the Operating Margin of IGT has grown nicely.
IGT has a Gross Margin (48.19%) which is in line with its industry peers.
IGT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.33% | ||
| PM (TTM) | 3.21% | ||
| GM | 48.19% |
OM growth 3Y47.57%
OM growth 5Y9.59%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.27%
GM growth 5Y2.53%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so IGT is still creating some value.
IGT has more shares outstanding than it did 1 year ago.
IGT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, IGT has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.23, we must say that IGT is in the distress zone and has some risk of bankruptcy.
IGT has a Altman-Z score of 1.23. This is in the lower half of the industry: IGT underperforms 61.83% of its industry peers.
The Debt to FCF ratio of IGT is 6.14, which is on the high side as it means it would take IGT, 6.14 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.14, IGT is doing good in the industry, outperforming 70.99% of the companies in the same industry.
A Debt/Equity ratio of 3.67 is on the high side and indicates that IGT has dependencies on debt financing.
IGT has a Debt to Equity ratio of 3.67. This is comparable to the rest of the industry: IGT outperforms 44.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.67 | ||
| Debt/FCF | 6.14 | ||
| Altman-Z | 1.23 |
ROIC/WACC1.37
WACC5.47%
2.3 Liquidity
A Current Ratio of 2.36 indicates that IGT has no problem at all paying its short term obligations.
IGT has a Current ratio of 2.36. This is amongst the best in the industry. IGT outperforms 90.08% of its industry peers.
A Quick Ratio of 2.31 indicates that IGT has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.31, IGT belongs to the top of the industry, outperforming 90.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 2.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 150.00% over the past year.
IGT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.77% yearly.
Looking at the last year, IGT shows a very negative growth in Revenue. The Revenue has decreased by -10.30% in the last year.
IGT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.60% yearly.
EPS 1Y (TTM)150%
EPS 3YN/A
EPS 5Y6.77%
EPS Q2Q%-91.3%
Revenue 1Y (TTM)-10.3%
Revenue growth 3Y11.43%
Revenue growth 5Y1.6%
Sales Q2Q%-44.88%
3.2 Future
Based on estimates for the next years, IGT will show a decrease in Earnings Per Share. The EPS will decrease by -0.89% on average per year.
IGT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.91% yearly.
EPS Next Y-26.03%
EPS Next 2Y-9.11%
EPS Next 3Y-0.89%
EPS Next 5YN/A
Revenue Next Year-41.25%
Revenue Next 2Y-22.84%
Revenue Next 3Y-15.6%
Revenue Next 5Y3.91%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.96 indicates a correct valuation of IGT.
83.21% of the companies in the same industry are more expensive than IGT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of IGT to the average of the S&P500 Index (29.63), we can say IGT is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.98, IGT is valued correctly.
Based on the Price/Forward Earnings ratio, IGT is valued a bit cheaper than 77.86% of the companies in the same industry.
IGT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 15.98 |
4.2 Price Multiples
87.02% of the companies in the same industry are more expensive than IGT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, IGT is valued cheaper than 99.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.94 | ||
| EV/EBITDA | 7.03 |
4.3 Compensation for Growth
IGT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.21
EPS Next 2Y-9.11%
EPS Next 3Y-0.89%
5. Dividend
5.1 Amount
IGT has a Yearly Dividend Yield of 4.40%, which is a nice return.
IGT's Dividend Yield is rather good when compared to the industry average which is at 3.06. IGT pays more dividend than 93.13% of the companies in the same industry.
IGT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
5.2 History
IGT has been paying a dividend for at least 10 years, so it has a reliable track record.
IGT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
130.89% of the earnings are spent on dividend by IGT. This is not a sustainable payout ratio.
The Dividend Rate of IGT has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP130.89%
EPS Next 2Y-9.11%
EPS Next 3Y-0.89%
17.95
-0.25 (-1.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners46.69%
Inst Owner Change2.94%
Ins Owners1.13%
Ins Owner Change0%
Market Cap3.63B
Analysts76.36
Price Target26.01 (44.9%)
Short Float %2.49%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
Yearly Dividend0.8
Dividend Growth(5Y)0%
DP130.89%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-59.2%
Min EPS beat(2)-80.94%
Max EPS beat(2)-37.47%
EPS beat(4)2
Avg EPS beat(4)-3.48%
Min EPS beat(4)-80.94%
Max EPS beat(4)70.34%
EPS beat(8)3
Avg EPS beat(8)-39.18%
EPS beat(12)7
Avg EPS beat(12)5.8%
EPS beat(16)10
Avg EPS beat(16)59.64%
Revenue beat(2)0
Avg Revenue beat(2)-1.85%
Min Revenue beat(2)-1.96%
Max Revenue beat(2)-1.74%
Revenue beat(4)2
Avg Revenue beat(4)-0.03%
Min Revenue beat(4)-1.96%
Max Revenue beat(4)2.6%
Revenue beat(8)6
Avg Revenue beat(8)1.39%
Revenue beat(12)9
Avg Revenue beat(12)1.32%
Revenue beat(16)11
Avg Revenue beat(16)0.08%
PT rev (1m)-6.05%
PT rev (3m)-7.75%
EPS NQ rev (1m)8.73%
EPS NQ rev (3m)16.46%
EPS NY rev (1m)14.95%
EPS NY rev (3m)-7.35%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)-43.47%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 15.98 | ||
| P/S | 0.95 | ||
| P/FCF | 3.94 | ||
| P/OCF | 3.23 | ||
| P/B | 2.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.03 |
EPS(TTM)1.2
EY6.69%
EPS(NY)1.12
Fwd EY6.26%
FCF(TTM)4.56
FCFY25.4%
OCF(TTM)5.56
OCFY30.97%
SpS18.98
BVpS7.34
TBVpS-6.33
PEG (NY)N/A
PEG (5Y)2.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.2% | ||
| ROE | 8.3% | ||
| ROCE | 12.63% | ||
| ROIC | 7.49% | ||
| ROICexc | 8.01% | ||
| ROICexgc | 12.98% | ||
| OM | 25.33% | ||
| PM (TTM) | 3.21% | ||
| GM | 48.19% | ||
| FCFM | 24.03% |
ROA(3y)2.79%
ROA(5y)0.27%
ROE(3y)22.55%
ROE(5y)-9.81%
ROIC(3y)6.39%
ROIC(5y)4.72%
ROICexc(3y)6.84%
ROICexc(5y)5.05%
ROICexgc(3y)24.61%
ROICexgc(5y)17.76%
ROCE(3y)10.76%
ROCE(5y)7.94%
ROICexcg growth 3Y87.17%
ROICexcg growth 5Y24.75%
ROICexc growth 3Y72.38%
ROICexc growth 5Y18.95%
OM growth 3Y47.57%
OM growth 5Y9.59%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.27%
GM growth 5Y2.53%
F-Score5
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.67 | ||
| Debt/FCF | 6.14 | ||
| Debt/EBITDA | 4.34 | ||
| Cap/Depr | 71.89% | ||
| Cap/Sales | 5.27% | ||
| Interest Coverage | 3.71 | ||
| Cash Conversion | 89.7% | ||
| Profit Quality | 748.78% | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 2.31 | ||
| Altman-Z | 1.23 |
F-Score5
WACC5.47%
ROIC/WACC1.37
Cap/Depr(3y)61.99%
Cap/Depr(5y)58.58%
Cap/Sales(3y)7.53%
Cap/Sales(5y)8.34%
Profit Quality(3y)258.69%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)150%
EPS 3YN/A
EPS 5Y6.77%
EPS Q2Q%-91.3%
EPS Next Y-26.03%
EPS Next 2Y-9.11%
EPS Next 3Y-0.89%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.3%
Revenue growth 3Y11.43%
Revenue growth 5Y1.6%
Sales Q2Q%-44.88%
Revenue Next Year-41.25%
Revenue Next 2Y-22.84%
Revenue Next 3Y-15.6%
Revenue Next 5Y3.91%
EBIT growth 1Y-1.12%
EBIT growth 3Y64.43%
EBIT growth 5Y11.35%
EBIT Next Year17.94%
EBIT Next 3Y7.01%
EBIT Next 5Y15.2%
FCF growth 1Y27.74%
FCF growth 3Y1.62%
FCF growth 5YN/A
OCF growth 1Y10.42%
OCF growth 3Y6.31%
OCF growth 5Y103.77%