Simple Concepts Research Group

Cheap Gaming Stock to Watch: SciPlay Corp. (SCPL)

by | Oct 5, 2021 | Stock Picks

SciPlay Corp. (SCPL) Company Overview & Stock Price Forecast

This article provides a brief analysis and stock rating for SciPlay Corp. (SCPL) including an updated stock price target. Additional data on the company’s earnings yield, price/earnings ratio, return on invested capital and YTD performance are discussed as well.

SciPlay Fundamentals

SciPlay Stock Rating

Stock Price Target: $32.51

In the section below, we discuss the earnings yield, P/E, return on invested capital and YTD performance for SciPlay in comparison to the Entertainment industry and the S&P 500.

SciPlay is a Small Cap company with a current Market Cap of $2.73B.

Earnings Yield

SciPlayEntertainment Ind.S&P 500T-Bill (10Y)

The current earnings yield for SciPlay is 39.21%, in comparison to 2.94% for the S&P 500 and 1.51% for the 10-year treasury bond. The median earnings yield for the Entertainment industry is 2.19%.

Price/Earnings Ratio

SciPlayEntertainment Ind.S&P 500

SciPlay is currently trading at a P/E of 24.17. The P/E for the Entertainment industry is 108.17 and the P/E for the S&P 500 is 34.01.


SciPlayEntertainment Ind.S&P 500

SciPlay is currently trading at a P/S of 0.89. The P/S for the Entertainment industry is 6.24 and the P/S for the S&P 500 is 3.09.


SciPlayEntertainment Ind.S&P 500

SciPlay is currently trading at a P/B of 6.07. The P/B for the Entertainment industry is 5.49 and the P/B for the S&P 500 is 4.58.

Return on Invested Capital (ROIC)

SciPlayEntertainment Ind.S&P 500

SciPlay’s ROIC is currently 25.21% in comparison to 0.09% for the Entertainment industry and 7.6% for the S&P 500.

YTD Performance

SciPlayEntertainment Ind.S&P 500

The YTD performance for SciPlay is 54.01%. The Entertainment industry has a performance of 1.30% in comparison to the YTD S&P 500 performance of 16.00%.

Recent Financial Results

  • Q2 2021 cash and cash equivalents increase of $31.9 million to $300.8 million from the fourth quarter 2020
  • Q2 2021 revenue of $154.0 million, down 7.0% from the prior year period
    • Revenue grew 1.9% driven by the continued performance of social casino gaming
  • Q2 2021 net income of $37.9 million compared to $48.8 million in the prior year period
  • EBITDA of $47.9 million compared to $59.6 million in the prior year period
  • Net cash provided by operating activities of $48.7 million

Stock Price Target: $32.51

Company Overview

SciPlay Stock Rating

SciPlay develops and operates a portfolio of games for mobile and web platforms internationally. The company offers seven games, which include social casino games, such as Jackpot Party Casino, Gold Fish Casino, Hot Shot Casino, and Quick Hit Slots, as well as casual games comprising MONOPOLY Slots, Bingo Showdown, and 88 Fortunes Slots.

SciPlay’s casino games include slots, as well as table games and bingo adventure games. Gaming platforms also offer content from third-party licensed brands. The company was formerly known as SG Social Games Corporation and changed its name to SciPlay Corporation in March 2019.

SciPlay Corporation was founded in 1997 and is based in Las Vegas, Nevada. SciPlay is a subsidiary of Scientific Games Corporation (SGMS). The current CEO is Joshua Wilson.

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This material is provided for informational purposes only and is not financial advice. The information contained herein should not solely be used for the formation of an investment decision, whether you are a long term or short term investor.