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Allied Gaming & Entertainment (AGAE)
NASDAQ:AGAE
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Allied Gaming & Entertainment
(NASDAQ:AGAE)
Rating:49Neutral
Price Target:―
Allied Gaming & Entertainment (AGAE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$103.21M
Dividend YieldN/A
Average Volume (3M)253.64K
Price to Earnings (P/E)―
Beta (1Y)0.98
Revenue Growth36.15%
EPS Growth-144.64%
CountryUS
Employees73
SectorCommunication Services
Sector Strength86
IndustryEntertainment
Share Statistics
EPS (TTM)-0.27
Shares Outstanding44,106,014
10 Day Avg. Volume567,420
30 Day Avg. Volume253,644
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.51
Price to Sales (P/S)0.00
P/FCF Ratio-2.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Allied Gaming & Entertainment Business Overview & Revenue Model
Company DescriptionAllied Gaming & Entertainment Inc. provides entertainment and gaming products worldwide. It operates esports properties to connect players and fans through a network of connected arenas; a flagship gaming arena located at the Luxor Hotel in Las Vegas, Nevada; a mobile esports truck that serves as a battleground and content generation hub; and a studio for recording and streaming gaming events. The company was formerly known as Allied Esports Entertainment Inc. and changed its name to Allied Gaming & Entertainment Inc. in December 2022. Allied Gaming & Entertainment Inc. was founded in 2018 and is based in Irvine, California.
How the Company Makes MoneyAllied Gaming & Entertainment generates revenue through several streams, primarily focusing on esports events, content creation, and venue management. The company hosts and organizes esports tournaments, earning income from sponsorships, advertising, ticket sales, and merchandise. Additionally, AGAE leverages digital content creation to attract viewership on streaming platforms, which provides advertising revenue and potential subscription fees. The management of esports venues also contributes to its income, offering services such as facility rentals, events hosting, and hospitality packages. Strategic partnerships with brands and gaming companies further enhance its revenue potential by expanding its reach and access to exclusive content and audiences.
Allied Gaming & Entertainment Financial Statement Overview
Summary
Allied Gaming & Entertainment is facing financial difficulties with negative profitability and cash flow challenges. Despite a positive revenue growth rate, the company struggles with cost management and operational efficiency, resulting in negative EBIT and net income.Income Statement
Allied Gaming & Entertainment has struggled with profitability as reflected in negative EBIT and net income over the past periods. The TTM (Trailing-Twelve-Months) revenue growth rate is positive at 20.91%, indicating some improvement in revenue generation. However, the company faces significant challenges with negative gross and net profit margins, pointing to issues in cost management and operational efficiency.35
Negative
Balance Sheet
The balance sheet shows a reasonable equity ratio of 57.00% and a manageable debt-to-equity ratio of 0.08 in the TTM, suggesting a stable financial structure. However, the consistently negative ROE indicates that the company is not generating returns on equity, which is concerning for long-term sustainability.40
Negative
Cash Flow
The cash flow statement highlights negative free cash flow and operating cash flow in recent periods, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is not favorable, emphasizing the struggles in converting revenue into cash.30
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 9.26M | 7.66M | 6.35M | 4.96M | 3.21M | 26.07M | Gross Profit |
| 2.35M | 2.86M | 1.25M | 880.79K | 347.90K | 14.95M | EBIT |
| -11.05M | -6.60M | -11.53M | -15.77M | -20.71M | -14.61M | EBITDA |
| -8.55M | -5.10M | -9.63M | -12.47M | -36.63M | -10.83M | Net Income Common Stockholders |
| -10.62M | -3.60M | -10.35M | 62.87M | -45.54M | -17.95M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 72.82M | 72.82M | 81.17M | 92.89M | 424.22K | 8.44M | Total Assets |
| 112.02M | 112.02M | 97.73M | 105.80M | 61.90M | 71.32M | Total Debt |
| 16.27M | 16.27M | 7.75M | 0.00 | 4.91M | 13.83M | Net Debt |
| 2.95M | -47.19K | -3.41M | -92.89M | 4.48M | 5.39M | Total Liabilities |
| 18.61M | 18.61M | 9.83M | 7.16M | 28.49M | 27.10M | Stockholders Equity |
| 82.75M | 82.75M | 87.90M | 98.65M | 33.41M | 44.22M |
| Cash Flow | Free Cash Flow | ||||
| -17.20M | -9.19M | -11.03M | -10.27M | -5.53M | -12.33M | Operating Cash Flow |
| -16.79M | -8.14M | -10.93M | -10.08M | -5.17M | -10.06M | Investing Cash Flow |
| -24.56M | 6.13M | -70.14M | 105.86M | -5.51M | 8.04M | Financing Cash Flow |
| 37.22M | 7.15M | -610.56K | -3.42M | 9.16M | 3.65M |
Allied Gaming & Entertainment Technical Analysis
Positive
2.34
Price Trends
1.25
Positive
1.13
Positive
1.15
Positive
Market Momentum
0.26
Negative
77.06
Negative
65.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AGAE, the sentiment is Positive. The current price of 2.34 is above the 20-day moving average (MA) of 1.59, above the 50-day MA of 1.25, and above the 200-day MA of 1.15, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 77.06 is Negative, neither overbought nor oversold. The STOCH value of 65.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AGAE.
Allied Gaming & Entertainment Risk Analysis
Allied Gaming & Entertainment disclosed 48 risk factors in its most recent earnings report. Allied Gaming & Entertainment reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Our business could be negatively affected as a result of actions of activist stockholders or others. Q3, 2024
Allied Gaming & Entertainment Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $14.12B | 6.43 | -3.57% | 3.69% | 2.49% | -35.43% | |
58 Neutral | $75.77M | ― | 154.70% | ― | 11.43% | 26.78% | |
56 Neutral | $55.29M | ― | -29.22% | ― | 39.86% | 3.86% | |
49 Neutral | $103.21M | ― | -13.48% | ― | 36.15% | -144.64% | |
49 Neutral | $45.12M | ― | -540.12% | ― | -7.36% | 18.52% | |
45 Neutral | $5.81M | ― | -65.28% | ― | -20.80% | 19.16% | |
38 Underperform | $38.57M | ― | -55.07% | ― | 0.37% | 71.71% |
* Communication Services Sector Average
Performance Comparison
AGAE
Allied Gaming & Entertainment
2.34
1.60
216.22%
CNVS
Cineverse
3.48
2.48
248.00%
TOON
Kartoon Studios
0.81
-0.26
-24.30%
RDI
Reading International
1.43
-0.20
-12.27%
LVO
LiveOne
0.76
-1.00
-56.82%
HOFV
Hall of Fame Resort & Entertainment
0.87
-1.84
-67.90%
Allied Gaming & Entertainment Earnings Call Summary
Earnings Call Date:Mar 19, 2025
(Q3-2024)
| % Change Since: 112.73%|
Next Earnings Date:May 26, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue growth and strategic initiatives like the World Mahjong Tour and new investments, but these were offset by increased costs and a notable net loss for the quarter. The sentiment is mixed, with both promising achievements and financial challenges.Q3-2024 Updates
Positive Updates
Strong Revenue Growth
Achieved 93% revenue growth in Q3 2024 compared to Q3 2023, driven by higher casual mobile gaming revenues and increased in-person revenues at HyperX and Oman mobile arenas.
Successful Event Hosting
HyperX Arena hosted 61 event days, including notable events like the HackerOne Live Hacking Event and a Netflix live special event, indicating high demand and successful operations.
Launch of World Mahjong Tour
Initiated the World Mahjong Tour with events planned in Los Angeles and Beijing, leading to a grand finale in Las Vegas with the largest prize pool for Mahjong in North America.
Investment by Yellow River Global Capital
Received substantial investment from Yellow River Global Capital, providing strategic resources and industry expertise to advance strategic initiatives.
Negative Updates
Increased Costs and Expenses
Total costs and expenses rose to $3.3 million from $1.8 million in the previous year, due to investments and a reduction in payroll tax expense recorded in the prior year.
Net Loss for the Quarter
Reported a net loss of $4.0 million for Q3 2024, impacted by a $3 million loss on a settlement agreement and a $1.2 million net unrealized loss on foreign currency transactions.
Settlement Agreement Impact
The settlement agreement with BPR Cumulus LLC resulted in a $3 million payout, affecting cash and working capital positions.
Company Guidance
During the third quarter of 2024, Allied Gaming & Entertainment, Inc. achieved significant progress, marked by a 93% increase in revenue compared to the same quarter in 2023, totaling $2.2 million. This growth was driven by higher revenues from casual mobile gaming and increased demand at their HyperX and Oman mobile arenas. Despite the revenue boost, the company reported a net loss of $4.0 million, largely due to a $3 million settlement loss with BPR Cumulus LLC and a $1.2 million unrealized foreign currency transaction loss, although some of this was later reversed. The adjusted EBITDA loss improved to $0.1 million from $0.3 million in the prior year. Cash and short-term investments reached $80.2 million as of September 30, 2024, with a working capital surplus of $62.8 million, reflecting the financial impact of the settlement agreement. The company is optimistic about future growth with initiatives like the World Mahjong Tour and strategic investments in mobile gaming.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.