86.22 USD
-3.33 (-3.72%)
90.84 USD
+4.62 (+5.36%)
LNW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 133 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 has a correct valuation and a medium growth rate.
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
- The Return On Assets of LNW (6.13%) is better than 72.93% of its industry peers.
- LNW has a better Return On Equity (55.19%) than 90.98% of its industry peers.
- LNW's Return On Invested Capital of 11.81% is fine compared to the rest 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 10.34%.
- 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 better Profit Margin (12.39%) than 80.45% of its industry peers.
- LNW's Profit Margin has declined in the last couple of years.
- LNW has a better Operating Margin (25.77%) than 90.23% of its industry peers.
- 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 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.
- 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.
- 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.
- LNW has a better Altman-Z score (2.08) than 60.15% of its industry peers.
- 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.
- LNW has a Debt to FCF ratio (12.70) which 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.
- Looking at the Debt to Equity ratio, with a value of 6.77, LNW is doing worse than 63.91% of the companies in the same industry.
| 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.
- 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.
- With an excellent Quick ratio value of 1.85, LNW belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
| 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.
- LNW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.53% yearly.
- The Revenue has been growing slightly by 1.87% in the past 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
- LNW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.44% yearly.
- 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
- The Price/Earnings ratio is 18.78, which indicates a rather expensive current valuation of LNW.
- 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 27.54.
- With a Price/Forward Earnings ratio of 12.23, LNW is valued correctly.
- Based on the Price/Forward Earnings ratio, LNW is valued a bit cheaper than 79.70% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.31, LNW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.78 | ||
| Fwd PE | 12.23 |
4.2 Price Multiples
- LNW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LNW is cheaper than 63.16% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, LNW is valued a bit cheaper than 73.68% of the companies 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.
- 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)11-05 2025-11-05/amc
Earnings (Next)02-23 2026-02-23/amc
Inst Owners64.73%
Inst Owner ChangeN/A
Ins Owners0.57%
Ins Owner Change3.37%
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 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.
Can you provide the valuation status for LIGHT & WONDER INC?
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.
How financially healthy is LIGHT & WONDER INC?
The financial health rating of LIGHT & WONDER INC (LNW) is 5 / 10.