LIGHT & WONDER INC (LNW) Stock Fundamental Analysis
USA - NASDAQ:LNW - US80874P1093 - Common Stock
80.56 USD
+0.86 (+1.08%)
76.7452 USD
-3.81 (-4.74%)
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 may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
LNW had positive earnings in the past year.
In the past year LNW had a positive cash flow from operations.
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 better Return On Assets (5.38%) than 71.21% of its industry peers.
The Return On Equity of LNW (49.72%) is better than 92.42% of its industry peers.
The Return On Invested Capital of LNW (11.43%) is better than 75.76% 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 10.78%.
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
With a decent Profit Margin value of 10.92%, LNW is doing good in the industry, outperforming 78.79% of the companies in the same industry.
LNW's Profit Margin has declined in the last couple of years.
LNW's Operating Margin of 24.71% is amongst the best of the industry. LNW outperforms 88.64% of its industry peers.
LNW's Operating Margin has improved in the last couple of years.
The Gross Margin of LNW (71.63%) is better than 87.12% of its industry peers.
LNW's Gross Margin has been stable in the last couple of years.
| 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
LNW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for LNW has been reduced compared to 1 year ago.
LNW has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LNW has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.95 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 1.95, LNW is in line with its industry, outperforming 56.06% of the companies in the same industry.
LNW has a debt to FCF ratio of 14.67. This is a negative value and a sign of low solvency as LNW would need 14.67 years to pay back of all of its debts.
The Debt to FCF ratio of LNW (14.67) is comparable to the rest of the industry.
A Debt/Equity ratio of 6.86 is on the high side and indicates that LNW has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 6.86, LNW is doing worse than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.86 | ||
| Debt/FCF | 14.67 | ||
| Altman-Z | 1.95 |
ROIC/WACC1.36
WACC8.39%
2.3 Liquidity
LNW has a Current Ratio of 1.77. 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 Current ratio of 1.77. This is amongst the best in the industry. LNW outperforms 80.30% of its industry peers.
A Quick Ratio of 1.51 indicates that LNW should not have too much problems paying its short term obligations.
LNW has a Quick ratio of 1.51. This is in the better half of the industry: LNW outperforms 78.03% 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 57.14%, 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.
Looking at the last year, LNW shows a quite strong growth in Revenue. The Revenue has grown by 9.86% 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)57.14%
EPS 3Y5.53%
EPS 5YN/A
EPS Q2Q%154.93%
Revenue 1Y (TTM)9.86%
Revenue growth 3Y13.98%
Revenue growth 5Y5.95%
Sales Q2Q%2.94%
3.2 Future
LNW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.44% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
LNW is valuated correctly with a Price/Earnings ratio of 15.92.
Compared to the rest of the industry, the Price/Earnings ratio of LNW indicates a somewhat cheap valuation: LNW is cheaper than 74.24% of the companies listed in the same industry.
LNW is valuated rather cheaply when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.43, which indicates a very decent valuation of LNW.
Based on the Price/Forward Earnings ratio, LNW is valued cheaper than 82.58% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LNW to the average of the S&P500 Index (32.68), we can say LNW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.92 | ||
| Fwd PE | 11.43 |
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 65.15% of the companies listed in the same industry.
LNW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LNW is cheaper than 71.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.43 | ||
| EV/EBITDA | 9.91 |
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)0.3
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 |
80.56
+0.86 (+1.08%)
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 Cap6.76B
Revenue(TTM)3.19B
Net Income(TTM)349.00M
Analysts75.56
Price Target106.22 (31.85%)
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)-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)-1.24%
PT rev (3m)-5.81%
EPS NQ rev (1m)-1.53%
EPS NQ rev (3m)-15.64%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.26%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-3.01%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-1.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.92 | ||
| Fwd PE | 11.43 | ||
| P/S | 2.12 | ||
| P/FCF | 20.43 | ||
| P/OCF | 11.07 | ||
| P/B | 9.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.91 |
EPS(TTM)5.06
EY6.28%
EPS(NY)7.05
Fwd EY8.75%
FCF(TTM)3.94
FCFY4.89%
OCF(TTM)7.28
OCFY9.03%
SpS38.08
BVpS8.36
TBVpS-44.2
PEG (NY)0.3
PEG (5Y)N/A
Graham Number30.85
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
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-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 | 1.95 |
F-Score5
WACC8.39%
ROIC/WACC1.36
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)57.14%
EPS 3Y5.53%
EPS 5YN/A
EPS Q2Q%154.93%
EPS Next Y52.71%
EPS Next 2Y38.2%
EPS Next 3Y33.93%
EPS Next 5Y21.44%
Revenue 1Y (TTM)9.86%
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 1Y8.22%
EBIT growth 3Y40.12%
EBIT growth 5Y19.32%
EBIT Next Year97.12%
EBIT Next 3Y33.14%
EBIT Next 5Y18.21%
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%
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 8 / 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 15.92 and the Price/Book (PB) ratio is 9.63.
What is the financial health of LIGHT & WONDER INC (LNW) stock?
The financial health rating of LIGHT & WONDER INC (LNW) is 4 / 10.