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International Game Technology (IGT)
NYSE:IGT
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International Game Technology
(NYSE:IGT)
Rating:69Neutral
Price Target:
$17.50
▲(12.69%Upside)
International Game Technology (IGT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.07B
Dividend Yield5.12%
Average Volume (3M)2.34M
Price to Earnings (P/E)10.6
Beta (1Y)0.93
Revenue Growth-33.50%
EPS Growth35.81%
CountryUS
Employees11,000
SectorConsumer Cyclical
Sector Strength56
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.09
Shares Outstanding202,031,630
10 Day Avg. Volume1,741,720
30 Day Avg. Volume2,341,646
Financial Highlights & Ratios
PEG Ratio1.72
Price to Book (P/B)3.30
Price to Sales (P/S)0.00
P/FCF Ratio6.72
Enterprise Value/Market Cap3.27
Enterprise Value/Revenue0.64
Enterprise Value/Gross Profit6.31
Enterprise Value/Ebitda1.81
Forecast
1Y Price Target
$21.00Price Target Upside35.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
International Game Technology Business Overview & Revenue Model
Company DescriptionInternational Game Technology PLC operates and provides gaming technology products and services in North America, Europe, the Middle East, Africa, Asia-Pacific, Latin America, and the Caribbean. It operates in three segments: Global Lottery, Global Gaming, and Digital & Betting. The company designs, sells, operates, and leases a suite of point-of-sale machines that reconciles lottery funds between the retailer and lottery authority; provides online lottery transaction processing systems; produces instant ticket games; and offers printing services, such as instant ticket marketing plans and graphic design, programming, packaging, shipping, and delivery services. It also designs, develops, assembles, and provides cabinets, games, systems, and software for the gaming market, as well as offers gaming management systems for casino management, customer relationship management, patron management, and server-based gaming. In addition, the company provides video lottery terminals (VLT), VLT central systems, and VLT games. Further, it offers digital gaming and betting; sports betting; and technology and management services. Additionally, the company provides digital gaming products and services, including blackjack, roulette, slot games, poker, bingo, and other casino card games; social casino content; and remote game server, as well as iGaming systems and digital platforms that offer player account management, advanced marketing and analytical, and payment system services. It processes commercial transactions, such as prepaid cellular telephone recharges, bill payments, e-vouchers and retail-based programs, electronic tax payments, prepaid card recharges, and stamp duty and money transfer services. The company was formerly known as GTECH S.p.A. and changed its name to International Game Technology PLC in April 2015. The company was founded in 2014 and is headquartered in London, the United Kingdom. International Game Technology PLC is a subsidiary of De Agostini S.p.A.
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: -12.06%|
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
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.75
Positive
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.68
Positive
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.80
Positive
| 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
Neutral
15.53
Price Trends
15.64
Negative
16.11
Negative
17.54
Negative
Market Momentum
-0.07
Negative
54.30
Neutral
85.88
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IGT, the sentiment is Neutral. The current price of 15.53 is above the 20-day moving average (MA) of 14.96, below the 50-day MA of 15.64, and below the 200-day MA of 17.54, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 54.30 is Neutral, neither overbought nor oversold. The STOCH value of 85.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 0 New Risks
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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $7.97B | 25.28 | 46.19% | ― | 7.26% | 54.83% | |
72 Outperform | $5.47B | 22.85 | 81.59% | 1.93% | 9.48% | -11.92% | |
72 Outperform | $3.24B | 186.95 | 11.87% | ― | 29.86% | ― | |
69 Neutral | $3.07B | 10.57 | 1.33% | 5.12% | -33.50% | 35.81% | |
62 Neutral | $1.24B | 87.79 | 5.81% | ― | -6.41% | -75.66% | |
62 Neutral | $16.34B | 11.01 | -5.97% | 3.14% | 1.65% | -24.92% | |
54 Neutral | $741.76M | ― | -65.87% | ― | 2.80% | -108.61% |
* Consumer Cyclical Sector Average
Performance Comparison
IGT
International Game Technology
15.53
-3.68
-19.16%
EVRI
Everi Holdings
14.23
6.16
76.33%
LNW
Light & Wonder
94.48
-11.63
-10.96%
RRR
Red Rock Resorts
51.55
-0.91
-1.73%
RSI
Rush Street Interactive
14.40
4.90
51.58%
BALY
Bally's Corporation
9.83
-12.24
-55.46%
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.