PLAYAGS INC (AGS) Stock Fundamental Analysis
NYSE:AGS - New York Stock Exchange, Inc. - US72814N1046 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to AGS. AGS was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. While AGS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. AGS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year AGS was profitable.
AGS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AGS reported negative net income in multiple years.
AGS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AGS's Return On Assets of 7.19% is fine compared to the rest of the industry. AGS outperforms 77.44% of its industry peers.
AGS has a better Return On Equity (43.49%) than 90.98% of its industry peers.
AGS has a better Return On Invested Capital (10.71%) than 75.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AGS is significantly below the industry average of 13.81%.
The last Return On Invested Capital (10.71%) for AGS is above the 3 year average (6.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.19% | ||
| ROE | 43.49% | ||
| ROIC | 10.71% |
ROA(3y)1.89%
ROA(5y)-1.79%
ROE(3y)8.99%
ROE(5y)-37.22%
ROIC(3y)6.96%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of AGS (10.42%) is better than 76.69% of its industry peers.
The Operating Margin of AGS (18.38%) is better than 75.94% of its industry peers.
In the last couple of years the Operating Margin of AGS has grown nicely.
AGS has a better Gross Margin (70.32%) than 84.96% of its industry peers.
AGS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.38% | ||
| PM (TTM) | 10.42% | ||
| GM | 70.32% |
OM growth 3Y28.67%
OM growth 5Y13.32%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.53%
GM growth 5Y-0.43%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AGS is creating some value.
The number of shares outstanding for AGS has been increased compared to 1 year ago.
Compared to 5 years ago, AGS has more shares outstanding
Compared to 1 year ago, AGS has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.26, we must say that AGS is in the distress zone and has some risk of bankruptcy.
AGS has a Altman-Z score of 1.26. This is comparable to the rest of the industry: AGS outperforms 42.11% of its industry peers.
The Debt to FCF ratio of AGS is 21.51, which is on the high side as it means it would take AGS, 21.51 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 21.51, AGS is in line with its industry, outperforming 44.36% of the companies in the same industry.
A Debt/Equity ratio of 4.51 is on the high side and indicates that AGS has dependencies on debt financing.
AGS has a worse Debt to Equity ratio (4.51) than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.51 | ||
| Debt/FCF | 21.51 | ||
| Altman-Z | 1.26 |
ROIC/WACC1.22
WACC8.79%
2.3 Liquidity
A Current Ratio of 3.97 indicates that AGS has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.97, AGS belongs to the best of the industry, outperforming 96.24% of the companies in the same industry.
A Quick Ratio of 3.26 indicates that AGS has no problem at all paying its short term obligations.
AGS has a Quick ratio of 3.26. This is amongst the best in the industry. AGS outperforms 95.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.97 | ||
| Quick Ratio | 3.26 |
3. Growth
3.1 Past
AGS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 875.00%, which is quite impressive.
Looking at the last year, AGS shows a very strong growth in Revenue. The Revenue has grown by 32.59%.
Measured over the past years, AGS shows a small growth in Revenue. The Revenue has been growing by 5.32% on average per year.
EPS 1Y (TTM)875%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-30%
Revenue 1Y (TTM)32.59%
Revenue growth 3Y14.99%
Revenue growth 5Y5.32%
Sales Q2Q%-1.2%
3.2 Future
The Earnings Per Share is expected to decrease by -10.14% on average over the next years. This is quite bad
The Revenue is expected to grow by 4.45% on average over the next years.
EPS Next Y-35.64%
EPS Next 2Y-13.06%
EPS Next 3Y-10.14%
EPS Next 5YN/A
Revenue Next Year4.19%
Revenue Next 2Y4.66%
Revenue Next 3Y4.45%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.68, the valuation of AGS can be described as reasonable.
Based on the Price/Earnings ratio, AGS is valued cheaper than 94.74% of the companies in the same industry.
AGS is valuated cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.77, which indicates a correct valuation of AGS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AGS indicates a somewhat cheap valuation: AGS is cheaper than 76.69% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of AGS to the average of the S&P500 Index (21.60), we can say AGS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.68 | ||
| Fwd PE | 13.77 |
4.2 Price Multiples
AGS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AGS is cheaper than 90.23% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AGS is valued a bit cheaper than the industry average as 73.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.81 | ||
| EV/EBITDA | 6.02 |
4.3 Compensation for Growth
The decent profitability rating of AGS may justify a higher PE ratio.
AGS's earnings are expected to decrease with -10.14% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-13.06%
EPS Next 3Y-10.14%
5. Dividend
5.1 Amount
AGS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.49
+0.01 (+0.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners86.1%
Inst Owner Change2.6%
Ins Owners3.55%
Ins Owner Change-3.04%
Market Cap518.46M
Analysts46.67
Price Target12.75 (2.08%)
Short Float %2.59%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)268.52%
Min EPS beat(2)-48.92%
Max EPS beat(2)585.95%
EPS beat(4)1
Avg EPS beat(4)98.48%
Min EPS beat(4)-91.02%
Max EPS beat(4)585.95%
EPS beat(8)3
Avg EPS beat(8)144.86%
EPS beat(12)7
Avg EPS beat(12)170%
EPS beat(16)9
Avg EPS beat(16)104.27%
Revenue beat(2)1
Avg Revenue beat(2)0.59%
Min Revenue beat(2)-1.32%
Max Revenue beat(2)2.49%
Revenue beat(4)3
Avg Revenue beat(4)1.02%
Min Revenue beat(4)-1.32%
Max Revenue beat(4)2.49%
Revenue beat(8)7
Avg Revenue beat(8)2.55%
Revenue beat(12)11
Avg Revenue beat(12)2.93%
Revenue beat(16)15
Avg Revenue beat(16)3.45%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)49.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.68 | ||
| Fwd PE | 13.77 | ||
| P/S | 1.06 | ||
| P/FCF | 20.81 | ||
| P/OCF | 5.11 | ||
| P/B | 4.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.02 |
EPS(TTM)1.17
EY9.37%
EPS(NY)0.91
Fwd EY7.26%
FCF(TTM)0.6
FCFY4.81%
OCF(TTM)2.44
OCFY19.57%
SpS11.8
BVpS2.83
TBVpS-6.73
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.19% | ||
| ROE | 43.49% | ||
| ROCE | 13.55% | ||
| ROIC | 10.71% | ||
| ROICexc | 11.38% | ||
| ROICexgc | 31.21% | ||
| OM | 18.38% | ||
| PM (TTM) | 10.42% | ||
| GM | 70.32% | ||
| FCFM | 5.09% |
ROA(3y)1.89%
ROA(5y)-1.79%
ROE(3y)8.99%
ROE(5y)-37.22%
ROIC(3y)6.96%
ROIC(5y)N/A
ROICexc(3y)7.46%
ROICexc(5y)N/A
ROICexgc(3y)24.25%
ROICexgc(5y)N/A
ROCE(3y)8.81%
ROCE(5y)N/A
ROICexcg growth 3Y25.89%
ROICexcg growth 5Y13.82%
ROICexc growth 3Y44.63%
ROICexc growth 5Y21.89%
OM growth 3Y28.67%
OM growth 5Y13.32%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.53%
GM growth 5Y-0.43%
F-Score8
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.51 | ||
| Debt/FCF | 21.51 | ||
| Debt/EBITDA | 3.14 | ||
| Cap/Depr | 97.64% | ||
| Cap/Sales | 15.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.25% | ||
| Profit Quality | 48.81% | ||
| Current Ratio | 3.97 | ||
| Quick Ratio | 3.26 | ||
| Altman-Z | 1.26 |
F-Score8
WACC8.79%
ROIC/WACC1.22
Cap/Depr(3y)87.87%
Cap/Depr(5y)74.99%
Cap/Sales(3y)19.32%
Cap/Sales(5y)19.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)875%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-30%
EPS Next Y-35.64%
EPS Next 2Y-13.06%
EPS Next 3Y-10.14%
EPS Next 5YN/A
Revenue 1Y (TTM)32.59%
Revenue growth 3Y14.99%
Revenue growth 5Y5.32%
Sales Q2Q%-1.2%
Revenue Next Year4.19%
Revenue Next 2Y4.66%
Revenue Next 3Y4.45%
Revenue Next 5YN/A
EBIT growth 1Y35.06%
EBIT growth 3Y47.96%
EBIT growth 5Y19.35%
EBIT Next Year157.89%
EBIT Next 3Y42.52%
EBIT Next 5YN/A
FCF growth 1Y632.85%
FCF growth 3Y3.03%
FCF growth 5Y11.62%
OCF growth 1Y35.65%
OCF growth 3Y8.93%
OCF growth 5Y2.85%