Light & Wonder (LNW) AI Stock Analysis

• Market Cap: $8.26B
• Dividend Yield: N/A
• Average Volume (3M): 701.41K
• Price to Earnings (P/E): 26.1
• Beta (1Y): 1.23
• Revenue Growth: 7.26%
• EPS Growth: 54.83%
• Country: US
• Employees: 6,800
• Sector: Consumer Cyclical
• Sector Strength: 69
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.94
• Shares Outstanding: 84,378,630
• 10 Day Avg. Volume: 464,874
• 30 Day Avg. Volume: 701,407
• PEG Ratio: 17.24
• Price to Book (P/B): 13.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.54
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 5.39
• Enterprise Value/Ebitda: 12.48
• 1Y Price Target: $112.05
• Price Target Upside: 14.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 77 Outperform
• Price Target: $107.00 ▲(9.66%Upside)

Light & Wonder’s overall stock score of 76.5 is driven by strong financial performance and strategic growth initiatives, particularly in North America. The recent acquisition of Grover Gaming further supports future growth prospects. However, valuation concerns due to a high P/E ratio and the lack of a dividend yield slightly dampen the score.

Positive Factors

Growth Strategy

Light & Wonder enters its next growth phase with a highly credible management team that has transformed the company into a high-margin, content-led global games entity.

Legal Developments

The updated court order in the ALL/LNW Dragon Train matter is seen as a positive for LNW, as it does not require LNW to disclose its math models and requires specificity from ALL on trade secrets protection.

Market Position

Light & Wonder holds a dominant position in global game sales and casino systems, reflecting its strong market leadership and content share.

Negative Factors

Earnings Expectations

Revenue and EPS were well-below expectations, and adjusted EBITDA was slightly below expectations, prompting a revision in future revenue estimates.

Financial Performance

Light & Wonder’s Q1 2025 results were below consensus expectations, with consolidated revenue and AEBITDA falling short of forecasts.

Intellectual Property Risks

There is little new information on Light & Wonder's pending intellectual property litigation, which could pose risks for the company.

Light & Wonder Business Overview & Revenue Model

Company Description

Light & Wonder, Inc. develops technology-based products and services, and related content for the gaming, lottery, social and digital gaming industries in the United States and internationally. The company's Gaming segment sells new and used gaming machines, electronic table systems, video lottery terminals, conversion game kits, and spare parts; table products, including shufflers; and perpetual licenses to proprietary table games. It also supplies game content, gaming machines; provides table game products and services to licensed gaming entities; and installs and supports casino management systems, such as ongoing hardware and software maintenance and upgrade services of customer casino management systems. The company's SciPlay segment develops and publishes digital games on mobile and web platforms. It sells virtual coins, chips, or bingo cards, which players can use to play slot games, table games, or bingo games. Its iGaming segment provides a suite of digital gaming content, including digital real-money gaming, distribution platforms, content, products, and services. This segment also offers the Open Platform System, which offers a range of reporting and administrative functions and tools providing operators control over various areas of digital gaming operations. The company also offers software design, development, licensing, maintenance, support services, and technology solutions. Light & Wonder, Inc. was incorporated in 1984 and is based in Las Vegas, Nevada.

How the Company Makes Money

Light & Wonder generates revenue through multiple streams, primarily from its three main business segments: Gaming, SciPlay, and iGaming. In the Gaming segment, the company earns money by selling gaming machines, casino management systems, and offering related services to land-based casinos. SciPlay, its social gaming division, contributes to revenue through the sale of virtual goods and in-game purchases in its suite of mobile and web-based games. The iGaming segment focuses on providing digital real-money gaming solutions, where Light & Wonder earns through licensing its gaming content, platforms, and services to online casino operators. Additionally, the company benefits from long-term contracts and partnerships with lottery operators, where it supplies lottery products and technology solutions. These diverse revenue streams, combined with strategic partnerships and a strong brand presence, drive Light & Wonder's financial performance.

Light & Wonder Financial Statement Overview

Summary

Light & Wonder demonstrates a solid financial performance characterized by strong profitability with a gross profit margin of 71.2% and a net profit margin of 10.5%. The debt-to-equity ratio reduced to 0.08 indicates reduced leverage risk. However, a low equity ratio of 11.4% suggests potential financial vulnerability.

Income Statement

Light & Wonder shows strong profitability with a TTM gross profit margin of 71.2% and a consistent net profit margin of 10.5%. Revenue growth is steady at 1.5% annually, indicating stable demand in the gambling and resort sector. The EBIT margin of 22.0% and EBITDA margin of 28.2% reflect efficient operational management.

Balance Sheet

The company has significantly improved its financial position, with the debt-to-equity ratio reduced to 0.08, highlighting reduced leverage risk. ROE is robust at 54.2%, indicating strong returns to equity holders. However, the equity ratio of 11.4% suggests a relatively thin capital base compared to total assets, which could pose risks if liabilities increase.

Cash Flow

Free cash flow has decreased by 13.6% from the previous period, but the operating cash flow to net income ratio of 1.9 indicates strong cash generation relative to earnings. The free cash flow to net income ratio of 0.87 shows that the company effectively converts earnings into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.19B	2.90B	2.51B	2.15B	2.72B
Gross Profit	2.26B	2.03B	1.77B	1.54B	1.56B
EBITDA	1.09B	898.00M	591.00M	601.00M	163.00M
Net Income	336.00M	163.00M	-176.00M	371.00M	-569.00M
Balance Sheet
Total Assets	5.42B	5.55B	6.01B	7.88B	7.98B
Cash, Cash Equivalents and Short-Term Investments	196.00M	425.00M	914.00M	585.00M	1.02B
Total Debt	3.92B	3.93B	3.93B	8.73B	9.38B
Total Liabilities	4.79B	4.79B	4.85B	9.99B	10.51B
Stockholders Equity	636.00M	765.00M	1.16B	-2.11B	-2.52B
Cash Flow
Free Cash Flow	338.00M	348.00M	-597.00M	514.00M	281.00M
Operating Cash Flow	632.00M	590.00M	-381.00M	685.00M	471.00M
Investing Cash Flow	-258.00M	-251.00M	6.12B	-442.00M	-173.00M
Financing Cash Flow	-573.00M	-292.00M	-5.46B	-679.00M	463.00M

Light & Wonder Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 97.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LNW, the sentiment is Positive. The current price of 97.57 is below the 20-day moving average (MA) of 98.49, above the 50-day MA of 92.06, and above the 200-day MA of 92.52, indicating a neutral trend. The MACD of 1.55 indicates Positive momentum. The RSI at 54.58 is Neutral, neither overbought nor oversold. The STOCH value of 43.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LNW.

Light & Wonder Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LNW	77 Outperform	$8.26B	26.11	46.19%	―	7.26%	54.83%
LVS	74 Outperform	$35.93B	26.43	49.16%	1.72%	1.62%	-7.14%
BRSL	71 Outperform	$2.90B	9.93	-7.71%	21.32%	-43.11%	-8.68%
MGM	71 Outperform	$10.49B	16.76	21.38%	―	2.76%	-14.31%
DKNG	61 Neutral	$39.38B	―	-46.78%	―	22.86%	30.40%
Sector *	57 Neutral	HK$26.15B	4.16	-2.03%	5.83%	-0.24%	-68.05%

Light & Wonder Corporate Events

Light & Wonder Adjusts Capital Structure with CDI Changes

On July 8, 2025, Light & Wonder, Inc. announced a new statement of CHESS Depositary Interests (CDIs) on issue to the Australian Securities Exchange. The report indicated a net transfer of securities between CDIs and common stock, with a decrease of 1,623,749 CDIs and an increase of 1,638,583 common shares, reflecting operational adjustments in the company’s capital structure.

The most recent analyst rating on (LNW) stock is a Buy with a $120.00 price target. To see the full list of analyst forecasts on Light & Wonder stock, see the LNW Stock Forecast page.

Light & Wonder Announces Executive Leadership Transition

On June 16, 2025, Light & Wonder, Inc. announced the upcoming retirement of James Sottile, its Executive Vice President, Chief Legal Officer, and Corporate Secretary, effective December 31, 2025. Susan Dawson, currently the Senior Vice President and Deputy General Counsel, will succeed him. To ensure a smooth transition, Sottile will provide consulting services for one year following his retirement. The company has amended Sottile’s employment agreement to extend his employment through the end of 2025 and entered into a consulting agreement effective January 1, 2026, offering him a monthly fee for his services.

The most recent analyst rating on (LNW) stock is a Buy with a $118.00 price target. To see the full list of analyst forecasts on Light & Wonder stock, see the LNW Stock Forecast page.

Light & Wonder Holds Annual Stockholders Meeting

On June 10, 2025, Light & Wonder held its annual meeting of stockholders where key decisions were made, including the election of board members, approval of executive compensation, amendment of the 2003 Plan, and ratification of Deloitte & Touche LLP as the independent auditor for 2025. Additionally, on June 6, 2025, the company provided the Australian Securities Exchange with a Statement of CHESS Depositary Interests, reflecting changes in the number of CDIs and common stock due to transfers and share repurchase activities.

The most recent analyst rating on (LNW) stock is a Buy with a $118.00 price target. To see the full list of analyst forecasts on Light & Wonder stock, see the LNW Stock Forecast page.

Light & Wonder Secures Loan for Grover Gaming Acquisition

On May 15, 2025, Light and Wonder International, Inc. entered into a new credit agreement with several financial institutions, securing an $800 million term loan to finance its acquisition of Grover Gaming’s charitable gaming business. The following day, the company completed the acquisition for $850 million, with an additional earn-out of up to $200 million, enhancing its position in the charitable gaming market.

The most recent analyst rating on (LNW) stock is a Buy with a $118.00 price target. To see the full list of analyst forecasts on Light & Wonder stock, see the LNW Stock Forecast page.

Light & Wonder Increases CDIs on ASX in April

On May 6, 2025, Light & Wonder, Inc. announced the submission of a Statement of CHESS Depositary Interests on Issue to the Australian Securities Exchange. The statement revealed a net increase of 5,380,921 CDIs quoted on ASX for April 2025, attributed to net transfers between CDIs and common stock, while the common stock saw a decrease due to share repurchases and other adjustments.