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Brightstar Lottery (BRSL)
NYSE:BRSL
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Brightstar Lottery
(NYSE:BRSL)
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Rating:74Outperform
Price Target:
$18.50
▲(8.00% Upside)
Brightstar Lottery's stock is supported by strong technical momentum and an attractive valuation, particularly the high dividend yield. However, financial performance is hindered by declining revenues and high leverage, which could pose risks if market conditions deteriorate. The absence of earnings call data and corporate events limits the analysis to these factors.
Positive Factors
Cash Flow Generation
Strong operating cash flow indicates robust cash generation, providing financial stability and flexibility for future investments or debt servicing.
Profitability Metrics
High gross profit margins reflect efficient cost management and pricing power, supporting sustained profitability despite revenue challenges.
Innovative Technology
Emphasizing innovation in technology can improve user engagement and competitive positioning, fostering long-term growth in the gaming sector.
Negative Factors
Declining Revenue
A declining revenue trend indicates market saturation and competitive pressures, which could hinder future growth and profitability.
High Leverage
High leverage increases financial risk, especially if interest rates rise or cash flows decrease, potentially impacting long-term financial health.
Net Profit Margin Decline
Declining net profit margins suggest challenges in maintaining profitability, which could affect the company's ability to reinvest and grow.
Brightstar Lottery (BRSL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.24B
Dividend Yield22.43%
Average Volume (3M)1.58M
Price to Earnings (P/E)17.9
Beta (1Y)0.87
Revenue Growth-43.11%
EPS Growth-8.68%
CountryUS
Employees11,000
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.12
Shares Outstanding189,426,970
10 Day Avg. Volume1,610,323
30 Day Avg. Volume1,577,332
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.75
Enterprise Value/Revenue3.64
Enterprise Value/Gross Profit8.27
Enterprise Value/Ebitda10.12
Forecast
1Y Price Target
$19.30Price Target Upside12.67% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Brightstar Lottery Business Overview & Revenue Model
Company DescriptionA pure‑play global lottery operator - providing technology and services for regulated lotteries. Previously included gaming and iGaming operations, which were divested.
How the Company Makes MoneyBrightstar Lottery generates revenue primarily through the sale of lottery tickets and online game entries. The company's revenue model is built on a percentage of ticket sales, which is divided among prize payouts, operational costs, and profit margins. Key revenue streams include direct sales from online platforms, retail partnerships for ticket distribution, and commissions from third-party lottery operators. Additionally, BRSL may engage in strategic partnerships with state governments and charitable organizations, which can enhance its offerings and expand its customer base, further contributing to its earnings.
Brightstar Lottery Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in iLottery sales and strategic innovations that are expected to drive long-term growth. However, significant challenges such as declining US revenue due to jackpot activity, macroeconomic uncertainties, and increased net debt are causing concerns. The company's guidance revision reflects a cautious approach amidst these challenges.Q1-2025 Updates
Positive Updates
Strong iLottery Sales Growth
Global iLottery sales increased by 26%, with significant contributions from the US, particularly Kentucky and Georgia, which achieved record sales.
Strategic Innovation and Developments
Notable advancements include the Mega Millions transition to a $5 price point, significant product innovations, and the expansion of retail touchpoints, which are expected to drive future growth.
Robust Financial Condition
The company maintains a strong financial position with pro forma net debt leverage below 3x, supported by strong cash generation and liquidity.
Positive Trends in Italy
Italy experienced a 2% increase in same-store sales, driven by growth in both scratch-and-win and lotto games.
Negative Updates
Decline in US Revenue Due to Jackpot Activity
US revenue was negatively impacted by a lack of large multi-state jackpots, resulting in a $45 million year-over-year decline.
Macro-Economic and Geopolitical Challenges
Concerns about tariffs, consumer confidence, and potential recession impacts were highlighted, indicating broader market uncertainties.
Guidance Revision Due to Uncertainty
The company revised its full-year revenue and EBITDA guidance to the lower end of previous estimates due to jackpot activity and macroeconomic concerns.
Increased Net Debt
Net debt rose by $270 million, influenced by foreign currency translation and other factors.
Company Guidance
During the International Game Technology (IGT) First Quarter 2025 earnings call, the company provided guidance with several key metrics. IGT reported $250 million in EBITDA at a 43% margin, converting 67% of that EBITDA into cash during the quarter. The company experienced a 1.5% growth in global same-store sales for instant ticket and draw games, with notable increases of 26% in iLottery sales. The US market saw stable sales despite lower multi-state jackpot activity, while Italy recorded a 2% growth in normalized same-store sales. IGT's pro forma net debt leverage was maintained below 3x. The company adjusted its full-year 2025 revenue forecast to approximately $2.55 billion and adjusted EBITDA to $1.1 billion, reflecting macroeconomic uncertainties and lower jackpot activity. The call also highlighted strategic initiatives like the Mega Millions price increase to $5, expected to enhance sales and revenue, and ongoing investments in retail touchpoints and iLottery advancements.Brightstar Lottery Financial Statement Overview
Summary
Brightstar Lottery presents a solid overall financial position with strong revenue growth and cash flow generation. While profitability metrics are generally positive, leveraging remains a concern due to high debt levels. Continued focus on improving margins and reducing leverage will be crucial for long-term financial stability and growth.Income Statement
Brightstar Lottery demonstrates a resilient income statement with a strong gross profit margin of 45.7% and a stable net profit margin of 10.2% for TTM (Trailing-Twelve-Months). Despite a slight decline in EBIT margin from the annual report, the revenue growth rate of 14.3% from the previous year indicates a positive trajectory. However, the company faces challenges in maintaining consistent profitability, as shown by fluctuations in net income over the years.65
Positive
Balance Sheet
The balance sheet reflects a high debt-to-equity ratio of 3.51, indicating significant leverage and potential risk. Despite this, the company maintains a reasonable equity ratio of 15.9%, providing some stability. The return on equity of 17.9% for TTM shows effective utilization of equity, although the high debt levels could pose challenges in adverse market conditions.58
Neutral
Cash Flow
Brightstar Lottery showcases strong cash flow management with a healthy operating cash flow to net income ratio of 3.86, reflecting robust cash generation relative to profits. The free cash flow growth rate of 7.1% from the annual report underscores effective capital expenditure control and cash flow optimization. However, the high leverage and significant financing cash outflows remain areas for improvement.72
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.45B | 2.51B | 2.53B | 2.60B | 4.09B | 3.12B |
| Gross Profit | 1.08B | 1.17B | 1.21B | 1.20B | 1.96B | 1.14B |
| EBITDA | 881.00M | 1.14B | 1.12B | 1.42B | 1.41B | 136.36M |
| Net Income | 194.00M | 348.00M | 156.00M | 275.00M | 482.00M | -875.40M |
Balance Sheet | ||||||
| Total Assets | 11.24B | 10.28B | 10.46B | 10.43B | 11.32B | 12.99B |
| Cash, Cash Equivalents and Short-Term Investments | 1.31B | 584.00M | 508.00M | 590.00M | 591.00M | 907.01M |
| Total Debt | 6.63B | 5.47B | 5.78B | 6.03B | 6.87B | 8.52B |
| Total Liabilities | 9.23B | 8.22B | 8.51B | 8.45B | 9.35B | 11.43B |
| Stockholders Equity | 1.53B | 1.65B | 1.44B | 1.43B | 1.28B | 776.74M |
Cash Flow | ||||||
| Free Cash Flow | 852.00M | 881.00M | 893.00M | 737.00M | 740.00M | 610.94M |
| Operating Cash Flow | 1.10B | 1.03B | 1.04B | 899.00M | 978.00M | 865.63M |
| Investing Cash Flow | -437.00M | -357.00M | -393.00M | 168.00M | 636.00M | -268.57M |
| Financing Cash Flow | 285.00M | -586.00M | -638.00M | -1.06B | -1.90B | -437.86M |
Brightstar Lottery Technical Analysis
Positive
17.13
Price Trends
15.80
Positive
14.46
Positive
14.11
Positive
Market Momentum
0.34
Positive
63.28
Neutral
66.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRSL, the sentiment is Positive. The current price of 17.13 is above the 20-day moving average (MA) of 16.73, above the 50-day MA of 15.80, and above the 200-day MA of 14.11, indicating a bullish trend. The MACD of 0.34 indicates Positive momentum. The RSI at 63.28 is Neutral, neither overbought nor oversold. The STOCH value of 66.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRSL.
Brightstar Lottery Risk Analysis
Brightstar Lottery disclosed 41 risk factors in its most recent earnings report. Brightstar Lottery 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
Brightstar Lottery Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | 4.96B | 107.74 | 3.04% | ― | 26.99% | ― | |
74 Outperform | $3.24B | 17.90 | -7.71% | 22.43% | -43.11% | -8.68% | |
72 Outperform | 6.51B | 22.84 | 71.63% | 3.24% | 7.47% | 2.58% | |
63 Neutral | 7.13B | 21.51 | 49.72% | ― | 3.93% | 19.20% | |
49 Neutral | 530.04M | -0.95 | -1837.27% | ― | -1.10% | -1.69% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
BRSL
Brightstar Lottery
17.13
-0.15
-0.87%
SBET
SharpLink Gaming
16.00
7.32
84.33%
MCRI
Monarch Casino & Resort
104.55
26.68
34.26%
PENN
PENN Entertainment
19.80
0.52
2.70%
RSI
Rush Street Interactive
21.72
11.00
102.61%
BALY
Bally's Corporation
10.79
-11.28
-51.11%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.