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AGI

Ainsworth Game Technology ASX:AGI Stock Report

Last Price

AU$0.92

Market Cap

AU$308.2m

7D

-3.7%

1Y

-22.8%

Updated

05 Jul, 2022

Data

Company Financials +
AGI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance1/6
Financial Health6/6
Dividends0/6

AGI Stock Overview

Ainsworth Game Technology Limited designs, develops, manufactures, leases, sells, and services gaming machines, and other related equipment and services.

Ainsworth Game Technology Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ainsworth Game Technology
Historical stock prices
Current Share PriceAU$0.92
52 Week HighAU$1.47
52 Week LowAU$0.88
Beta1.33
1 Month Change-6.63%
3 Month Change-18.30%
1 Year Change-22.79%
3 Year Change37.59%
5 Year Change-58.03%
Change since IPO-23.11%

Recent News & Updates

May 02
Ainsworth Game Technology (ASX:AGI) Has A Rock Solid Balance Sheet

Ainsworth Game Technology (ASX:AGI) Has A Rock Solid Balance Sheet

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Mar 02
Ainsworth Game Technology's (ASX:AGI) Strong Earnings Are Of Good Quality

Ainsworth Game Technology's (ASX:AGI) Strong Earnings Are Of Good Quality

The subdued stock price reaction suggests that Ainsworth Game Technology Limited's ( ASX:AGI ) strong earnings didn't...

Shareholder Returns

AGIAU HospitalityAU Market
7D-3.7%0.3%-2.1%
1Y-22.8%-27.1%-10.5%

Return vs Industry: AGI exceeded the Australian Hospitality industry which returned -27.1% over the past year.

Return vs Market: AGI underperformed the Australian Market which returned -10.5% over the past year.

Price Volatility

Is AGI's price volatile compared to industry and market?
AGI volatility
AGI Average Weekly Movement7.0%
Hospitality Industry Average Movement6.7%
Market Average Movement10.0%
10% most volatile stocks in AU Market16.7%
10% least volatile stocks in AU Market4.5%

Stable Share Price: AGI is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: AGI's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1995n/aHarald Michael Neumannhttps://www.agtslots.com

Ainsworth Game Technology Limited designs, develops, manufactures, leases, sells, and services gaming machines, and other related equipment and services. The company operates in the on-line real money and social gaming markets. It has operations in Australia, North America, Latin America, Europe, New Zealand, and Asia.

Ainsworth Game Technology Fundamentals Summary

How do Ainsworth Game Technology's earnings and revenue compare to its market cap?
AGI fundamental statistics
Market CapAU$308.17m
Earnings (TTM)AU$5.74m
Revenue (TTM)AU$188.14m

53.7x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AGI income statement (TTM)
RevenueAU$188.14m
Cost of RevenueAU$73.36m
Gross ProfitAU$114.78m
Other ExpensesAU$109.03m
EarningsAU$5.74m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.017
Gross Margin61.01%
Net Profit Margin3.05%
Debt/Equity Ratio4.6%

How did AGI perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is AGI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AGI?

Other financial metrics that can be useful for relative valuation.

AGI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.5x
Enterprise Value/EBITDA5.8x
PEG Ratio4.7x

Price to Earnings Ratio vs Peers

How does AGI's PE Ratio compare to its peers?

AGI PE Ratio vs Peers
The above table shows the PE ratio for AGI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average36.6x
JIN Jumbo Interactive
30.4x15.3%AU$918.4m
RCT Reef Casino Trust
10xn/aAU$73.5m
TAH Tabcorp Holdings
9.2x1.2%AU$2.4b
AQS Aquis Entertainment
96.8xn/aAU$22.2m
AGI Ainsworth Game Technology
53.7x11.3%AU$308.2m

Price-To-Earnings vs Peers: AGI is expensive based on its Price-To-Earnings Ratio (53.7x) compared to the peer average (36.6x).


Price to Earnings Ratio vs Industry

How does AGI's PE Ratio compare vs other companies in the Global Hospitality Industry?

Price-To-Earnings vs Industry: AGI is expensive based on its Price-To-Earnings Ratio (53.7x) compared to the Global Hospitality industry average (22.2x)


Price to Earnings Ratio vs Fair Ratio

What is AGI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AGI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio53.7x
Fair PE Ratio20.6x

Price-To-Earnings vs Fair Ratio: AGI is expensive based on its Price-To-Earnings Ratio (53.7x) compared to the estimated Fair Price-To-Earnings Ratio (20.6x).


Share Price vs Fair Value

What is the Fair Price of AGI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AGI (A$0.92) is trading below our estimate of fair value (A$1.18)

Significantly Below Fair Value: AGI is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: AGI is poor value based on its PEG Ratio (4.7x)


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Future Growth

How is Ainsworth Game Technology forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AGI's forecast earnings growth (11.3% per year) is above the savings rate (1.8%).

Earnings vs Market: AGI's earnings (11.3% per year) are forecast to grow faster than the Australian market (5.7% per year).

High Growth Earnings: AGI's earnings are forecast to grow, but not significantly.

Revenue vs Market: AGI's revenue (10.5% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: AGI's revenue (10.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AGI's Return on Equity is forecast to be low in 3 years time (3.6%).


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Past Performance

How has Ainsworth Game Technology performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-62.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AGI has a large one-off loss of A$29.4M impacting its December 31 2021 financial results.

Growing Profit Margin: AGI became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AGI's earnings have declined by 62.2% per year over the past 5 years.

Accelerating Growth: AGI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AGI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (47.1%).


Return on Equity

High ROE: AGI's Return on Equity (1.9%) is considered low.


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Financial Health

How is Ainsworth Game Technology's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: AGI's short term assets (A$187.3M) exceed its short term liabilities (A$49.0M).

Long Term Liabilities: AGI's short term assets (A$187.3M) exceed its long term liabilities (A$30.8M).


Debt to Equity History and Analysis

Debt Level: AGI has more cash than its total debt.

Reducing Debt: AGI's debt to equity ratio has reduced from 21.1% to 4.6% over the past 5 years.

Debt Coverage: AGI's debt is well covered by operating cash flow (362.7%).

Interest Coverage: AGI earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Ainsworth Game Technology current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.05%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate AGI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AGI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AGI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AGI's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: AGI is not paying a notable dividend for the Australian market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as AGI has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

14.3yrs

Average management tenure


CEO

Harald Michael Neumann (60 yo)

0.75

Tenure

Magistrate Harald Michael Karl Neumann served as the Spokesman of the Management Team at NOVOMATIC Gaming Industries GmbH. He serves as Chief Executive Officer at Ainsworth Game Technology Ltd. since Octob...


Leadership Team

Experienced Management: AGI's management team is seasoned and experienced (14.3 years average tenure).


Board Members

Experienced Board: AGI's board of directors are seasoned and experienced ( 10.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ainsworth Game Technology Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Ainsworth Game Technology Limited
  • Ticker: AGI
  • Exchange: ASX
  • Founded: 1995
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Implied Market Cap: AU$308.166m
  • Shares outstanding: 336.79m
  • Website: https://www.agtslots.com

Location

  • Ainsworth Game Technology Limited
  • 10 Holker Street
  • Newington
  • New South Wales
  • 2127
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/05 00:00
End of Day Share Price2022/07/05 00:00
Earnings2021/12/31
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.