PlayAGS, Inc.
PlayAGS, Inc. Fundamental Analysis
PlayAGS, Inc. (AGS) shows strong financial fundamentals with a PE ratio of 10.29, profit margin of 16.86%, and ROE of 49.91%. The company generates $0.3B in annual revenue with strong year-over-year growth of 10.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze AGS's fundamental strength across five key dimensions:
Efficiency Score
WeakAGS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAGS trades at attractive valuation levels.
Growth Score
ExcellentAGS delivers strong and consistent growth momentum.
Financial Health Score
ModerateAGS shows balanced financial health with some risks.
Profitability Score
ExcellentAGS achieves industry-leading margins.
Key Financial Metrics
Is AGS Expensive or Cheap?
P/E Ratio
AGS trades at 10.29 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AGS's PEG of -3.11 indicates potential undervaluation.
Price to Book
The market values PlayAGS, Inc. at 4.39 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 0.11 times EBITDA. This is generally considered low.
How Well Does AGS Make Money?
Net Profit Margin
For every $100 in sales, PlayAGS, Inc. keeps $16.86 as profit after all expenses.
Operating Margin
Core operations generate 18.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $49.91 in profit for every $100 of shareholder equity.
ROA
PlayAGS, Inc. generates $7.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PlayAGS, Inc. produces operating cash flow of $70.24M, showing steady but balanced cash generation.
Free Cash Flow
PlayAGS, Inc. produces free cash flow of $16.26M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.39 in free cash annually.
FCF Yield
AGS converts 3.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.39
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.64
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.97
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.50
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How AGS Stacks Against Its Sector Peers
| Metric | AGS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.29 | 24.85 | Better (Cheaper) |
| ROE | 49.91% | 1165.00% | Weak |
| Net Margin | 16.86% | 749.00% | Weak |
| Debt/Equity | 4.64 | 0.76 | Weak (High Leverage) |
| Current Ratio | 3.97 | 9.23 | Strong Liquidity |
| ROA | 7.06% | 1271.00% | Weak |
AGS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews PlayAGS, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
14.61%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
496.48%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
1.78%
Industry Style: Cyclical, Growth, Discretionary
Growing