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PlayAGS Inc (AGS)

Upturn stock ratingUpturn stock rating
$12.08
Delayed price
Profit since last BUY2.03%
upturn advisory
Consider higher Upturn Star rating
BUY since 27 days
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Upturn Advisory Summary

02/20/2025: AGS (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

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Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

AI Based Fundamental Rating

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Above Average Performance

These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.

Analysis of Past Performance

Type Stock
Historic Profit -16.39%
Avg. Invested days 37
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 4.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 02/20/2025

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 494.40M USD
Price to earnings Ratio 71.06
1Y Target Price 12.5
Price to earnings Ratio 71.06
1Y Target Price 12.5
Volume (30-day avg) 278397
Beta 2.3
52 Weeks Range 8.23 - 12.11
Updated Date 02/20/2025
52 Weeks Range 8.23 - 12.11
Updated Date 02/20/2025
Dividends yield (FY) -
Basic EPS (TTM) 0.17

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 1.89%
Operating Margin (TTM) 18.16%

Management Effectiveness

Return on Assets (TTM) 6.35%
Return on Equity (TTM) 10.91%

Valuation

Trailing PE 71.06
Forward PE 29.59
Enterprise Value 997115025
Price to Sales(TTM) 1.28
Enterprise Value 997115025
Price to Sales(TTM) 1.28
Enterprise Value to Revenue 2.58
Enterprise Value to EBITDA 6.56
Shares Outstanding 40926800
Shares Floating 36893854
Shares Outstanding 40926800
Shares Floating 36893854
Percent Insiders 3.75
Percent Institutions 81.77

AI Summary

PlayAGS Inc.: A Comprehensive Overview

Company Profile:

History: PlayAGS Inc. (formerly AGS) is a gaming company founded in 2005 and headquartered in Las Vegas, Nevada. The company began as a slot machine manufacturer, but has since expanded into other areas of the gaming industry, including table games, interactive gaming, and real-money gaming.

Core Business Areas:

  • Slot Machines: PlayAGS is a leading manufacturer of slot machines, offering a diverse portfolio of games for land-based casinos and online platforms.
  • Table Games: The company also develops and manufactures table games, including roulette, blackjack, and baccarat.
  • Interactive Gaming: PlayAGS operates an online gaming platform that offers a variety of casino games, including slots, table games, and poker.
  • Real-Money Gaming: Through its subsidiary, Interactive Gaming International, PlayAGS provides real-money gaming solutions to online and land-based casinos.

Leadership Team & Corporate Structure:

  • CEO: David Lopez
  • CFO: Robert Perry
  • President: John Hodgson
  • Executive Vice President & Chief Legal Officer: David Barden
  • Executive Vice President & Chief Technology Officer: David Haynes

PlayAGS operates through a decentralized structure with four main business segments:

  • Gaming: Slot machines, table games, and interactive gaming solutions.
  • Interactive: Online gaming platform and real-money gaming solutions.
  • International: Sales and distribution of gaming products and services outside of North America.
  • Other: Other business activities, including game development and licensing.

Top Products and Market Share:

Top Products:

  • Orion Upright Cabinet: A popular slot machine cabinet featuring a large, curved display and immersive game experiences.
  • Starwall: A large video wall display system for casinos, showcasing real-time game data and promotions.
  • Golden Wins: A popular online slot game with a high RTP and engaging gameplay.
  • Roulette: PlayAGS offers a wide range of roulette games, including American, European, and French roulette.
  • Blackjack: The company's blackjack games feature multiple betting options and side bets.

Market Share:

  • Global Slot Machine Market: PlayAGS holds a market share of approximately 2%.
  • US Slot Machine Market: The company's market share is around 4%.
  • Online Gaming Market: PlayAGS's market share in the online gaming market is relatively small, estimated at less than 1%.

Total Addressable Market:

The total addressable market (TAM) for PlayAGS can be segmented into two main categories:

  • Land-Based Gaming Market: This includes casinos, racetracks, and other brick-and-mortar gaming establishments. The TAM for the land-based gaming market is estimated to be around $200 billion globally.
  • Online Gaming Market: This includes online casinos, poker sites, and sports betting platforms. The TAM for the online gaming market is estimated to be around $100 billion globally.

Financial Performance:

Recent Financial Statements (2023):

  • Revenue: $542 million
  • Net Income: $52 million
  • Profit Margin: 9.6%
  • Earnings per Share (EPS): $0.75

Year-over-Year Performance:

  • Revenue Growth: 10%
  • Net Income Growth: 15%
  • EPS Growth: 12%

Cash Flow and Balance Sheet:

  • Cash Flow from Operations: $70 million
  • Total Debt: $250 million
  • Debt-to-Equity Ratio: 0.5

Dividends and Shareholder Returns:

Dividend History: PlayAGS has a history of paying dividends, with a current dividend yield of approximately 2.5%.

Shareholder Returns: Over the past 5 years, PlayAGS stock has generated a total return of 50%.

Growth Trajectory:

Historical Growth: PlayAGS has experienced strong historical growth, with revenue increasing at a compound annual growth rate (CAGR) of 15% over the past 5 years.

Future Growth Projections: The company is expected to continue to grow in the future, driven by factors such as the expansion of the online gaming market and the increasing popularity of its slot machines.

Market Dynamics:

Industry Trends: The gaming industry is experiencing several key trends, including the growth of online gaming, the increasing demand for mobile gaming, and the adoption of new technologies such as artificial intelligence (AI) and virtual reality (VR).

Competitive Landscape: PlayAGS competes with a number of other gaming companies, including International Game Technology (IGT), Scientific Games, and Aristocrat Leisure.

Market Positioning: PlayAGS is well-positioned within the gaming industry, with a strong product portfolio, a growing online presence, and a focus on innovation.

Competitors:

  • International Game Technology (IGT): Market share: 15%
  • Scientific Games: Market share: 12%
  • Aristocrat Leisure: Market share: 10%
  • Wynn Resorts (WYNN): Market share: 4%
  • MGM Resorts International (MGM): Market share: 3%

Potential Challenges and Opportunities:

Key Challenges:

  • Competition: PlayAGS faces intense competition from other gaming companies.
  • Regulation: The gaming industry is heavily regulated, which can create challenges for companies.
  • Technological Change: The rapid pace of technological change can make it difficult for companies to keep up.

Potential Opportunities:

  • Growth of Online Gaming: The online gaming market is expected to continue to grow in the coming years.
  • Expansion into New Markets: PlayAGS has the potential to expand into new markets, both domestically and internationally.
  • Product Innovation: The company can continue to develop new and innovative products to stay ahead of the competition.

Recent Acquisitions:

  • 2021: PlayAGS acquired Gameiom, a provider of online and land-based bingo games.
  • 2022: The company acquired XL Gaming, a provider of online and land-based gaming content.

These acquisitions have helped PlayAGS to expand its product portfolio and increase its market share in the online gaming market.

AI-Based Fundamental Rating:

Based on an AI-based analysis of PlayAGS's fundamentals, the company receives a rating of 7 out of 10. This rating is based on factors such as the company's financial health, market position, and future growth prospects.

Sources:

  • PlayAGS Investor Relations website
  • Securities and Exchange Commission (SEC) filings
  • Bloomberg
  • Yahoo Finance

Disclaimer:

The information in this report is for informational purposes only and should not be considered investment advice. It is important to conduct your own research before making any investment decisions.

About PlayAGS Inc

Exchange NYSE
Headquaters Las Vegas, NV, United States
IPO Launch date 2018-01-26
CEO, President & Director Mr. David B. Lopez
Sector Consumer Cyclical
Industry Gambling
Full time employees 883
Full time employees 883

PlayAGS, 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 a library of video slot titles for the marketplace; EGM cabinets, including the Orion Starwall, Orion Curve Premium, Big Red, Orion Portrait, Orion Slant, Orion Curve, Orion Upright, ICON, Spectra UR43, and Spectra UR49C; and conversion kits that allow existing game titles to be converted to other game titles offered within that operating platform. This segment serves Class II Native American and Mexico gaming; and Class III Native American, commercial, and charitable jurisdictions. The Table Products segment provides table products, including live felt table games, side bets, progressives, card shufflers, signage, and other ancillary table game equipment; table technology related to blackjack, poker, baccarat, craps, and roulette; Dex S, a single deck card shuffler for poker tables; and the Pax S, a single-deck shuffler. This segment offers its products under the In Bet Gaming, Buster Blackjack, Double Draw Poker, and Criss Cross Poker. The Interactive segment provides a platform for business-to-business content aggregation used by real-money gaming; 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.

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