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Playags (AGS)
:AGS
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Playags
(NYSE:AGS)
65Neutral
Playags (AGS) vs. S&P 500 (SPY)
Market Cap
$493.04M
Dividend YieldN/A
Average Volume (3M)521.17K
Price to Earnings (P/E)10.1
Beta (1Y)0.35
Revenue Growth10.75%
EPS Growth10405.31%
CountryUS
Employees916
SectorConsumer Cyclical
Sector Strength64
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)1.19
Shares Outstanding41,258,450
10 Day Avg. Volume794,259
30 Day Avg. Volume521,169
Financial Highlights & Ratios
PEG Ratio0.00097
Price to Book (P/B)N/A
Price to Sales (P/S)1.27
Price to Cash Flow (P/CF)5.90
P/FCF Ratio5.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$12.50Price Target Upside4.60% Upside
Rating ConsensusHold
Number of Analyst Covering1
Playags Business Overview & Revenue Model
Company DescriptionPlayAGS, Inc. designs and supplies gaming products and services for the gaming industry in the United States and internationally. It operates through three segments: Electronic Gaming Machines (EGM), Table Products, and Interactive Games (Interactive). The EGM segment offers various video slot titles for the marketplace; and EGM cabinets, including the Orion Starwall, Orion Curve Premium, Big Red, Orion Portrait, Orion Slant, Orion Curve, Orion Upright, and ICON. This segment also provides conversion kits that allow existing game titles to be converted to other game titles offered within that operating platform. It serves Class II Native American and Mexico, as well as Class III Native American, commercial, and charitable jurisdictions. The Table Products segment offers table products, including live felt table games, side bet offerings, progressives, card shufflers, signage, and other ancillary table game equipment, as well as table technology related to blackjack, poker, baccarat, craps, and roulette. This segment also provides Dex S, a single deck card shuffler for poker tables. Its brands include In Bet, Buster Blackjack, Double Draw Poker, and Criss Cross Poker. The Interactive segment offers a platform for business-to-business content aggregation used by real-money gaming and sports-betting partners; and business-to-consumer social casino games through its mobile app, Lucky Play Casino. The company was formerly known as AP Gaming Holdco, Inc. and changed its name to PlayAGS, Inc. in December 2017. PlayAGS, Inc. was incorporated in 2005 and is headquartered in Las Vegas, Nevada.
How the Company Makes MoneyPlayags generates revenue through the sale and lease of electronic gaming machines and related products to casinos and gaming establishments. The company earns income from direct sales of gaming machines, which are typically purchased by casinos to expand their gaming offerings. Additionally, AGS provides gaming machines on a lease basis, allowing casinos to pay for the equipment over time while keeping their offerings up-to-date with the latest technology. Another significant revenue stream comes from the company's participation agreements, where AGS shares in the revenue generated by its machines within the casino. AGS also benefits from its interactive division, which develops online gaming content and platforms for the digital gaming market. Partnerships with major casino operators and a focus on innovative game development are crucial factors contributing to the company's financial performance.
Playags Financial Statement Overview
Summary
Playags has shown significant progress in revenue growth and profitability over recent years, enhancing its financial performance. While improvements in leverage and equity position support a positive outlook, the company still faces high financial leverage risks. Additionally, strong cash flow generation bolsters liquidity, positioning the company well for future growth opportunities.Income Statement
Playags has demonstrated strong revenue growth of 10.7% from 2023 to 2024 and consistent profitability improvements, evidenced by a gross profit margin holding at 100% due to minimal cost of goods sold. The net profit margin improved to 13.1% in 2024 from a mere 0.1% in 2023, showcasing robust profit expansion. EBIT and EBITDA margins increased to 18.3% and 54.8%, respectively, indicating effective cost control and operational efficiency. However, the history of negative net income in earlier years may warrant attention regarding long-term profitability consistency.78
Positive
Balance Sheet
The company's debt-to-equity ratio improved to 4.82 in 2024 from 8.35 in 2023, reflecting better leverage management, though it still indicates high financial leverage. Return on equity rose significantly to 45.8% in 2024, suggesting enhanced shareholder returns driven by improved profitability. The equity ratio increased to 15.9% from 9.9% in 2023, indicating a stronger equity base relative to total assets, yet the leverage remains a potential risk factor for financial stability.62
Positive
Cash Flow
Playags shows a remarkable free cash flow growth rate of 122.9% from 2023 to 2024, driven by strong operating cash flows and controlled capital expenditures. The operating cash flow to net income ratio of 1.96 and a robust free cash flow to net income ratio of 1.05 in 2024 suggest efficient cash conversion and solid cash management practices, contributing to a healthy liquidity position.81
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 394.87M | 356.54M | 309.44M | 259.70M | 167.01M | Gross Profit |
| 394.87M | 251.41M | 222.76M | 196.49M | 118.13M | EBIT |
| 72.41M | 57.39M | 37.97M | 19.70M | -42.89M | EBITDA |
| 151.49M | 142.31M | 105.86M | 93.52M | 36.40M | Net Income Common Stockholders |
| 51.65M | 428.00K | -8.04M | -22.57M | -85.38M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 38.31M | 50.94M | 37.89M | 94.98M | 81.69M | Total Assets |
| 709.59M | 680.34M | 684.75M | 732.81M | 740.78M | Total Debt |
| 543.51M | 564.98M | 566.55M | 620.17M | 618.09M | Net Debt |
| 505.20M | 514.05M | 528.66M | 525.19M | 536.40M | Total Liabilities |
| 596.86M | 612.67M | 635.39M | 691.24M | 687.00M | Stockholders Equity |
| 112.73M | 67.67M | 49.36M | 41.57M | 53.78M |
| Cash Flow | Free Cash Flow | |||
| 54.10M | 24.28M | 8.47M | 26.80M | 458.00K | Operating Cash Flow |
| 101.25M | 86.20M | 77.71M | 78.33M | 36.17M | Investing Cash Flow |
| -71.69M | -58.82M | -72.09M | -50.14M | -39.28M | Financing Cash Flow |
| -33.56M | -14.18M | -62.72M | -14.90M | 71.64M |
Playags Technical Analysis
Neutral
11.95
Price Trends
12.06
Negative
11.86
Positive
11.65
Positive
Market Momentum
0.02
Positive
51.93
Neutral
40.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AGS, the sentiment is Neutral. The current price of 11.95 is below the 20-day moving average (MA) of 12.06, below the 50-day MA of 12.06, and above the 200-day MA of 11.65, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 51.93 is Neutral, neither overbought nor oversold. The STOCH value of 40.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AGS.
Playags Risk Analysis
Playags disclosed 48 risk factors in its most recent earnings report. Playags reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Playags Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $411.25M | 13.87 | 25.34% | ― | 17.05% | 73.00% | |
72 Outperform | $918.93M | 26.44 | 15.55% | ― | 5.17% | -20.75% | |
65 Neutral | $493.04M | 10.07 | 53.82% | ― | 10.75% | 10405.31% | |
59 Neutral | $11.48B | 10.33 | -0.84% | 4.02% | 1.25% | -16.06% | |
55 Neutral | $111.52M | ― | -68.73% | ― | 21.16% | -60.96% | |
38 Underperform | $78.77M | ― | 229.13% | ― | 4.31% | 77.31% |
* Consumer Cyclical Sector Average
Performance Comparison
AGS
Playags
11.95
3.08
34.72%
FLL
Full House Resorts
3.10
-1.89
-37.88%
ACEL
Accel Entertainment
10.96
0.05
0.46%
GAN
GAN
1.72
0.41
31.30%
CDRO
Codere Online
6.88
>-0.01
-0.15%
GAMB
Gambling.com
11.83
3.37
39.83%
Playags Earnings Call Summary
Earnings Call Date: Mar 11, 2025 | % Change Since: -0.58% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call highlights AGS's strong revenue and EBITDA growth, driven by record performances across its segments. However, concerns about market stability and limited international penetration pose challenges. The company's improved leverage profile and strategic focus on growth provide a positive outlook.Highlights
Record Revenue and EBITDA Growth
Revenues and adjusted EBITDA increased by 15% year-over-year, marking the 11th consecutive quarter of double-digit growth.
Global EGM Sales Surge
Global EGM sales increased 36% year-over-year to a record 1,519 units, with sales to nearly 180 unique customers.
Interactive Segment Growth
Interactive revenue grew by over 30% year-over-year to $3.4 million, with adjusted EBITDA increasing nearly 160% year-over-year.
Table Products Segment Expansion
Table Products sales and recurring revenue reached new records with an approximately 20% increase in adjusted EBITDA.
Improved Leverage Profile
Net leverage reduced to 3.2x from 3.8x at the start of the year, with a path to below 3.0x.
Lowlights
Market Stability Concerns
While the market is stable, concerns remain about potential disturbances like weather impacting Q1 GGR.
Limited International Penetration
Currently, AGS has limited international market penetration outside of North America and Latin America.
High Free Cash Flow Conversion Expectations
Despite a 17% free cash flow conversion rate last year, expectations for significant improvement remain challenging.
Company Guidance
During the PlayAGS Fourth Quarter and Full Year 2023 Earnings Call, the company reported significant metrics illustrating its financial health and future outlook. AGS achieved a 15% year-over-year increase in revenues and adjusted EBITDA in Q4, marking its 11th consecutive quarter of double-digit growth and fifth consecutive quarter of double-digit adjusted EBITDA growth. Notably, Global EGM sales surged by 36% year-over-year, with 1,519 units sold, and Interactive revenue grew by over 30%, reaching $3.4 million, with Interactive adjusted EBITDA increasing by nearly 160% to $1.3 million. The Table Products segment also saw a 20% rise in adjusted EBITDA to $2.8 million, contributing to a full-year total of approximately $10 million. Free cash flow increased by more than 45% year-over-year to $11 million, and net leverage decreased to 3.2x from 3.8x at the start of the year. AGS anticipates further growth in 2024, with plans to expand its EGM segment, particularly in the mechanical reel and jumbo segments, and to leverage its Interactive segment, which boasts an annualized revenue and adjusted EBITDA run rate of $13 million and $5 million, respectively.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.