Light & Wonder (LNW) AI Stock Analysis

• Market Cap: $7.33B
• Dividend Yield: N/A
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 22.1
• Beta (1Y): 1.19
• Revenue Growth: 3.93%
• EPS Growth: 19.20%
• Country: US
• Employees: 6,800
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 1.11
• Shares Outstanding: 83,946,594
• 10 Day Avg. Volume: 1,192,832
• 30 Day Avg. Volume: 1,300,954
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.76
• Enterprise Value/Revenue: 4.04
• Enterprise Value/Gross Profit: 5.64
• Enterprise Value/Ebitda: 11.61
• 1Y Price Target: $112.64
• Price Target Upside: 29.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 63 Neutral
• Price Target: $94.00 ▲(7.70% Upside)

Light & Wonder's overall stock score is driven by strong earnings growth and strategic initiatives highlighted in the earnings call. However, financial performance is impacted by high leverage and declining revenue growth. Technical indicators suggest a bearish trend, and valuation metrics indicate moderate attractiveness. The absence of a dividend yield and challenges in global game sales also weigh on the score.

Positive Factors

Revenue and Earnings Growth

The increase in revenue and net income highlights the company's ability to grow its top and bottom lines, reflecting strong demand for its products and efficient cost management, which are crucial for long-term sustainability.

iGaming Success

The growth in iGaming revenue underscores the company's successful expansion in digital gaming, aligning with industry trends towards online platforms and providing a robust growth avenue.

SciPlay Market Share and Revenue Growth

Maintaining a strong market share in SciPlay indicates competitive positioning and effective product offerings, which are essential for capturing long-term growth in the digital gaming market.

Negative Factors

High Leverage

High leverage can pose financial risks, limiting the company's ability to invest in growth opportunities and increasing vulnerability to economic downturns, impacting long-term financial health.

Decline in Global Game Sales

The decline in global game sales suggests challenges in international markets, which could hinder revenue growth and market expansion efforts if not addressed.

Impact of Sweepstakes Gaming

The rise of unregulated sweepstakes gaming presents competitive pressures and regulatory risks, potentially eroding market share and increasing costs, affecting long-term profitability.

Light & Wonder Business Overview & Revenue Model

Company Description

Light & Wonder, Inc. develops technology-based products and services, and related content for the gaming, lottery, social and digital gaming industries in the United States and internationally. The company's 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 proprietary table games. 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, content, products, 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 also offers software design, development, licensing, maintenance, support services, and technology solutions. Light & Wonder, Inc. was incorporated in 1984 and is based in Las Vegas, Nevada.

How the Company Makes Money

Light & Wonder generates revenue through multiple streams, primarily by selling gaming machines and systems to casinos and gaming operators. The company offers a range of products including slot machines, table games, and interactive gaming solutions, which are sold or leased to clients. Additionally, LNW provides casino management systems that help operators manage gaming operations more efficiently, contributing to recurring revenue through service agreements and software licensing. The company also earns revenue from its digital gaming segment, which includes online gaming platforms and mobile applications. Strategic partnerships with various online gaming operators and platforms further enhance LNW's earnings potential, as they expand the distribution of its digital content. Furthermore, LNW benefits from the growing trend of online and mobile gaming, which has been accelerated by technological advancements and changing consumer preferences.

Light & Wonder Financial Statement Overview

Summary

Light & Wonder demonstrates strong profitability and operational efficiency, but faces challenges with declining revenue growth and high leverage. While the company effectively generates returns on equity, its financial stability could be impacted by its significant debt levels. Cash flow management is stable, though there is potential for improvement in free cash flow generation.

Income Statement

Light & Wonder shows strong profitability with a healthy gross profit margin of 71.63% and a net profit margin of 10.92% for the TTM. However, the revenue growth rate has declined by 28.1% in the TTM, indicating potential challenges in maintaining revenue levels. The EBIT and EBITDA margins are solid at 22.93% and 34.81%, respectively, reflecting efficient operational management.

Balance Sheet

The company has a high debt-to-equity ratio of 6.96, suggesting significant leverage and potential financial risk. However, the return on equity is strong at 49.57%, indicating effective use of equity to generate profits. The equity ratio is relatively low, which could be a concern for financial stability.

Cash Flow

Operating cash flow is robust with a coverage ratio of 0.87, but free cash flow has decreased by 8.9% in the TTM. The free cash flow to net income ratio is 0.44, suggesting moderate efficiency in converting net income into free cash flow. Overall, cash flow management appears stable but shows room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.20B	3.19B	2.90B	2.51B	2.15B	2.72B
Gross Profit	2.29B	2.26B	2.03B	1.77B	1.54B	1.56B
EBITDA	1.11B	1.09B	898.00M	591.00M	601.00M	163.00M
Net Income	349.00M	336.00M	163.00M	-176.00M	371.00M	-569.00M
Balance Sheet
Total Assets	6.49B	5.42B	5.55B	6.01B	7.88B	7.98B
Cash, Cash Equivalents and Short-Term Investments	136.00M	196.00M	425.00M	914.00M	585.00M	928.00M
Total Debt	4.89B	3.92B	3.93B	3.95B	8.75B	9.36B
Total Liabilities	5.79B	4.79B	4.79B	4.85B	9.99B	10.51B
Stockholders Equity	702.00M	636.00M	765.00M	990.00M	-2.26B	-2.65B
Cash Flow
Free Cash Flow	266.00M	338.00M	348.00M	-597.00M	514.00M	281.00M
Operating Cash Flow	603.00M	632.00M	590.00M	-381.00M	685.00M	471.00M
Investing Cash Flow	-1.10B	-258.00M	-251.00M	6.12B	-442.00M	-173.00M
Financing Cash Flow	333.00M	-573.00M	-292.00M	-5.46B	-679.00M	463.00M

Light & Wonder Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 87.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LNW, the sentiment is Negative. The current price of 87.28 is below the 20-day moving average (MA) of 89.72, below the 50-day MA of 91.63, and below the 200-day MA of 91.39, indicating a bearish trend. The MACD of -0.78 indicates Positive momentum. The RSI at 43.44 is Neutral, neither overbought nor oversold. The STOCH value of 17.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LNW.

Light & Wonder Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYD	76 Outperform	6.68B	12.83	40.43%	0.85%	6.40%	26.09%
WYNN	68 Neutral	13.47B	38.21	-86.94%	0.77%	-1.94%	-53.90%
LNW	63 Neutral	$7.33B	22.09	46.91%	―	3.93%	19.20%
MGM	63 Neutral	9.74B	19.73	18.14%	―	0.89%	-31.56%
MLCO	58 Neutral	3.74B	70.26	-3.28%	―	12.22%	0.00%
CZR	52 Neutral	5.32B	-27.63	-5.01%	―	-0.15%	28.05%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Light & Wonder Corporate Events

Light & Wonder Issues CHESS Depositary Interests Statement

On September 5, 2025, Light & Wonder, Inc. provided the Australian Securities Exchange with a Statement of CHESS Depositary Interests on Issue. This announcement is part of the company’s regulatory compliance and does not impact its filings under the Securities Act of 1933 or the Securities Exchange Act of 1934.

The most recent analyst rating on (LNW) stock is a Hold with a $93.00 price target. To see the full list of analyst forecasts on Light & Wonder stock, see the LNW Stock Forecast page.

Light & Wonder Announces $1 Billion Notes Pricing

On September 10, 2025, Light & Wonder, Inc. announced the pricing of $1 billion in senior unsecured notes due 2033 by its subsidiary, Light and Wonder International, Inc. The proceeds from this offering will be used to repay existing borrowings, redeem outstanding notes due 2028, and for general corporate purposes. This strategic financial move is expected to enhance the company’s financial flexibility and strengthen its market position.

The most recent analyst rating on (LNW) stock is a Hold with a $93.00 price target. To see the full list of analyst forecasts on Light & Wonder stock, see the LNW Stock Forecast page.

Light & Wonder Announces $1 Billion Notes Offering

On September 10, 2025, Light & Wonder, Inc. announced a proposed private offering of $1 billion in senior unsecured notes due 2033 through its subsidiary, Light and Wonder International, Inc. The proceeds are intended to repay existing borrowings, redeem $700 million of outstanding notes due 2028, and for general corporate purposes. This move is expected to impact the company’s financial structure by refinancing debt and potentially enhancing its market position.

The most recent analyst rating on (LNW) stock is a Hold with a $93.00 price target. To see the full list of analyst forecasts on Light & Wonder stock, see the LNW Stock Forecast page.

Light & Wonder Issues Statement of CHESS Depositary Interests

On August 7, 2025, Light & Wonder, Inc. provided the Australian Securities Exchange with a Statement of CHESS Depositary Interests on Issue. This announcement is part of their regulatory compliance and does not impact the company’s filings under the Securities Act of 1933 or the Exchange Act.

The most recent analyst rating on (LNW) stock is a Buy with a $120.00 price target. To see the full list of analyst forecasts on Light & Wonder stock, see the LNW Stock Forecast page.