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International Game Technology (IGT)
NYSE:IGT
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International Game Technology
(NYSE:IGT)
74Outperform
International Game Technology (IGT) vs. S&P 500 (SPY)
Market Cap
$3.16B
Dividend Yield5.11%
Average Volume (3M)1.50M
Price to Earnings (P/E)9.2
Beta (1Y)1.04
Revenue Growth-22.16%
EPS Growth123.24%
CountryUS
Employees5,946
SectorConsumer Cyclical
Sector Strength62
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)1.71
Shares Outstanding202,031,630
10 Day Avg. Volume1,982,649
30 Day Avg. Volume1,498,206
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)N/A
Price to Sales (P/S)1.37
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$26.00Price Target Upside66.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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 multiple streams. The primary sources include the sale and lease of gaming machines and lottery systems, as well as service contracts for maintaining and operating these systems. Additionally, IGT earns money through participation in gaming revenues from the machines placed at customer locations. The company also benefits from its interactive gaming and sports betting platforms, charging fees for software and support services. Significant partnerships with casinos, government lotteries, and betting operators play a crucial role in expanding its market reach and securing long-term contracts, thereby contributing to its financial performance.
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 | EBIT |
| 686.00M | 1.00B | 603.00M | 902.00M | 200.15M | EBITDA |
| 1.14B | 1.58B | 1.58B | 1.41B | 136.36M | Net Income Common Stockholders |
| 348.00M | 156.00M | 275.00M | 255.00M | -875.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 584.00M | 572.00M | 590.00M | 591.00M | 907.01M | Total Assets |
| 10.28B | 10.46B | 10.41B | 11.32B | 12.99B | Total Debt |
| 5.47B | 5.92B | 6.07B | 6.80B | 8.52B | Net Debt |
| 4.88B | 5.35B | 5.47B | 6.21B | 7.61B | 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
Negative
15.65
Price Trends
16.79
Negative
17.34
Negative
19.00
Negative
Market Momentum
-0.25
Positive
35.78
Neutral
19.47
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IGT, the sentiment is Negative. The current price of 15.65 is below the 20-day moving average (MA) of 16.22, below the 50-day MA of 16.79, and below the 200-day MA of 19.00, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 35.78 is Neutral, neither overbought nor oversold. The STOCH value of 19.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $3.16B | 9.17 | 8.08% | 5.11% | -22.16% | 123.24% | |
71 Outperform | $6.60B | 21.16 | 47.97% | ― | 9.82% | 109.44% | |
66 Neutral | $2.57B | 584.50 | 3.61% | ― | 33.70% | ― | |
62 Neutral | $1.17B | 80.23 | 6.23% | ― | -6.97% | -81.42% | |
60 Neutral | $4.28B | 15.93 | 80.25% | 2.47% | 12.47% | -14.15% | |
59 Neutral | $11.38B | 10.18 | -0.84% | 4.04% | 1.25% | -16.04% | |
47 Neutral | $741.76M | ― | -170.41% | ― | 0.06% | -248.51% |
* Consumer Cyclical Sector Average
Performance Comparison
IGT
International Game Technology
15.65
-3.36
-17.67%
EVRI
Everi Holdings
13.68
4.47
48.53%
LNW
Light & Wonder
78.01
-13.91
-15.13%
RRR
Red Rock Resorts
40.49
-18.28
-31.10%
RSI
Rush Street Interactive
11.69
5.15
78.75%
BALY
Bally's Corporation
15.46
-6.61
-29.95%
International Game Technology Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -12.18% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strategic achievements such as the sale of the gaming and digital business, strong cash flow, debt reduction, and expansion in iLottery and contract wins. However, challenges such as the impact of lower multi-state jackpot sales, temporary costs, and high upcoming capital expenditures were also noted.Highlights
Strategic Sale of Gaming and Digital Business
IGT announced the sale of its gaming and digital business for over $4 billion in cash, allowing the company to focus on its leading lottery business.
Strong Cash Flow and Debt Reduction
In 2024, IGT generated over $1 billion in consolidated cash from operations and repaid significant debt, achieving a pro forma net debt leverage of 2.4 times, the lowest in IGT history.
iLottery Expansion and Growth
iLottery sales rose 28% in Q4 and for the full year, with broad-based momentum across the US, Italy, and Europe. IGT's iLottery platform is now deployed in 11 jurisdictions.
Significant Contract Wins and Extensions
IGT secured several long-term contracts, including a 10-year FM and iLottery contract with Luxembourg and extensions with North Carolina, Mississippi, Virginia, and Tennessee lotteries.
New Printing Press and Increased Production Volume
IGT won several new instant ticket service contracts and increased production capacity, leveraging its new state-of-the-art printing press.
Lowlights
Impact of Lower US Multi-State Jackpot Sales
Lower US multi-state jackpot sales in 2024 offset growth in core lottery products, affecting the overall revenue performance.
Temporary Investment Costs
IGT incurred $25 million in temporary costs related to new contract extensions, cloud-based solutions, and point-of-sale network optimization.
Forecasted Decrease in Q1 2025 Revenue
IGT expects Q1 2025 revenue to be down low to mid-single-digits due to lower multi-state jackpot activity and associated LMA incentive revenue.
High CapEx in 2025 and 2026
IGT anticipates high capital expenditures of $400 million to $450 million annually in 2025 and 2026 due to investments required for securing important contracts.
Company Guidance
During the International Game Technology (IGT) Fourth Quarter and Full Year 2024 Earnings Call, the company provided guidance with several key metrics. In 2024, IGT generated over $1 billion in consolidated cash from operations and approximately $660 million in free cash flow, with more than 80% attributed to lottery operations. The lottery business achieved $1.2 billion in EBITDA at a 47% margin. The company reported $2.5 billion in revenue, consistent with 2023, due to a rise in instant ticket and draw games balanced by a decrease in U.S. multi-state jackpot sales. IGT's net debt leverage, adjusted for the $2 billion gaming and digital sales proceeds, was 2.4 times, marking the lowest level in its history. For 2025, IGT expects revenue between $2.55 billion and $2.65 billion, with adjusted EBITDA ranging from $1.1 billion to $1.15 billion. The company forecasts a negative $300 million cash from operations, primarily due to upfront costs related to the Italy Lotto contract. Additionally, IGT announced plans for significant capital investments over the next few years, with CapEx expected to be between $400 million and $450 million annually in 2025 and 2026.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.