Morningstar

Light & Wonder Inc Ordinary Shares LNW

Morningstar Rating
Unlock
Stock XNAS Rating as of
$92.38 −0.72 (0.77%)
View Full Chart
As of Delayed Price Closed

Company Report

View Archive

Light & Wonder: Dragon Train Injunction Unlikely to Move the Needle

Angus Hewitt

The United States District Court of Nevada has granted Aristocrat a preliminary injunction against no-moat Light & Wonder’s Dragon Train game, prohibiting further sales in the US. The case centers around similarities between Light & Wonder’s game and narrow-moat Aristocrat’s highly successful Dragon Link series, including allegations of copyright infringement and misappropriation of trade secrets. Specifically, intellectual property and game mechanics, and the role former Aristocrat employees, now at Light & Wonder, had in its development. The court decision finds Aristocrat is “extremely likely to succeed” in demonstrating trade secrets were misappropriated in the development of Dragon Train.

Read Full Report

Price vs Fair Value

View History
LNW is trading at a 766% premium.
Price
$92.38
Fair Value
$463.00
Uncertainty
Medium
1-Star Price
$413.30
5-Star Price
$19.50
Economic Moat
Xphdm
Capital Allocation
Hdqxwmmxc

Bulls Say, Bears Say

Bulls

Stringent regulatory licensing requirements create barriers to entry for new players, protecting the market share of Light & Wonder and other incumbents.

Bears

Regulatory tightening of land-based gaming, particularly in Australia, may damp demand for Light & Wonder’s electronic gaming machines.

Show More

News

View All

Trading Information

Previous Close Price
$93.10
Day Range
$90.99–93.52
52-Week Range
$67.71–115.00
Bid/Ask
$90.80 / $92.38
Market Cap
$8.20 Bil
Volume/Avg
884,946 / 853,312

Key Statistics

Price/Earnings (Normalized)
17.88
Price/Sales
2.78
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Total Yield
3.81%

Company Profile

Light & Wonder is principally an electronic gaming machine manufacturer, selling machines to pubs, clubs, and casinos. The firm is licensed in most jurisdictions allowing gambling globally. Light & Wonder is one of the three largest players in the space along with International Game Technology and Aristocrat Leisure. SciPlay, about one fourth of revenue, develops and distributes casual mobile games, principally in the social casino niche. The more nascent iGaming business sits between these two businesses, providing digital content and capabilities to real-money gaming providers.
Sector
Consumer Cyclical
Industry
Gambling
Stock Style Box
Small Growth
Total Number of Employees
6,500
Website
https://www.lnw.com

Competitors

Valuation

View More
Metric
LNW
DKNG
WYNN
Price/Earnings (Normalized)
 17.88192.1917.40
Price/Book Value
 10.4615.09—
Price/Sales
 2.784.431.54
Price/Cash Flow
 11.88128.977.16
Price/Earnings
LNW
DKNG
WYNN

Financial Strength

Metric
LNW
DKNG
WYNN
Quick Ratio
 1.290.811.23
Current Ratio
 1.851.111.30
Interest Coverage
 2.20−198.091.46
Quick Ratio
LNW
DKNG
WYNN

Profitability

Metric
LNW
DKNG
WYNN
Return on Assets (Normalized)
 7.75%−1.50%4.62%
Return on Equity (Normalized)
 50.31%−6.10%—
Return on Invested Capital (Normalized)
 14.42%−4.78%8.96%
Return on Assets
LNW
DKNG
WYNN

Gambling Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Flutter Entertainment PLC
FLUT
YxbyvbwbtGbrfcj$42.4 Bil
 Aristocrat Leisure Ltd
ARLUF
—Whn$25.2 Bil
 Evolution AB ADR
EVVTY
—Kxhm$21.0 Bil
 Evolution AB
EVGGF
—Zwnj$21.0 Bil
 DraftKings Inc Ordinary Shares - Class A
DKNG
DmxlqnfkPgtyzw$19.6 Bil
 Churchill Downs Inc
CHDN
—Nkwlz$9.8 Bil
 La Francaise Des Jeux SA Ordinary Shares
LFDJF
—Txtl$8.0 Bil
 The Lottery Corp Ltd
LTRCF
—Gfhry$7.9 Bil
 Entain PLC
GMVHF
—Fgp$6.8 Bil

Sponsor Center