Some will make the replacement cycle argument that SHFL can obsolete its own products, thus forcing a more recurring revenue source. However, the health of the business is sometimes masked by quarterly unit sales that pull future earnings forward. I prefer the predictability and transparency of a pure lease model.
This stock will be interesting when the rate of change in shuffler and PTG units sold starts to decline again. This stock will be really interesting when units decline and SHFL meets and beats earnings expectations.