Brightstar Lottery

BRSL

Gambling, Resorts & Casinos · Consumer Cyclical

Price

$10.74

-0.25 (-2.27%)

Market Cap

$1.98B

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Share count falling — buybacks

−4.7% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 206.8M (2021) → 197.0M (2025)

Brightstar Lottery is a company that runs lottery games and related services. It sells lottery tickets and manages lottery systems, mainly working with government agencies and state-run lottery organizations as its core customers. The company operates in the gambling and gaming industry, sitting at the intersection of technology and regulated gaming.

Brightstar Lottery makes money by taking a share of lottery ticket sales and charging fees to governments for managing lottery infrastructure and software. It operates primarily in regulated markets, where winning a government contract often locks in revenue for many years — that long-term contract structure is a key part of its competitive position. With a gross margin above 45% and an operating margin around 28%, the business generates solid profits, but a relatively low ROIC of 6% suggests heavy capital requirements. The main risk the company faces is contract renewal — losing a major government lottery contract can remove a large chunk of revenue quickly, making client retention critical to long-term stability.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+0.7% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+53.8% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$47M/ year

↑ Rising (+9% vs prior year)

1.9% of revenue

Below sector average (4%)

R&D investment increasing — building for the future

Insider Activity

47.0%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

$1.3B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Brightstar Lottery is growing revenue at 1% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

37.6%

Modest — 37.6% gross margin

Operating Margin

21.6%

Excellent — 21.6% operating margin

ROCE

2.6%

Weak — 2.6% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+3.3%

Slow sales growth (3.3% YoY)

EPS YoY

-65.1%

Earnings shrinking (-65.1% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

-103%

Weak — only -103% of profit becomes cash

FCF Margin

-20.7%

Burning cash (-20.7%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

4.73

Heavy debt load (4.73)

Interest Cover

3.50x

Tight — interest eats into profit (3.5x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)

21.1x

Growth-priced — P/E 21.1

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

+4.6

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (21.1 → 16.5)

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Dividends

Dividend Yield

34.61%

Healthy income — 34.61% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend Growth

-75.6%

Dividend cut (-75.6% YoY) — warning sign

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