LIGHT & WONDER INC (LNW) Stock Fundamental Analysis
USA - NASDAQ:LNW - US80874P1093 - Common Stock
76.34 USD
+1.4 (+1.87%)
LNW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 134 industry peers in the Hotels, Restaurants & Leisure industry. LNW has an excellent profitability rating, but there are some minor concerns on its financial health. LNW may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
LNW had positive earnings in the past year.
LNW had a positive operating cash flow in the past year.
LNW had positive earnings in 4 of the past 5 years.
Of the past 5 years LNW 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.38%, LNW is in the better half of the industry, outperforming 70.90% of the companies in the same industry.
LNW's Return On Equity of 49.72% is amongst the best of the industry. LNW outperforms 93.28% of its industry peers.
LNW has a better Return On Invested Capital (11.43%) than 76.12% of its industry peers.
LNW had an Average Return On Invested Capital over the past 3 years of 10.25%. This is in line with the industry average of 10.67%.
The last Return On Invested Capital (11.43%) for LNW is above the 3 year average (10.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.38% | ||
| ROE | 49.72% | ||
| ROIC | 11.43% |
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
With a decent Profit Margin value of 10.92%, LNW is doing good in the industry, outperforming 79.10% of the companies in the same industry.
LNW's Profit Margin has declined in the last couple of years.
The Operating Margin of LNW (24.71%) is better than 88.81% of its industry peers.
In the last couple of years the Operating Margin of LNW has grown nicely.
The Gross Margin of LNW (71.63%) is better than 86.57% 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 | 24.71% | ||
| PM (TTM) | 10.92% | ||
| GM | 71.63% |
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
LNW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
LNW has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LNW has less shares outstanding
LNW has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.90 indicates that LNW is not a great score, but indicates only limited risk for bankruptcy at the moment.
LNW has a Altman-Z score (1.90) which is comparable to the rest of the industry.
The Debt to FCF ratio of LNW is 14.67, which is on the high side as it means it would take LNW, 14.67 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LNW (14.67) is comparable to the rest of the industry.
A Debt/Equity ratio of 6.86 is on the high side and indicates that LNW has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 6.86, LNW is doing worse than 64.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.86 | ||
| Debt/FCF | 14.67 | ||
| Altman-Z | 1.9 |
ROIC/WACC1.34
WACC8.5%
2.3 Liquidity
LNW has a Current Ratio of 1.77. This is a normal value and indicates that LNW is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.77, LNW belongs to the top of the industry, outperforming 80.60% of the companies in the same industry.
LNW has a Quick Ratio of 1.51. This is a normal value and indicates that LNW is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.51, LNW is doing good in the industry, outperforming 77.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
LNW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.28%, which is quite good.
LNW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.53% yearly.
LNW shows a small growth in Revenue. In the last year, the Revenue has grown by 3.93%.
The Revenue has been growing slightly by 5.95% on average over the past years.
EPS 1Y (TTM)19.28%
EPS 3Y5.53%
EPS 5YN/A
EPS Q2Q%23.33%
Revenue 1Y (TTM)3.93%
Revenue growth 3Y13.98%
Revenue growth 5Y5.95%
Sales Q2Q%-1.1%
3.2 Future
Based on estimates for the next years, LNW will show a very strong growth in Earnings Per Share. The EPS will grow by 21.44% on average per year.
LNW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.85% yearly.
EPS Next Y53.59%
EPS Next 2Y38.65%
EPS Next 3Y33.77%
EPS Next 5Y21.44%
Revenue Next Year6.59%
Revenue Next 2Y7.22%
Revenue Next 3Y6.89%
Revenue Next 5Y4.85%
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 accelerating.
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
Based on the Price/Earnings ratio of 19.28, the valuation of LNW can be described as rather expensive.
70.90% of the companies in the same industry are more expensive than LNW, based on the Price/Earnings ratio.
LNW is valuated rather cheaply when we compare the Price/Earnings ratio to 27.77, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.76, the valuation of LNW can be described as very reasonable.
Based on the Price/Forward Earnings ratio, LNW is valued cheaper than 85.82% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LNW to the average of the S&P500 Index (23.23), we can say LNW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.28 | ||
| Fwd PE | 10.76 |
4.2 Price Multiples
LNW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LNW is cheaper than 68.66% of the companies in the same industry.
76.12% 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 | 19.36 | ||
| EV/EBITDA | 9.57 |
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 33.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y38.65%
EPS Next 3Y33.77%
5. Dividend
5.1 Amount
No dividends for LNW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:LNW (10/22/2025, 12:24:09 PM)
76.34
+1.4 (+1.87%)
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 Change4.78%
Market Cap6.41B
Revenue(TTM)3.20B
Net Income(TTM)349.00M
Analysts75.56
Price Target107.55 (40.88%)
Short Float %7.25%
Short Ratio5.19
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)-20.31%
Min EPS beat(2)-22.6%
Max EPS beat(2)-18.02%
EPS beat(4)1
Avg EPS beat(4)-12.63%
Min EPS beat(4)-35.43%
Max EPS beat(4)25.54%
EPS beat(8)4
Avg EPS beat(8)9.18%
EPS beat(12)5
Avg EPS beat(12)59.1%
EPS beat(16)9
Avg EPS beat(16)3638.55%
Revenue beat(2)0
Avg Revenue beat(2)-5.74%
Min Revenue beat(2)-6.52%
Max Revenue beat(2)-4.96%
Revenue beat(4)0
Avg Revenue beat(4)-3.52%
Min Revenue beat(4)-6.52%
Max Revenue beat(4)-1.11%
Revenue beat(8)4
Avg Revenue beat(8)-0.74%
Revenue beat(12)8
Avg Revenue beat(12)0.98%
Revenue beat(16)11
Avg Revenue beat(16)-1.16%
PT rev (1m)0%
PT rev (3m)-4.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.59%
EPS NY rev (1m)-1.6%
EPS NY rev (3m)-2.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.28 | ||
| Fwd PE | 10.76 | ||
| P/S | 2 | ||
| P/FCF | 19.36 | ||
| P/OCF | 10.49 | ||
| P/B | 9.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.57 |
EPS(TTM)3.96
EY5.19%
EPS(NY)7.09
Fwd EY9.29%
FCF(TTM)3.94
FCFY5.16%
OCF(TTM)7.28
OCFY9.53%
SpS38.08
BVpS8.36
TBVpS-44.2
PEG (NY)0.36
PEG (5Y)N/A
Graham Number27.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.38% | ||
| ROE | 49.72% | ||
| ROCE | 13.64% | ||
| ROIC | 11.43% | ||
| ROICexc | 11.7% | ||
| ROICexgc | 53.22% | ||
| OM | 24.71% | ||
| PM (TTM) | 10.92% | ||
| GM | 71.63% | ||
| FCFM | 10.35% |
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-Score5
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.86 | ||
| Debt/FCF | 14.67 | ||
| Debt/EBITDA | 4.19 | ||
| Cap/Depr | 77.56% | ||
| Cap/Sales | 8.76% | ||
| Interest Coverage | 2.85 | ||
| Cash Conversion | 53.08% | ||
| Profit Quality | 94.84% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 1.9 |
F-Score5
WACC8.5%
ROIC/WACC1.34
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)19.28%
EPS 3Y5.53%
EPS 5YN/A
EPS Q2Q%23.33%
EPS Next Y53.59%
EPS Next 2Y38.65%
EPS Next 3Y33.77%
EPS Next 5Y21.44%
Revenue 1Y (TTM)3.93%
Revenue growth 3Y13.98%
Revenue growth 5Y5.95%
Sales Q2Q%-1.1%
Revenue Next Year6.59%
Revenue Next 2Y7.22%
Revenue Next 3Y6.89%
Revenue Next 5Y4.85%
EBIT growth 1Y8.22%
EBIT growth 3Y40.12%
EBIT growth 5Y19.32%
EBIT Next Year97.12%
EBIT Next 3Y33.14%
EBIT Next 5Y17.9%
FCF growth 1Y174.05%
FCF growth 3Y-13.04%
FCF growth 5Y5.31%
OCF growth 1Y379%
OCF growth 3Y-2.65%
OCF growth 5Y2.97%