Lottomatica Group S.P.A. (LTMC) AI Stock Analysis

• Market Cap: €5.68B
• Dividend Yield: 1.33%
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): 40.5
• Beta (1Y): 0.56
• Revenue Growth: 19.77%
• EPS Growth: 170.73%
• Country: IT
• Employees: 2,494
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.20
• Shares Outstanding: 251,630,420
• 10 Day Avg. Volume: 896,407
• 30 Day Avg. Volume: 1,136,683
• PEG Ratio: 0.95
• Price to Book (P/B): 6.24
• Price to Sales (P/S): 1.61
• P/FCF Ratio: 7.01
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €29.36
• Price Target Upside: 30.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: €23.00 ▲(2.22% Upside)

Lottomatica Group S.P.A. receives a moderate overall stock score of 63. The company's strong revenue growth and operational efficiency are offset by high leverage and declining free cash flow growth. Technical indicators show moderate bullish momentum, but the high P/E ratio suggests the stock is expensive, limiting potential upside.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and product demand, supporting long-term business expansion and stability.

Operational Efficiency

Efficient cost management and operational efficiency enhance profitability, providing a competitive edge and sustainable business operations.

Cash Generation

Strong cash generation relative to net income ensures liquidity and financial flexibility, enabling strategic investments and debt management.

Negative Factors

High Leverage

Significant leverage can increase financial risk and limit strategic options, potentially impacting long-term financial health and stability.

Declining Free Cash Flow

Declining free cash flow growth may constrain investment capabilities and debt servicing, affecting long-term growth prospects and financial resilience.

Low Net Profit Margin

Low net profit margin suggests limited profitability, which could hinder reinvestment and shareholder returns, impacting long-term business viability.

Lottomatica Group S.P.A. Business Overview & Revenue Model

Company Description

Lottomatica Group S.p.A., together with its subsidiaries, operates in the gaming market in Italy. The company operates through three segments: Online, Sports Franchise, and Gaming Franchise. The Online segment provides a range of online games, such as sport betting, virtual betting, horse betting, casino games, bingo, poker, betting exchange, and skill games through the GoldBet.it, Better.it, Lottomatica.it, and Betflag.it websites. The Sports Franchise segment offers various retail offerings, including sports betting, virtual betting, and horserace betting under the GoldBet, Intralot, and Better brands. The Gaming Franchise segment engages in the management of gaming halls and concession activities for video lottery terminals and amusement with prize machines. Lottomatica Group S.p.A. was incorporated in 2019 and is based in Rome, Italy. Lottomatica Group S.p.A. is a subsidiary of Gamma Intermediate Sarl.

How the Company Makes Money

Lottomatica generates revenue primarily through its lottery and gaming operations. The company earns money from ticket sales for various lottery games, including traditional lotteries and instant win games. Additionally, Lottomatica operates sports betting services, where it takes a percentage of the stakes wagered by customers. Online gaming platforms, including casino games and poker, contribute to revenue through player deposits and gaming margins. Significant partnerships with government entities for lottery management and collaborations with technology providers enhance its offerings and revenue potential. The company's diversified portfolio and strategic focus on digital transformation further bolster its financial performance.

Lottomatica Group S.P.A. Financial Statement Overview

Summary

Lottomatica Group S.P.A. demonstrates impressive revenue and profit growth, supported by efficient operations. While leverage is high, improving returns on equity and strong cash flows help mitigate potential risks. The company's financial health is robust, though careful management of debt levels is advised to sustain growth.

Income Statement

Strong revenue growth with a compound annual growth rate. Gross profit margin remains healthy, indicating effective cost management. Net profit margin improvements reflect enhanced profitability, though there's room for further optimization. EBIT and EBITDA margins are robust, underscoring operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio, reflecting significant leverage, which could pose risks if not managed prudently. However, return on equity is improving, indicating better returns on shareholder investments. The equity ratio shows a relatively low proportion of equity financing, suggesting a reliance on debt.

Cash Flow

Operating cash flow has grown, supporting the company's ability to fund operations. Free cash flow is increasing, enhancing financial flexibility. However, high free cash flow to net income ratio suggests strong cash generation relative to reported earnings, a positive indicator of cash health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.23B	2.00B	1.65B	1.41B	815.41M	388.76M
Gross Profit	1.11B	655.50M	669.26M	516.32M	644.36M	325.42M
EBITDA	714.55M	630.73M	545.89M	406.73M	175.82M	95.81M
Net Income	139.42M	98.60M	68.30M	72.12M	-57.56M	-49.97M
Balance Sheet
Total Assets	3.59B	3.44B	3.28B	2.76B	2.16B	1.07B
Cash, Cash Equivalents and Short-Term Investments	224.65M	194.55M	296.47M	237.00M	153.62M	153.82M
Total Debt	2.06B	2.09B	2.13B	1.86B	1.52B	660.32M
Total Liabilities	3.09B	2.87B	2.74B	2.65B	2.15B	934.57M
Stockholders Equity	450.55M	517.97M	498.37M	51.39M	-24.42M	129.84M
Cash Flow
Free Cash Flow	465.71M	460.64M	284.30M	320.95M	80.59M	116.48M
Operating Cash Flow	619.60M	524.34M	407.53M	412.01M	130.38M	157.06M
Investing Cash Flow	-238.66M	-341.35M	-640.88M	-533.28M	-794.68M	-351.87M
Financing Cash Flow	-304.92M	-313.52M	293.19M	231.10M	643.50M	340.62M

Lottomatica Group S.P.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:LTMC, the sentiment is Positive. The current price of 22.5 is above the 20-day moving average (MA) of 21.95, above the 50-day MA of 21.30, and above the 200-day MA of 21.84, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 61.69 is Neutral, neither overbought nor oversold. The STOCH value of 89.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:LTMC.

Lottomatica Group S.P.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PIRC	66 Neutral	€5.82B	11.65	8.81%	4.30%	1.64%	14.73%
LTMC	63 Neutral	€5.68B	40.48	―	1.33%	19.77%	170.73%
BC	62 Neutral	€6.82B	50.80	28.41%	0.94%	10.35%	15.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SFER	55 Neutral	€1.34B	-10.16	-20.18%	1.24%	-8.65%	-1512.63%
JUVE	49 Neutral	€1.09B	-18.77	-217.62%	―	16.51%	74.26%
GEO	43 Neutral	€112.41M	-4.27	-25.42%	―	-5.49%	-62.25%

Lottomatica Group S.P.A. Corporate Events

Lottomatica Group S.p.A. Expands Share Buyback Program

Lottomatica Group S.p.A. has announced the purchase of 2,511,089 of its own ordinary shares, representing 0.998% of its shares in circulation, for a total value of approximately €51.6 million. This move is part of a previously communicated share buyback program, aiming to consolidate ownership and potentially enhance shareholder value. The purchases were executed independently by Goldman Sachs International, with the company now holding a total of 8,360,873 own shares, equating to 3.323% of the ordinary shares in circulation.

Lottomatica Announces €300 Million Share Buy-Back for 2025

Lottomatica Group S.p.A. has announced a strategic share buy-back program, planning to purchase up to €300 million of its own shares in 2025, with €130 million already acquired. This move aims to capitalize on current stock trading levels and is part of a broader €500 million buy-back initiative extending into 2026, reflecting the company’s commitment to optimizing shareholder value.

Lottomatica Expands Share Buyback Program

Lottomatica Group S.p.A. has purchased 20,000 ordinary shares as part of its share buyback program, representing 0.008% of its outstanding shares, at an average price of Euro 21.2039 per share. This purchase increases the total treasury shares held by the company to 5,066,713, which is 2.014% of its outstanding shares, potentially impacting its market positioning and shareholder value.

Lottomatica Group S.P.A. Reports Strong Financial Growth in 2025

Lottomatica Group S.P.A. reported a significant growth in its financial performance for the first nine months of 2025, with an 18% increase in adjusted EBITDA and a 17% rise in total bets compared to the previous year. The company achieved record online market shares and completed the migration of PWO ahead of schedule, positioning itself strongly in the market with expectations of continued growth and shareholder returns.

Lottomatica Expands Share Buyback Program with Recent Purchase

Lottomatica Group S.p.A. announced the purchase of 554,000 ordinary shares as part of its ongoing share buyback program, spending over 12 million euros. This move, executed by Goldman Sachs International, increases the total treasury shares held by the company to 4,873,877, representing 1.937% of the outstanding shares, potentially enhancing shareholder value and market confidence.