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1. Company Snapshot

1.a. Company Description

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 various video slot titles for the marketplace; and EGM cabinets, including the Orion Starwall, Orion Curve Premium, Big Red, Orion Portrait, Orion Slant, Orion Curve, Orion Upright, and ICON.This segment also provides conversion kits that allow existing game titles to be converted to other game titles offered within that operating platform.It serves Class II Native American and Mexico, as well as Class III Native American, commercial, and charitable jurisdictions.


The Table Products segment offers table products, including live felt table games, side bet offerings, progressives, card shufflers, signage, and other ancillary table game equipment, as well as table technology related to blackjack, poker, baccarat, craps, and roulette.This segment also provides Dex S, a single deck card shuffler for poker tables.Its brands include In Bet, Buster Blackjack, Double Draw Poker, and Criss Cross Poker.


The Interactive segment offers a platform for business-to-business content aggregation used by real-money gaming and sports-betting partners; 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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1.b. Last Insights on AGS

PlayAGS, Inc.'s recent performance was driven by the expiration of the Hart-Scott-Rodino Act waiting period for its acquisition by affiliates of Brightstar Capital Partners, clearing the path for the $12.50 per share cash deal. This development marks a significant milestone in the company's history, as it prepares to be acquired and potentially unlock value for shareholders. Additionally, the company's focus on high-performing slot, table, and interactive products positions it well for growth in the evolving gaming industry.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Contrasting PagSeguro Digital (NYSE:PAGS) and Worldline (OTCMKTS:WWLNF)

Oct -31

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PagSeguro Digital Ltd. (NYSE:PAGS) Receives Consensus Rating of “Hold” from Brokerages

Oct -26

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Caesars Entertainment and AGS Celebrate the Exclusive In-person and Online Launches of Kingdom of Horus and Reign of Anubis

Oct -24

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AGS to Rock the Bolt at G2E 2025 With Bold New Brand and Largest Showcase in Company History

Sep -24

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Yaamava', Palms and AGS Celebrate First-Ever Dual Property World Premiere of Mariachi Fortunes Trio™ in Southern California and Las Vegas

Jul -23

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Brightstar Capital Partners Completes Acquisition of PlayAGS for Approximately $1.1 Billion Dollars

Jun -30

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AGS Celebrates Nine Straight Years as a Best and Brightest Company to Work For in the Nation and Atlanta

May -28

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AGS Grows Slot Strategy Team with the Addition of Dan Marcus as Vice President of Product Management

Apr -28

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.98%)

6. Segments

Electronic Gaming Machines

Expected Growth: 3%

The 3% growth of Electronic Gaming Machines from PlayAGS, Inc. is driven by increasing demand for Class II and Class III slot machines, expansion into new markets, and rising adoption of premium games. Additionally, the company's focus on product innovation, strategic partnerships, and growing presence in the online gaming market also contribute to its growth.

Table Products

Expected Growth: 2%

PlayAGS' Table Products segment growth is driven by increasing adoption of electronic table games, expansion into new markets, and rising demand for premium products. Additionally, the company's focus on innovation, such as its Bonus Spin feature, and strategic partnerships with casinos and resorts, contribute to its growth momentum.

Interactive

Expected Growth: 4%

Interactive segment's 4% growth is driven by increasing adoption of online gaming, expansion into new markets, and strategic partnerships. Additionally, PlayAGS' investments in digital content and technology enhancements are improving user experience, leading to higher engagement and retention rates.

7. Detailed Products

Eclipse Cabinet

A premium slot cabinet featuring a modern design and advanced technology

Orion Upright

A high-performance slot cabinet with a focus on player comfort and engagement

Big Easy

A video poker game with a unique twist, offering players a chance to win big

RealMoney Gaming

A social online gaming platform offering a range of engaging games and rewards

Lucky Lucky

A blackjack side bet that offers players a chance to win big with a progressive jackpot

Bonus Spin

A slot game feature that offers players a chance to win free spins and bonuses

Table Products

A range of table games and accessories designed to enhance the gaming experience

8. PlayAGS, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for PlayAGS, Inc. is medium due to the presence of alternative gaming platforms and products.

Bargaining Power Of Customers

The bargaining power of customers for PlayAGS, Inc. is low due to the company's strong brand recognition and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for PlayAGS, Inc. is medium due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for PlayAGS, Inc. is high due to the growing demand for gaming products and the relatively low barriers to entry.

Intensity Of Rivalry

The intensity of rivalry for PlayAGS, Inc. is high due to the presence of established competitors and the company's need to continuously innovate to stay competitive.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 89.13%
Debt Cost 15.89%
Equity Weight 10.87%
Equity Cost 15.89%
WACC 15.89%
Leverage 820.30%

11. Quality Control: PlayAGS, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Playa Hotels & Resorts

A-Score: 5.9/10

Value: 3.4

Growth: 7.8

Quality: 5.9

Yield: 0.0

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

Stock-Card
Inspired Entertainment

A-Score: 5.4/10

Value: 9.1

Growth: 6.9

Quality: 6.0

Yield: 0.0

Momentum: 5.5

Volatility: 5.0

1-Year Total Return ->

Stock-Card
PlayAGS

A-Score: 5.3/10

Value: 5.1

Growth: 6.7

Quality: 5.7

Yield: 0.0

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

Stock-Card
Golden Entertainment

A-Score: 5.0/10

Value: 6.0

Growth: 4.8

Quality: 4.2

Yield: 6.0

Momentum: 2.5

Volatility: 6.3

1-Year Total Return ->

Stock-Card
Everi

A-Score: 4.8/10

Value: 5.1

Growth: 4.7

Quality: 4.8

Yield: 0.0

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

Stock-Card
Canterbury Park

A-Score: 4.3/10

Value: 3.6

Growth: 2.3

Quality: 5.2

Yield: 3.0

Momentum: 6.0

Volatility: 5.3

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.49$

Current Price

12.49$

Potential

-0.00%

Expected Cash-Flows