Brightstar Lottery (BRSL) AI Stock Analysis

• Market Cap: $3.17B
• Dividend Yield: 22.74%
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.92
• Revenue Growth: -43.11%
• EPS Growth: -8.68%
• Country: US
• Employees: 11,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.12
• Shares Outstanding: 189,426,970
• 10 Day Avg. Volume: 1,517,688
• 30 Day Avg. Volume: 1,590,667
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.82
• Enterprise Value/Revenue: 3.64
• Enterprise Value/Gross Profit: 8.27
• Enterprise Value/Ebitda: 10.12
• 1Y Price Target: $19.50
• Price Target Upside: 16.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: $18.50 ▲(10.71% 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 Business Overview & Revenue Model

Company Description

Brightstar Lottery (BRSL) is a leading organization in the gaming and lottery sector, specializing in the management and operation of lottery systems and services. The company provides a range of products including online lottery games, traditional ticket sales, and instant-win games, catering to both local and international markets. BRSL focuses on enhancing player experience through innovative technology and robust marketing strategies, ensuring a secure and engaging platform for all participants.

How the Company Makes Money

Brightstar 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 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.

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.

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.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 16.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRSL, the sentiment is Neutral. The current price of 16.71 is below the 20-day moving average (MA) of 17.19, above the 50-day MA of 16.58, and above the 200-day MA of 14.32, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 46.59 is Neutral, neither overbought nor oversold. The STOCH value of 22.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BRSL.

Brightstar Lottery Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRSL	74 Outperform	$3.17B	17.66	-7.71%	22.74%	-43.11%	-8.68%
MCRI	73 Outperform	$1.73B	17.75	19.27%	1.27%	4.65%	24.60%
RSI	65 Neutral	$3.95B	85.81	27.07%	―	26.99%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BALY	54 Neutral	$642.04M	―	-113.09%	―	-1.10%	-1.69%
PENN	45 Neutral	$2.37B	―	-2.50%	―	7.34%	93.83%
SBET	40 Underperform	$2.78B	―	-46.60%	―	―	―

Brightstar Lottery Corporate Events

Brightstar Lottery PLC Completes Significant Share Repurchase

On August 6, 2025, Brightstar Lottery PLC repurchased 13,573,035 of its ordinary shares as part of a $250 million accelerated share repurchase (ASR) program announced on July 29, 2025. This strategic move is expected to strengthen the company’s financial positioning by holding the repurchased shares in treasury, potentially impacting shareholder value and market perception positively.

Brightstar Lottery Initiates $250 Million Share Buyback

On July 29, 2025, Brightstar Lottery PLC announced an accelerated share repurchase agreement with Banco Santander, S.A. to buy back $250 million of its outstanding ordinary shares. This move is part of a larger $500 million share repurchase authorization announced earlier in the month. The agreement is expected to enhance shareholder value by reducing the number of shares outstanding, potentially increasing earnings per share. The final settlement of the repurchase is anticipated to be completed early next year, with provisions for possible adjustments or early termination based on market conditions.

Brightstar Lottery Sells Gaming & Digital Business to Apollo

Brightstar Lottery PLC announced the sale of its Gaming & Digital business to a holding company owned by Apollo Global Management, Inc. This strategic move is expected to impact the company’s operations and market positioning, potentially influencing stakeholder interests. The announcement, made in July 2025, highlights the company’s focus on restructuring and optimizing its business portfolio.

Brightstar Lottery Reports Q2 2025 Results and Strategic Moves

On July 29, 2025, Brightstar Lottery PLC reported its second quarter 2025 financial results, highlighting a 2.6% growth in global same-store sales and a strong financial position with $2.9 billion in liquidity. Despite a loss from continuing operations of $60 million, the company demonstrated resilience with an adjusted EBITDA of $274 million. Brightstar also announced a quarterly cash dividend and a $250 million accelerated share repurchase program. The company secured a nine-year Lotto license in Italy and completed the sale of its Gaming & Digital business for $4 billion, positioning itself to focus on its core lottery operations.