SGMS Stock Overview
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.
Scientific Games Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$56.10|
|52 Week High||US$90.20|
|52 Week Low||US$36.89|
|1 Month Change||-9.78%|
|3 Month Change||-34.39%|
|1 Year Change||24.50%|
|3 Year Change||129.07%|
|5 Year Change||230.00%|
|Change since IPO||1,273.88%|
Recent News & Updates
Calculating The Intrinsic Value Of Scientific Games Corporation (NASDAQ:SGMS)
In this article we are going to estimate the intrinsic value of Scientific Games Corporation ( NASDAQ:SGMS ) by...
|SGMS||US Hospitality||US Market|
Return vs Industry: SGMS exceeded the US Hospitality industry which returned -6.1% over the past year.
Return vs Market: SGMS exceeded the US Market which returned 6.6% over the past year.
|SGMS Average Weekly Movement||7.3%|
|Hospitality Industry Average Movement||8.0%|
|Market Average Movement||6.7%|
|10% most volatile stocks in US Market||15.6%|
|10% least volatile stocks in US Market||2.4%|
Stable Share Price: SGMS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: SGMS's weekly volatility (7%) has been stable over the past year.
About the Company
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.
Scientific Games Fundamentals Summary
|SGMS fundamental statistics|
Is SGMS overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SGMS income statement (TTM)|
|Cost of Revenue||US$1.15b|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
|Earnings per share (EPS)||0.52|
|Net Profit Margin||1.62%|
How did SGMS perform over the long term?See historical performance and comparison
Is Scientific Games undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SGMS ($56.1) is trading below our estimate of fair value ($56.26)
Significantly Below Fair Value: SGMS is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: SGMS is poor value based on its PE Ratio (108.3x) compared to the US Hospitality industry average (24.6x).
PE vs Market: SGMS is poor value based on its PE Ratio (108.3x) compared to the US market (16.7x).
Price to Earnings Growth Ratio
PEG Ratio: SGMS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
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.
How is Scientific Games forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SGMS's earnings are forecast to decline over the next 3 years (-6.7% per year).
Earnings vs Market: SGMS's earnings are forecast to decline over the next 3 years (-6.7% per year).
High Growth Earnings: SGMS's earnings are forecast to decline over the next 3 years.
Revenue vs Market: SGMS's revenue is expected to decline over the next 3 years (-0.8% per year).
High Growth Revenue: SGMS's revenue is forecast to decline over the next 3 years (-0.8% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SGMS's Return on Equity is forecast to be low in 3 years time (6%).
How has Scientific Games performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SGMS has a large one-off loss of $110.0M impacting its September 30 2021 financial results.
Growing Profit Margin: SGMS became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: SGMS has become profitable over the past 5 years, growing earnings by 2.9% per year.
Accelerating Growth: SGMS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: SGMS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (79.7%).
Return on Equity
High ROE: SGMS's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
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.
Debt Coverage: SGMS's debt is not well covered by operating cash flow (7%).
Interest Coverage: SGMS's interest payments on its debt are not well covered by EBIT (1x coverage).
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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Barry Cottle (60 yo)
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 ($USD6.45M).
Compensation vs Earnings: Barry's compensation has been consistent with company performance over the past year.
Experienced Management: SGMS's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Experienced Board: SGMS's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Scientific Games Corporation's employee growth, exchange listings and data sources
- Name: Scientific Games Corporation
- Ticker: SGMS
- Exchange: NasdaqGS
- Founded: 1984
- Industry: Casinos and Gaming
- Sector: Consumer Services
- Implied Market Cap: US$5.414b
- Shares outstanding: 96.51m
- Website: https://www.scientificgames.com
Number of Employees
- Scientific Games Corporation
- 6601 Bermuda Road
- Las Vegas
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/21 23:33|
|End of Day Share Price||2022/01/21 00:00|
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.