International Game Technology
Market Cap
US$2.1b
Last Updated
2020/07/04 23:50 UTC
Data Sources
Company Financials +
Executive Summary
International Game Technology PLC operates and provides gaming technology products and services worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Fair value with moderate growth potential.
Similar Companies
Share Price & News
How has International Game Technology's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: IGT's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
23.4%
IGT
3.9%
US Hospitality
4.0%
US Market
1 Year Return
-24.2%
IGT
-28.5%
US Hospitality
4.9%
US Market
Return vs Industry: IGT exceeded the US Hospitality industry which returned -28.5% over the past year.
Return vs Market: IGT underperformed the US Market which returned 5% over the past year.
Shareholder returns
| IGT | Industry | Market | |
|---|---|---|---|
| 7 Day | 23.4% | 3.9% | 4.0% |
| 30 Day | -1.8% | -10.0% | 1.3% |
| 90 Day | 104.2% | 51.5% | 29.5% |
| 1 Year | -19.4%-24.2% | -27.0%-28.5% | 7.2%4.9% |
| 3 Year | -35.4%-44.1% | -18.0%-23.3% | 36.1%27.2% |
| 5 Year | -28.7%-43.3% | 0.7%-10.2% | 65.3%46.9% |
Price Volatility Vs. Market
How volatile is International Game Technology's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
If You Had Bought International Game Technology (NYSE:IGT) Stock Three Years Ago, You'd Be Sitting On A 67% Loss, Today2 months ago | Simply Wall St
International Game Technology PLC (NYSE:IGT): When Will It Breakeven?2 months ago | Simply Wall St
Is International Game Technology PLC's (NYSE:IGT) CEO Paid Enough Relative To Peers?Valuation
Is International Game Technology undervalued compared to its fair value and its price relative to the market?
32.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: IGT ($10.11) is trading below our estimate of fair value ($14.95)
Significantly Below Fair Value: IGT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: IGT is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.
PE vs Market: IGT 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 IGT's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: IGT is good value based on its PB Ratio (1.4x) compared to the US Hospitality industry average (1.7x).
Next Steps
Future Growth
How is International Game Technology forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
122.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IGT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).
Earnings vs Market: IGT is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: IGT's is expected to become profitable in the next 3 years.
Revenue vs Market: IGT's revenue (8.3% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: IGT's revenue (8.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: IGT's Return on Equity is forecast to be low in 3 years time (14.8%).
Next Steps
Past Performance
How has International Game Technology performed over the past 5 years?
-7.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IGT is currently unprofitable.
Growing Profit Margin: IGT is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: IGT is unprofitable, and losses have increased over the past 5 years at a rate of -7.8% per year.
Accelerating Growth: Unable to compare IGT's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: IGT is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-30.8%).
Return on Equity
High ROE: IGT has a negative Return on Equity (-9.63%), as it is currently unprofitable.
Next Steps
Financial Health
How is International Game Technology's financial position?
Financial Position Analysis
Short Term Liabilities: IGT's short term assets ($3.0B) exceed its short term liabilities ($2.2B).
Long Term Liabilities: IGT's short term assets ($3.0B) do not cover its long term liabilities ($9.2B).
Debt to Equity History and Analysis
Debt Level: IGT's debt to equity ratio (410.8%) is considered high.
Reducing Debt: IGT's debt to equity ratio has increased from 114.9% to 410.8% over the past 5 years.
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 IGT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: IGT is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 27.1% per year.
Next Steps
Dividend
What is International Game Technology current dividend yield, its reliability and sustainability?
7.78%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: IGT's dividend (7.78%) is higher than the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: IGT's dividend (7.78%) is in the top 25% of dividend payers in the US market (4.5%)
Stability and Growth of Payments
Stable Dividend: IGT has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: IGT's dividend payments have increased, but the company has only paid a dividend for 5 years.
Current Payout to Shareholders
Dividend Coverage: IGT is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: IGT's dividends in 3 years are forecast to be covered by earnings (57.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.4yrs
Average management tenure
CEO
Marco Sala (61yo)
5.25yrs
Tenure
US$6,573,026
Compensation
Mr. Marco Sala serves as Chief Executive Officer of International Game Technology. Mr. Sala has been Chief Executive Officer of International Game Technology PLC since April 7, 2015. Mr. Sala served as the ...
CEO Compensation Analysis
Compensation vs Market: Marco's total compensation ($USD6.57M) is above average for companies of similar size in the US market ($USD4.70M).
Compensation vs Earnings: Marco's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 5.25yrs | US$6.57m | 0.54% $11.2m | |
| Senior VP & Chief Accounting Officer | no data | no data | 0.0056% $114.7k | |
| Executive Vice President of Strategy & Corporate Development | 0.42yr | no data | 0.0092% $189.1k | |
| Senior Vice President of Corporate Public Affairs | 1.42yrs | no data | 0.0091% $187.7k | |
| Executive VP | 0.25yr | no data | no data | |
| Senior Vice President of Investor Relations | no data | no data | no data | |
| Senior VP & General Counsel | no data | no data | no data | |
| Senior Vice President of Global Brand | 1.42yrs | no data | no data | |
| Senior Vice President of Sales | 3.25yrs | no data | no data | |
| Global Head of People & Transformation | 0.25yr | no data | no data |
1.4yrs
Average Tenure
56yo
Average Age
Experienced Management: IGT's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 5.25yrs | US$6.57m | 0.54% $11.2m | |
| Executive VP | 0.25yr | no data | no data | |
| Vice Chairperson & Lead Independent Director | 1.67yrs | US$296.12k | 0.049% $1.0m | |
| Chairperson of IGT Global Solutions Corporation | no data | no data | 0.019% $386.5k | |
| Chairperson of the Board | 1.67yrs | US$266.16k | 0.050% $1.0m | |
| Independent Non-Executive Director | 5.25yrs | US$246.41k | 0.020% $406.3k | |
| Independent Non-Executive Director | 5.25yrs | US$222.69k | 0.013% $273.6k | |
| Non-Executive Director | 5.25yrs | US$192.69k | 0.016% $330.1k | |
| Independent Non-Executive Director | 5.25yrs | US$199.41k | 0.014% $294.9k | |
| Independent Director | 3.33yrs | US$192.69k | 0.0047% $96.7k |
5.3yrs
Average Tenure
66yo
Average Age
Experienced Board: IGT's board of directors are considered experienced (5.3 years average tenure).
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
International Game Technology PLC's company bio, employee growth, exchange listings and data sources
Key Information
- Name: International Game Technology PLC
- Ticker: IGT
- Exchange: NYSE
- Founded: 2014
- Industry: Casinos and Gaming
- Sector: Consumer Services
- Market Cap: US$2.067b
- Shares outstanding: 204.44m
- Website: https://www.igt.com
Number of Employees
Location
- International Game Technology PLC
- Marble Arch House
- 2nd Floor
- London
- Greater London
- W1H 5BT
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 7IG | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Apr 2015 |
| IGT | NYSE (New York Stock Exchange) | Yes | Ordinary Shares | US | USD | Apr 2015 |
Biography
International Game Technology PLC operates and provides gaming technology products and services worldwide. The company operates through four segments: North America Gaming and Interactive, North America Lottery, International, and Italy. It designs, sells, and operates a suite of point-of-sale machines that reconciles lottery funds between the retailer and lottery authority; provides online lottery transaction processing systems; produces instant ticket games; and offers printing services, such as instant ticket marketing plans and graphic design, programming, packaging, shipping, and delivery services. The company also designs, develops, assembles, and provides cabinets, games, systems, and software for gamin market, as well as offers gaming management systems for casino management, customer relationship management, patron management, and server-based gaming. In addition, it provides video lottery terminals (VLT), VLT central systems, and VLT games; and amusement with prize machines and games to licensed operators. Further, the company offers sports betting services on sports and motor sports events, and non-sporting events, as well as sports betting technology and management services. Additionally, it provides digital gaming products and services, including poker, bingo, and online casino table and slot games; social casino content; and remote game server, as well as iGaming systems and digital platforms that offers player account management, advanced marketing and analytical, and payment system services. The company processes commercial transactions, such as prepaid cellular telephone recharges, bill payments, e-vouchers and retail-based programs, electronic tax payments, prepaid card recharges, and stamp duty and money transfers services. The company was formerly known as GTECH S.p.A. and changed its name to International Game Technology PLC in April 2015. The company was founded in 2014 and is headquartered in London, the United Kingdom. International Game Technology PLC operates as a subsidiary of De Agostini S.p.A.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/04 23:50 |
| End of Day Share Price | 2020/07/02 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.