Light & Wonder, Inc. (SGMS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Rush Street Interactive, Inc.

Super Group (SGHC) Ltd.

International Game Technology PLC

Las Vegas Sands Corp.

Boyd Gaming Corp.

MGM Resorts International

Everi Holdings, Inc.

Light & Wonder, Inc.

Caesars Entertainment, Inc.

Wynn Resorts Ltd.

Bally's Corp.

Why is Light & Wonder, Inc. ?

Poor Management Efficiency with a low ROCE of 11.47%

The company has been able to generate a Return on Capital Employed (avg) of 11.47% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 4.00% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 29.03% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 4.00% over the last 5 years

Flat results in Mar 26

DEBT-EQUITY RATIO (HY) Highest at 1,587.46 %
INTEREST COVERAGE RATIO(Q) Lowest at 351.81
CASH AND EQV(HY) Lowest at USD 510 MM

With ROCE of 17.48%, it has a very expensive valuation with a 2.80 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 10.50%, its profits have risen by 20.7% ; the PEG ratio of the company is 0.7

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Light & Wonder, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Light & Wonder, Inc.

10.5%

-0.20

50.08%

S&P 500

22.24%

1.67

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.00%

EBIT Growth (5y)

37.76%

EBIT to Interest (avg)

1.51

Debt to EBITDA (avg)

5.97

Net Debt to Equity (avg)

5.91

Sales to Capital Employed (avg)

0.63

Tax Ratio

21.13%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

85.48%

ROCE (avg)

11.47%

ROE (avg)

29.03%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

39.03

EV to EBIT

16.04

EV to EBITDA

11.06

EV to Capital Employed

2.80

EV to Sales

4.37

PEG Ratio

0.65

Dividend Yield

ROCE (Latest)

17.48%

ROE (Latest)

196.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 728 MM

ROCE(HY)

Highest at 52.85%

RAW MATERIAL COST(Y)

Fallen by -1.32% (YoY

-7What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 1,587.46 %

INTEREST COVERAGE RATIO(Q)

Lowest at 351.81

CASH AND EQV(HY)

Lowest at USD 510 MM

PRE-TAX PROFIT(Q)

Lowest at USD 116 MM

Here's what is working for Light & Wonder, Inc.

Operating Cash Flow

Highest at USD 728 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Raw Material Cost

Fallen by -1.32% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Light & Wonder, Inc.

Interest Coverage Ratio

Lowest at 351.81

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 1,587.46 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Pre-Tax Profit

Lowest at USD 116 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD 116 MM has Fallen at -19.86%

over average net sales of the previous four periods of USD 144.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Cash and Eqv

Lowest at USD 510 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents