Overall AGS gets a fundamental rating of 5 out of 10. We evaluated AGS against 132 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 decent growth rate and is not valued too expensively.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

AGS had positive earnings in the past year.
In the past year AGS had a positive cash flow from operations.
In multiple years AGS reported negative net income over the last 5 years.
In the past 5 years AGS always reported a positive cash flow from operatings.

1.2 Ratios

AGS has a better Return On Assets (7.19%) than 77.04% of its industry peers.
AGS has a Return On Equity of 43.49%. This is amongst the best in the industry. AGS outperforms 90.37% of its industry peers.
AGS's Return On Invested Capital of 10.71% is fine compared to the rest of the industry. AGS outperforms 75.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AGS is below the industry average of 10.37%.
The 3 year average ROIC (6.96%) for AGS is below the current ROIC(10.71%), indicating increased profibility in the last year.

		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

AGS has a Profit Margin of 10.42%. This is in the better half of the industry: AGS outperforms 76.30% of its industry peers.
AGS's Operating Margin of 18.38% is fine compared to the rest of the industry. AGS outperforms 75.56% of its industry peers.
AGS's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 70.32%, AGS belongs to the best of the industry, outperforming 84.44% of the companies in the same industry.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AGS is still 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
The debt/assets ratio for AGS has been reduced compared to a year ago.

2.2 Solvency

AGS has an Altman-Z score of 1.26. This is a bad value and indicates that AGS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.26, AGS is doing worse than 60.00% of the companies in the same industry.
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.
AGS has a Debt to FCF ratio of 21.51. This is comparable to the rest of the industry: AGS outperforms 44.44% of its industry peers.
AGS has a Debt/Equity ratio of 4.51. This is a high value indicating a heavy dependency on external financing.
AGS's Debt to Equity ratio of 4.51 is on the low side compared to the rest of the industry. AGS is outperformed by 64.44% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	4.51
Debt/FCF	21.51
Altman-Z	1.26

ROIC/WACC1.05

WACC10.18%

2.3 Liquidity

AGS has a Current Ratio of 3.97. This indicates that AGS is financially healthy and has no problem in meeting its short term obligations.
AGS has a better Current ratio (3.97) than 96.30% of its industry peers.
AGS has a Quick Ratio of 3.26. This indicates that AGS is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of AGS (3.26) is better than 95.56% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.97
Quick Ratio	3.26

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WACC

Debt/Equity

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Altman-Z score

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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.
AGS shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.59%.
AGS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.32% yearly.

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

AGS is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -10.14% yearly.
Based on estimates for the next years, AGS will show a small growth in Revenue. The Revenue will grow by 4.45% on average per year.

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

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

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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.
AGS's Price/Earnings ratio is rather cheap when compared to the industry. AGS is cheaper than 94.81% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.30. AGS is valued rather cheaply when compared to this.
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 78.52% of the companies listed in the same industry.
AGS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.

		Industry Rank	Sector Rank
PE	10.68
Fwd PE	13.77

4.2 Price Multiples

91.85% of the companies in the same industry are more expensive than AGS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AGS is valued a bit cheaper than 74.81% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	20.81
EV/EBITDA	6.03

4.3 Compensation for Growth

AGS has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as AGS's earnings are expected to decrease with -10.14% in the coming years.