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. A decent growth rate in combination with a cheap valuation! Better keep an eye on LNW. These ratings could make LNW a good candidate for value investing.
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.
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
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.
LNW's Return On Equity of 55.19% is amongst the best of the industry. LNW outperforms 90.98% of its industry peers.
LNW has a Return On Invested Capital of 11.81%. This is in the better half of the industry: LNW outperforms 76.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LNW is in line with the industry average of 10.64%.
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 has a Profit Margin of 12.39%. This is amongst the best in the industry. LNW outperforms 80.45% of its industry peers.
LNW's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 25.77%, LNW belongs to the top of the industry, outperforming 90.23% of the companies in the same industry.
LNW's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 72.74%, LNW belongs to the top of the industry, outperforming 88.72% of the companies in the same industry.
LNW's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LNW is still creating some value.
Compared to 1 year ago, LNW has less shares outstanding
The number of shares outstanding for LNW has been reduced compared to 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.
Looking at the Altman-Z score, with a value of 2.08, LNW is in the better half of the industry, outperforming 60.15% of the companies in the same industry.
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 of 12.70. This is comparable to the rest of the industry: LNW outperforms 53.38% of 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 worse Debt to Equity ratio (6.77) than 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.
The Current ratio of LNW (2.13) is better than 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.
The Quick ratio of LNW (1.85) is better than 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 42.55% over the past year.
LNW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.53% yearly.
Looking at the last year, LNW shows a small growth in Revenue. The Revenue has grown by 1.87% in the last year.
LNW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.95% yearly.
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
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.
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.
LNW's Price/Earnings ratio is a bit cheaper when compared to the industry. LNW is cheaper than 69.17% of the companies in the same industry.
LNW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.45.
With a Price/Forward Earnings ratio of 12.23, LNW is valued correctly.
79.70% of the companies in the same industry are more expensive than LNW, based on the Price/Forward Earnings ratio.
LNW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.78 | ||
| Fwd PE | 12.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LNW is valued a bit cheaper than the industry average as 63.16% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LNW indicates a somewhat cheap valuation: LNW is cheaper than 73.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.61 | ||
| EV/EBITDA | 10.03 |
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 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.