INTERNATIONAL GAME TECHNOLOG (IGT) Stock Fundamental Analysis
NYSE:IGT - New York Stock Exchange, Inc. - GB00BVG7F061 - Common Stock - Currency: USD
Overall IGT gets a fundamental rating of 6 out of 10. We evaluated IGT against 133 industry peers in the Hotels, Restaurants & Leisure industry. IGT has only an average score on both its financial health and profitability. IGT has a bad growth rate and is valued cheaply. This makes IGT very considerable for value investing!
1. Profitability
1.1 Basic Checks
IGT had positive earnings in the past year.
IGT had a positive operating cash flow in the past year.
Of the past 5 years IGT 4 years were profitable.
Each year in the past 5 years IGT had a positive operating cash flow.
1.2 Ratios
IGT's Return On Assets of 2.83% is in line compared to the rest of the industry. IGT outperforms 55.64% of its industry peers.
The Return On Equity of IGT (17.85%) is better than 76.69% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.27%, IGT is in the better half of the industry, outperforming 60.90% of the companies in the same industry.
IGT had an Average Return On Invested Capital over the past 3 years of 7.65%. This is significantly below the industry average of 13.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 17.85% | ||
| ROIC | 7.27% |
ROA(3y)2.5%
ROA(5y)0.97%
ROE(3y)17.02%
ROE(5y)-5.38%
ROIC(3y)7.65%
ROIC(5y)6.46%
1.3 Margins
Looking at the Profit Margin, with a value of 10.21%, IGT is in the better half of the industry, outperforming 75.94% of the companies in the same industry.
In the last couple of years the Profit Margin of IGT has grown nicely.
The Operating Margin of IGT (25.12%) is better than 89.47% of its industry peers.
In the last couple of years the Operating Margin of IGT has grown nicely.
IGT has a Gross Margin (45.71%) which is comparable to the rest of the industry.
IGT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.12% | ||
| PM (TTM) | 10.21% | ||
| GM | 45.71% |
OM growth 3Y9.13%
OM growth 5Y15.18%
PM growth 3Y5.43%
PM growth 5YN/A
GM growth 3Y-0.98%
GM growth 5Y2.02%
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.
The number of shares outstanding for IGT has been increased compared to 1 year ago.
The number of shares outstanding for IGT has been reduced compared to 5 years ago.
IGT has a better debt/assets ratio than last year.
2.2 Solvency
IGT has a debt to FCF ratio of 5.72. This is a neutral value as IGT would need 5.72 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.72, IGT is in the better half of the industry, outperforming 78.20% of the companies in the same industry.
A Debt/Equity ratio of 3.33 is on the high side and indicates that IGT has dependencies on debt financing.
With a Debt to Equity ratio value of 3.33, IGT perfoms like the industry average, outperforming 44.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.33 | ||
| Debt/FCF | 5.72 | ||
| Altman-Z | N/A |
ROIC/WACC1.28
WACC5.69%
2.3 Liquidity
IGT has a Current Ratio of 2.48. This indicates that IGT is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.48, IGT belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
A Quick Ratio of 2.43 indicates that IGT has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.43, IGT belongs to the top of the industry, outperforming 90.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.48 | ||
| Quick Ratio | 2.43 |
3. Growth
3.1 Past
IGT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.73%.
Measured over the past years, IGT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.63% on average per year.
Looking at the last year, IGT shows a very negative growth in Revenue. The Revenue has decreased by -33.52% in the last year.
IGT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -9.03% yearly.
EPS 1Y (TTM)-12.73%
EPS 3Y-21.54%
EPS 5Y9.63%
EPS Q2Q%-67.5%
Revenue 1Y (TTM)-33.52%
Revenue growth 3Y-14.99%
Revenue growth 5Y-9.03%
Sales Q2Q%-45.36%
3.2 Future
The Earnings Per Share is expected to decrease by -10.95% on average over the next years. This is quite bad
The Revenue is expected to grow by 16.47% on average over the next years. This is quite good.
EPS Next Y-46.15%
EPS Next 2Y-9.58%
EPS Next 3Y-10.95%
EPS Next 5YN/A
Revenue Next Year0.75%
Revenue Next 2Y1.07%
Revenue Next 3Y1.36%
Revenue Next 5Y16.47%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.31 indicates a reasonable valuation of IGT.
Based on the Price/Earnings ratio, IGT is valued cheaply inside the industry as 93.98% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.21. IGT is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.65, which indicates a very decent valuation of IGT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IGT indicates a rather cheap valuation: IGT is cheaper than 83.46% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, IGT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.31 | ||
| Fwd PE | 11.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IGT is valued a bit cheaper than the industry average as 70.68% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, IGT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.31 | ||
| EV/EBITDA | 9.66 |
4.3 Compensation for Growth
The decent profitability rating of IGT may justify a higher PE ratio.
A cheap valuation may be justified as IGT's earnings are expected to decrease with -10.95% in the coming years.
PEG (NY)N/A
PEG (5Y)1.18
EPS Next 2Y-9.58%
EPS Next 3Y-10.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.15%, IGT is a good candidate for dividend investing.
IGT's Dividend Yield is rather good when compared to the industry average which is at 3.71. IGT pays more dividend than 93.23% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, IGT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
5.2 History
The dividend of IGT decreases each year by -0.01%.
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)-0.01%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
IGT pays out 68.60% of its income as dividend. 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.
DP68.6%
EPS Next 2Y-9.58%
EPS Next 3Y-10.95%
16.29
+0.48 (+3.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners49.98%
Inst Owner Change7.05%
Ins Owners1.54%
Ins Owner Change0%
Market Cap3.29B
Analysts72.73
Price Target19.57 (20.14%)
Short Float %5.07%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
Yearly Dividend0.8
Dividend Growth(5Y)-0.01%
DP68.6%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)98.59%
Min EPS beat(2)12.91%
Max EPS beat(2)184.28%
EPS beat(4)2
Avg EPS beat(4)19.69%
Min EPS beat(4)-80.94%
Max EPS beat(4)184.28%
EPS beat(8)5
Avg EPS beat(8)20.76%
EPS beat(12)7
Avg EPS beat(12)0.06%
EPS beat(16)11
Avg EPS beat(16)38.21%
Revenue beat(2)0
Avg Revenue beat(2)-5.04%
Min Revenue beat(2)-8.06%
Max Revenue beat(2)-2.02%
Revenue beat(4)0
Avg Revenue beat(4)-3.45%
Min Revenue beat(4)-8.06%
Max Revenue beat(4)-1.74%
Revenue beat(8)4
Avg Revenue beat(8)-0.78%
Revenue beat(12)7
Avg Revenue beat(12)0.25%
Revenue beat(16)10
Avg Revenue beat(16)1.02%
PT rev (1m)-12.8%
PT rev (3m)-18.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-39.53%
EPS NY rev (1m)12.27%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.31 | ||
| Fwd PE | 11.65 | ||
| P/S | 1.15 | ||
| P/FCF | 3.31 | ||
| P/OCF | 2.9 | ||
| P/B | 2.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.66 |
EPS(TTM)1.44
EY8.84%
EPS(NY)1.4
Fwd EY8.58%
FCF(TTM)4.92
FCFY30.18%
OCF(TTM)5.61
OCFY34.46%
SpS14.21
BVpS8.12
TBVpS-5.51
PEG (NY)N/A
PEG (5Y)1.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 17.85% | ||
| ROCE | 9.21% | ||
| ROIC | 7.27% | ||
| ROICexc | 7.91% | ||
| ROICexgc | 12.81% | ||
| OM | 25.12% | ||
| PM (TTM) | 10.21% | ||
| GM | 45.71% | ||
| FCFM | 34.6% |
ROA(3y)2.5%
ROA(5y)0.97%
ROE(3y)17.02%
ROE(5y)-5.38%
ROIC(3y)7.65%
ROIC(5y)6.46%
ROICexc(3y)8.23%
ROICexc(5y)6.95%
ROICexgc(3y)25.25%
ROICexgc(5y)21.43%
ROCE(3y)9.69%
ROCE(5y)8.2%
ROICexcg growth 3Y-19.39%
ROICexcg growth 5Y-0.9%
ROICexc growth 3Y0.35%
ROICexc growth 5Y13.64%
OM growth 3Y9.13%
OM growth 5Y15.18%
PM growth 3Y5.43%
PM growth 5YN/A
GM growth 3Y-0.98%
GM growth 5Y2.02%
F-Score5
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.33 | ||
| Debt/FCF | 5.72 | ||
| Debt/EBITDA | 6.4 | ||
| Cap/Depr | 106.82% | ||
| Cap/Sales | 4.91% | ||
| Interest Coverage | 3.76 | ||
| Cash Conversion | 132.94% | ||
| Profit Quality | 338.91% | ||
| Current Ratio | 2.48 | ||
| Quick Ratio | 2.43 | ||
| Altman-Z | N/A |
F-Score5
WACC5.69%
ROIC/WACC1.28
Cap/Depr(3y)71.25%
Cap/Depr(5y)60.8%
Cap/Sales(3y)9.74%
Cap/Sales(5y)8.64%
Profit Quality(3y)292.14%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-12.73%
EPS 3Y-21.54%
EPS 5Y9.63%
EPS Q2Q%-67.5%
EPS Next Y-46.15%
EPS Next 2Y-9.58%
EPS Next 3Y-10.95%
EPS Next 5YN/A
Revenue 1Y (TTM)-33.52%
Revenue growth 3Y-14.99%
Revenue growth 5Y-9.03%
Sales Q2Q%-45.36%
Revenue Next Year0.75%
Revenue Next 2Y1.07%
Revenue Next 3Y1.36%
Revenue Next 5Y16.47%
EBIT growth 1Y-31.79%
EBIT growth 3Y-7.23%
EBIT growth 5Y4.78%
EBIT Next Year61.74%
EBIT Next 3Y20.59%
EBIT Next 5Y25.02%
FCF growth 1Y45.39%
FCF growth 3Y5.99%
FCF growth 5Y6.24%
OCF growth 1Y11.07%
OCF growth 3Y1.74%
OCF growth 5Y-1.18%