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

• Market Cap: €5.57B
• Dividend Yield: 1.56%
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): 39.8
• Beta (1Y): 0.53
• Revenue Growth: 26.00%
• EPS Growth: 183.27%
• Country: IT
• Employees: 2,494
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.16
• 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: €29.30
• Price Target Upside: 52.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: €21.00 ▲(9.38% Upside)

Lottomatica Group S.P.A. has strong financial performance with robust revenue and profit growth. However, technical indicators suggest bearish momentum, and the stock appears overvalued based on its P/E ratio. Careful debt management is crucial to sustain growth.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and successful business model, enhancing long-term sustainability and competitiveness.

Cash Flow Strength

Strong operating cash flow enhances financial flexibility, allowing the company to invest in growth opportunities and manage debt effectively.

Profitability

Improved profitability through higher net profit margins indicates effective cost management and operational efficiency, supporting long-term growth.

Negative Factors

High Leverage

High leverage can increase financial risk and limit strategic flexibility, necessitating careful debt management to ensure long-term stability.

Equity Financing

Reliance on debt over equity financing may constrain the company's ability to raise capital without increasing financial risk, impacting future growth.

Valuation Concerns

A high P/E ratio suggests potential overvaluation, which could limit stock price appreciation and pose risks if growth expectations are not met.

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. shows strong revenue and profit growth with efficient operations. High leverage poses risks, but improving returns on equity and strong cash flows mitigate these concerns. Overall, financial health is robust, though careful debt management is advised.

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	2.20B	2.00B	1.65B	1.41B	815.41M	388.76M
Gross Profit	785.64M	655.50M	669.26M	516.32M	644.36M	325.42M
EBITDA	707.36M	630.73M	545.89M	406.73M	175.82M	95.81M
Net Income	139.70M	98.60M	68.30M	72.12M	-57.56M	-49.97M
Balance Sheet
Total Assets	3.64B	3.44B	3.28B	2.76B	2.16B	1.07B
Cash, Cash Equivalents and Short-Term Investments	274.13M	194.55M	296.47M	237.00M	153.62M	153.82M
Total Debt	2.06B	2.15B	2.00B	1.86B	1.52B	660.32M
Total Liabilities	3.09B	2.87B	2.74B	2.65B	2.15B	934.57M
Stockholders Equity	499.93M	517.97M	498.37M	51.39M	-24.42M	129.84M
Cash Flow
Free Cash Flow	470.00M	460.64M	284.30M	320.95M	80.59M	116.48M
Operating Cash Flow	630.69M	524.34M	407.53M	412.01M	130.38M	157.06M
Investing Cash Flow	-237.41M	-341.35M	-640.88M	-533.28M	-794.68M	-351.87M
Financing Cash Flow	-251.10M	-313.52M	293.19M	231.10M	643.50M	340.62M

Lottomatica Group S.P.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:LTMC, the sentiment is Negative. The current price of 19.2 is below the 20-day moving average (MA) of 21.24, below the 50-day MA of 21.99, and below the 200-day MA of 20.94, indicating a bearish trend. The MACD of -0.50 indicates Positive momentum. The RSI at 28.30 is Positive, neither overbought nor oversold. The STOCH value of 9.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	71 Outperform	€6.15B	12.33	8.98%	4.05%	2.47%	7.85%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LTMC	60 Neutral	€5.57B	39.84	―	1.56%	26.00%	183.27%
SFER	55 Neutral	€1.12B	-8.50	-20.18%	1.40%	-8.65%	-1512.63%
BC	55 Neutral	€5.94B	45.02	28.41%	1.08%	10.35%	15.89%
GEO	49 Neutral	€117.72M	-4.45	-25.42%	―	-5.49%	-62.25%
JUVE	46 Neutral	€1.03B	-17.77	-217.62%	―	16.51%	74.26%

Lottomatica Group S.P.A. Corporate Events

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.

The most recent analyst rating on (IT:LTMC) stock is a Buy with a EUR32.00 price target. To see the full list of analyst forecasts on Lottomatica Group S.P.A. stock, see the IT:LTMC Stock Forecast page.

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.

The most recent analyst rating on (IT:LTMC) stock is a Buy with a EUR32.00 price target. To see the full list of analyst forecasts on Lottomatica Group S.P.A. stock, see the IT:LTMC Stock Forecast page.

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.

The most recent analyst rating on (IT:LTMC) stock is a Buy with a EUR28.00 price target. To see the full list of analyst forecasts on Lottomatica Group S.P.A. stock, see the IT:LTMC Stock Forecast page.

Lottomatica Group Strengthens Corporate Governance with New Appointments

Lottomatica Group S.p.A. has announced the appointment of two new independent directors, Tiziana Togna and Fabrizio Virtuani, to strengthen its corporate governance following the resignation of several board members. The company has also reorganized its board committees by increasing the number of members in the Related Parties Committee and the Risk and Control Committee, aiming to enhance its governance structure and ensure compliance with corporate regulations.

The most recent analyst rating on (IT:LTMC) stock is a Hold with a EUR24.50 price target. To see the full list of analyst forecasts on Lottomatica Group S.P.A. stock, see the IT:LTMC Stock Forecast page.

Lottomatica Group Joins FTSE MIB Index

Lottomatica Group S.p.A. has been included in the FTSE MIB Index, the primary benchmark for the Italian equity market, effective from 22 September 2025. This inclusion signifies Lottomatica’s strong market position as one of the 40 most liquid and capitalized Italian stocks, reflecting its significant impact on the domestic market capitalization and enhancing its visibility among investors.

The most recent analyst rating on (IT:LTMC) stock is a Hold with a EUR24.50 price target. To see the full list of analyst forecasts on Lottomatica Group S.P.A. stock, see the IT:LTMC Stock Forecast page.

Lottomatica Expands Share Buyback Program with Recent Purchase

Lottomatica Group S.p.A. announced the purchase of 154,799 ordinary shares as part of its ongoing share buyback program, executed independently by Goldman Sachs International. This transaction increases the company’s total treasury shares to 2,062,495, representing 0.820% of the outstanding ordinary shares, potentially enhancing shareholder value and signaling confidence in the company’s future prospects.

The most recent analyst rating on (IT:LTMC) stock is a Hold with a EUR25.00 price target. To see the full list of analyst forecasts on Lottomatica Group S.P.A. stock, see the IT:LTMC Stock Forecast page.

Lottomatica Expands Share Buyback Program

Lottomatica Group S.p.A. announced the purchase of 154,144 ordinary shares as part of its ongoing share buyback program, with transactions executed by Goldman Sachs International. This move increases their treasury shares to 0.758% of outstanding shares, reflecting a strategic effort to enhance shareholder value and strengthen market positioning.

The most recent analyst rating on (IT:LTMC) stock is a Buy with a EUR27.50 price target. To see the full list of analyst forecasts on Lottomatica Group S.P.A. stock, see the IT:LTMC Stock Forecast page.