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SGMS

Scientific GamesNasdaqGS:SGMS Stock Report

Last Price

US$56.10

Market Cap

US$5.4b

7D

-8.5%

1Y

24.5%

Updated

21 Jan, 2022

Data

Company Financials +
SGMS fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance2/6
Financial Health0/6
Dividends0/6

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

DraftKings

NasdaqGS:DKNG

US$7.9b

Churchill Downs

NasdaqGS:CHDN

US$7.7b

Penn National Gaming

NasdaqGS:PENN

US$6.9b

Everi Holdings

NYSE:EVRI

US$1.7b

Price History & Performance

Summary of all time highs, changes and price drops for Scientific Games
Historical stock prices
Current Share PriceUS$56.10
52 Week HighUS$90.20
52 Week LowUS$36.89
Beta1.93
1 Month Change-9.78%
3 Month Change-34.39%
1 Year Change24.50%
3 Year Change129.07%
5 Year Change230.00%
Change since IPO1,273.88%

Recent News & Updates

Jan 03
Calculating The Intrinsic Value Of Scientific Games Corporation (NASDAQ:SGMS)

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...

Shareholder Returns

SGMSUS HospitalityUS Market
7D-8.5%-5.6%-6.1%
1Y24.5%-7.2%4.2%

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.

Price Volatility

Is SGMS's price volatile compared to industry and market?
SGMS volatility
SGMS Average Weekly Movement7.3%
Hospitality Industry Average Movement8.0%
Market Average Movement6.7%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
19849,000Barry Cottlehttps://www.scientificgames.com

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

How do Scientific Games's earnings and revenue compare to its market cap?
SGMS fundamental statistics
Market CapUS$5.41b
Earnings (TTM)US$50.00m
Revenue (TTM)US$3.08b

108.3x

P/E Ratio

1.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SGMS income statement (TTM)
RevenueUS$3.08b
Cost of RevenueUS$1.15b
Gross ProfitUS$1.93b
ExpensesUS$1.88b
EarningsUS$50.00m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.52
Gross Margin62.56%
Net Profit Margin1.62%
Debt/Equity Ratio-403.9%

How did SGMS perform over the long term?

See historical performance and comparison

Valuation

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

0.3%

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.


Future Growth

How is Scientific Games forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-6.7%

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%).


Past Performance

How has Scientific Games performed over the past 5 years?

2.9%

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.


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.

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).


Balance Sheet


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?

1.8yrs

Average management tenure


CEO

Barry Cottle (60 yo)

3.58yrs

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 ($USD3.61M) is below average for companies of similar size in the US market ($USD6.45M).

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 not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: SGMS's board of directors are not considered experienced ( 1.3 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Scientific Games Corporation's 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
  • Implied Market Cap: US$5.414b
  • Shares outstanding: 96.51m
  • Website: https://www.scientificgames.com

Number of Employees


Location

  • Scientific Games Corporation
  • 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 Analysis2022/01/21 23:33
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
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.