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
Reasonable growth potential and slightly overvalued.
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.
7 Day Return
1 Year Return
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.
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
3 weeks ago | Simply Wall StScientific Games Corporation (NASDAQ:SGMS): Is Breakeven Near?
1 month ago | Simply Wall StThe Returns On Capital At Scientific Games (NASDAQ:SGMS) Don't Inspire Confidence
2 months ago | Simply Wall StIs There An Opportunity With Scientific Games Corporation's (NASDAQ:SGMS) 44% Undervaluation?
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 ($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.
How is Scientific Games forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
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
How has Scientific Games performed over the past 5 years?
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.
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.
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.
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 (59 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 ($USD6.51M).
Compensation vs Earnings: Barry's compensation has been consistent with company performance over the past year.
Experienced Management: SGMS's management team is considered experienced (2.1 years average tenure).
Experienced Board: SGMS's board of directors are not considered experienced ( 1.9 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.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Scientific Games Corporation's company bio, employee growth, exchange listings and data sources
- 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
- Scientific Games Corporation
- 6601 Bermuda Road
- Las Vegas
- United States
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/16 04:32|
|End of Day Share Price||2021/05/14 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.