Light & Wonder, Inc.
LNW
Services-Computer Integrated Systems Design
Mkt Cap
$8.583BPE
38.49Debt
$3.94BCash
$450MEV
$12.07BFCF
$321MP/E Ratio
38.49Debt
$3.94BCash
$450MEV
$12.07BFCF
$321MCharts data: {"Earnings":[{"time":"2014-12-30","value":-234300000},{"time":"2015-12-30","value":-1394300000},{"time":"2016-12-30","value":-353700000},{"time":"2017-12-30","value":-242300000},{"time":"2018-12-30","value":-352400000},{"time":"2019-12-30","value":-130000000},{"time":"2020-12-30","value":-569000000},{"time":"2021-12-30","value":371000000},{"time":"2022-12-30","value":3675000000},{"time":"2023-12-30","value":163000000}],"Sales":[{"time":"2014-12-30","value":1786400000},{"time":"2015-12-30","value":2758800000},{"time":"2016-12-30","value":2883400000},{"time":"2017-12-30","value":3083600000},{"time":"2018-12-30","value":3363200000},{"time":"2019-12-30","value":3400000000},{"time":"2020-12-30","value":2724000000},{"time":"2021-12-30","value":2153000000},{"time":"2022-12-30","value":2512000000},{"time":"2023-12-30","value":2902000000}],"Net Margins":[{"time":"2014-12-30","value":-0.1311576354679803},{"time":"2015-12-30","value":-0.5054008989415688},{"time":"2016-12-30","value":-0.12266768398418533},{"time":"2017-12-30","value":-0.0785769879361785},{"time":"2018-12-30","value":-0.10478116079923883},{"time":"2019-12-30","value":-0.03823529411764706},{"time":"2020-12-30","value":-0.2088839941262849},{"time":"2021-12-30","value":0.1723176962378077},{"time":"2022-12-30","value":1.4629777070063694},{"time":"2023-12-30","value":0.05616815988973122}],"Assets":[{"time":"2014-12-30","value":9995200000},{"time":"2015-12-30","value":7732200000},{"time":"2016-12-30","value":7087400000},{"time":"2017-12-30","value":7725300000},{"time":"2018-12-30","value":7717800000},{"time":"2019-12-30","value":7809000000},{"time":"2020-12-30","value":7984000000},{"time":"2021-12-30","value":7883000000},{"time":"2022-12-30","value":6009000000},{"time":"2023-12-30","value":5552000000}],"Stockholders Equity":[{"time":"2014-12-30","value":3900000},{"time":"2015-12-30","value":-1495500000},{"time":"2016-12-30","value":-1935700000},{"time":"2017-12-30","value":-2027000000},{"time":"2018-12-30","value":-2463000000},{"time":"2019-12-30","value":-2108000000},{"time":"2020-12-30","value":-2524000000},{"time":"2021-12-30","value":-2106000000},{"time":"2022-12-30","value":1161000000},{"time":"2023-12-30","value":765000000}],"ROE":[{"time":"2014-12-30","value":-60.07692307692308},{"time":"2015-12-30","value":0.9323303243062521},{"time":"2016-12-30","value":0.1827245957534742},{"time":"2017-12-30","value":0.11953626048347311},{"time":"2018-12-30","value":0.14307754770604952},{"time":"2019-12-30","value":0.061669829222011384},{"time":"2020-12-30","value":0.22543581616481775},{"time":"2021-12-30","value":-0.1761633428300095},{"time":"2022-12-30","value":3.165374677002584},{"time":"2023-12-30","value":0.2130718954248366}],"ROA":[{"time":"2014-12-30","value":-0.01727829358091884},{"time":"2015-12-30","value":-0.13251079899640464},{"time":"2016-12-30","value":0.025778141490532494},{"time":"2017-12-30","value":0.050884755284584415},{"time":"2018-12-30","value":0.034413952162533366},{"time":"2019-12-30","value":0.06991932385708798},{"time":"2020-12-30","value":0.0027555110220440883},{"time":"2021-12-30","value":0.013954078396549536},{"time":"2022-12-30","value":0.0454318522216675},{"time":"2023-12-30","value":0.09329971181556196}]}
Light & Wonder, Inc. operates as a cross-platform games company in the United States and internationally. It operates through three segments: Gaming, SciPlay, and iGaming segments. The Gaming segment sells new and used gaming machines, electronic table systems, video lottery terminals, conversion game kits, and spare parts; table products, including shufflers; and perpetual licenses to gaming operators. It also supplies game content, gaming machines; provides table game products and services to licensed gaming entities; and installs and supports casino management systems, such as ongoing hardware and software maintenance and upgrade services of customer casino management systems. The company's SciPlay segment develops and publishes digital games on mobile and web platforms. It sells virtual coins, chips, or bingo cards, which players can use to play slot games, table games, or bingo games. Its iGaming segment provides a suite of digital gaming content, including digital real-money gaming, distribution platforms, and other content and services. This segment also offers the Open Platform System, which offers a range of reporting and administrative functions and tools providing operators control over various areas of digital gaming operations. The company was incorporated in 1984 and is headquartered in Las Vegas, Nevada.
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DCF
Discounted Cash Flow Valuation of Light & Wonder, Inc.
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $321M | $370.9M | $424.2M | $480.3M | $538.1M | $596.5M | $654.3M | $710M | $762.2M | $809.2M | $849.7M | $8.497B |
| DCF | $322.5M | $320.8M | $315.8M | $307.6M | $296.6M | $282.9M | $266.9M | $249.1M | $230M | $210M | $2.1B | |
| Value | $4.902B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 16%
Earnings Stability -86%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | -51% | -12% | -7.9% | -10% | -3.8% | -21% | 17% | 150% | 5.6% | 7.5% |
| ROA | -13% | 2.6% | 5.1% | 3.4% | 7% | 0.28% | 1.4% | 4.5% | 9.3% | 10% |
| ROE | 93% | 18% | 12% | 14% | 6.2% | 23% | -18% | 320% | 21% | 27% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +22.33%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +16.26%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +4.33%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +0.66%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +60.54%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +26.46%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 93.32 | 56.70 | 41.75 | -205.11 | 34.05 | 33.63 | 17.15 | -6.64 | 11.32 | 12.27 |
| Debt Equity | -5.65 | -4.28 | -4.40 | -3.74 | -4.22 | -3.74 | -4.19 | 3.42 | 5.15 | 4.72 |
| MIN | ||||||||||
| Graham Stability | - | - | - | - | - | - | - | - | 14% | 14% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 12.27.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 26.96.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.14.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 0.092% | -2.9% | 2.1% | 16% | -3.4% |
| Net Income | - | - | - | -96% | -990% |
| Stockholders Equity | - | - | - | -34% | - |
| FCF | 13% | - | 7.4% | - | -0.2% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is -2.91%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -3.4%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is -.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -986.13%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is -.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is -.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -0.2%.