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.
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 yearNeutral
Model confidence: 6/10
Key Factors
- price below short‑term moving averages
- decreasing trading volume
- DCF indicates downside potential
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- solid earnings growth and margin expansion
- strong cash flow generation
- analyst consensus of strong‑buy
Long Term
> 3 yearsPositive
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
Similar Tickers
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.