📊 AI Stock Rating — Summary

LNW reported quarterly revenue of $841 million with a net income of $114 million, yielding an EPS of $1.37. The net margin stood at approximately 13.6%. The company achieved free cash flow of $105 million. Year-on-year revenue growth was not provided, but strong free cash flow generation indicates solid operating efficiency. Leverage is high with net debt at $4.67 billion against $723 million in equity, indicating a debt/equity ratio over 6. However, operating cash flow covers capital expenditure comfortably and supports strategic buyback activities. The company did not issue dividends, focusing instead on share repurchases of $110 million, which may support future EPS growth. Analysts have a consensus price target of $116, suggesting potential upside at the time of analysis.

AI Score Breakdown

Revenue Growth — Score: 6/10

Quarterly revenue was $841 million. Detailed growth rates were not provided, but steady revenue without major fluctuations suggests stable operations.

Profitability — Score: 8/10

LNW achieved an EPS of $1.37 with a net margin of 13.6%. These figures suggest robust profitability supported by efficient cost management.

Cash Flow Quality — Score: 8/10

Free cash flow of $105 million highlights strong cash generation. The company opted for $110 million in stock repurchases rather than issuing dividends.

Leverage & Balance Sheet — Score: 5/10

Net debt is high at $4.67 billion with an equity base of $723 million, resulting in a high debt/equity ratio. Nevertheless, cash flow is adequate for servicing debt.

Shareholder Returns — Score: 7/10

The emphasis on $110 million in stock buybacks underscores commitment to enhancing shareholder value despite no dividend payouts. Market performance was not specified for the exact 1-year period; thus, score reflects relative buyback focus.

Analyst Sentiment & Valuation — Score: 8/10

Analyst price targets at $116 reflect optimism relative to current valuations. Lack of explicit valuation metrics limits deeper P/E or FCF yield insights.

⚠ AI-generated — informational only, not financial advice.