NYSE:IGT

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International Game Technology

Executive Summary

International Game Technology PLC operates and provides gaming technology products and services worldwide. More Details

Rewards

Trading at 26.8% below our estimate of its fair value

Earnings are forecast to grow 104.63% per year

Risk Analysis

No risks detected for IGT from our risk checks.


Snowflake Analysis

Reasonable growth potential and fair value.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.5%

IGT

-2.5%

US Hospitality

-2.4%

US Market


1 Year Return

-27.1%

IGT

-16.2%

US Hospitality

18.2%

US Market

Return vs Industry: IGT underperformed the US Hospitality industry which returned -15.7% over the past year.

Return vs Market: IGT underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

IGTIndustryMarket
7 Day-3.5%-2.5%-2.4%
30 Day-15.9%-1.9%4.2%
90 Day-2.8%11.3%6.3%
1 Year-23.7%-27.1%-14.9%-16.2%20.9%18.2%
3 Year-50.4%-56.7%-12.1%-17.7%41.2%31.8%
5 Year-23.1%-38.1%14.7%2.7%84.8%63.9%

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

Valuation

Is International Game Technology undervalued compared to its fair value and its price relative to the market?

26.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IGT ($10.29) is trading below our estimate of fair value ($14.06)

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 US 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 (2x) compared to the US Hospitality industry average (2.4x).


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?

104.6%

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 (12.7% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: IGT's revenue (12.7% 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 (4.1%).


Next Steps

Past Performance

How has International Game Technology performed over the past 5 years?

-9.5%

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 9.5% 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 (-49.7%).


Return on Equity

High ROE: IGT has a negative Return on Equity (-29.21%), 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 ($3.1B) exceed its short term liabilities ($2.5B).

Long Term Liabilities: IGT's short term assets ($3.1B) do not cover its long term liabilities ($9.2B).


Debt to Equity History and Analysis

Debt Level: IGT's debt to equity ratio (482.1%) is considered high.

Reducing Debt: IGT's debt to equity ratio has increased from 248.6% to 482.1% 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 20.8% per year.


Next Steps

Dividend

What is International Game Technology current dividend yield, its reliability and sustainability?

2.74%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if IGT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: IGT is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IGT'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?

1.2yrs

Average management tenure


CEO

Marco Sala (61 yo)

5.5yrs

Tenure

US$6,573,026

Compensation

Mr. Marco Sala has been Chief Executive Officer of International Game Technology PLC since April 7, 2015. Mr. Sala serves as a Director of De Agostini S.p.A. since June 27, 2020. He served as the Vice Gene ...


CEO Compensation Analysis

Compensation vs Market: Marco's total compensation ($USD6.57M) is above average for companies of similar size in the US market ($USD4.44M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Marco Sala
CEO & Executive Director5.5yrsUS$6.57m0.54%
$ 11.4m
Timothy Rishton
Senior VP & Chief Accounting Officerno datano data0.0055%
$ 116.8k
Fabio Celadon
Executive Vice President of Strategy & Corporate Development0.67yrno data0.0091%
$ 192.5k
Walter Bugno
Executive Vice President of New Business & Strategic Initiatives0.75yrno data0.11%
$ 2.3m
Scott Gunn
Senior Vice President of Corporate Public Affairs1.67yrsno data0.0091%
$ 191.0k
Massimiliano Chiara
Executive VP0.50yrno datano data
James Hurley
Senior Vice President of Investor Relationsno datano datano data
Christopher Spears
Senior VP & General Counselno datano datano data
Wendy Montgomery
Senior Vice President of Global Brand1.67yrsno datano data
Ken Bossingham
Senior Vice President of Sales3.5yrsno datano data
Dorothy Costa
Global Head of People & Transformation0.50yrno datano data
Renato Ascoli
Chief Executive Officer of Global Gamingno datano data0.11%
$ 2.3m

1.2yrs

Average Tenure

57yo

Average Age

Experienced Management: IGT's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Marco Sala
CEO & Executive Director5.5yrsUS$6.57m0.54%
$ 11.4m
Massimiliano Chiara
Executive VP0.50yrno datano data
James McCann
Vice Chairperson & Lead Independent Director1.92yrsUS$296.12k0.049%
$ 1.0m
Robert Vincent
Chairperson of IGT Global Solutions Corporationno datano data0.019%
$ 393.3k
Lorenzo Pellicioli
Chairperson of the Board1.92yrsUS$266.16k0.050%
$ 1.1m
Vincent Sadusky
Independent Non-Executive Director5.5yrsUS$246.41k0.020%
$ 413.6k
Gianmario Tondato da Ruos
Independent Non-Executive Director5.5yrsUS$222.69k0.013%
$ 278.5k
Nicola Drago
Non-Executive Director5.5yrsUS$192.69k0.016%
$ 336.0k
Alberto Dessy
Independent Non-Executive Director5.5yrsUS$199.41k0.014%
$ 300.2k
Heather McGregor
Independent Director3.58yrsUS$192.69k0.0047%
$ 98.4k
Samantha Ravich
Independent Non-Executive Director1.25yrsUS$42.44kno data
Beatrice Bassey
Independent Director0.58yrno datano data

3.6yrs

Average Tenure

63.5yo

Average Age

Experienced Board: IGT's board of directors are considered experienced (3.6 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$2.108b
  • Shares outstanding: 204.86m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
7IGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2015
IGTNYSE (New York Stock Exchange)YesOrdinary SharesUSUSDApr 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 Lo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 00:43
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.