International Game Technology PLC (IGT, Financial) has recently demonstrated a robust performance in the stock market, with its market capitalization reaching $4.68 billion and a current stock price of $23.21. Over the past week, IGT's stock has surged by 11.06%, and over the last three months, it has gained an impressive 14.00%. This upward trajectory is supported by the GF Value analysis, which suggests that the stock is modestly undervalued, with a GF Value of $26.67. This valuation indicates a potential for further growth, as the stock remains below its intrinsic value calculated by GuruFocus.
Overview of International Game Technology PLC
International Game Technology PLC, a prominent player in the Travel & Leisure industry, specializes in delivering engaging gaming experiences across various channels. The company operates through three main segments: Global Lottery, Global Gaming, and PlayDigital. The Global Lottery segment, which generates the majority of its revenue, offers a comprehensive range of products and services to governmental organizations. IGT's strategic focus on this segment has enabled it to maintain a strong market presence, particularly in the United States.
Assessing IGT's Profitability
IGT's financial health is reflected in its Profitability Rank of 6/10. The company boasts an Operating Margin of 24.49%, which is superior to 87.44% of 828 companies in the industry. Additionally, IGT's Return on Equity (ROE) stands at 14.70%, surpassing 71.61% of its peers. The Return on Assets (ROA) and Return on Invested Capital (ROIC) are 2.05% and 6.11% respectively, further underscoring the company's efficient management and profitability.
Growth Prospects of IGT
IGT's Growth Rank is also positioned at 6/10. The company has experienced a 3-year revenue growth rate per share of 11.70%, which is better than 40.43% of 794 companies in the same sector. Looking ahead, IGT's estimated total revenue growth rate for the next 3 to 5 years is projected at 2.84%, while the EPS without NRI growth rate is expected to soar by 25.62%. These projections highlight IGT's potential for sustained growth and profitability.
Major Stakeholders in IGT
IGT's stock is held by several notable investors, which underscores its market trust. Leading the pack is HOTCHKIS & WILEY, holding 665,990 shares, which represents 0.33% of the shares outstanding. Following closely are Mario Gabelli (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio), holding 285,105 and 251,480 shares respectively. These significant investments reflect confidence in IGT's business model and future prospects.
Competitive Landscape
When compared to its competitors, IGT holds a strong position. Super Group (SGHC, Financial) Ltd, with a market cap of $1.89 billion, and smaller players like Apple iSports Group Inc and Accel Entertainment Inc, with market caps of $22.591 million and $892.622 million respectively, are part of IGT's competitive landscape. This comparison highlights IGT's robust standing in the market relative to its peers.
Conclusion: IGT's Market Position and Outlook
In conclusion, International Game Technology PLC's recent stock performance and financial health paint a picture of a company on the rise. With its stock currently undervalued according to GF Value analysis, and positive growth projections, IGT is well-positioned to continue its upward trajectory. The company's strong profitability metrics and strategic market positioning further bolster its outlook, making it an attractive option for investors looking for growth in the Travel & Leisure sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
