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 131 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
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
PLAY's Return On Assets of 0.95% is in line compared to the rest of the industry. PLAY outperforms 40.46% of its industry peers.
The Return On Equity of PLAY (26.29%) is better than 83.21% of its industry peers.
PLAY's Return On Invested Capital of 5.17% is in line compared to the rest of the industry. PLAY outperforms 50.38% of its industry peers.
PLAY had an Average Return On Invested Capital over the past 3 years of 6.77%. This is significantly below the industry average of 15.91%.
| 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
PLAY has a Profit Margin (1.83%) which is comparable to the rest of the 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 60.31% of its industry peers.
In the last couple of years the Operating Margin of PLAY has grown nicely.
PLAY has a Gross Margin of 85.36%. This is amongst the best in the industry. PLAY outperforms 96.95% 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.
The Altman-Z score of PLAY (0.98) is worse than 66.41% 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 66.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.98 |
ROIC/WACC0.49
WACC10.57%
2.3 Liquidity
A Current Ratio of 0.26 indicates that PLAY may have some problems paying its short term obligations.
PLAY has a worse Current ratio (0.26) than 92.37% of its industry peers.
PLAY has a Quick 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.
Looking at the Quick ratio, with a value of 0.17, PLAY is doing worse than 96.18% of the companies in the same industry.
| 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.
Measured over the past years, PLAY shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.14% on average per year.
Looking at the last year, PLAY shows a decrease in Revenue. The Revenue has decreased by -3.82% 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)-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 Y0.78%
EPS Next 2Y19.74%
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
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.
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
The Price/Earnings ratio is 19.68, which indicates a rather expensive current valuation of PLAY.
PLAY's Price/Earnings ratio is a bit cheaper when compared to the industry. PLAY is cheaper than 70.23% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.87. PLAY is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 10.68 indicates a reasonable valuation of PLAY.
Based on the Price/Forward Earnings ratio, PLAY is valued cheaply inside the industry as 87.02% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PLAY to the average of the S&P500 Index (35.34), we can say PLAY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.68 | ||
| Fwd PE | 10.68 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PLAY indicates a rather cheap valuation: PLAY is cheaper than 92.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PLAY's earnings are expected to grow with 17.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)25.28
PEG (5Y)N/A
EPS Next 2Y19.74%
EPS Next 3Y17.06%
5. Dividend
5.1 Amount
No dividends for PLAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.58
-0.41 (-1.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners111.1%
Inst Owner Change-8.01%
Ins Owners1.86%
Ins Owner Change5.76%
Market Cap884.56M
Analysts74.12
Price Target35.57 (39.05%)
Short Float %23.39%
Short Ratio5.22
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)5.68%
PT rev (3m)41.11%
EPS NQ rev (1m)-1.81%
EPS NQ rev (3m)-16.54%
EPS NY rev (1m)0%
EPS NY rev (3m)-30.82%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-1.23%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.68 | ||
| Fwd PE | 10.68 | ||
| P/S | 0.42 | ||
| P/FCF | N/A | ||
| P/OCF | 2.96 | ||
| P/B | 6.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.19 |
EPS(TTM)1.3
EY5.08%
EPS(NY)2.39
Fwd EY9.36%
FCF(TTM)-7.88
FCFYN/A
OCF(TTM)8.66
OCFY33.84%
SpS61.08
BVpS4.25
TBVpS-22.38
PEG (NY)25.28
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
WACC10.57%
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)-44.68%
EPS 3Y-8.78%
EPS 5Y-10.14%
EPS Q2Q%-37.37%
EPS Next Y0.78%
EPS Next 2Y19.74%
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%