Shareholders in PlayAGS (NYSE:AGS) are in the red if they invested three years ago
Investing in stocks inevitably means buying into some companies that perform poorly. But the long term shareholders of PlayAGS, Inc. (NYSE:AGS) have had an unfortunate run in the last three years. Sadly for them, the share price is down 57% in that time. The more recent news is of little comfort, with the share price down 20% in a year. Shareholders have had an even rougher run lately, with the share price down 22% in the last 90 days.
Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business.
See our latest analysis for PlayAGS
Because PlayAGS made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Over three years, PlayAGS grew revenue at 0.8% per year. That's not a very high growth rate considering it doesn't make profits. This uninspiring revenue growth has no doubt helped send the share price lower; it dropped 16% during the period. When a stock falls hard like this, some investors like to add the company to a watchlist (in case the business recovers, longer term). After all, growing a business isn't easy, and the process will not always be smooth.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
This free interactive report on PlayAGS' balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
The last twelve months weren't great for PlayAGS shares, which performed worse than the market, costing holders 20%. Meanwhile, the broader market slid about 17%, likely weighing on the stock. Unfortunately, the longer term story isn't pretty, with investment losses running at 16% per year over three years. We'd need clear signs of growth in the underlying business before we could muster much enthusiasm for this one. It's always interesting to track share price performance over the longer term. But to understand PlayAGS better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with PlayAGS .
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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