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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 5/10

vs
industry
vs
history
Cash to Debt 0.05
SGMS's Cash to Debt is ranked lower than
59% of the 789 Companies
in the Global Gambling industry.

( Industry Median: 0.84 vs. SGMS: 0.05 )
SGMS' s 10-Year Cash to Debt Range
Min: 0.03   Max: 0.19
Current: 0.05

0.03
0.19
Equity to Asset 0.09
SGMS's Equity to Asset is ranked lower than
59% of the 774 Companies
in the Global Gambling industry.

( Industry Median: 0.54 vs. SGMS: 0.09 )
SGMS' s 10-Year Equity to Asset Range
Min: -0.31   Max: 0.33
Current: 0.09

-0.31
0.33
F-Score: 6
Z-Score: 0.27
M-Score: -1.72
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) -1.68
SGMS's Operating margin (%) is ranked lower than
53% of the 787 Companies
in the Global Gambling industry.

( Industry Median: 8.95 vs. SGMS: -1.68 )
SGMS' s 10-Year Operating margin (%) Range
Min: -12.86   Max: 20.36
Current: -1.68

-12.86
20.36
Net-margin (%) -2.77
SGMS's Net-margin (%) is ranked lower than
51% of the 787 Companies
in the Global Gambling industry.

( Industry Median: 5.83 vs. SGMS: -2.77 )
SGMS' s 10-Year Net-margin (%) Range
Min: -32.57   Max: 9.64
Current: -2.77

-32.57
9.64
ROE (%) -8.05
SGMS's ROE (%) is ranked lower than
55% of the 750 Companies
in the Global Gambling industry.

( Industry Median: 6.81 vs. SGMS: -8.05 )
SGMS' s 10-Year ROE (%) Range
Min: -419.33   Max: 23.54
Current: -8.05

-419.33
23.54
ROA (%) -0.71
SGMS's ROA (%) is ranked higher than
51% of the 790 Companies
in the Global Gambling industry.

( Industry Median: 3.40 vs. SGMS: -0.71 )
SGMS' s 10-Year ROA (%) Range
Min: -20.71   Max: 6.42
Current: -0.71

-20.71
6.42
ROC (Joel Greenblatt) (%) -1.59
SGMS's ROC (Joel Greenblatt) (%) is ranked lower than
53% of the 790 Companies
in the Global Gambling industry.

( Industry Median: 13.51 vs. SGMS: -1.59 )
SGMS' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -16.55   Max: 47.74
Current: -1.59

-16.55
47.74
Revenue Growth (%) 10.50
SGMS's Revenue Growth (%) is ranked higher than
83% of the 600 Companies
in the Global Gambling industry.

( Industry Median: 5.50 vs. SGMS: 10.50 )
SGMS' s 10-Year Revenue Growth (%) Range
Min: -9.8   Max: 34.7
Current: 10.5

-9.8
34.7
EBITDA Growth (%) -6.40
SGMS's EBITDA Growth (%) is ranked higher than
61% of the 497 Companies
in the Global Gambling industry.

( Industry Median: 7.40 vs. SGMS: -6.40 )
SGMS' s 10-Year EBITDA Growth (%) Range
Min: -8.8   Max: 72.4
Current: -6.4

-8.8
72.4
EPS Growth (%) -42.90
SGMS's EPS Growth (%) is ranked lower than
52% of the 417 Companies
in the Global Gambling industry.

( Industry Median: 8.20 vs. SGMS: -42.90 )
SGMS' s 10-Year EPS Growth (%) Range
Min: -42.9   Max: 242
Current: -42.9

-42.9
242
» SGMS's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

SGMS Guru Trades in Q1 2013

Louis Moore Bacon 200,000 sh (New)
Jim Simons 92,500 sh (New)
Pioneer Investments Sold Out
» More
Q2 2013

SGMS Guru Trades in Q2 2013

Jim Simons 173,600 sh (+87.68%)
Louis Moore Bacon Sold Out
» More
Q3 2013

SGMS Guru Trades in Q3 2013

Steven Cohen 16,946 sh (New)
Jim Simons 88,900 sh (-48.79%)
» More
Q4 2013

SGMS Guru Trades in Q4 2013

Steven Cohen 243,148 sh (+1334.84%)
Jim Simons Sold Out
» More
» Details

Insider Trades

Latest Guru Trades with SGMS

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2012-06-30 Sold Out 0.07%$8.08 - $12.15 $ 11.4618%0
Joel Greenblatt 2012-03-31 Add 22.69%0.01%$9.98 - $13.03 $ 11.466%70099
George Soros 2011-12-31 Sold Out 0.0022%$6.63 - $9.7 $ 11.4638%0
Joel Greenblatt 2011-09-30 Add 84.74%0.03%$6.95 - $10.39 $ 11.4633%50605
George Soros 2011-09-30 Add 57.02%$6.95 - $10.39 $ 11.4633%17900
Joel Greenblatt 2011-06-30 Reduce -20.79%0.02%$8.46 - $10.54 $ 11.4620%27392
George Soros 2011-06-30 Reduce -21.38%$8.46 - $10.54 $ 11.4620%11400
Joel Greenblatt 2011-03-31 Add 125.42%0.05%$8.35 - $10.77 $ 11.4619%34581
George Soros 2011-03-31 New Buy$8.35 - $10.77 $ 11.4619%14500
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Scientific Games Corporation

John Rogers Comments on Scientific Games Corp. - May 09, 2013

On January 31, 2013, it was announced Scientific Games Corp. (SGMS) would purchase the company for $26.00 per share in an all-cash bid. We believe this result confirms our process. That is, we estimate an intrinsic value for our holdings, buying when shares trade at a significant discount to that calculation. Thus, even if a transaction occurs below our best estimate, there is still room to profit even when a lower bid is accepted. We sold the stock in response to the bid, in the $24 to $25 range.

From John Rogers’ first quarter 2013 commentary.


Check out John Rogers latest stock trades

Top Ranked Articles about Scientific Games Corporation

John Rogers Comments on Scientific Games Corp.
On January 31, 2013, it was announced Scientific Games Corp. (SGMS) would purchase the company for $26.00 per share in an all-cash bid. We believe this result confirms our process. That is, we estimate an intrinsic value for our holdings, buying when shares trade at a significant discount to that calculation. Thus, even if a transaction occurs below our best estimate, there is still room to profit even when a lower bid is accepted. We sold the stock in response to the bid, in the $24 to $25 range. Read more...

Ratios

vs
industry
vs
history
P/B 2.60
SGMS's P/B is ranked higher than
53% of the 726 Companies
in the Global Gambling industry.

( Industry Median: 1.72 vs. SGMS: 2.60 )
SGMS' s 10-Year P/B Range
Min: 1   Max: 8.57
Current: 2.6

1
8.57
P/S 0.89
SGMS's P/S is ranked higher than
73% of the 818 Companies
in the Global Gambling industry.

( Industry Median: 1.53 vs. SGMS: 0.89 )
SGMS' s 10-Year P/S Range
Min: 0.68   Max: 4.64
Current: 0.89

0.68
4.64
PFCF 163.70
SGMS's PFCF is ranked lower than
72% of the 471 Companies
in the Global Gambling industry.

( Industry Median: 17.62 vs. SGMS: 163.70 )
SGMS' s 10-Year PFCF Range
Min: 8.01   Max: 944.5
Current: 163.7

8.01
944.5
EV-to-EBIT 71.40
SGMS's EV-to-EBIT is ranked lower than
72% of the 662 Companies
in the Global Gambling industry.

( Industry Median: 18.50 vs. SGMS: 71.40 )
SGMS' s 10-Year EV-to-EBIT Range
Min: 10.8   Max: 6958.6
Current: 71.4

10.8
6958.6

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 1.30
SGMS's Price/DCF (Projected) is ranked higher than
64% of the 394 Companies
in the Global Gambling industry.

( Industry Median: 1.30 vs. SGMS: 1.30 )
SGMS' s 10-Year Price/DCF (Projected) Range
Min: 0.87   Max: 3.9
Current: 1.3

0.87
3.9
Price/Median PS Value 0.50
SGMS's Price/Median PS Value is ranked higher than
95% of the 734 Companies
in the Global Gambling industry.

( Industry Median: 1.10 vs. SGMS: 0.50 )
SGMS' s 10-Year Price/Median PS Value Range
Min: 0.14   Max: 1.96
Current: 0.5

0.14
1.96
Earnings Yield (Greenblatt) 1.40
SGMS's Earnings Yield (Greenblatt) is ranked lower than
62% of the 687 Companies
in the Global Gambling industry.

( Industry Median: 5.40 vs. SGMS: 1.40 )
SGMS' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.3   Max: 9.2
Current: 1.4

0.3
9.2
Forward Rate of Return (Yacktman) 1.99
SGMS's Forward Rate of Return (Yacktman) is ranked higher than
70% of the 526 Companies
in the Global Gambling industry.

( Industry Median: 3.89 vs. SGMS: 1.99 )
SGMS' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -3.1   Max: 24.2
Current: 1.99

-3.1
24.2

Business Description

Industry: Travel & Leisure » Gambling
Compare:WIMHY, LTOMF, PDYPF, LDBKF, PYTCY » details
Traded in other countries:TJW.Germany
Scientific Games Corporation was incorporated in the state of Delaware on July 2, 1984. The Company is provides customized, end-to-end gaming solutions to lottery and gaming organizations globally. Its integrated products and services include instant lottery games, lottery gaming systems, terminals and related services, and internet applications, as well as server-based gaming machines and associated gaming control systems. It operates in three business segments Printed Products, Lottery Systems, and Gaming. The Printed Product segment is comprised of global instant lottery ticket business. It manufactures and sells instant lottery tickets, as well as the provision of value-added services such as game design, sales and marketing support, specialty games and promotions, inventory management and warehousing and fulfillment services. It also provide lotteries with cooperative service programs to help them efficiently and effectively manage and support their operations to achieve higher retail sales and lower operating costs. Moreover, it provides licensed games, promotional entertainment and internet-based services to the lottery industry. The Lottery Systems Segment provides customized computer software, software support, equipment and data communication services to lotteries. In the U.S., it provides the necessary equipment, software and maintenance services pursuant to long-term contracts that have an initial term of at least five years under which it is generally paid a fee equal to a percentage of the lottery's total retail sales. In addition, it provides video lottery central monitoring and control systems and networks primarily to lotteries and gaming regulators. The Gaming Segment provides server-based gaming terminals and systems and other products and services to operators in the wide area gaming industry. It supplies server-based gaming terminals and systems and game content primarily to bookmakers that operate licensed betting offices in the U.K. and to gaming operators outside the U.K. It also supply gaming terminals, systems and game content to pubs, bingo halls and arcades in the U.K. and continental Europe. The Company's principal instant lottery ticket competitors in the U.S. are Pollard Banknote Limited and GTECH.

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