Light & WonderLNWO -0.11%76 Gross Margin % is 75.44% as of Mar. 2026, which is 9% above its 10-year median of 69.36. GuruFocus rates LNWO with a GF Score™ of 76/100 and a GF Value™ of $111.79 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 792 Travel & Leisure companies, Light & Wonder ranks better than 84.6% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Light & Wonder had a gross margin of 75.44% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Light & Wonder Gross Margin % Related Terms
Light & Wonder Gross Margin % Historical Data
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The historical data trend for Light & Wonder's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LNWO vs CHDN, SGHC, RSI: Gross Margin % Comparison
For the Gambling subindustry, Light & Wonder's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Light & Wonder Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Light & Wonder's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Light & Wonder's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Light & Wonder (LNWO) has a Gross Margin % of 75.44% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Light & Wonder and its competitors. This is near median its historical median of 69.36. Over the past decade, Light & Wonder's Gross Margin % has ranged from 61.63 to 73.93. According to the industry distribution chart, Light & Wonder ranks #122 out of 792 companies in the Travel & Leisure industry, placing it in the top 15.4%.
Is Light & Wonder's Gross Margin % too high?
Light & Wonder's current Gross Margin % of 75.44% is near median its 10-year median of 69.36. Over the past 10 years, this metric has ranged from a low of 61.63 to a high of 73.93. The Travel & Leisure industry median Gross Margin % is 44.17. Light & Wonder's value of 75.44% is 70.8% above this industry median. Based on the distribution chart, Light & Wonder ranks #122 out of 792 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Light & Wonder has a GF Score™ of 76/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Light & Wonder's Gross Margin % compare to CHDN and SGHC?
According to the Travel & Leisure industry distribution chart, Light & Wonder ranks #122 out of 792 companies for Gross Margin %. This places Light & Wonder in the top 15% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 44.17. Light & Wonder's value of 75.44% is 70.8% above this benchmark. Historically, Light & Wonder's own Gross Margin % has ranged from 61.63 to 73.93 over the past decade. While the company's 10-year median is 69.36 vs. the industry median of 44.17, Light & Wonder has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Travel & Leisure company?
The median Gross Margin % among Travel & Leisure companies is 44.17, based on 792 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Light & Wonder's current Gross Margin % of 75.44% is 70.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Light & Wonder and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 44.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Light & Wonder's current Gross Margin % is 75.44%, which is near median its own 10-year median of 69.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Light & Wonder stock overvalued right now?
Based on GuruFocus' analysis, Light & Wonder (LNWO) is currently considered Possible Value Trap. The stock's GF Value™ is $111.79, compared to a current price of $74.92 — trading 33% below its estimated fair value. The current Gross Margin % is 75.44%, which is near median its 10-year median of 69.36 and 70.8% above the Travel & Leisure industry median of 44.17. Light & Wonder's overall GF Score™ is 76/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Light & Wonder (LNWO), the current Gross Margin % is 75.44% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Light & Wonder (LNWO) Overvalued in 2026?
Based on GuruFocus' analysis, Light & Wonder stock appears to be undervalued.
The current stock price of $74.92 is trading 33% below its estimated GF Value™ of $111.79.
GuruFocus considers Light & Wonder to be Possible Value Trap.
Key valuation signals for LNWO:
Gross Margin %: 75.44% (near median its 10-year median of 69.36)
GF Value™: $111.79 vs. price of $74.92 (33% below fair value)
Industry Position: 70.8% above the Travel & Leisure median (#122 of 792)
No single metric tells the full story. See the LNWO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Light & Wonder is principally an electronic gaming machine manufacturer, selling machines to pubs, clubs, and casinos. The firm is licensed in most jurisdictions allowing gambling globally. Light & Wonder is one of the three largest players in the space along with International Game Technology and Aristocrat Leisure. SciPlay, about one fourth of revenue, develops and distributes casual mobile games, principally in the social casino niche. The more nascent iGaming business sits between these two businesses, providing digital content and capabilities to real-money gaming providers.
76GF Score
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