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Allied Esports Entertainment Inc. is a well-known entertainment company in the U.S hospitality industry, holding live events, public esports, gaming poker, etc. This award-winning company has global recognition with strong esports and content production facility. Allied Esports Entertainment is a partnership of two prominent brands, Allied Esports Entertainment, created by Blackridge Association Corp, and World Poker Tour. It has provisions for digital gaming through a mobile app, and television and land-based tournaments. Its flagship venue includes the HyperX Esports arena, LAS Vegas, and mobile esports truck to hold live battle among gamers.

Allied Esports Entertainment Balance sheet – Healthy or Not?

Liabilities of a company are that money which does not stay or the company has to repay to the debtors. The balance sheet contains all the details on assets and liabilities owned by the company. It is an important parameter to analyze the risk factor in the company’s stock.  Allied Esports Entertainment is currently holding long term assets of $40.6million and physical assets $18.7million, making a total of $59.3 million. Equity and other liabilities are worth $59.1 million in total. Along with this, there are short term investments of $9.1million, and receivable amount $1.9m which together exceeds the debt amount of $ 10.2 million.

Allied Esports Entertainment stocks had a more or less positive impact on COVID-19. It was trading at $1.79 in 20th March 2020, around the time, the pandemic was officially announced by WHO. Currently, it is trading at $1.78 on 13th August 2020.

AESE Earnings Report

  • The revenue earnings of AESE are suffering, as it has $23.12 million till 30th June 2020 which is slightly less from the previous year’s Quarter, $24.5 million.
  • The profit margin for 2020 is also poor as it went down to -128% from -81.8% in 2019. It has negative annual growth earnings of -13.4 % for the last 5 years.
  • The Return on equity is -67.6%.

The earnings value for next quarter 2020 is to be released in November 2020. It is estimated to be -0.15 by NASDAQ: AESE at https://www.webull.com/quote/nasdaq-aese report. Given its previous data, the EPS might go below the estimated value, which means it will not be profitable to hold the shares.

In the short-term, the asset value does not exceed its liability. For the long-term, the asset value exceeds by a huge margin which is $53.5 million against 8.1 million. Although, it had a healthy debt to equity ratio of 23.3%, till 30th June 2020.

Final Verdict

Investors, who are planning for investing long term can benefit from buying AESE stocks as its earnings are forecasted to grow by 35%. But the short term investors should give a pass on it as it is highly unprofitable. You can get the latest stock price at stock tracker app.

Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.

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