Light & Wonder (TJW) AI Stock Analysis

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Light & Wonder

(Frankfurt:TJW)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Recurring Revenue MixThe rising recurring-revenue mix improves earnings predictability and supports margins, cash flow, and operating efficiency. At 71% of revenue, this model gives Light & Wonder a more durable base than relying solely on intermittent hardware sales and should support debt reduction over time.

Negative Factors

Very High LeverageThe large debt burden relative to equity leaves limited balance-sheet flexibility and increases exposure to refinancing, interest-cost, and downturn risks. Although leverage has improved, the capital structure remains materially more constrained than that of less-indebted peers.

Light & Wonder (TJW) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 6.40B
Dividend Yield: ―
Average Volume (3M): 90
Price to Earnings (P/E): 22.0
Beta (1Y): 0.72
Revenue Growth: -1.64%
EPS Growth: -22.91%
Country: Germany
Employees: 6,800
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Gambling, Resorts & Casinos

Light & Wonder Business Overview & Revenue Model

Company Description

Light & Wonder, Inc. is a global entertainment technology company, delivering gaming experiences across multiple platforms in the U.S. and worldwide. Its operations are structured into three main divisions: Gaming, SciPlay, and iGaming. The Gaming di...

Light & Wonder Earnings Call Summary

Earnings Call Date:Nov 04, 2026(Q3-2026)|% Change Since:-10.13%|Next Earnings Date:Mar 02, 2027

Earnings Call SentimentPositive

The call was broadly positive, supported by strong net income, adjusted earnings, free cash flow, recurring revenue growth, gaming operations momentum, record iGaming results, debt repayment, favorable customer feedback, and multiple product and market expansion opportunities. However, consolidated revenue declined, SciPlay remained under pressure, systems revenue is expected to decline in the mid-teens percent for the year, iGaming margins contracted, international headwinds persisted, and fiscal 2026 AEBITDA growth is expected toward the lower end of the previously announced mid to high single-digit range. Highlights significantly outweighed the explicitly stated challenges.

Positive Updates

Net Income and Earnings Growth

Third-quarter net income was $133 million, up 17% year-over-year. Net income for the first nine months was $305 million, compared with $291 million a year ago, while diluted EPS increased 28% to $1.72 from $1.34.

Negative Updates

Consolidated Revenue Decline

Third-quarter consolidated revenue was $824 million, down 2% year-over-year, impacted by the decline at SciPlay and the timing of system sales in the gaming segment.

Company Guidance

For fiscal year 2026, management expects consolidated AEBITDA growth to be towards the lower end of the previously announced range of mid to high single digits, supporting strong adjusted NPATA and EPSA growth; systems revenue is expected to be down mid-teens for the year, corporate costs are expected to be within the guided mid to high $30 million range, and annual R&D and capital expenditures are targeted at roughly 17% of consolidated revenue. For the fourth quarter, management assumes below-market performance in SciPlay and iGaming growth to moderate, while gaming, particularly gaming operations, is expected to remain strongest and growth expectations for both North America and Grover remain the same; gaming operations yield is expected to normalize down to 2%-3%, or CPI. Management remains committed to getting below 3x leverage in the first half of 2027, said free cash flow conversion could be circling the mid-40s by year-end, and reiterated a $2 billion AEBITDA target for fiscal year 2028.

Light & Wonder Risk Analysis

Light & Wonder disclosed 51 risk factors in its most recent earnings report. Light & Wonder 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

Light & Wonder Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:TJW against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RSI	71Outperform	$2.76B	35.63	21.96%	―	38.66%	9.55%
SGHC	71Outperform	$5.78B	14.23	50.15%	3.77%	13.66%	88.22%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PENN	52Neutral	$2.47B	-270.09	-0.50%	―	6.72%	98.91%
DKNG	51Neutral	$17.22B	-25.95	-76.32%	―	17.40%	-39.97%
INSE	45Neutral	$122.61M	-17.93	53.15%	―	-17.20%	-112.75%

* Consumer Cyclical Sector Average

Performance Comparison

DE:TJW and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:TJW	Light & Wonder Inc.	71.00	-3.50	-4.70%
PENN	PENN Entertainment	18.15	3.35	22.64%
INSE	Inspired Entertainment, Inc.	4.55	-3.27	-41.82%
DKNG	Draftkings Inc	19.64	-10.05	-33.85%
RSI	Rush Street Interactive, Inc.	12.24	-5.11	-29.45%
SGHC	Super Group (Sghc) Limited	11.67	-0.12	-0.99%

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.

Light & Wonder AI Stock Analysis