LIGHT & WONDER INC (LNW) Fundamental Analysis & Valuation

NASDAQ:LNW • US80874P1093

Current stock price

86.22 USD
-3.33 (-3.72%)
At close:
90.84 USD
+4.62 (+5.36%)
After Hours:

This LNW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. LNW Profitability Analysis

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.
LNW Yearly Net Income VS EBIT VS OCF VS FCFLNW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B

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.
  • The Return On Equity of LNW (55.19%) is better than 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.
  • 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 10.55%.
  • 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 RankSector 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
LNW Yearly ROA, ROE, ROICLNW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 200 300

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.
  • With an excellent Operating Margin value of 25.77%, LNW belongs to the best of the industry, outperforming 90.23% of the companies in the same industry.
  • In the last couple of years the Operating Margin of LNW has grown nicely.
  • With an excellent Gross Margin value of 72.74%, LNW belongs to the best of the industry, outperforming 88.72% 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 RankSector 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%
LNW Yearly Profit, Operating, Gross MarginsLNW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 100

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5

2. LNW Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LNW 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.
LNW Yearly Shares OutstandingLNW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
LNW Yearly Total Debt VS Total AssetsLNW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

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.
  • With a decent Altman-Z score value of 2.08, LNW is doing good in the industry, outperforming 60.15% of the companies in the same industry.
  • LNW has a debt to FCF ratio of 12.70. This is a negative value and a sign of low solvency as LNW would need 12.70 years to pay back of all of its debts.
  • With a Debt to FCF ratio value of 12.70, LNW perfoms like the industry average, outperforming 53.38% of the companies in the same industry.
  • 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 RankSector Rank
Debt/Equity 6.77
Debt/FCF 12.7
Altman-Z 2.08
ROIC/WACC1.41
WACC8.38%
LNW Yearly LT Debt VS Equity VS FCFLNW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 2.13 indicates that LNW has no problem at all paying its short term obligations.
  • LNW has a better Current ratio (2.13) than 89.47% of its industry peers.
  • LNW has a Quick Ratio of 1.85. This is a normal value and indicates that LNW is financially healthy and should not expect problems in meeting its short term obligations.
  • LNW's Quick ratio of 1.85 is amongst the best of the industry. LNW outperforms 84.21% of its industry peers.
Industry RankSector Rank
Current Ratio 2.13
Quick Ratio 1.85
LNW Yearly Current Assets VS Current LiabilitesLNW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. LNW Growth Analysis

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.
  • 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 1.87%.
  • Measured over the past years, LNW shows a small growth in Revenue. The Revenue has been growing by 5.95% on average per year.
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
  • Based on estimates for the next years, LNW will show a small growth in Revenue. The Revenue will grow by 5.29% on average per year.
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.
  • 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.
LNW Yearly Revenue VS EstimatesLNW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1B 2B 3B 4B
LNW Yearly EPS VS EstimatesLNW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 10 -10 20 30

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6

4. LNW Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 18.78, LNW is valued on the expensive side.
  • Based on the Price/Earnings ratio, LNW is valued a bit cheaper than 69.17% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of LNW to the average of the S&P500 Index (26.91), we can say LNW is valued slightly cheaper.
  • Based on the Price/Forward Earnings ratio of 12.23, the valuation of LNW can be described as correct.
  • 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.
  • The average S&P500 Price/Forward Earnings ratio is at 21.99. LNW is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 18.78
Fwd PE 12.23
LNW Price Earnings VS Forward Price EarningsLNW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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.
  • Based on the Price/Free Cash Flow ratio, LNW is valued a bit cheaper than the industry average as 73.68% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 18.61
EV/EBITDA 10.03
LNW Per share dataLNW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 -40

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 33.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y38.2%
EPS Next 3Y33.93%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. LNW Dividend Analysis

5.1 Amount

  • LNW does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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LNW Fundamentals: All Metrics, Ratios and Statistics

LIGHT & WONDER INC

NASDAQ:LNW (11/12/2025, 8:00:00 PM)

After market: 90.84 +4.62 (+5.36%)

86.22

-3.33 (-3.72%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)11-05
Earnings (Next)02-23
Inst Owners64.73%
Inst Owner ChangeN/A
Ins Owners0.57%
Ins Owner Change0%
Market Cap7.24B
Revenue(TTM)3.22B
Net Income(TTM)399.00M
Analysts75.56
Price Target109.41 (26.9%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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 Number29.8233 (-65.41%)
Profitability
Industry RankSector 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 RankSector 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 Fundamental Analysis FAQ

What is the fundamental rating for LNW stock?

ChartMill assigns a fundamental rating of 6 / 10 to LNW.


What is the valuation status of LIGHT & WONDER INC (LNW) stock?

ChartMill assigns a valuation rating of 7 / 10 to LIGHT & WONDER INC (LNW). This can be considered as Undervalued.


What is the profitability of LNW stock?

LIGHT & WONDER INC (LNW) has a profitability rating of 7 / 10.


Can you provide the financial health for LNW stock?

The financial health rating of LIGHT & WONDER INC (LNW) is 5 / 10.


What is the expected EPS growth for LIGHT & WONDER INC (LNW) stock?

The Earnings per Share (EPS) of LIGHT & WONDER INC (LNW) is expected to grow by 52.71% in the next year.