International Game Technology (IGT) AI Stock Analysis

• Market Cap: $3.29B
• Dividend Yield: N/A
• Average Volume (3M): 1.99M
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.95
• Revenue Growth: -33.50%
• EPS Growth: 35.81%
• Country: US
• Employees: 11,000
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.09
• Shares Outstanding: 202,031,630
• 10 Day Avg. Volume: 1,733,041
• 30 Day Avg. Volume: 1,994,259
• 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: 2.63
• Enterprise Value/Revenue: 2.58
• Enterprise Value/Gross Profit: 5.43
• Enterprise Value/Ebitda: 6.72
• 1Y Price Target: $21.00
• Price Target Upside: 26.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 75 Outperform
• Price Target: $18.50 ▲(11.45% Upside)

International Game Technology scores well on valuation, offering attractive pricing and dividend yield. Its financial performance is strong in terms of cash flow and operational efficiency, although high leverage and declining revenue are concerns. Technical analysis shows positive momentum, but caution is advised due to overbought signals. The mixed earnings call reflects growth in some areas, but macroeconomic uncertainties and revenue declines pose risks.

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.

International Game Technology Business Overview & Revenue Model

Company Description

International Game Technology (IGT) is a leading global gaming company specializing in the design, development, and manufacture of gaming machines and systems. Operating across various sectors including lottery, gaming machines, sports betting, and digital gaming, IGT provides innovative technology and content solutions to gaming operators worldwide. The company is recognized for its extensive portfolio of casino games, slot machines, and gaming systems, serving both land-based and online gaming markets.

How the Company Makes Money

IGT generates revenue through several key streams. The primary source is the sale and lease of gaming machines and systems to casinos and gaming establishments. Additionally, IGT earns money through service contracts and maintenance agreements for its gaming systems. The company's lottery division contributes significantly to its revenue by providing lottery management services and selling lottery products to government agencies. IGT also leverages its digital gaming and sports betting platforms to capture revenue from online gaming operators. Strategic partnerships with casinos and gaming operators globally enhance IGT's market presence and drive additional earnings through licensing and royalty agreements.

International Game Technology Financial Statement Overview

Summary

International Game Technology displays strong operational efficiency and cash flow generation, despite the declining revenue trend. The high leverage ratio is a concern but is mitigated by the company's ability to maintain profitability and cash flow. Continued focus on revenue growth and debt management is essential to improve financial health.

Income Statement

International Game Technology showed a strong recovery with a notable increase in net income from 2023 to 2024. The gross profit margin and EBITDA margin remain robust, indicating efficient cost management. However, the revenue has decreased over the years, indicating growth challenges.

Balance Sheet

The debt-to-equity ratio remains high, indicating significant leverage, which could pose a risk in volatile markets. However, the company has improved its equity base slightly, reflecting better financial stability.

Cash Flow

The company has demonstrated strong cash flow generation capabilities, with a healthy operating cash flow to net income ratio and significant free cash flow growth. This highlights its ability to generate cash and fund operations effectively.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.51B	4.31B	4.22B	4.09B	3.12B
Gross Profit	1.17B	2.11B	2.00B	1.96B	1.14B
EBITDA	1.14B	1.58B	1.58B	1.41B	136.36M
Net Income	348.00M	156.00M	275.00M	255.00M	-875.40M
Balance Sheet
Total Assets	10.28B	10.46B	10.41B	11.32B	12.99B
Cash, Cash Equivalents and Short-Term Investments	584.00M	572.00M	590.00M	591.00M	907.01M
Total Debt	5.47B	5.92B	6.07B	6.80B	8.52B
Total Liabilities	8.22B	8.51B	8.63B	9.35B	11.43B
Stockholders Equity	1.65B	1.44B	1.39B	1.28B	776.74M
Cash Flow
Free Cash Flow	881.00M	641.00M	681.00M	740.00M	610.94M
Operating Cash Flow	1.03B	1.04B	998.00M	978.00M	865.63M
Investing Cash Flow	-357.00M	-393.00M	167.00M	636.00M	-268.57M
Financing Cash Flow	-586.00M	-638.00M	-1.11B	-1.90B	-437.86M

International Game Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IGT, the sentiment is Positive. The current price of 16.6 is above the 20-day moving average (MA) of 15.79, above the 50-day MA of 15.77, and below the 200-day MA of 17.34, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 76.48 is Negative, neither overbought nor oversold. The STOCH value of 88.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IGT.

International Game Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IGT	75 Outperform	$3.29B	11.32	1.33%	―	-33.50%	35.81%
RSI	73 Outperform	$4.38B	97.12	27.07%	―	26.99%	―
RRR	72 Outperform	$6.20B	22.23	81.59%	3.53%	7.47%	2.58%
LNW	69 Neutral	$7.67B	19.71	46.91%	―	3.93%	19.20%
EVRI	62 Neutral	$1.24B	87.85	5.81%	―	-6.41%	-75.66%
Sector *	56 Neutral	HK$24.69B	3.84	-3.23%	5.89%	0.25%	-59.97%
BALY	49 Neutral	$464.65M	―	-65.87%	―	-1.93%	15.16%