20.54 USD
-0.15 (-0.72%)
20.1619 USD
-0.38 (-1.84%)
We assign a fundamental rating of 2 out of 10 to PLAY. PLAY was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. PLAY has a medium profitability rating, but doesn't score so well on its financial health evaluation. PLAY does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- PLAY had negative earnings in the past year.
- PLAY had a positive operating cash flow in the past year.
- Of the past 5 years PLAY 4 years were profitable.
- PLAY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 0.01%, PLAY is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
- With a Return On Equity value of 0.23%, PLAY perfoms like the industry average, outperforming 51.88% of the companies in the same industry.
- PLAY has a Return On Invested Capital of 3.90%. This is comparable to the rest of the industry: PLAY outperforms 43.61% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PLAY is below the industry average of 10.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.01% | ||
| ROE | 0.23% | ||
| ROIC | 3.9% |
ROA(3y)2.83%
ROA(5y)0.86%
ROE(3y)41.3%
ROE(5y)5.64%
ROIC(3y)6.77%
ROIC(5y)N/A
1.3 Margins
- PLAY has a Profit Margin of 0.01%. This is in the lower half of the industry: PLAY underperforms 63.16% of its industry peers.
- In the last couple of years the Profit Margin of PLAY has declined.
- PLAY has a Operating Margin of 8.61%. This is comparable to the rest of the industry: PLAY outperforms 53.38% of its industry peers.
- PLAY's Operating Margin has improved in the last couple of years.
- PLAY's Gross Margin of 85.79% is amongst the best of the industry. PLAY outperforms 96.24% of its industry peers.
- In the last couple of years the Gross Margin of PLAY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.61% | ||
| PM (TTM) | 0.01% | ||
| GM | 85.79% |
OM growth 3Y-5.03%
OM growth 5Y2.38%
PM growth 3Y-31.02%
PM growth 5Y-18.07%
GM growth 3Y0.39%
GM growth 5Y0.59%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PLAY is destroying value.
- The number of shares outstanding for PLAY has been reduced compared to 1 year ago.
- Compared to 5 years ago, PLAY has more shares outstanding
- The debt/assets ratio for PLAY is higher compared to a year ago.
2.2 Solvency
- PLAY has an Altman-Z score of 0.91. This is a bad value and indicates that PLAY is not financially healthy and even has some risk of bankruptcy.
- PLAY has a Altman-Z score of 0.91. This is in the lower half of the industry: PLAY underperforms 67.67% of its industry peers.
- A Debt/Equity ratio of 12.12 is on the high side and indicates that PLAY has dependencies on debt financing.
- With a Debt to Equity ratio value of 12.12, PLAY is not doing good in the industry: 66.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 12.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.91 |
ROIC/WACC0.41
WACC9.62%
2.3 Liquidity
- A Current Ratio of 0.32 indicates that PLAY may have some problems paying its short term obligations.
- PLAY has a Current ratio of 0.32. This is amonst the worse of the industry: PLAY underperforms 89.47% of its industry peers.
- A Quick Ratio of 0.22 indicates that PLAY may have some problems paying its short term obligations.
- PLAY has a worse Quick ratio (0.22) than 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
- PLAY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -101.73%.
- PLAY shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.14% yearly.
- PLAY shows a decrease in Revenue. In the last year, the revenue decreased by -4.07%.
- Measured over the past years, PLAY shows a quite strong growth in Revenue. The Revenue has been growing by 9.50% on average per year.
EPS 1Y (TTM)-101.73%
EPS 3Y-8.78%
EPS 5Y-10.14%
EPS Q2Q%-121.82%
Revenue 1Y (TTM)-4.07%
Revenue growth 3Y17.82%
Revenue growth 5Y9.5%
Sales Q2Q%-1.06%
3.2 Future
- PLAY is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.04% yearly.
- The Revenue is expected to grow by 2.96% on average over the next years.
EPS Next Y-92.29%
EPS Next 2Y-28.47%
EPS Next 3Y-6.04%
EPS Next 5YN/A
Revenue Next Year-1.59%
Revenue Next 2Y1.51%
Revenue Next 3Y2.96%
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
- PLAY reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- With a Price/Forward Earnings ratio of 24.04, PLAY is valued on the expensive side.
- PLAY's Price/Forward Earnings is on the same level as the industry average.
- PLAY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 24.04 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PLAY is valued cheaper than 93.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.26 |
4.3 Compensation for Growth
- A cheap valuation may be justified as PLAY's earnings are expected to decrease with -6.04% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-28.47%
EPS Next 3Y-6.04%
5. Dividend
5.1 Amount
- PLAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
DAVE & BUSTER'S ENTERTAINMEN / PLAY FAQ
What is the fundamental rating for PLAY stock?
ChartMill assigns a fundamental rating of 2 / 10 to PLAY.
What is the valuation status for PLAY stock?
ChartMill assigns a valuation rating of 1 / 10 to DAVE & BUSTER'S ENTERTAINMEN (PLAY). This can be considered as Overvalued.
What is the profitability of PLAY stock?
DAVE & BUSTER'S ENTERTAINMEN (PLAY) has a profitability rating of 4 / 10.
Is the dividend of DAVE & BUSTER'S ENTERTAINMEN sustainable?
The dividend rating of DAVE & BUSTER'S ENTERTAINMEN (PLAY) is 0 / 10 and the dividend payout ratio is 0%.