DB:TJW

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Executive Summary

Scientific Games Corporation develops technology-based products and services, and related content for the gaming, lottery, social and digital gaming industries in the United States and internationally.


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Scientific Games's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TJW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.2%

TJW

-1.6%

DE Hospitality

0.7%

DE Market


1 Year Return

-12.1%

TJW

-35.2%

DE Hospitality

3.9%

DE Market

Return vs Industry: TJW exceeded the German Hospitality industry which returned -35.2% over the past year.

Return vs Market: TJW underperformed the German Market which returned 3.9% over the past year.


Shareholder returns

TJWIndustryMarket
7 Day4.2%-1.6%0.7%
30 Day16.4%-7.4%5.3%
90 Day80.9%3.8%17.3%
1 Year-12.1%-12.1%-32.4%-35.2%6.2%3.9%
3 Year-33.8%-33.8%-49.4%-56.3%1.8%-6.2%
5 Year1.7%1.7%-50.8%-61.2%9.3%-5.4%

Price Volatility Vs. Market

How volatile is Scientific Games's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Scientific Games undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TJW (€14.93) is trading below our estimate of fair value (€62.3)

Significantly Below Fair Value: TJW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TJW is unprofitable, so we can't compare its PE Ratio to the DE Hospitality industry average.

PE vs Market: TJW is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TJW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TJW has negative assets, so we can't compare its PB Ratio to the DE Hospitality industry average.


Next Steps

Future Growth

How is Scientific Games forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

130.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TJW is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: TJW is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TJW's is expected to become profitable in the next 3 years.

Revenue vs Market: TJW's revenue (11.1% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: TJW's revenue (11.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TJW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Scientific Games performed over the past 5 years?

33.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TJW is currently unprofitable.

Growing Profit Margin: TJW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TJW is unprofitable, but has reduced losses over the past 5 years at a rate of 33.9% per year.

Accelerating Growth: Unable to compare TJW's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TJW is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-15.6%).


Return on Equity

High ROE: TJW's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Scientific Games's financial position?


Financial Position Analysis

Short Term Liabilities: TJW has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: TJW has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: TJW has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: TJW's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable TJW has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TJW is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 23% per year.


Next Steps

Dividend

What is Scientific Games's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TJW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TJW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TJW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TJW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TJW's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Barry Cottle (59yo)

2.08yrs

Tenure

US$18,574,231

Compensation

Mr. Barry L. Cottle has been the Chief Executive Officer, President and Director of Scientific Games Corp since June 1, 2018. Mr. Cottle is Executive Chairman of SciPlay Corporation since April 2019. Mr. C ...


CEO Compensation Analysis

Compensation vs Market: Barry's total compensation ($USD18.57M) is above average for companies of similar size in the German market ($USD1.49M).

Compensation vs Earnings: Barry's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ronald Perelman
Executive Chairman of the Board6.67yrsUS$234.98k0.11% $1.6m
Barry Cottle
CEO, President & Director2.08yrsUS$18.57m0.15% $2.1m
Michael Winterscheidt
Senior VP & Chief Accounting Officer3.42yrsUS$1.00m0.015% $220.6k
James Sottile
Executive VP & Chief Legal Officer1.83yrsUS$1.37m0.0040% $57.1k
Michael Quartieri
Consultant0.083yrUS$1.68m0.068% $977.2k
Patrick McHugh
Executive VP & Group Chief Executive of Lottery1.58yrsUS$1.21m0.024% $346.0k
Michael Eklund
Executive VP0.083yrno datano data
Robert Shore
Senior Director of Investor Relations & Corporate Financeno datano datano data
Trent Kruse
Senior Vice President of Investor Relations & Financeno datano datano data
Stephen Richardson
Senior VP & Chief Compliance Officer2.25yrsno data0.0010% $14.9k

1.7yrs

Average Tenure

53yo

Average Age

Experienced Management: TJW's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ronald Perelman
Executive Chairman of the Board6.67yrsUS$234.98k0.11% $1.6m
Barry Cottle
CEO, President & Director2.08yrsUS$18.57m0.15% $2.1m
Barry Schwartz
Independent Director16.58yrsUS$254.98k0.13% $1.9m
Richard Haddrill
Vice Chairman of the Board5.58yrsUS$659.98k0.24% $3.4m
Peter Cohen
Vice Chairman & Lead Independent Director15.83yrsUS$269.98k0.29% $4.2m
Kneeland Youngblood
Independent Director1.92yrsUS$254.98k0.0020% $29.1k
Jack Markell
Independent Director1.08yrsUS$162.68kno data
Michael Regan
Independent Director14.42yrsUS$279.98k0.088% $1.3m
Frances Fragos Townsend
Independent Director10.25yrsUS$270.51k0.083% $1.2m
Maria Vullo
Independent Director1.08yrsUS$170.97kno data

6.1yrs

Average Tenure

66yo

Average Age

Experienced Board: TJW's board of directors are considered experienced (6.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Scientific Games Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Scientific Games Corporation
  • Ticker: TJW
  • Exchange: DB
  • Founded: 1984
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: US$1.616b
  • Listing Market Cap: US$1.428b
  • Shares outstanding: 94.47m
  • Website: https://www.scientificgames.com

Number of Employees


Location

  • Scientific Games Corporation
  • 6601 Bermuda Road
  • Las Vegas
  • Nevada
  • 89119
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SGMSNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDAug 1984
TJWDB (Deutsche Boerse AG)YesClass A Common StockDEEURAug 1984

Biography

Scientific Games Corporation develops technology-based products and services, and related content for the gaming, lottery, social and digital gaming industries in the United States and internationally. The company’s Gaming segment sells new and used gaming machines, electronic table systems, video lottery terminals, conversion game kits, and spare parts; slot, casino, and table-management systems; table products, including shufflers; and perpetual licenses to proprietary table games. It also leases gaming machines; provides gaming operations and licensing arrangements; and installs and supports casino management systems, such as ongoing hardware and software maintenance and upgrade services of customer casino management systems. The company’s Lottery segment designs, prints, and sells instant lottery products; designs and manufactures instant games tickets; offers instant products planning, monitoring, management system, warehousing, inventory management, distribution, marketing, and game support functions; supplies player loyalty programs, merchandising services, and interactive marketing campaigns; and sublicenses brands for lottery products and lottery-related promotional products. It also provides software, hardware, and related services for lottery operations; and lottery systems software maintenance and support services. The company’s SciPlay segment sells virtual coins, chips, or bingo cards; and third-party branded games and original content through mobile and web platforms. Its Digital segment provides digital gaming and sports wagering solutions and services, including digital RMG and sports wagering solutions, distribution platforms, content, products, and services; software design, development, licensing, maintenance, and support services; Open Platform Systems; and content aggregation platforms. The company was founded in 1984 and is headquartered in Las Vegas, Nevada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 21:38
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.