LIGHT & WONDER INC (LNW)
US80874P1093 - Common Stock
Overall LNW gets a fundamental rating of 5 out of 10. We evaluated LNW against 135 industry peers in the Hotels, Restaurants & Leisure industry. While LNW has a great profitability rating, there are some minor concerns on its financial health. LNW has a valuation in line with the averages, but it does not seem to be growing.
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.
The reported net income has been mixed in the past 5 years: LNW reported negative net income in multiple years.
Of the past 5 years LNW 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LNW (5.53%) is better than 71.85% of its industry peers.
LNW's Return On Equity of 38.93% is amongst the best of the industry. LNW outperforms 88.15% of its industry peers.
LNW has a better Return On Invested Capital (13.24%) than 81.48% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LNW is below the industry average of 10.10%.
The last Return On Invested Capital (13.24%) for LNW is above the 3 year average (7.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.53% | ||
| ROE | 38.93% | ||
| ROIC | 13.24% |
ROA(3y)22.93%
ROA(5y)12%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.15%
ROIC(5y)N/A
1.3 Margins
LNW's Profit Margin of 9.95% is fine compared to the rest of the industry. LNW outperforms 74.07% of its industry peers.
LNW's Operating Margin of 23.73% is amongst the best of the industry. LNW outperforms 85.93% of its industry peers.
LNW's Operating Margin has improved in the last couple of years.
LNW has a better Gross Margin (70.51%) than 84.44% of its industry peers.
In the last couple of years the Gross Margin of LNW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.73% | ||
| PM (TTM) | 9.95% | ||
| GM | 70.51% |
OM growth 3YN/A
OM growth 5Y6.52%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.96%
GM growth 5Y2.22%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LNW is still creating some value.
LNW has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LNW has less shares outstanding
The debt/assets ratio for LNW is higher compared to a year ago.
2.2 Solvency
LNW has an Altman-Z score of 2.59. 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.
With a decent Altman-Z score value of 2.59, LNW is doing good in the industry, outperforming 74.81% of the companies in the same industry.
LNW has a debt to FCF ratio of 9.68. This is a negative value and a sign of low solvency as LNW would need 9.68 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.68, LNW is in the better half of the industry, outperforming 65.93% of the companies in the same industry.
A Debt/Equity ratio of 4.90 is on the high side and indicates that LNW has dependencies on debt financing.
LNW has a worse Debt to Equity ratio (4.90) than 61.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.9 | ||
| Debt/FCF | 9.68 | ||
| Altman-Z | 2.59 |
ROIC/WACC1.66
WACC7.99%
2.3 Liquidity
A Current Ratio of 1.85 indicates that LNW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.85, LNW belongs to the top of the industry, outperforming 82.22% of the companies in the same industry.
A Quick Ratio of 1.58 indicates that LNW should not have too much problems paying its short term obligations.
LNW has a better Quick ratio (1.58) than 79.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
LNW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.16%.
Looking at the last year, LNW shows a quite strong growth in Revenue. The Revenue has grown by 12.63% in the last year.
The Revenue has been decreasing by -2.91% on average over the past years.
EPS 1Y (TTM)-16.16%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%9100%
Revenue 1Y (TTM)12.63%
Revenue growth 3Y19.54%
Revenue growth 5Y-2.91%
Sales Q2Q%11.9%
3.2 Future
The Earnings Per Share is expected to grow by 31.84% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 5.67% on average over the next years.
EPS Next Y132.29%
EPS Next 2Y80.91%
EPS Next 3Y57%
EPS Next 5Y31.84%
Revenue Next Year11.94%
Revenue Next 2Y9.75%
Revenue Next 3Y8.18%
Revenue Next 5Y5.67%
3.3 Evolution
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
Based on the Price/Earnings ratio of 27.32, the valuation of LNW can be described as expensive.
LNW's Price/Earnings is on the same level as the industry average.
LNW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 30.69, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.75, LNW is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LNW is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of LNW to the average of the S&P500 Index (22.27), we can say LNW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.32 | ||
| Fwd PE | 15.75 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LNW.
Based on the Price/Free Cash Flow ratio, LNW is valued a bit cheaper than 64.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.12 | ||
| EV/EBITDA | 12.16 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of LNW may justify a higher PE ratio.
A more expensive valuation may be justified as LNW's earnings are expected to grow with 57.00% in the coming years.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y80.91%
EPS Next 3Y57%
5. Dividend
5.1 Amount
LNW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LIGHT & WONDER INC
NASDAQ:LNW (9/24/2024, 4:17:22 PM)
After market: 91.6131 +0.9 (+1%)90.71
-21.97 (-19.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.05B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.32 | ||
| Fwd PE | 15.75 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.21
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.53% | ||
| ROE | 38.93% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.73% | ||
| PM (TTM) | 9.95% | ||
| GM | 70.51% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.9 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-16.16%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y132.29%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.63%
Revenue growth 3Y19.54%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y