Returns Breakdown
| Return on Investment | 6.54 | |
| Return on Assets | (0.0129) | |
| Return on Equity | (0.2) | |
| Return Capital | 0.0453 | |
| Return on Sales | 0.1 |
What can we learn from PlayAGS (USA Stocks:AGS) newest price fluctuation
 | By Ellen Johnson | Macroaxis Story |
PlayAGS (AGS: US Stock), a prominent player in the Consumer Cyclical sector, specifically in the Gambling industry, has been demonstrating resilience amidst a modest market decline. Despite the challenging market conditions, the company, which specializes in Casinos & Gaming, has been showing steady growth potential, making it a noteworthy consideration for investors. As of the latest update on 5th September 2023, PlayAGS has a 52-week high of 8.28 and a low of 4.38. The company's shares are currently trading above both the 50-day moving average (MA) of 6.505 and the 200-day MA of 6.0169, indicating a positive trend. However, it's worth noting that the company has a high beta of 2.362, which suggests a higher level of volatility compared to the overall market. Analysts are optimistic about the company's future, with the overall consensus being a 'Strong Buy'. This is backed by four strong buy recommendations. The analysts' highest estimated target price stands at 14, while the lowest is 10, offering a significant upside potential from the naive expected forecast value of 6.94. The company's earnings per share (EPS) estimate for the current year is 0.02, with a significant increase to 0.19 expected for the next year. Despite a high PE ratio of 74.7778, the company's valuation real value is 7.86, which is higher than the valuation hype value of 6.63. This suggests that the company's stock is undervalued, offering a good entry point for investors. However, investors should also consider the potential risks. The company has a short ratio of 2.63, with 1M shares short, down from 1.3M shares short the prior month. This indicates a short percent of 0.0273, suggesting some investors are betting on the stock's possible downside price of 3.38. In conclusion, PlayAGS presents a compelling investment opportunity with steady growth potential. However, as with any investment, potential investors should carefully consider the associated risks before making a decision. The Long Term Debt to Equity ratio for PlayAGS is relatively stable at present, compared to the previous year. In 2022, PlayAGS reported a Long Term Debt to Equity ratio of 11.14. The Receivables Turnover is projected to increase to 6.46 in 2023, while Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) are expected to slightly exceed $91.7 million in 2023. The primary purpose of this brief analysis is to deconstruct our forecast for PlayAGS for individual investors. We will attempt to predict PlayAGS's outlook for October.
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Reviewed by Michael Smolkin
More than 81.0% of PlayAGS shares are held by institutions such as insurance companies. The institutional ownership of PlayAGS refers to the portion of PlayAGS equity owned by entities like mutual funds, pension funds, insurance companies, investment firms, foundations, or other large organizations that manage money on behalf of others. For our latest analysis of PlayAGS, including its current ownership diagnostics, please refer to the provided links.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as PlayAGS. Your research has to be compared to or analyzed against PlayAGS's peers to derive any actionable benefits. When done correctly, PlayAGS's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in PlayAGS.
Detailed assessment
PlayAGS (AGS: US Stock) has shown commendable resilience in the face of a modest market decline, positioning itself as a promising investment for steady growth. Despite a challenging fiscal year, the company's earnings per share (EPS) estimates for the current year and the next are $0.02 and $0.19 respectively, demonstrating a potential for robust earnings growth. The stock's open price stands at $6.56, while the 52-week high is recorded at $8.28, indicating a significant upside potential. Moreover, Wall Street's target price for PlayAGS is $11.6, further underscoring the growth potential of this stock. Despite a downside variance of $8.44, the company's resilience is reflected in its ability to manage risks, as evidenced by its short ratio of 2.63. The gambling industry, where PlayAGS operates, is known for its volatility, but this stock seems to be defying the odds with its steady performance. In conclusion, PlayAGS presents an attractive investment opportunity with its strong growth prospects and resilience amidst market fluctuations. Investors looking for steady growth potential in the gambling industry might find PlayAGS to be a worthwhile consideration. However, as with any investment, it's crucial to consider the inherent risks and conduct thorough research before making a decision.There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as PlayAGS. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for PlayAGS
How important is PlayAGS's Liquidity
PlayAGS financial leverage refers to using borrowed capital as a funding source to finance PlayAGS ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. PlayAGS financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to PlayAGS's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of PlayAGS's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between PlayAGS's total debt and its cash.
PlayAGS Gross Profit
PlayAGS Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing PlayAGS previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show PlayAGS Gross Profit growth over the last 10 years. Please check PlayAGS's gross profit and other fundamental indicators for more details.
What is driving PlayAGS Investor Appetite?
The modest gains experienced by current holders of PlayAGS could raise concerns from private investors as the company is trading at a share price of 6.58 on 153,504 in volume. The company management teams have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in August. The stock standard deviation of daily returns for 90 days investing horizon is currently 3.56. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from PlayAGS partners.
PlayAGS (AGS: NYSE) continues to show resilience in the face of a modest market decline, demonstrating steady growth potential. Despite a 52-week low of $4.38, the stock has rebounded to a 50-day moving average of $6.505, nearing its 52-week high of $8.28. The company's current ratio stands at a healthy 2.26X, indicating its ability to meet short-term obligations. The company's net assets total $684.75M, with a market capitalization of $255.97M.Despite a total debt of $566.55M, PlayAGS maintains a strong cash flow from operations at $77.71M. The company's EBITDA stands at $122.68M, reflecting a positive operating margin of 0.15%. PlayAGS's EPS estimate for the current year is $0.02, with a forecasted increase to $0.19 for the next year. The Wall Street target price for the stock is $11.6, suggesting significant upside potential. However, investors should note the company's beta of 2.36, indicating higher volatility compared to the overall market. Despite a probability of bankruptcy at 49.61%, the company's resilience is reflected in its risk-adjusted performance of 0.053 and a Treynor ratio of 0.28. With 81.06% of shares owned by institutions, PlayAGS demonstrates a level of trust from institutional investors. In conclusion, PlayAGS offers steady growth potential amidst market volatility. .
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