LIGHT & WONDER INC (LNW)
US80874P1093 - Common Stock
We assign a fundamental rating of 5 out of 10 to LNW. LNW was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. LNW has an excellent profitability rating, but there are some minor concerns on its financial health. LNW has a correct valuation and a medium growth rate.
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.
The reported net income has been mixed in the past 5 years: LNW reported negative net income in multiple years.
Of the past 5 years LNW 4 years had a positive operating cash flow.
1.2 Ratios
LNW's Return On Assets of 5.27% is fine compared to the rest of the industry. LNW outperforms 70.90% of its industry peers.
LNW has a Return On Equity of 34.38%. This is amongst the best in the industry. LNW outperforms 88.06% of its industry peers.
With an excellent Return On Invested Capital value of 13.59%, LNW belongs to the best of the industry, outperforming 83.58% of the companies in the same industry.
LNW had an Average Return On Invested Capital over the past 3 years of 7.15%. This is below the industry average of 10.50%.
The 3 year average ROIC (7.15%) for LNW is below the current ROIC(13.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 34.38% | ||
| ROIC | 13.59% |
ROA(3y)22.93%
ROA(5y)12%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.15%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 9.33%, LNW is in the better half of the industry, outperforming 73.13% of the companies in the same industry.
The Operating Margin of LNW (24.07%) is better than 85.82% of its industry peers.
LNW's Operating Margin has improved in the last couple of years.
LNW has a Gross Margin of 70.43%. This is amongst the best in the industry. LNW outperforms 84.33% of its industry peers.
LNW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.07% | ||
| PM (TTM) | 9.33% | ||
| GM | 70.43% |
OM growth 3YN/A
OM growth 5Y6.52%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.96%
GM growth 5Y2.22%
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.
The number of shares outstanding for LNW has been reduced compared to 1 year ago.
The number of shares outstanding for LNW has been reduced compared to 5 years ago.
Compared to 1 year ago, LNW has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.34 indicates that LNW is not a great score, but indicates only limited risk for bankruptcy at the moment.
LNW has a better Altman-Z score (2.34) than 66.42% of its industry peers.
LNW has a debt to FCF ratio of 12.37. This is a negative value and a sign of low solvency as LNW would need 12.37 years to pay back of all of its debts.
With a Debt to FCF ratio value of 12.37, LNW perfoms like the industry average, outperforming 55.97% of the companies in the same industry.
A Debt/Equity ratio of 4.49 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 4.49, LNW is doing worse than 61.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.49 | ||
| Debt/FCF | 12.37 | ||
| Altman-Z | 2.34 |
ROIC/WACC1.54
WACC8.85%
2.3 Liquidity
A Current Ratio of 1.88 indicates that LNW should not have too much problems paying its short term obligations.
LNW's Current ratio of 1.88 is amongst the best of the industry. LNW outperforms 82.84% of its industry peers.
A Quick Ratio of 1.61 indicates that LNW should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.61, LNW is doing good in the industry, outperforming 78.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 138.52% over the past year.
LNW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.37%.
LNW shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.91% yearly.
EPS 1Y (TTM)138.52%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-12.35%
Revenue 1Y (TTM)12.37%
Revenue growth 3Y19.54%
Revenue growth 5Y-2.91%
Sales Q2Q%11.76%
3.2 Future
LNW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.06% yearly.
Based on estimates for the next years, LNW will show a small growth in Revenue. The Revenue will grow by 5.42% on average per year.
EPS Next Y100.18%
EPS Next 2Y75.59%
EPS Next 3Y55.77%
EPS Next 5Y32.06%
Revenue Next Year10.84%
Revenue Next 2Y8.99%
Revenue Next 3Y7.93%
Revenue Next 5Y5.42%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.53 indicates a quite expensive valuation of LNW.
LNW's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.73, LNW is valued at the same level.
LNW is valuated correctly with a Price/Forward Earnings ratio of 15.74.
Based on the Price/Forward Earnings ratio, LNW is valued a bit cheaper than 73.88% of the companies in the same industry.
LNW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.53 | ||
| Fwd PE | 15.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LNW is valued a bit cheaper than the industry average as 70.15% 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 72.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.1 | ||
| EV/EBITDA | 9.75 |
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.
LNW's earnings are expected to grow with 55.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y75.59%
EPS Next 3Y55.77%
5. Dividend
5.1 Amount
LNW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LIGHT & WONDER INC
NASDAQ:LNW (12/20/2024, 8:22:41 PM)
After market: 85.423 0 (0%)85.42
-1.12 (-1.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners75.6%
Inst Owner ChangeN/A
Ins Owners0.41%
Ins Owner Change1.79%
Market Cap7.54B
Analysts76
Price Target112.74 (31.98%)
Short Float %2.64%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)-24.32%
Min EPS beat(2)-35.43%
Max EPS beat(2)-13.21%
EPS beat(4)2
Avg EPS beat(4)-1.97%
Min EPS beat(4)-35.43%
Max EPS beat(4)33.43%
EPS beat(8)3
Avg EPS beat(8)-6.85%
EPS beat(12)7
Avg EPS beat(12)4807.43%
EPS beat(16)10
Avg EPS beat(16)3678.07%
Revenue beat(2)1
Avg Revenue beat(2)0.02%
Min Revenue beat(2)-1.5%
Max Revenue beat(2)1.55%
Revenue beat(4)3
Avg Revenue beat(4)1.43%
Min Revenue beat(4)-1.5%
Max Revenue beat(4)3.57%
Revenue beat(8)7
Avg Revenue beat(8)2.73%
Revenue beat(12)11
Avg Revenue beat(12)2.41%
Revenue beat(16)11
Avg Revenue beat(16)-6.31%
PT rev (1m)1.4%
PT rev (3m)1.98%
EPS NQ rev (1m)-15.17%
EPS NQ rev (3m)-15.17%
EPS NY rev (1m)-11.89%
EPS NY rev (3m)-13.82%
Revenue NQ rev (1m)-3.56%
Revenue NQ rev (3m)-3.56%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.53 | ||
| Fwd PE | 15.74 | ||
| P/S | 2.39 | ||
| P/FCF | 24.1 | ||
| P/OCF | 12.64 | ||
| P/B | 8.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.75 |
EPS(TTM)3.22
EY3.77%
EPS(NY)5.43
Fwd EY6.35%
FCF(TTM)3.54
FCFY4.15%
OCF(TTM)6.76
OCFY7.91%
SpS35.81
BVpS9.72
TBVpS-31.23
PEG (NY)0.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 34.38% | ||
| ROCE | 15.48% | ||
| ROIC | 13.59% | ||
| ROICexc | 14.62% | ||
| ROICexgc | 70.11% | ||
| OM | 24.07% | ||
| PM (TTM) | 9.33% | ||
| GM | 70.43% | ||
| FCFM | 9.9% |
ROA(3y)22.93%
ROA(5y)12%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.15%
ROIC(5y)N/A
ROICexc(3y)8.08%
ROICexc(5y)N/A
ROICexgc(3y)48.32%
ROICexgc(5y)N/A
ROCE(3y)8.14%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y18.5%
ROICexc growth 3YN/A
ROICexc growth 5Y12.68%
OM growth 3YN/A
OM growth 5Y6.52%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.96%
GM growth 5Y2.22%
F-Score7
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.49 | ||
| Debt/FCF | 12.37 | ||
| Debt/EBITDA | 3.36 | ||
| Cap/Depr | 73.96% | ||
| Cap/Sales | 8.98% | ||
| Interest Coverage | 2.6 | ||
| Cash Conversion | 52.14% | ||
| Profit Quality | 106.1% | ||
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 2.34 |
F-Score7
WACC8.85%
ROIC/WACC1.54
Cap/Depr(3y)52.47%
Cap/Depr(5y)47.15%
Cap/Sales(3y)8.29%
Cap/Sales(5y)9.6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)138.52%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-12.35%
EPS Next Y100.18%
EPS Next 2Y75.59%
EPS Next 3Y55.77%
EPS Next 5Y32.06%
Revenue 1Y (TTM)12.37%
Revenue growth 3Y19.54%
Revenue growth 5Y-2.91%
Sales Q2Q%11.76%
Revenue Next Year10.84%
Revenue Next 2Y8.99%
Revenue Next 3Y7.93%
Revenue Next 5Y5.42%
EBIT growth 1Y34.22%
EBIT growth 3YN/A
EBIT growth 5Y3.42%
EBIT Next Year114.69%
EBIT Next 3Y36.56%
EBIT Next 5Y20.44%
FCF growth 1Y212.19%
FCF growth 3Y7.39%
FCF growth 5YN/A
OCF growth 1Y977.94%
OCF growth 3Y7.8%
OCF growth 5Y11.26%