International Game Technology PLC (NYSE: IGT) Perhaps a major achievement in his business is approaching, so we would like to shed some light on the business. International Game Technology PLC operates and provides game technology products and services around the world. The $ 6.0 billion market-capitalization company recorded a loss in its last year of $ 939 million and a last year-over-year loss of $ 428 million, narrowing the gap between loss and threshold profitability. As the path to profitability is the topic in the minds of International Game Technology investors, we decided to assess market sentiment. We’ve put together a brief rundown of industry analysts’ expectations for the company, its breakeven year, and its implied growth rate.
International Game Technology is close to equilibrium, according to the 7 US hospitality analysts. They predict that the company will suffer one final loss in 2020, before generating positive profits of US $ 415 million in 2021. The company should therefore break even in a year or less! How fast will the business need to grow to achieve consensus estimates of equilibrium in less than 12 months? Using a line of best fit, we calculated an average annual growth rate of 15%, which is relatively reasonable. If the business grows at a slower pace, it will become profitable later than expected.
NYSE: IGT Earnings Per Share Growth October 16, 2021
We are not going to go over company specific developments for International Game Technology as this is a high level summary, however, be aware that a high growth rate does not is generally not unusual, especially when a company is in an investment period.
One thing we would like to highlight with International Game Technology is its debt to equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, and the business is significantly over that threshold. A higher level of debt requires tighter capital management, which increases the risk of investing in the loss-making business.
There are key fundamentals of international gaming technology that are not covered in this article, but we must again stress that this is only a basic overview. For a more comprehensive overview of International Game Technology, see International Game Technology company page on Simply Wall St. We’ve also compiled a list of key aspects you should research further:
- Evaluation: What is International Game Technology worth today? Has the potential for future growth already been factored into the price? The intrinsic value infographic in our free research report helps to visualize if International Game Technology is currently poorly valued by the market.
- Management team: An experienced management team at the helm increases our confidence in the company – take a look at who sits on the board of directors of International Game Technology and the experience of the CEO.
- Other high performing stocks: Are there other stocks that offer better prospects with a proven track record? Discover our free list of these great stocks here.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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