# Light & Wonder (LNW.AU)

Canonical: https://gigainvestors.com/s/LNW.AU

Analysis as of: 2026-10-16T07:36:58.174Z. Financial observations: FY2008–FY2026.

Listing currency: AUD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 116.08 per share; close as of 2026-10-15.

Estimated value: low AUD 90.31 per share, central AUD 102.29 per share, high AUD 118.23 per share. Buy at or below the central value AUD 102.29 per share. Valuation as of 2026-10-16T07:36:58.174Z; scenarios are not confidence intervals.

Expected annual return: 9.1% at the stated quote. About 9.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 4

- Operating margin variation: 0.79×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.13×

- FY2018: 0.08×

- FY2019: 0.12×

- FY2020: -0.14×

- FY2021: 0.13×

- FY2022: 0.17×

- FY2023: 0.21×

- FY2024: 0.24×

- FY2025: 0.27×

- LTM to Jun 2026: 0.27×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 20.2%

- ROIC, second-lowest year: 6.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 8.1%

- ROIC including acquisitions, ten-year median: 6.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 10.4%

- FY2018: 6.7%

- FY2019: 6.4%

- FY2020: -6.3%

- FY2021: 7.3%

- FY2022: 30.0%

- FY2023: 40.4%

- FY2024: 41.5%

- FY2025: 35.6%

- LTM to Jun 2026: 37.5%

### economics: pass

- Owner earnings / net income, 5-yr: 1.14×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $5.5B

- Net income, five-year total: $4.8B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.4 pp

- Working capital / revenue, change between three-year averages: -1.3 pp

- Working capital / revenue, final three-year average: 17.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.58×

- FY2022: 1.05×

- FY2023: 1.80×

- FY2024: 1.17×

- FY2025: 1.31×

### management: pass

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 6.7% vs 40.4%

- Per-share earnings: -4.05 to 3.25 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.1%

- Ordinary dilution, 5-year annual growth: -2.2%

- Diluted shares, 10-year annual growth: -0.1%

- Diluted shares, 5-year annual growth: -2.2%

- Per-share value change: $7.30

- Per-share value, starting three-year median: -$4.05

- Per-share value, ending three-year median: $3.25

- Buybacks concentrated in cheaper years (correlation): -0.50

- Average buyback yield: 7.9%

- Buyback history: 3 years

- Debt-funded buybacks: Yes

- Acquisition spending: $1.6B

- Cumulative net income, 10 years: $3.2B

- ROIC, first three-year median: 6.7%

- ROIC, last three-year median: 40.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$4.05

- FY2017: -$2.72

- FY2018: -$3.87

- FY2019: -$1.40

- FY2020: -$5.99

- FY2021: $3.79

- FY2022: $38.68

- FY2023: $1.75

- FY2024: $3.69

- FY2025: $3.25

### accounting: fail

- restructuring or one-time charges in at least three of five years

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -8.0%

- Receivables to sales index (DSRI): 1.13×

- Restructuring years, last five: 5

- Stock compensation / operating cash flow: 15.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.88×

- Accounting red flags: 2

- Goodwill and intangibles / equity: 17.84×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -10.9%

- FY2017: -9.7%

- FY2018: -9.0%

- FY2019: -8.7%

- FY2020: -13.0%

- FY2021: -4.0%

- FY2022: 67.5%

- FY2023: -7.7%

- FY2024: -5.5%

- FY2025: -8.0%

## Holders

## Price story

Down 34% since Feb 2025 · sales +0.5%

Story as of 2026-10-16T10:00:08.406Z; price observation 2026-10-15.

Price needs cash profits to grow 2.5% a year for ten years

### Sales · FY2025–2026

sales +0.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: $3.1B 

- FY2018: $3.4B 

- FY2019: $2.4B 

- FY2020: $1.7B 

- FY2021: $2.2B 

- FY2022: $2.5B 

- FY2023: $2.9B 

- FY2024: $3.2B 

- FY2025: $3.3B 

- FY2026: $3.3B 

### Gross margin · FY2026

gross margin 70.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 62.3% 

- FY2018: 62.7% 

- FY2019: 46.2% 

- FY2021: 71.7% 

- FY2022: 70.6% 

- FY2023: 70.0% 

- FY2024: 70.8% 

- FY2025: 73.3% 

- FY2026: 70.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in gambling; annual sales are USD 3.3 billion.

- Source: https://eodhd.com/api/fundamentals/LNW.AU.json#2025-12-31 (filed 2026-10-16T07:36:58.174Z); FY2025: revenue 3314000000; grossProfit 2429000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); LNW.AU: Light & Wonder, Inc. operates as a cross-platform games company in the United States and internationally. It operates through three segments: Gaming, SciPlay, and iGaming segments. The Gaming segment sells game content and gaming machine; video gaming terminals and video lottery terminals, including conversion kits and spare parts. This segment also leases or provides gaming content, gaming machines, and server-based system; electronic pull-tabs and related services to charitable gaming entities; sells and supports casino-management system based software and hardware; licenses proprietary table games content; and supplies Shufflers and other table product utilities to commercial, tribal, and governmental gaming operators. The SciPlay segment develops, markets, and operates a portfolio of social games on various online platforms. The iGaming segment provides a suite of digital gaming content, distribution platforms, player account management systems, and other iGaming content and services. This segment also offers the Open Platform System, which offers a range of reporting and administrative functions and tools providing operators full control over various areas of digital gaming operations. It also supplies, maintains, and sells table game products, including automatic card shufflers, deck checkers, table roulette chip sorters and other land-based table gaming equipment; and sells virtual coins, chips, or bingo cards, which players can use to play casino-style slot games, table games, and bingo games. Light & Wonder, Inc. was incorporated in 1984 and is headquartered in Las Vegas, Nevada.

### Why customers stay

Margins ranged from 70% to 73.3% during 2023–25; it earns 20.2% on its capital.

- Source: https://eodhd.com/api/fundamentals/LNW.AU.json#2023-12-31 (filed 2026-10-16T07:36:58.174Z); FY2023: grossProfit / revenue = 70%.

- Source: https://eodhd.com/api/fundamentals/LNW.AU.json#2024-12-31 (filed 2026-10-16T07:36:58.174Z); FY2024: grossProfit / revenue = 70.8%.

- Source: https://eodhd.com/api/fundamentals/LNW.AU.json#2025-12-31 (filed 2026-10-16T07:36:58.174Z); FY2025: grossProfit / revenue = 73.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:58.174Z); 10-year return on capital observations [[2017,0.10358759318423855],[2018,0.06722328854766475],[2019,0.06399441340782124],[2020,-0.06343821697803999],[2021,0.07262860935944242],[2022,0.29955656108597284],[2023,0.4036245336078078],[2024,0.4145548868455182],[2025,0.3557956567410552],[2026,0.37540176479856485]]; median 0.2015720771351057. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 71% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:58.174Z); Gross margin observations: [[2021,0.7171388759869949],[2022,0.7062101910828026],[2023,0.6995175740868367]]; range within 2 percentage points.

### Where the cash goes

Paid no dividends in 10 years; bought back USD 880 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:58.174Z); FY2016: growth capex 0; upkeep 0; cash acquisitions 0; owner earnings 385000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:58.174Z); FY2017: growth capex 0; upkeep 0; cash acquisitions 58000000; owner earnings 441000000. Growth capex plus acquisitions / owner earnings = 0.13151927437641722.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:58.174Z); FY2018: growth capex 0; upkeep 0; cash acquisitions 297000000; owner earnings 338000000. Growth capex plus acquisitions / owner earnings = 0.878698224852071.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:58.174Z); FY2019: growth capex 0; upkeep 0; cash acquisitions 0; owner earnings 412000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/LNW.AU.json#2021-12-31 (filed 2026-10-16T07:36:58.174Z); FY2021: growth capex 0; upkeep 171000000; cash acquisitions 186000000; owner earnings 586800000. Growth capex plus acquisitions / owner earnings = 0.3169734151329243.

- Source: https://eodhd.com/api/fundamentals/LNW.AU.json#2022-12-31 (filed 2026-10-16T07:36:58.174Z); FY2022: growth capex 0; upkeep 216000000; cash acquisitions 136000000; owner earnings 3868200000. Growth capex plus acquisitions / owner earnings = 0.035158471640556334.

- Source: https://eodhd.com/api/fundamentals/LNW.AU.json#2023-12-31 (filed 2026-10-16T07:36:58.174Z); FY2023: growth capex 0; upkeep 242000000; cash acquisitions 4000000; owner earnings 293400000. Growth capex plus acquisitions / owner earnings = 0.013633265167007498.

- Source: https://eodhd.com/api/fundamentals/LNW.AU.json#2024-12-31 (filed 2026-10-16T07:36:58.174Z); FY2024: growth capex 0; upkeep 294000000; cash acquisitions 5000000; owner earnings 393600000. Growth capex plus acquisitions / owner earnings = 0.012703252032520325.

- Source: https://eodhd.com/api/fundamentals/LNW.AU.json#2025-12-31 (filed 2026-10-16T07:36:58.174Z); FY2025: growth capex 0; upkeep 310000000; cash acquisitions 861000000; owner earnings 362600000. Growth capex plus acquisitions / owner earnings = 2.3745173745173744.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:58.174Z); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/LNW.AU.json#2025-12-31 (filed 2026-10-16T07:36:58.174Z); FY2025: cash repurchases 880000000 USD.

### Are managers owners

Insiders own 0% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); LNW.AU SharesStats.PercentInsiders = 0 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 2.5% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:58.174Z); Ten-year compound average after fade. Initial solved rate 0.023296266152517897. Price 116.08; FX 1.4454626926079037; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -8.050058207217695 → FY2025 4.265882352941176. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2023-05: AUD 91.00 per share

- 2023-06: AUD 103.94 per share

- 2023-07: AUD 105.75 per share

- 2023-08: AUD 118.75 per share

- 2023-09: AUD 112.00 per share

- 2023-10: AUD 114.57 per share

- 2023-11: AUD 130.68 per share

- 2023-12: AUD 121.00 per share

- 2024-01: AUD 125.66 per share

- 2024-02: AUD 150.85 per share

- 2024-03: AUD 160.02 per share

- 2024-04: AUD 142.06 per share

- 2024-05: AUD 142.32 per share

- 2024-06: AUD 159.00 per share

- 2024-07: AUD 164.86 per share

- 2024-08: AUD 161.00 per share

- 2024-09: AUD 132.63 per share

- 2024-10: AUD 144.40 per share

- 2024-11: AUD 149.41 per share

- 2024-12: AUD 137.16 per share

- 2025-01: AUD 143.79 per share

- 2025-02: AUD 176.27 per share

- 2025-03: AUD 139.87 per share

- 2025-04: AUD 132.45 per share

- 2025-05: AUD 142.16 per share

- 2025-06: AUD 147.42 per share

- 2025-07: AUD 151.30 per share

- 2025-08: AUD 141.21 per share

- 2025-09: AUD 129.64 per share

- 2025-10: AUD 109.47 per share

- 2025-11: AUD 153.00 per share

- 2025-12: AUD 157.57 per share

- 2026-01: AUD 167.06 per share

- 2026-02: AUD 134.21 per share

- 2026-03: AUD 119.01 per share

- 2026-04: AUD 115.16 per share

- 2026-05: AUD 116.73 per share

- 2026-06: AUD 110.63 per share

- 2026-07: AUD 114.28 per share

- 2026-08: AUD 131.94 per share

- 2026-09: AUD 109.79 per share

- 2026-10: AUD 115.40 per share

## Annual estimated value (AUD per share)

- FY2025: low AUD 77.76 per share, central AUD 88.25 per share, high AUD 102.21 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:42:45.673Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.