LIGHT & WONDER INC (LNW) Stock Fundamental Analysis
USA - NASDAQ:LNW - US80874P1093 - Common Stock
86.22 USD
-3.33 (-3.72%)
90.84 USD
+4.62 (+5.36%)
Taking everything into account, LNW scores 6 out of 10 in our fundamental rating. LNW was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. LNW has an excellent profitability rating, but 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
In the past year LNW was profitable.
LNW had a positive operating cash flow in the past year.
LNW had positive earnings in 4 of the past 5 years.
Of the past 5 years LNW 4 years had a positive operating cash flow.
1.2 Ratios
LNW's Return On Assets of 6.13% is fine compared to the rest of the industry. LNW outperforms 74.24% of its industry peers.
Looking at the Return On Equity, with a value of 55.19%, LNW belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
The Return On Invested Capital of LNW (11.81%) is better than 76.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LNW is in line with the industry average of 10.59%.
The 3 year average ROIC (10.25%) for LNW is below the current ROIC(11.81%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 12.39%, LNW belongs to the best of the industry, outperforming 81.06% of the companies in the same industry.
In the last couple of years the Profit Margin of LNW has declined.
LNW has a better Operating Margin (25.77%) than 90.15% 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 88.64% of its industry peers.
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
LNW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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 2.08. 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.
The Altman-Z score of LNW (2.08) is comparable to the rest of the 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.
The Debt to FCF ratio of LNW (12.70) is comparable to the rest of the industry.
LNW has a Debt/Equity ratio of 6.77. This is a high value indicating a heavy dependency on external financing.
LNW's Debt to Equity ratio of 6.77 is on the low side compared to the rest of the industry. LNW is outperformed by 64.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.77 | ||
| Debt/FCF | 12.7 | ||
| Altman-Z | 2.08 |
ROIC/WACC1.41
WACC8.4%
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 89.39% 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.
The Quick ratio of LNW (1.85) is better than 84.09% of its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 5.53% on average over the past years.
Looking at the last year, LNW shows a small growth in Revenue. The Revenue has grown by 1.87% in the last year.
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
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
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.
Based on the Price/Earnings ratio, LNW is valued a bit cheaper than 69.70% of the companies in the same industry.
When comparing the Price/Earnings ratio of LNW to the average of the S&P500 Index (25.89), we can say LNW is valued slightly cheaper.
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 cheaply inside the industry as 80.30% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of LNW to the average of the S&P500 Index (34.59), we can say LNW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.78 | ||
| Fwd PE | 12.23 |
4.2 Price Multiples
63.64% of the companies in the same industry are more expensive than LNW, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LNW is valued a bit cheaper than the industry average as 74.24% of the companies are valued more expensively.
| 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.
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%
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 Change4.78%
Market Cap7.24B
Revenue(TTM)3.22B
Net Income(TTM)399.00M
Analysts75.56
Price Target106.22 (23.2%)
Short Float %7.68%
Short Ratio6.28
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)-1.24%
PT rev (3m)-5.81%
EPS NQ rev (1m)-6.44%
EPS NQ rev (3m)-5.11%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)-2.82%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-1.56%
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
WACC8.4%
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.