LIGHT & WONDER INC (LNW) Stock Fundamental Analysis
USA - NASDAQ:LNW - US80874P1093 - Common Stock
88.69 USD
-1.74 (-1.92%)
Overall LNW gets a fundamental rating of 5 out of 10. We evaluated LNW against 133 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year LNW was profitable.
LNW had a positive operating cash flow in the past year.
Of the past 5 years LNW 4 years were profitable.
LNW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
LNW has a Return On Assets of 5.38%. This is in the better half of the industry: LNW outperforms 71.43% of its industry peers.
LNW has a Return On Equity of 49.72%. This is amongst the best in the industry. LNW outperforms 93.98% of its industry peers.
LNW has a Return On Invested Capital of 11.43%. This is in the better half of the industry: LNW outperforms 75.94% of its industry peers.
LNW had an Average Return On Invested Capital over the past 3 years of 10.25%. This is significantly below the industry average of 15.68%.
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
LNW has a better Profit Margin (10.92%) than 78.95% of its industry peers.
LNW's Profit Margin has declined in the last couple of years.
LNW has a better Operating Margin (24.71%) than 88.72% of its industry peers.
In the last couple of years the Operating Margin of LNW has grown nicely.
Looking at the Gross Margin, with a value of 71.63%, LNW belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LNW is creating some value.
The number of shares outstanding for LNW has been reduced compared to 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
LNW has an Altman-Z score of 2.04. 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.
LNW has a Altman-Z score (2.04) 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.
LNW has a Debt to FCF ratio of 14.67. This is comparable to the rest of the industry: LNW outperforms 48.12% of its industry peers.
A Debt/Equity ratio of 6.86 is on the high side and indicates that LNW has dependencies on debt financing.
With a Debt to Equity ratio value of 6.86, LNW is not doing good in the industry: 63.91% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.86 | ||
| Debt/FCF | 14.67 | ||
| Altman-Z | 2.04 |
ROIC/WACC1.22
WACC9.36%
2.3 Liquidity
A Current Ratio of 1.77 indicates that LNW should not have too much problems paying its short term obligations.
LNW has a Current ratio of 1.77. This is amongst the best in the industry. LNW outperforms 80.45% of its industry peers.
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.
LNW has a better Quick ratio (1.51) than 77.44% of its industry peers.
| 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.
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.
LNW shows a small growth in Revenue. In the last year, the Revenue has grown by 3.93%.
LNW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.95% yearly.
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
The Earnings Per Share is expected to grow by 21.44% on average over the next years. This is a very strong growth
LNW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.85% yearly.
EPS Next Y56.09%
EPS Next 2Y39.82%
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.40, which indicates a rather expensive current valuation of LNW.
Based on the Price/Earnings ratio, LNW is valued a bit cheaper than 64.66% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, LNW is valued at the same level.
Based on the Price/Forward Earnings ratio of 12.29, the valuation of LNW can be described as correct.
LNW's Price/Forward Earnings ratio is rather cheap when compared to the industry. LNW is cheaper than 82.71% of the companies in the same industry.
LNW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.4 | ||
| Fwd PE | 12.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LNW indicates a somewhat cheap valuation: LNW is cheaper than 62.41% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LNW is valued a bit cheaper than the industry average as 72.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.49 | ||
| EV/EBITDA | 10.7 |
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)0.4
PEG (5Y)N/A
EPS Next 2Y39.82%
EPS Next 3Y33.77%
5. Dividend
5.1 Amount
No dividends for LNW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:LNW (9/16/2025, 8:00:00 PM)
88.69
-1.74 (-1.92%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners67.16%
Inst Owner ChangeN/A
Ins Owners0.54%
Ins Owner Change8.18%
Market Cap7.45B
Analysts75.79
Price Target107.55 (21.27%)
Short Float %7.06%
Short Ratio5.61
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)-4.62%
PT rev (3m)-3.25%
EPS NQ rev (1m)-4.06%
EPS NQ rev (3m)-12.67%
EPS NY rev (1m)-0.67%
EPS NY rev (3m)1.75%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-2.16%
Revenue NY rev (1m)-1.24%
Revenue NY rev (3m)-0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.4 | ||
| Fwd PE | 12.29 | ||
| P/S | 2.33 | ||
| P/FCF | 22.49 | ||
| P/OCF | 12.19 | ||
| P/B | 10.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.7 |
EPS(TTM)3.96
EY4.46%
EPS(NY)7.21
Fwd EY8.13%
FCF(TTM)3.94
FCFY4.45%
OCF(TTM)7.28
OCFY8.21%
SpS38.08
BVpS8.36
TBVpS-44.2
PEG (NY)0.4
PEG (5Y)N/A
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
ROICexcg growth 3Y87.73%
ROICexcg 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 | 2.04 |
F-Score5
WACC9.36%
ROIC/WACC1.22
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 Y56.09%
EPS Next 2Y39.82%
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 Year95.22%
EBIT Next 3Y31.72%
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%