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 has a great profitability rating, there are some minor concerns on its financial health. LNW scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make LNW suitable 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
With a decent Return On Assets value of 6.13%, LNW is doing good in the industry, outperforming 72.93% of the companies in the same industry.
With an excellent Return On Equity value of 55.19%, LNW belongs to the best of the industry, outperforming 90.98% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.81%, LNW is in the better half of the industry, outperforming 76.69% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LNW is in line with the industry average of 10.41%.
The last Return On Invested Capital (11.81%) for LNW is above the 3 year average (10.25%), which is a sign of increasing profitability.
| 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's Profit Margin of 12.39% is amongst the best of the industry. LNW outperforms 80.45% of its industry peers.
In the last couple of years the Profit Margin of LNW has declined.
LNW has a better Operating Margin (25.77%) than 90.23% of its industry peers.
In the last couple of years the Operating Margin of LNW has grown nicely.
The Gross Margin of LNW (72.74%) is better than 88.72% 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
LNW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, LNW has less shares outstanding
LNW has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LNW is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.08 indicates that LNW is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of LNW (2.08) is better than 60.15% of its industry peers.
The Debt to FCF ratio of LNW is 12.70, which is on the high side as it means it would take LNW, 12.70 years of fcf income to pay off all of its debts.
LNW has a Debt to FCF ratio (12.70) which is in line with its industry peers.
LNW has a Debt/Equity ratio of 6.77. This is a high value indicating a heavy dependency on external financing.
LNW has a Debt to Equity ratio of 6.77. This is in the lower half of the industry: LNW underperforms 63.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.77 | ||
| Debt/FCF | 12.7 | ||
| Altman-Z | 2.08 |
ROIC/WACC1.41
WACC8.38%
2.3 Liquidity
A Current Ratio of 2.13 indicates that LNW has no problem at all paying its short term obligations.
LNW's Current ratio of 2.13 is amongst the best of the industry. LNW outperforms 89.47% of its industry peers.
A Quick Ratio of 1.85 indicates that LNW should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.85, LNW belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
| 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.
LNW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.53% yearly.
The Revenue has been growing slightly by 1.87% in the past year.
The Revenue has been growing slightly by 5.95% on average over the past years.
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
LNW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.29% yearly.
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.
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
Based on the Price/Earnings ratio of 18.78, the valuation of LNW can be described as rather expensive.
69.17% 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 25.65, which is the current average of the S&P500 Index.
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 a bit cheaper than the industry average as 79.70% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of LNW to the average of the S&P500 Index (34.45), we can say LNW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.78 | ||
| Fwd PE | 12.23 |
4.2 Price Multiples
LNW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LNW is cheaper than 63.16% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LNW is valued a bit cheaper than 73.68% of the companies in the same industry.
| 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.
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 33.93% in the coming years.
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 Change4.71%
Market Cap7.24B
Revenue(TTM)3.22B
Net Income(TTM)399.00M
Analysts75.56
Price Target109.41 (26.9%)
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)1.73%
PT rev (3m)-0.86%
EPS NQ rev (1m)-9.42%
EPS NQ rev (3m)-10.27%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)-2.16%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.32%
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
WACC8.38%
ROIC/WACC1.41
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.