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Market Cap

US$5.6b

Last Updated

2021/05/16 04:32 UTC

Data Sources

Company Financials +

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. More Details


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: SGMS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: SGMS's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

4.3%

SGMS

-2.7%

US Hospitality

-1.7%

US Market


1 Year Return

397.4%

SGMS

81.3%

US Hospitality

50.8%

US Market

Return vs Industry: SGMS exceeded the US Hospitality industry which returned 81.3% over the past year.

Return vs Market: SGMS exceeded the US Market which returned 50.8% over the past year.


Shareholder returns

SGMSIndustryMarket
7 Day4.3%-2.7%-1.7%
30 Day23.3%-6.6%-1.2%
90 Day22.0%-3.0%0.4%
1 Year397.4%397.4%82.1%81.3%53.3%50.8%
3 Year-3.0%-3.0%8.0%3.2%61.5%51.4%
5 Year612.7%612.7%68.6%55.7%125.9%100.7%

Long-Term 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

Valuation

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

21.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SGMS ($58.44) is trading below our estimate of fair value ($74.85)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

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


Future Growth

How is Scientific Games forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

71.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SGMS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

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

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

Revenue vs Market: SGMS's revenue (9.2% per year) is forecast to grow faster than the US market (9% per year).

High Growth Revenue: SGMS's revenue (9.2% 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 SGMS's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Scientific Games performed over the past 5 years?

22.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGMS is currently unprofitable.

Growing Profit Margin: SGMS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SGMS is unprofitable, but has reduced losses over the past 5 years at a rate of 22.6% per year.

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

Earnings vs Industry: SGMS is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-20.5%).


Return on Equity

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


Financial Health

How is Scientific Games's financial position?


Financial Position Analysis

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

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

Reducing Debt: SGMS'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 SGMS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SGMS is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 22.7% per year.


Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if SGMS'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 SGMS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Barry Cottle (59 yo)

2.92yrs

Tenure

US$3,614,599

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Barry's total compensation ($USD3.61M) is below average for companies of similar size in the US market ($USD6.51M).

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


Leadership Team

Experienced Management: SGMS's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: SGMS's board of directors are not considered experienced ( 1.9 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

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


Key Information

  • Name: Scientific Games Corporation
  • Ticker: SGMS
  • Exchange: NasdaqGS
  • Founded: 1984
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: US$5.615b
  • Shares outstanding: 96.08m
  • Website: https://www.scientificgames.com

Number of Employees


Location

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

Listings


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 Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/16 04:32
End of Day Share Price2021/05/14 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.