Playags has roughly 86.39
M in cash with 36.17
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.37.
On a scale of 0 to 100, Playags holds a
performance score of 13. The company holds a Beta of 1.854, which implies a somewhat significant risk relative to the market. Let's try to break down what Playags's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Playags will likely underperform. Although it is vital to follow
Playags current trending patterns, it is good to be conservative about what you can do with the information regarding equity existing
price patterns. The philosophy towards forecasting
future performance of any stock is to evaluate the business as a whole together with its past performance, including all
available fundamental and
technical indicators. We have found twenty-eight
technical indicators for Playags, which you can use to evaluate the performance of the company. Please employ Playags
coefficient of variation,
semi variance,
price action indicator, as well as the
relationship between the
treynor ratio and
daily balance of power to make a quick decision on whether Playags historical
price patterns will revert.
Investing in PlayAGS, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding PlayAGS along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of PlayAGS's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
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.
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.
PlayAGS Correlation with Peers
Investors in PlayAGS can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in PlayAGS. Diversification will allow for the same portfolio return with reduced risk. The correlation table of PlayAGS and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities PlayAGS is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of PlayAGS for more details
What is driving PlayAGS Investor Appetite?
Playags appears to be slightly risky, given 1 month investment horizon.
Playags maintains Sharpe Ratio (i.e. Efficiency) of 0.18, which implies the firm had 0.18% of return per unit of risk over the last month. Our standpoint towards forecasting the volatility of a stock is to use all available market data together with stock specific
technical indicators that cannot be
diversified away. By analyzing
Playags technical indicators you can presently evaluate if the expected return of 0.91% is justified by implied risk. Please employ Playags Semi Deviation of 3.54,
risk adjusted performance of 0.1279, and Coefficient Of Variation of 682.0 to confirm if our risk estimates are consistent with your expectations.
Will Playags latest spike continue?
Semi variance is down to 12.5. It may connote a possible volatility fall. Playags shows above-average downside volatility for the selected time horizon. We advise investors to inspect Playags further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Playags future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Playags' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Playags' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Takeaway on Playags Investment
While other entities under the gambling industry are still a bit expensive, Playags may offer a potential longer-term growth to retail investors. While some retail investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Playags.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of PlayAGS. Please refer to our
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