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LNW

Light & Wonder NasdaqGS:LNW Stock Report

Last Price

US$48.96

Market Cap

US$4.8b

7D

2.1%

1Y

-37.0%

Updated

28 Jun, 2022

Data

Company Financials +
LNW fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance2/6
Financial Health0/6
Dividends0/6

LNW Stock Overview

Light & Wonder, Inc. develops technology-based products and services, and related content for the gaming, lottery, social and digital gaming industries in the United States and internationally.

Light & Wonder Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Light & Wonder
Historical stock prices
Current Share PriceUS$48.96
52 Week HighUS$90.20
52 Week LowUS$45.22
Beta1.8
1 Month Change-6.97%
3 Month Change-19.17%
1 Year Change-36.97%
3 Year Change146.65%
5 Year Change92.00%
Change since IPO1,099.02%

Recent News & Updates

May 24
What Does Light & Wonder, Inc.'s (NASDAQ:LNW) Share Price Indicate?

What Does Light & Wonder, Inc.'s (NASDAQ:LNW) Share Price Indicate?

Light & Wonder, Inc. ( NASDAQ:LNW ), might not be a large cap stock, but it received a lot of attention from a...

Shareholder Returns

LNWUS HospitalityUS Market
7D2.1%4.0%6.3%
1Y-37.0%-29.2%-18.8%

Return vs Industry: LNW underperformed the US Hospitality industry which returned -29.2% over the past year.

Return vs Market: LNW underperformed the US Market which returned -18.8% over the past year.

Price Volatility

Is LNW's price volatile compared to industry and market?
LNW volatility
LNW Average Weekly Movement8.9%
Hospitality Industry Average Movement9.2%
Market Average Movement8.1%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market3.2%

Stable Share Price: LNW is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: LNW's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19845,600Barry Cottlehttps://www.scientificgames.com

Light & Wonder, Inc. 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; table products, including shufflers; and perpetual licenses to proprietary table games. It also supplies game content, gaming machines; provides table game products and services to licensed gaming entities; and installs and supports casino management systems, such as ongoing hardware and software maintenance and upgrade services of customer casino management systems.

Light & Wonder Fundamentals Summary

How do Light & Wonder's earnings and revenue compare to its market cap?
LNW fundamental statistics
Market CapUS$4.76b
Earnings (TTM)US$30.00m
Revenue (TTM)US$2.27b

156.1x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LNW income statement (TTM)
RevenueUS$2.27b
Cost of RevenueUS$642.00m
Gross ProfitUS$1.63b
Other ExpensesUS$1.60b
EarningsUS$30.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.31
Gross Margin71.74%
Net Profit Margin1.32%
Debt/Equity Ratio-413.3%

How did LNW perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is LNW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LNW?

Other financial metrics that can be useful for relative valuation.

LNW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.9x
Enterprise Value/EBITDA20.2x
PEG Ratio4x

Price to Sales Ratio vs Peers

How does LNW's PS Ratio compare to its peers?

LNW PS Ratio vs Peers
The above table shows the PS ratio for LNW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.9x
IGT International Game Technology
1x3.7%US$4.1b
RRR Red Rock Resorts
1.3x4.6%US$3.7b
DKNG DraftKings
3.8x25.0%US$5.3b
BYD Boyd Gaming
1.6x2.4%US$5.7b
LNW Light & Wonder
2.1x6.5%US$4.8b

Price-To-Sales vs Peers: LNW is expensive based on its Price-To-Sales Ratio (2.1x) compared to the peer average (1.9x).


Price to Earnings Ratio vs Industry

How does LNW's PE Ratio compare vs other companies in the US Hospitality Industry?

Price-To-Sales vs Industry: LNW is expensive based on its Price-To-Sales Ratio (2.1x) compared to the US Hospitality industry average (1.7x)


Price to Sales Ratio vs Fair Ratio

What is LNW's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LNW PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.1x
Fair PS Ratio3.1x

Price-To-Sales vs Fair Ratio: LNW is good value based on its Price-To-Sales Ratio (2.1x) compared to the estimated Fair Price-To-Sales Ratio (3.1x).


Share Price vs Fair Value

What is the Fair Price of LNW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LNW ($48.96) is trading above our estimate of fair value ($42.46)

Significantly Below Fair Value: LNW is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: LNW is poor value based on its PEG Ratio (4x)


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Future Growth

How is Light & Wonder forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


39.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LNW's forecast earnings growth (39.4% per year) is above the savings rate (1.9%).

Earnings vs Market: LNW's earnings (39.4% per year) are forecast to grow faster than the US market (13.8% per year).

High Growth Earnings: LNW's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LNW's revenue (6.5% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: LNW's revenue (6.5% 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 LNW's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Light & Wonder performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


5.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LNW has a large one-off loss of $159.0M impacting its March 31 2022 financial results.

Growing Profit Margin: LNW became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LNW has become profitable over the past 5 years, growing earnings by 5.8% per year.

Accelerating Growth: LNW has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LNW has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (119.6%).


Return on Equity

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


Discover strong past performing companies

Financial Health

How is Light & Wonder's financial position?

Financial Health Score

0/6

Financial Health Score 0/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

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

Long Term Liabilities: LNW 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: LNW has negative shareholder equity, which is a more serious situation than a high debt level.

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

Debt Coverage: LNW's debt is not well covered by operating cash flow (7.4%).

Interest Coverage: LNW's interest payments on its debt are not well covered by EBIT (0.7x coverage).


Balance Sheet


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Dividend

What is Light & Wonder current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.063%

Forecast Dividend Yield

Dividend Yield vs Market

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

High Dividend: Unable to evaluate LNW'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 LNW's dividends per share have been stable in the past.

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as LNW has not reported any payouts.


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Management

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

2.3yrs

Average management tenure


CEO

Barry Cottle (60 yo)

4yrs

Tenure

US$13,485,500

Compensation

Mr. Barry L. Cottle has been the Chief Executive Officer, President and Director of Light & Wonder, Inc. (formerly known as Scientific Games Corporation) since June 1, 2018. Mr. Cottle has been the Executi...


CEO Compensation Analysis

Compensation vs Market: Barry's total compensation ($USD13.49M) is above average for companies of similar size in the US market ($USD6.87M).

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


Leadership Team

Experienced Management: LNW's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: LNW's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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

Light & Wonder, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Light & Wonder, Inc.
  • Ticker: LNW
  • Exchange: NasdaqGS
  • Founded: 1984
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Implied Market Cap: US$4.756b
  • Shares outstanding: 95.67m
  • Website: https://www.scientificgames.com

Number of Employees


Location

  • Light & Wonder, Inc.
  • 6601 Bermuda Road
  • Las Vegas
  • Nevada
  • 89119
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.