International Game Technology (IGT) AI Stock Analysis

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International Game Technology

(NYSE:IGT)

Rating:69Neutral

Price Target:

$17.50

▲(20.27%Upside)

International Game Technology demonstrates strengths in operational efficiency and cash flow generation. However, declining revenues and high leverage present notable risks. The technical indicators suggest a lack of strong momentum, while the stock's valuation and dividend yield offer a positive view for investors. The earnings call highlights both opportunities and challenges, with macroeconomic uncertainties impacting the outlook.

International Game Technology (IGT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.95B

Dividend Yield5.47%

Average Volume (3M)1.95M

Price to Earnings (P/E)10.2

Beta (1Y)0.94

Revenue Growth-33.50%

EPS Growth35.81%

CountryUS

Employees11,000

SectorConsumer Cyclical

Sector Strength74

IndustryGambling, Resorts & Casinos

Share Statistics

EPS (TTM)0.09

Shares Outstanding202,031,630

10 Day Avg. Volume2,332,268

30 Day Avg. Volume1,950,609

Financial Highlights & Ratios

PEG Ratio0.05

Price to Book (P/B)1.99

Price to Sales (P/S)0.00

P/FCF Ratio3.73

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$21.00

Price Target Upside44.33% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering4

International Game Technology Business Overview & Revenue Model

Company DescriptionInternational 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 MoneyIGT 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 Earnings Call Summary

Earnings Call Date:May 13, 2025

(Q1-2025)

% Change Since: -17.61%|

Next Earnings Date:Aug 05, 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.

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

Positive

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

Positive

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

Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
686.00M	1.00B	603.00M	902.00M	200.15M
	EBITDA
1.14B	1.58B	1.58B	1.41B	136.36M
	Net Income Common Stockholders
348.00M	156.00M	275.00M	255.00M	-875.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
584.00M	572.00M	590.00M	591.00M	907.01M
	Total Assets
10.28B	10.46B	10.41B	11.32B	12.99B
	Total Debt
5.47B	5.92B	6.07B	6.80B	8.52B
	Net Debt
4.88B	5.35B	5.47B	6.21B	7.61B
	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

Negative

Last Price14.55

Price Trends

50DMA

15.85

Negative

100DMA

16.39

Negative

200DMA

18.00

Negative

Market Momentum

MACD

-0.42

Positive

RSI

36.72

Neutral

STOCH

12.00

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IGT, the sentiment is Negative. The current price of 14.55 is below the 20-day moving average (MA) of 15.81, below the 50-day MA of 15.85, and below the 200-day MA of 18.00, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 36.72 is Neutral, neither overbought nor oversold. The STOCH value of 12.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IGT.

International Game Technology Risk Analysis

International Game Technology disclosed 41 risk factors in its most recent earnings report. International Game Technology 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 1 New Risks

De Agostini may have interests in the Proposed Transaction that are different from the interests of the Parent's other shareholders. Q4, 2024

International Game Technology Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LNW	77 Outperform	$7.19B	22.72	46.19%	―	7.26%	54.83%
RSI	71 Outperform	$2.87B	162.66	11.87%	―	29.86%	―
IGT	69 Neutral	$2.95B	10.16	1.33%	5.47%	-33.50%	35.81%
RRR	69 Neutral	$5.24B	21.72	81.59%	2.02%	9.48%	-11.92%
Sector *	62 Neutral	$6.90B	11.24	2.93%	3.89%	2.68%	-24.71%
EVRI	62 Neutral	$1.23B	87.11	5.81%	―	-6.41%	-75.66%
BALY	49 Neutral	$741.76M	―	-65.87%	―	-1.93%	15.16%

* Consumer Cyclical Sector Average

Performance Comparison

IGT

International Game Technology

14.55

-5.44

-27.21%

EVRI

Everi Holdings

14.11

6.54

86.39%

LNW

Light & Wonder

84.91

-14.68

-14.74%

RRR

Red Rock Resorts

49.09

0.20

0.41%

RSI

Rush Street Interactive

12.59

3.49

38.35%

BALY

Bally's Corporation

8.80

-13.27

-60.13%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.