International Game Technology (IGT) AI Stock Analysis

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International Game Technology

(NYSE:IGT)

73Outperform

International Game Technology's overall score reflects strong cash flow and operational efficiency, supported by a stable valuation with a favorable P/E ratio and dividend yield. Despite these strengths, the company faces challenges with declining revenues and high leverage in a difficult macroeconomic environment. The cautious outlook from the recent earnings call further tempers enthusiasm, although strategic initiatives and product innovations offer potential for future growth.

International Game Technology (IGT) vs. S&P 500 (SPY)

Market Cap

$3.41B

Dividend Yield4.73%

Average Volume (3M)1.71M

Price to Earnings (P/E)11.7

Beta (1Y)0.91

Revenue Growth-33.50%

EPS Growth35.81%

CountryUS

Employees11,000

SectorConsumer Cyclical

Sector Strength74

IndustryGambling, Resorts & Casinos

Share Statistics

EPS (TTM)0.09

Shares Outstanding202,031,630

10 Day Avg. Volume2,366,084

30 Day Avg. Volume1,707,793

Financial Highlights & Ratios

PEG Ratio0.05

Price to Book (P/B)1.99

Price to Sales (P/S)0.00

P/FCF Ratio3.73

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$21.67

Price Target Upside28.22% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

International Game Technology Business Overview & Revenue Model

Company DescriptionInternational Game Technology PLC operates and provides gaming technology products and services in North America, Europe, the Middle East, Africa, Asia-Pacific, Latin America, and the Caribbean. It operates in three segments: Global Lottery, Global Gaming, and Digital & Betting. The company designs, sells, operates, and leases 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. It also designs, develops, assembles, and provides cabinets, games, systems, and software for the gaming market, as well as offers gaming management systems for casino management, customer relationship management, patron management, and server-based gaming. In addition, the company provides video lottery terminals (VLT), VLT central systems, and VLT games. Further, it offers digital gaming and betting; sports betting; and technology and management services. Additionally, the company provides digital gaming products and services, including blackjack, roulette, slot games, poker, bingo, and other casino card games; social casino content; and remote game server, as well as iGaming systems and digital platforms that offer player account management, advanced marketing and analytical, and payment system services. It 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 transfer 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 is a subsidiary of De Agostini S.p.A.

How the Company Makes MoneyIGT generates revenue through multiple streams. The primary sources include the sale and lease of gaming machines and lottery systems, as well as service contracts for maintaining and operating these systems. Additionally, IGT earns money through participation in gaming revenues from the machines placed at customer locations. The company also benefits from its interactive gaming and sports betting platforms, charging fees for software and support services. Significant partnerships with casinos, government lotteries, and betting operators play a crucial role in expanding its market reach and securing long-term contracts, thereby contributing to its financial performance.

International Game Technology Financial Statement Overview

Summary

International Game Technology displays strong operational efficiency and cash flow generation, despite the declining revenue trend. The high leverage ratio is a concern but is mitigated by the company's ability to maintain profitability and cash flow. Continued focus on revenue growth and debt management is essential to improve financial health.

Income Statement

Positive

International Game Technology showed a strong recovery with a notable increase in net income from 2023 to 2024. The gross profit margin and EBITDA margin remain robust, indicating efficient cost management. However, the revenue has decreased over the years, indicating growth challenges.

Balance Sheet

Positive

The debt-to-equity ratio remains high, indicating significant leverage, which could pose a risk in volatile markets. However, the company has improved its equity base slightly, reflecting better financial stability.

Cash Flow

Positive

The company has demonstrated strong cash flow generation capabilities, with a healthy operating cash flow to net income ratio and significant free cash flow growth. This highlights its ability to generate cash and fund operations effectively.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
2.51B	4.31B	4.22B	4.09B	3.12B
	Gross Profit
1.17B	2.11B	2.00B	1.96B	1.14B
	EBIT
686.00M	1.00B	603.00M	902.00M	200.15M
	EBITDA
1.14B	1.58B	1.58B	1.41B	136.36M
	Net Income Common Stockholders
348.00M	156.00M	275.00M	255.00M	-875.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
584.00M	572.00M	590.00M	591.00M	907.01M
	Total Assets
10.28B	10.46B	10.41B	11.32B	12.99B
	Total Debt
5.47B	5.92B	6.07B	6.80B	8.52B
	Net Debt
4.88B	5.35B	5.47B	6.21B	7.61B
	Total Liabilities
8.22B	8.51B	8.63B	9.35B	11.43B
	Stockholders Equity
1.65B	1.44B	1.39B	1.28B	776.74M
Cash Flow		Free Cash Flow
881.00M	641.00M	681.00M	740.00M	610.94M
	Operating Cash Flow
1.03B	1.04B	998.00M	978.00M	865.63M
	Investing Cash Flow
-357.00M	-393.00M	167.00M	636.00M	-268.57M
	Financing Cash Flow
-586.00M	-638.00M	-1.11B	-1.90B	-437.86M

International Game Technology Technical Analysis

Technical Analysis Sentiment

Positive

Last Price16.90

Price Trends

50DMA

16.45

Positive

100DMA

16.82

Positive

200DMA

18.56

Negative

Market Momentum

MACD

0.17

Negative

RSI

53.26

Neutral

STOCH

56.08

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IGT, the sentiment is Positive. The current price of 16.9 is above the 20-day moving average (MA) of 16.66, above the 50-day MA of 16.45, and below the 200-day MA of 18.56, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 53.26 is Neutral, neither overbought nor oversold. The STOCH value of 56.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IGT.

International Game Technology Risk Analysis

International Game Technology disclosed 41 risk factors in its most recent earnings report. International Game Technology reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

International Game Technology Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LNW	73 Outperform	$7.13B	22.62	46.19%	―	7.26%	54.83%
IGT	73 Outperform	$3.41B	11.75	1.33%	4.73%	-33.50%	35.81%
RSI	70 Outperform	$2.81B	158.53	11.87%	―	29.86%	―
RRR	68 Neutral	$5.00B	20.72	81.59%	2.12%	9.48%	-11.92%
EVRI	62 Neutral	$1.22B	86.86	5.81%	―	-6.41%	-75.66%
Sector *	61 Neutral	$6.98B	11.35	2.88%	3.90%	2.65%	-21.84%
BALY	47 Neutral	$741.76M	―	-65.87%	―	-1.93%	15.16%

* Consumer Cyclical Sector Average

Performance Comparison

IGT

International Game Technology

16.90

-2.59

-13.29%

EVRI

Everi Holdings

14.08

6.65

89.50%

LNW

Light & Wonder

84.53

-8.72

-9.35%

RRR

Red Rock Resorts

47.10

-2.10

-4.27%

RSI

Rush Street Interactive

12.27

3.48

39.59%

BALY

Bally's Corporation

11.07

-11.00

-49.84%

International Game Technology Earnings Call Summary

Earnings Call Date:May 13, 2025

(Q1-2025)

% Change Since: -5.53%|

Next Earnings Date:Aug 05, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture for IGT. While there were notable achievements in iLottery sales growth and innovative product launches, these were overshadowed by significant revenue declines and macroeconomic challenges. The company anticipates potential recovery in the latter half of the year but remains cautious due to ongoing uncertainties.

Q1-2025 Updates

Positive Updates

iLottery Sales Growth

iLottery sales increased by 26% due to new e-instant game launches, with Georgia achieving over $100 million in sales in March.

Strong Financial Condition

IGT maintained a strong financial condition with pro forma net debt leverage below 3x, and a cash conversion ratio of 67%.

Innovative Product Launches

New product innovations, such as the Mega Millions $5 price point and new instant ticket games in Italy, have been well-received, with Italy reporting a 2% normalized same-store sales growth.

LotteryLink Product Recognition

LotteryLink was recognized as Lottery Product of the Year at ICE, indicating strong industry interest and potential future growth.

Negative Updates

Revenue Decline

First quarter revenue was $583 million, down from $661 million in the prior year, primarily due to lower jackpot activity and LMA incentives.

Impact of Macroeconomic Uncertainty

The company faces challenges from macroeconomic factors such as tariffs and declining consumer confidence, which have led to a revised lower guidance for the year.

Weak Jackpot Activity

There were no billion-dollar jackpots in the first quarter, contrasting with the previous year's multiple large jackpots, impacting revenue negatively.

Increased Net Debt

Net debt rose by $270 million from the end of December 2024, with half of the increase due to foreign currency translation.

Company Guidance

During the International Game Technology (IGT) First Quarter 2025 Earnings Conference Call, the company provided guidance indicating a slightly cautious outlook due to macroeconomic uncertainties and lower-than-expected jackpot activity. Despite this, IGT reported a strong EBITDA of $250 million at a 43% margin, with a 67% cash conversion rate. The company anticipates full-year 2025 revenue of approximately $2.55 billion and adjusted EBITDA of $1.1 billion, aligning with the low end of previous expectations. Key performance drivers included a 1.5% increase in global same-store sales for instant and draw games, a significant 26% rise in iLottery sales, and substantial growth in retail touchpoints. Additionally, IGT highlighted strategic initiatives like the new $5 Mega Millions game and the expansion of self-service lottery vending machines as contributors to long-term growth. Despite external challenges, IGT remains optimistic about its resilient profit structure and capacity for future growth.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.