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Brightstar Lottery (BRSL)
:BRSL
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Brightstar Lottery
(NYSE:BRSL)
Rating:69Neutral
Price Target:
$16.00
▲(2.30% Upside)
Positive Factors
Business Sale
IGT completed the sale of its Gaming & Digital Business to Apollo Global Management for $4.05B in cash, which was ahead of expectations.
Capital Returns
The capital return plans, including a $500M repurchase authorization and a $3/share special dividend, were announced alongside the deal close and exceeded wide investor expectations.
Negative Factors
Contract Competition
There is a potential threat from FLUT, which has expressed interest in the Lotto contract, contributing to some recent weakness in IGT shares.
Liquidity Concerns
Questions were received on the 2-year non-committed structure for the $500M buyback authorization, indicating potential concerns about trading liquidity.
Brightstar Lottery (BRSL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.06B
Dividend Yield24.47%
Average Volume (3M)2.83M
Price to Earnings (P/E)15.9
Beta (1Y)0.91
Revenue Growth-43.11%
EPS Growth-8.68%
CountryUS
Employees11,000
SectorConsumer Cyclical
Sector Strength75
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.12
Shares Outstanding203,000,000
10 Day Avg. Volume2,554,855
30 Day Avg. Volume2,826,125
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 Cap2.91
Enterprise Value/Revenue3.64
Enterprise Value/Gross Profit8.27
Enterprise Value/Ebitda10.12
Forecast
1Y Price Target
$18.00Price Target Upside15.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Brightstar Lottery Business Overview & Revenue Model
Company DescriptionBrightstar 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 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: 10.92%|
Next Earnings Date:Nov 12, 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.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.72
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.65
Positive
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.78
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
15.64
Price Trends
13.82
Positive
13.43
Positive
14.04
Positive
Market Momentum
0.40
Negative
62.39
Neutral
72.84
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 15.64 is above the 20-day moving average (MA) of 14.78, above the 50-day MA of 13.82, and above the 200-day MA of 14.04, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 62.39 is Neutral, neither overbought nor oversold. The STOCH value of 72.84 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 (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.42B | 95.19 | 27.07% | ― | 26.99% | ― | |
72 Outperform | $6.39B | 23.07 | 97.52% | 3.28% | 7.47% | 2.58% | |
69 Neutral | $3.06B | 15.93 | -7.71% | 24.47% | -43.11% | -8.68% | |
67 Neutral | ¥277.37B | 14.70 | 6.81% | 2.50% | 5.06% | -23.65% | |
63 Neutral | $7.29B | 22.41 | 46.91% | ― | 3.93% | 19.20% | |
49 Neutral | $462.25M | ― | -113.09% | ― | -1.10% | -1.69% |
* Consumer Cyclical Sector Average
Performance Comparison
BRSL
Brightstar Lottery
15.53
-1.82
-10.49%
LNW
Light & Wonder
88.12
-13.52
-13.30%
RRR
Red Rock Resorts
60.58
7.13
13.34%
RSI
Rush Street Interactive
18.82
9.52
102.37%
BALY
Bally's Corporation
9.41
-12.66
-57.36%
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.