DAVE & BUSTER'S ENTERTAINMEN (PLAY) Stock Fundamental Analysis
NASDAQ:PLAY - Nasdaq - US2383371091 - Common Stock - Currency: USD
PLAY gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. While PLAY is still in line with the averages on profitability rating, there are concerns on its financial health. PLAY has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
PLAY had positive earnings in the past year.
In the past year PLAY had a positive cash flow from operations.
Of the past 5 years PLAY 4 years were profitable.
Of the past 5 years PLAY 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.45%, PLAY perfoms like the industry average, outperforming 45.19% of the companies in the same industry.
With an excellent Return On Equity value of 39.99%, PLAY belongs to the best of the industry, outperforming 88.15% of the companies in the same industry.
The Return On Invested Capital of PLAY (5.02%) is comparable to the rest of the industry.
PLAY had an Average Return On Invested Capital over the past 3 years of 6.37%. This is significantly below the industry average of 14.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.45% | ||
| ROE | 39.99% | ||
| ROIC | 5.02% |
ROA(3y)2.83%
ROA(5y)0.86%
ROE(3y)41.3%
ROE(5y)5.64%
ROIC(3y)6.37%
ROIC(5y)N/A
1.3 Margins
PLAY's Profit Margin of 2.73% is in line compared to the rest of the industry. PLAY outperforms 48.89% of its industry peers.
PLAY's Profit Margin has declined in the last couple of years.
PLAY has a Operating Margin (10.47%) which is comparable to the rest of the industry.
PLAY's Operating Margin has been stable in the last couple of years.
PLAY has a Gross Margin of 85.26%. This is amongst the best in the industry. PLAY outperforms 97.78% of its industry peers.
PLAY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.47% | ||
| PM (TTM) | 2.73% | ||
| GM | 85.26% |
OM growth 3Y-8.45%
OM growth 5Y0.15%
PM growth 3Y-31.02%
PM growth 5Y-18.07%
GM growth 3Y0.39%
GM growth 5Y0.59%
2. Health
2.1 Basic Checks
PLAY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PLAY has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PLAY has more shares outstanding
Compared to 1 year ago, PLAY has a worse debt to assets ratio.
2.2 Solvency
PLAY has an Altman-Z score of 0.95. This is a bad value and indicates that PLAY is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.95, PLAY is not doing good in the industry: 69.63% of the companies in the same industry are doing better.
PLAY has a Debt/Equity ratio of 10.14. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of PLAY (10.14) is worse than 65.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.95 |
ROIC/WACC0.49
WACC10.19%
2.3 Liquidity
A Current Ratio of 0.22 indicates that PLAY may have some problems paying its short term obligations.
PLAY has a Current ratio of 0.22. This is amonst the worse of the industry: PLAY underperforms 96.30% of its industry peers.
PLAY has a Quick Ratio of 0.22. This is a bad value and indicates that PLAY is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.13, PLAY is doing worse than 97.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.13 |
3. Growth
3.1 Past
PLAY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.57%.
The earnings per share for PLAY have been decreasing by -10.14% on average. This is quite bad
Looking at the last year, PLAY shows a decrease in Revenue. The Revenue has decreased by -3.29% in the last year.
PLAY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.50% yearly.
EPS 1Y (TTM)-40.57%
EPS 3Y-8.78%
EPS 5Y-10.14%
EPS Q2Q%-72.73%
Revenue 1Y (TTM)-3.29%
Revenue growth 3Y17.82%
Revenue growth 5Y9.5%
Sales Q2Q%-10.78%
3.2 Future
The Earnings Per Share is expected to grow by 28.20% on average over the next years. This is a very strong growth
Based on estimates for the next years, PLAY will show a small growth in Revenue. The Revenue will grow by 3.17% on average per year.
EPS Next Y28.42%
EPS Next 2Y29.39%
EPS Next 3Y28.2%
EPS Next 5YN/A
Revenue Next Year-0.05%
Revenue Next 2Y2.81%
Revenue Next 3Y3.17%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.29, which indicates a correct valuation of PLAY.
PLAY's Price/Earnings ratio is rather cheap when compared to the industry. PLAY is cheaper than 84.44% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.82. PLAY is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.57, the valuation of PLAY can be described as very reasonable.
PLAY's Price/Forward Earnings ratio is rather cheap when compared to the industry. PLAY is cheaper than 87.41% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, PLAY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.29 | ||
| Fwd PE | 9.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PLAY is valued cheaply inside the industry as 95.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.77 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as PLAY's earnings are expected to grow with 28.20% in the coming years.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y29.39%
EPS Next 3Y28.2%
5. Dividend
5.1 Amount
No dividends for PLAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.53
-0.38 (-1.82%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners110.09%
Inst Owner Change-5.27%
Ins Owners1.47%
Ins Owner Change-3.16%
Market Cap708.70M
Analysts73.75
Price Target25.21 (22.8%)
Short Float %28.87%
Short Ratio5.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-56.98%
Min EPS beat(2)-66.74%
Max EPS beat(2)-47.23%
EPS beat(4)1
Avg EPS beat(4)-35.35%
Min EPS beat(4)-66.74%
Max EPS beat(4)15.37%
EPS beat(8)3
Avg EPS beat(8)-21.95%
EPS beat(12)6
Avg EPS beat(12)-16.51%
EPS beat(16)9
Avg EPS beat(16)17.23%
Revenue beat(2)0
Avg Revenue beat(2)-4.69%
Min Revenue beat(2)-4.79%
Max Revenue beat(2)-4.6%
Revenue beat(4)0
Avg Revenue beat(4)-4.79%
Min Revenue beat(4)-7.19%
Max Revenue beat(4)-2.58%
Revenue beat(8)0
Avg Revenue beat(8)-4.07%
Revenue beat(12)3
Avg Revenue beat(12)-1.92%
Revenue beat(16)5
Avg Revenue beat(16)-1.82%
PT rev (1m)-35.69%
PT rev (3m)-35.69%
EPS NQ rev (1m)1.79%
EPS NQ rev (3m)-17.11%
EPS NY rev (1m)-11.84%
EPS NY rev (3m)-34.07%
Revenue NQ rev (1m)-0.93%
Revenue NQ rev (3m)-4.72%
Revenue NY rev (1m)-2.9%
Revenue NY rev (3m)-5.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.29 | ||
| Fwd PE | 9.57 | ||
| P/S | 0.33 | ||
| P/FCF | N/A | ||
| P/OCF | 2.27 | ||
| P/B | 4.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.77 |
EPS(TTM)1.67
EY8.13%
EPS(NY)2.14
Fwd EY10.45%
FCF(TTM)-6.31
FCFYN/A
OCF(TTM)9.05
OCFY44.07%
SpS61.78
BVpS4.22
TBVpS-22.45
PEG (NY)0.43
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.45% | ||
| ROE | 39.99% | ||
| ROCE | 6.23% | ||
| ROIC | 5.02% | ||
| ROICexc | 5.03% | ||
| ROICexgc | 6.78% | ||
| OM | 10.47% | ||
| PM (TTM) | 2.73% | ||
| GM | 85.26% | ||
| FCFM | N/A |
ROA(3y)2.83%
ROA(5y)0.86%
ROE(3y)41.3%
ROE(5y)5.64%
ROIC(3y)6.37%
ROIC(5y)N/A
ROICexc(3y)6.52%
ROICexc(5y)N/A
ROICexgc(3y)9.05%
ROICexgc(5y)N/A
ROCE(3y)7.9%
ROCE(5y)N/A
ROICexcg growth 3Y-7.82%
ROICexcg growth 5Y0.35%
ROICexc growth 3Y-11%
ROICexc growth 5Y-1.84%
OM growth 3Y-8.45%
OM growth 5Y0.15%
PM growth 3Y-31.02%
PM growth 5Y-18.07%
GM growth 3Y0.39%
GM growth 5Y0.59%
F-Score5
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.14 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.21 | ||
| Cap/Depr | 222.59% | ||
| Cap/Sales | 24.86% | ||
| Interest Coverage | 1.81 | ||
| Cash Conversion | 67.69% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.13 | ||
| Altman-Z | 0.95 |
F-Score5
WACC10.19%
ROIC/WACC0.49
Cap/Depr(3y)173.1%
Cap/Depr(5y)129.15%
Cap/Sales(3y)17.25%
Cap/Sales(5y)15.57%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-40.57%
EPS 3Y-8.78%
EPS 5Y-10.14%
EPS Q2Q%-72.73%
EPS Next Y28.42%
EPS Next 2Y29.39%
EPS Next 3Y28.2%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.29%
Revenue growth 3Y17.82%
Revenue growth 5Y9.5%
Sales Q2Q%-10.78%
Revenue Next Year-0.05%
Revenue Next 2Y2.81%
Revenue Next 3Y3.17%
Revenue Next 5YN/A
EBIT growth 1Y-27.2%
EBIT growth 3Y7.86%
EBIT growth 5Y9.66%
EBIT Next Year104.35%
EBIT Next 3Y29.74%
EBIT Next 5YN/A
FCF growth 1Y-740.88%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-14.25%
OCF growth 3Y3.33%
OCF growth 5Y1.57%