DAVE & BUSTER'S ENTERTAINMEN (PLAY) Stock Fundamental Analysis
NASDAQ:PLAY - US2383371091 - Common Stock
23.73 USD
-0.47 (-1.94%)
23.73 USD
0 (0%)
Overall PLAY gets a fundamental rating of 3 out of 10. We evaluated PLAY against 134 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year PLAY was profitable.
PLAY had a positive operating cash flow in the past year.
PLAY had positive earnings in 4 of the past 5 years.
PLAY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.95%, PLAY is not doing good in the industry: 61.94% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 26.29%, PLAY belongs to the top of the industry, outperforming 82.84% of the companies in the same industry.
PLAY has a Return On Invested Capital of 5.17%. This is comparable to the rest of the industry: PLAY outperforms 52.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PLAY is significantly below the industry average of 16.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 26.29% | ||
| ROIC | 5.17% |
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
Looking at the Profit Margin, with a value of 1.83%, PLAY is doing worse than 60.45% of the companies in the same industry.
PLAY's Profit Margin has declined in the last couple of years.
PLAY's Operating Margin of 11.04% is fine compared to the rest of the industry. PLAY outperforms 60.45% of its industry peers.
In the last couple of years the Operating Margin of PLAY has grown nicely.
PLAY's Gross Margin of 85.36% is amongst the best of the industry. PLAY outperforms 95.52% 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 | 11.04% | ||
| PM (TTM) | 1.83% | ||
| GM | 85.36% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
Based on the Altman-Z score of 0.98, we must say that PLAY is in the distress zone and has some risk of bankruptcy.
PLAY's Altman-Z score of 0.98 is on the low side compared to the rest of the industry. PLAY is outperformed by 68.66% of its industry peers.
A Debt/Equity ratio of 10.69 is on the high side and indicates that PLAY has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 10.69, PLAY is doing worse than 66.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.98 |
ROIC/WACC0.51
WACC10.23%
2.3 Liquidity
PLAY has a Current Ratio of 0.26. This is a bad value and indicates that PLAY is not financially healthy enough and could expect problems in meeting its short term obligations.
PLAY has a Current ratio of 0.26. This is amonst the worse of the industry: PLAY underperforms 93.28% of its industry peers.
A Quick Ratio of 0.17 indicates that PLAY may have some problems paying its short term obligations.
PLAY's Quick ratio of 0.17 is on the low side compared to the rest of the industry. PLAY is outperformed by 96.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
The earnings per share for PLAY have decreased strongly by -44.68% in the last year.
The earnings per share for PLAY have been decreasing by -10.14% on average. This is quite bad
PLAY shows a decrease in Revenue. In the last year, the revenue decreased by -3.82%.
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)-44.68%
EPS 3Y-8.78%
EPS 5Y-10.14%
EPS Q2Q%-37.37%
Revenue 1Y (TTM)-3.82%
Revenue growth 3Y17.82%
Revenue growth 5Y9.5%
Sales Q2Q%-3.47%
3.2 Future
The Earnings Per Share is expected to grow by 17.06% on average over the next years. This is quite good.
Based on estimates for the next years, PLAY will show a small growth in Revenue. The Revenue will grow by 3.57% on average per year.
EPS Next Y-0.27%
EPS Next 2Y22.8%
EPS Next 3Y17.06%
EPS Next 5YN/A
Revenue Next Year0.45%
Revenue Next 2Y3.47%
Revenue Next 3Y3.57%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.25, the valuation of PLAY can be described as rather expensive.
70.90% of the companies in the same industry are more expensive than PLAY, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PLAY to the average of the S&P500 Index (27.06), we can say PLAY is valued slightly cheaper.
PLAY is valuated reasonably with a Price/Forward Earnings ratio of 9.42.
Based on the Price/Forward Earnings ratio, PLAY is valued cheaper than 91.79% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.69. PLAY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.25 | ||
| Fwd PE | 9.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PLAY is valued cheaper than 92.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.09 |
4.3 Compensation for Growth
PLAY's earnings are expected to grow with 17.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y22.8%
EPS Next 3Y17.06%
5. Dividend
5.1 Amount
No dividends for PLAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.73
-0.47 (-1.94%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners111.1%
Inst Owner Change-7.98%
Ins Owners1.86%
Ins Owner Change6.58%
Market Cap820.58M
Analysts74.12
Price Target35.32 (48.84%)
Short Float %22.94%
Short Ratio6.82
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)-52.52%
Min EPS beat(2)-66.74%
Max EPS beat(2)-38.29%
EPS beat(4)1
Avg EPS beat(4)-34.22%
Min EPS beat(4)-66.74%
Max EPS beat(4)15.37%
EPS beat(8)2
Avg EPS beat(8)-28.58%
EPS beat(12)5
Avg EPS beat(12)-20.96%
EPS beat(16)8
Avg EPS beat(16)-6.56%
Revenue beat(2)0
Avg Revenue beat(2)-4.11%
Min Revenue beat(2)-4.79%
Max Revenue beat(2)-3.44%
Revenue beat(4)0
Avg Revenue beat(4)-3.85%
Min Revenue beat(4)-4.79%
Max Revenue beat(4)-2.58%
Revenue beat(8)0
Avg Revenue beat(8)-4.16%
Revenue beat(12)2
Avg Revenue beat(12)-2.24%
Revenue beat(16)4
Avg Revenue beat(16)-2.09%
PT rev (1m)0%
PT rev (3m)41.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.54%
EPS NY rev (1m)-1.04%
EPS NY rev (3m)-22.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.25 | ||
| Fwd PE | 9.42 | ||
| P/S | 0.39 | ||
| P/FCF | N/A | ||
| P/OCF | 2.74 | ||
| P/B | 5.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.09 |
EPS(TTM)1.3
EY5.48%
EPS(NY)2.52
Fwd EY10.61%
FCF(TTM)-7.88
FCFYN/A
OCF(TTM)8.66
OCFY36.47%
SpS61.08
BVpS4.25
TBVpS-22.38
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 26.29% | ||
| ROCE | 6.42% | ||
| ROIC | 5.17% | ||
| ROICexc | 5.19% | ||
| ROICexgc | 6.96% | ||
| OM | 11.04% | ||
| PM (TTM) | 1.83% | ||
| GM | 85.36% | ||
| FCFM | N/A |
ROA(3y)2.83%
ROA(5y)0.86%
ROE(3y)41.3%
ROE(5y)5.64%
ROIC(3y)6.77%
ROIC(5y)N/A
ROICexc(3y)6.93%
ROICexc(5y)N/A
ROICexgc(3y)9.6%
ROICexgc(5y)N/A
ROCE(3y)8.4%
ROCE(5y)N/A
ROICexcg growth 3Y-4.38%
ROICexcg growth 5Y2.58%
ROICexc growth 3Y-7.68%
ROICexc growth 5Y0.35%
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%
F-Score5
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.69 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.33 | ||
| Cap/Depr | 239.65% | ||
| Cap/Sales | 27.07% | ||
| Interest Coverage | 1.99 | ||
| Cash Conversion | 63.44% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z | 0.98 |
F-Score5
WACC10.23%
ROIC/WACC0.51
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)-44.68%
EPS 3Y-8.78%
EPS 5Y-10.14%
EPS Q2Q%-37.37%
EPS Next Y-0.27%
EPS Next 2Y22.8%
EPS Next 3Y17.06%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.82%
Revenue growth 3Y17.82%
Revenue growth 5Y9.5%
Sales Q2Q%-3.47%
Revenue Next Year0.45%
Revenue Next 2Y3.47%
Revenue Next 3Y3.57%
Revenue Next 5YN/A
EBIT growth 1Y-13.85%
EBIT growth 3Y11.89%
EBIT growth 5Y12.1%
EBIT Next Year89.02%
EBIT Next 3Y27.77%
EBIT Next 5YN/A
FCF growth 1Y-290.69%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-22.92%
OCF growth 3Y3.33%
OCF growth 5Y1.57%