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LNW:ASXLight & Wonder, Inc. Shs Chess Depository Interests Repr 1 Sh Analysis

Data as of 2026-05-25 - not real-time

A$116.24

Latest Price

7/10Risk

Risk Level: Medium

Executive Summary

Light & Wonder is trading below its 20‑day and 50‑day moving averages, indicating a short‑term bearish technical stance, while the RSI hovers around the neutral midpoint and the MACD has turned bullish but remains below zero, suggesting limited upside momentum.
Fundamentally, the company posted modest year‑over‑year revenue growth, strong operating margins and an exceptionally high return on equity, and analysts have a strong‑buy consensus. However, the discounted cash‑flow model values the stock well below the current market price, implying that the market may be overvaluing the shares relative to intrinsic fundamentals. The high 30‑day volatility and decreasing volume add to short‑term uncertainty, while regulatory and sector dynamics in the gambling industry present medium‑term risks.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • price below short‑term moving averages
  • decreasing trading volume
  • DCF indicates downside potential

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • solid earnings growth and margin expansion
  • strong cash flow generation
  • analyst consensus of strong‑buy

Long Term

> 3 years
Positive
Model confidence: 7/10

Key Factors

  • high ROE and sustainable profitability
  • diversified gaming and iGaming platforms
  • long‑term industry tailwinds despite regulatory headwinds

Key Metrics & Analysis

Financial Health

Revenue Growth2.10%
Profit Margin7.39%
P/E Ratio27.9
ROE52.85%
ROA9.47%
Debt/Equity1667.52
P/B Ratio21.0
Op. Cash FlowA$748.0M
Free Cash FlowA$460.6M

Technical Analysis

TrendBearish
RSI50.1
SupportA$96.79
ResistanceA$119.99
MA 20A$113.69
MA 50A$117.94
MA 200A$135.34
MACDBullish
VolumeDecreasing
Fear & Greed Index91.79

Valuation

Fair ValueA$19.39
Target PriceA$172.85
Upside/Downside48.70%
GradeOvervalued
TypeGrowth

Risk Assessment

Beta0.79
Volatility49.62%
Sector RiskMedium
Reg. RiskHigh
Geo RiskMedium
Currency RiskLow
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.