LIGHT & WONDER INC (LNW) Stock Fundamental Analysis
USA - NASDAQ:LNW - US80874P1093 - Common Stock
86.22 USD
-3.33 (-3.72%)
90.84 USD
+4.62 (+5.36%)
Overall LNW gets a fundamental rating of 6 out of 10. We evaluated LNW against 132 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 may be a bit undervalued, certainly considering the very reasonable score on growth This makes LNW very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year LNW was profitable.
In the past year LNW had a positive cash flow from operations.
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
LNW's Return On Assets of 6.13% is fine compared to the rest of the industry. LNW outperforms 73.48% of its industry peers.
Looking at the Return On Equity, with a value of 55.19%, LNW belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
LNW has a better Return On Invested Capital (11.81%) than 76.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LNW is in line with the industry average of 10.59%.
The 3 year average ROIC (10.25%) for LNW is below the current ROIC(11.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.13% | ||
| ROE | 55.19% | ||
| ROIC | 11.81% |
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 12.39%. This is amongst the best in the industry. LNW outperforms 81.06% of its industry peers.
In the last couple of years the Profit Margin of LNW has declined.
LNW's Operating Margin of 25.77% is amongst the best of the industry. LNW outperforms 90.15% of its industry peers.
LNW's Operating Margin has improved in the last couple of years.
LNW has a Gross Margin of 72.74%. This is amongst the best in the industry. LNW outperforms 88.64% of its industry peers.
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 | 25.77% | ||
| PM (TTM) | 12.39% | ||
| GM | 72.74% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LNW is 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.
Compared to 1 year ago, LNW has a worse debt to assets ratio.
2.2 Solvency
LNW has an Altman-Z score of 2.08. 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 (2.08) is comparable to the rest of the industry.
LNW has a debt to FCF ratio of 12.70. This is a negative value and a sign of low solvency as LNW would need 12.70 years to pay back of all of its debts.
LNW has a Debt to FCF ratio of 12.70. This is comparable to the rest of the industry: LNW outperforms 52.27% of its industry peers.
A Debt/Equity ratio of 6.77 is on the high side and indicates that LNW has dependencies on debt financing.
LNW has a worse Debt to Equity ratio (6.77) than 64.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.77 | ||
| Debt/FCF | 12.7 | ||
| Altman-Z | 2.08 |
ROIC/WACC1.4
WACC8.44%
2.3 Liquidity
LNW has a Current Ratio of 2.13. This indicates that LNW is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.13, LNW belongs to the best of the industry, outperforming 89.39% of the companies in the same industry.
LNW has a Quick Ratio of 1.85. This is a normal value and indicates that LNW is financially healthy and should not expect problems in meeting its short term obligations.
LNW has a better Quick ratio (1.85) than 84.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
LNW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.55%, which is quite impressive.
Measured over the past 5 years, LNW shows a small growth in Earnings Per Share. The EPS has been growing by 5.53% on average per year.
Looking at the last year, LNW shows a small growth in Revenue. The Revenue has grown by 1.87% in the last 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)42.55%
EPS 3Y5.53%
EPS 5YN/A
EPS Q2Q%88.73%
Revenue 1Y (TTM)1.87%
Revenue growth 3Y13.98%
Revenue growth 5Y5.95%
Sales Q2Q%2.94%
3.2 Future
The Earnings Per Share is expected to grow by 21.44% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 5.29% on average over the next years.
EPS Next Y52.71%
EPS Next 2Y38.2%
EPS Next 3Y33.93%
EPS Next 5Y21.44%
Revenue Next Year6.25%
Revenue Next 2Y6.93%
Revenue Next 3Y6.52%
Revenue Next 5Y5.29%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.78, LNW is valued on the expensive side.
68.94% of the companies in the same industry are more expensive than LNW, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.51. LNW is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.23, which indicates a correct valuation of LNW.
Based on the Price/Forward Earnings ratio, LNW is valued cheaper than 80.30% of the companies in the same industry.
LNW is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.78 | ||
| Fwd PE | 12.23 |
4.2 Price Multiples
62.88% of the companies in the same industry are more expensive than LNW, based on the Enterprise Value to EBITDA ratio.
74.24% of the companies in the same industry are more expensive than LNW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.61 | ||
| EV/EBITDA | 10.03 |
4.3 Compensation for Growth
LNW's 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 33.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y38.2%
EPS Next 3Y33.93%
5. Dividend
5.1 Amount
No dividends for LNW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
86.22
-3.33 (-3.72%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners64.73%
Inst Owner ChangeN/A
Ins Owners0.57%
Ins Owner Change4.68%
Market Cap7.24B
Revenue(TTM)3.22B
Net Income(TTM)399.00M
Analysts75.56
Price Target106.22 (23.2%)
Short Float %8.07%
Short Ratio3.1
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)-13.07%
Min EPS beat(2)-22.6%
Max EPS beat(2)-3.54%
EPS beat(4)1
Avg EPS beat(4)-4.66%
Min EPS beat(4)-22.6%
Max EPS beat(4)25.54%
EPS beat(8)3
Avg EPS beat(8)-3.31%
EPS beat(12)4
Avg EPS beat(12)-6.12%
EPS beat(16)8
Avg EPS beat(16)3604.41%
Revenue beat(2)0
Avg Revenue beat(2)-5.49%
Min Revenue beat(2)-6.52%
Max Revenue beat(2)-4.46%
Revenue beat(4)0
Avg Revenue beat(4)-4.26%
Min Revenue beat(4)-6.52%
Max Revenue beat(4)-1.11%
Revenue beat(8)3
Avg Revenue beat(8)-1.41%
Revenue beat(12)7
Avg Revenue beat(12)0.4%
Revenue beat(16)11
Avg Revenue beat(16)0.74%
PT rev (1m)-1.24%
PT rev (3m)-5.81%
EPS NQ rev (1m)-6.44%
EPS NQ rev (3m)-5.11%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)-2.82%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.78 | ||
| Fwd PE | 12.23 | ||
| P/S | 2.25 | ||
| P/FCF | 18.61 | ||
| P/OCF | 10.69 | ||
| P/B | 10.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.03 |
EPS(TTM)4.59
EY5.32%
EPS(NY)7.05
Fwd EY8.17%
FCF(TTM)4.63
FCFY5.37%
OCF(TTM)8.06
OCFY9.35%
SpS38.37
BVpS8.61
TBVpS-43.64
PEG (NY)0.36
PEG (5Y)N/A
Graham Number29.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.13% | ||
| ROE | 55.19% | ||
| ROCE | 14.1% | ||
| ROIC | 11.81% | ||
| ROICexc | 12.31% | ||
| ROICexgc | 54.99% | ||
| OM | 25.77% | ||
| PM (TTM) | 12.39% | ||
| GM | 72.74% | ||
| FCFM | 12.08% |
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
ROICexgc growth 3Y87.73%
ROICexgc 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-Score7
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.77 | ||
| Debt/FCF | 12.7 | ||
| Debt/EBITDA | 4.11 | ||
| Cap/Depr | 79.78% | ||
| Cap/Sales | 8.94% | ||
| Interest Coverage | 2.73 | ||
| Cash Conversion | 56.84% | ||
| Profit Quality | 97.49% | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.85 | ||
| Altman-Z | 2.08 |
F-Score7
WACC8.44%
ROIC/WACC1.4
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)42.55%
EPS 3Y5.53%
EPS 5YN/A
EPS Q2Q%88.73%
EPS Next Y52.71%
EPS Next 2Y38.2%
EPS Next 3Y33.93%
EPS Next 5Y21.44%
Revenue 1Y (TTM)1.87%
Revenue growth 3Y13.98%
Revenue growth 5Y5.95%
Sales Q2Q%2.94%
Revenue Next Year6.25%
Revenue Next 2Y6.93%
Revenue Next 3Y6.52%
Revenue Next 5Y5.29%
EBIT growth 1Y9.07%
EBIT growth 3Y40.12%
EBIT growth 5Y19.32%
EBIT Next Year97.12%
EBIT Next 3Y33.14%
EBIT Next 5Y18.21%
FCF growth 1Y305.21%
FCF growth 3Y-13.04%
FCF growth 5Y5.31%
OCF growth 1Y101.49%
OCF growth 3Y-2.65%
OCF growth 5Y2.97%
LIGHT & WONDER INC / LNW FAQ
What is the fundamental rating for LNW stock?
ChartMill assigns a fundamental rating of 6 / 10 to LNW.
What is the valuation status for LNW stock?
ChartMill assigns a valuation rating of 7 / 10 to LIGHT & WONDER INC (LNW). This can be considered as Undervalued.
Can you provide the profitability details for LIGHT & WONDER INC?
LIGHT & WONDER INC (LNW) has a profitability rating of 7 / 10.
What is the valuation of LIGHT & WONDER INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LIGHT & WONDER INC (LNW) is 18.78 and the Price/Book (PB) ratio is 10.01.
What is the financial health of LIGHT & WONDER INC (LNW) stock?
The financial health rating of LIGHT & WONDER INC (LNW) is 5 / 10.