INTERNATIONAL GAME TECHNOLOG (IGT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IGT - GB00BVG7F061 - Common Stock
16.29 USD
+0.48 (+3.04%)
16.29 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to IGT. IGT was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of IGT get a neutral evaluation. Nothing too spectacular is happening here. IGT is cheap, but on the other hand it scores bad on growth. With these ratings, IGT could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year IGT was profitable.
In the past year IGT had a positive cash flow from operations.
IGT had positive earnings in 4 of the past 5 years.
IGT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IGT's Return On Assets of 2.83% is in line compared to the rest of the industry. IGT outperforms 55.56% of its industry peers.
IGT has a better Return On Equity (17.85%) than 76.30% of its industry peers.
IGT has a better Return On Invested Capital (7.27%) than 61.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IGT is below the industry average of 10.40%.
| 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
The Profit Margin of IGT (10.21%) is better than 75.56% of its industry peers.
IGT's Profit Margin has improved in the last couple of years.
IGT has a better Operating Margin (25.12%) than 89.63% 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.
In the last couple of years the Gross Margin of IGT has grown nicely.
| 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
IGT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
IGT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, IGT has less shares outstanding
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.
The Debt to FCF ratio of IGT (5.72) is better than 78.52% of its industry peers.
IGT has a Debt/Equity ratio of 3.33. This is a high value indicating a heavy dependency on external financing.
IGT has a Debt to Equity ratio (3.33) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.33 | ||
| Debt/FCF | 5.72 | ||
| Altman-Z | N/A |
ROIC/WACC1.29
WACC5.65%
2.3 Liquidity
A Current Ratio of 2.48 indicates that IGT has no problem at all paying its short term obligations.
IGT has a Current ratio of 2.48. This is amongst the best in the industry. IGT outperforms 90.37% of its industry peers.
IGT has a Quick Ratio of 2.43. This indicates that IGT is financially healthy and has no problem in meeting its short term obligations.
IGT has a better Quick ratio (2.43) than 91.11% of its industry peers.
| 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%.
IGT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.63% yearly.
Looking at the last year, IGT shows a very negative growth in Revenue. The Revenue has decreased by -33.52% in the last year.
The Revenue has been decreasing by -9.03% on average over the past years.
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
Based on estimates for the next years, IGT will show a very negative growth in Earnings Per Share. The EPS will decrease by -10.95% on average per year.
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
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
IGT is valuated reasonably with a Price/Earnings ratio of 11.31.
Based on the Price/Earnings ratio, IGT is valued cheaper than 93.33% of the companies in the same industry.
IGT is valuated cheaply when we compare the Price/Earnings ratio to 26.26, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.65, the valuation of IGT can be described as very reasonable.
Based on the Price/Forward Earnings ratio, IGT is valued cheaper than 85.19% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.68, IGT is valued rather cheaply.
| 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 71.85% of the companies in the same industry.
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 | 9.78 |
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
IGT has a Yearly Dividend Yield of 4.91%, which is a nice return.
Compared to an average industry Dividend Yield of 1.48, IGT pays a better dividend. On top of this IGT pays more dividend than 94.07% of the companies listed in the same industry.
IGT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.91% |
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
68.60% 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.
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 OwnersN/A
Inst Owner Change-10.86%
Ins OwnersN/A
Ins Owner Change0%
Market Cap3.29B
Revenue(TTM)2.87B
Net Income(TTM)293.00M
Analysts72.73
Price Target19.57 (20.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.91% |
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)-2.46%
PT rev (3m)-18.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-40.58%
EPS NY rev (1m)12.27%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.04%
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 | 9.78 |
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
Graham NumberN/A
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%
ROICexgc growth 3Y-19.39%
ROICexgc 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
WACC5.65%
ROIC/WACC1.29
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%
INTERNATIONAL GAME TECHNOLOG / IGT FAQ
What is the fundamental rating for IGT stock?
ChartMill assigns a fundamental rating of 6 / 10 to IGT.
Can you provide the valuation status for INTERNATIONAL GAME TECHNOLOG?
ChartMill assigns a valuation rating of 7 / 10 to INTERNATIONAL GAME TECHNOLOG (IGT). This can be considered as Undervalued.
What is the profitability of IGT stock?
INTERNATIONAL GAME TECHNOLOG (IGT) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for IGT stock?
The Earnings per Share (EPS) of INTERNATIONAL GAME TECHNOLOG (IGT) is expected to decline by -46.15% in the next year.
Can you provide the dividend sustainability for IGT stock?
The dividend rating of INTERNATIONAL GAME TECHNOLOG (IGT) is 6 / 10 and the dividend payout ratio is 68.6%.