GOLDEN ENTERTAINMENT INC (GDEN) Stock Fundamental Analysis
NASDAQ:GDEN - Nasdaq - US3810131017 - Common Stock - Currency: USD
GDEN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 133 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of GDEN get a neutral evaluation. Nothing too spectacular is happening here. GDEN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year GDEN was profitable.
In the past year GDEN had a positive cash flow from operations.
GDEN had positive earnings in 4 of the past 5 years.
Each year in the past 5 years GDEN had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.06%, GDEN perfoms like the industry average, outperforming 43.61% of the companies in the same industry.
GDEN has a Return On Equity (2.44%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 3.68%, GDEN is doing worse than 60.15% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GDEN is significantly below the industry average of 13.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.06% | ||
| ROE | 2.44% | ||
| ROIC | 3.68% |
ROA(3y)9.25%
ROA(5y)5.82%
ROE(3y)27.19%
ROE(5y)9.51%
ROIC(3y)5.89%
ROIC(5y)N/A
1.3 Margins
GDEN's Profit Margin of 1.72% is in line compared to the rest of the industry. GDEN outperforms 44.36% of its industry peers.
In the last couple of years the Profit Margin of GDEN has declined.
GDEN has a Operating Margin (7.34%) which is in line with its industry peers.
GDEN's Operating Margin has improved in the last couple of years.
GDEN's Gross Margin of 54.48% is fine compared to the rest of the industry. GDEN outperforms 66.17% of its industry peers.
In the last couple of years the Gross Margin of GDEN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.34% | ||
| PM (TTM) | 1.72% | ||
| GM | 54.48% |
OM growth 3Y-22.49%
OM growth 5Y6.45%
PM growth 3Y-19.81%
PM growth 5YN/A
GM growth 3Y6.15%
GM growth 5Y5.94%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GDEN is destroying value.
GDEN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GDEN has less shares outstanding
The debt/assets ratio for GDEN has been reduced compared to a year ago.
2.2 Solvency
GDEN has an Altman-Z score of 1.52. This is a bad value and indicates that GDEN is not financially healthy and even has some risk of bankruptcy.
GDEN has a Altman-Z score (1.52) which is in line with its industry peers.
GDEN has a debt to FCF ratio of 8.16. This is a slightly negative value and a sign of low solvency as GDEN would need 8.16 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 8.16, GDEN is doing good in the industry, outperforming 68.42% of the companies in the same industry.
A Debt/Equity ratio of 0.86 indicates that GDEN is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.86, GDEN is doing good in the industry, outperforming 62.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 8.16 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.47
WACC7.79%
2.3 Liquidity
A Current Ratio of 0.95 indicates that GDEN may have some problems paying its short term obligations.
GDEN has a Current ratio of 0.95. This is comparable to the rest of the industry: GDEN outperforms 51.88% of its industry peers.
GDEN has a Quick Ratio of 0.95. This is a bad value and indicates that GDEN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of GDEN (0.87) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
GDEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 124.84%, which is quite impressive.
GDEN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -59.56% yearly.
Looking at the last year, GDEN shows a very negative growth in Revenue. The Revenue has decreased by -31.14% in the last year.
Measured over the past years, GDEN shows a decrease in Revenue. The Revenue has been decreasing by -7.29% on average per year.
EPS 1Y (TTM)124.84%
EPS 3Y-59.56%
EPS 5YN/A
EPS Q2Q%125%
Revenue 1Y (TTM)-31.14%
Revenue growth 3Y-15.28%
Revenue growth 5Y-7.29%
Sales Q2Q%-7.59%
3.2 Future
The Earnings Per Share is expected to grow by 56.14% on average over the next years. This is a very strong growth
Based on estimates for the next years, GDEN will show a small growth in Revenue. The Revenue will grow by 1.46% on average per year.
EPS Next Y65.6%
EPS Next 2Y61.71%
EPS Next 3Y56.14%
EPS Next 5YN/A
Revenue Next Year-1.18%
Revenue Next 2Y0.83%
Revenue Next 3Y1.46%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
GDEN is valuated quite expensively with a Price/Earnings ratio of 75.46.
The rest of the industry has a similar Price/Earnings ratio as GDEN.
When comparing the Price/Earnings ratio of GDEN to the average of the S&P500 Index (27.15), we can say GDEN is valued expensively.
A Price/Forward Earnings ratio of 33.10 indicates a quite expensive valuation of GDEN.
GDEN's Price/Forward Earnings is on the same level as the industry average.
GDEN is valuated expensively when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 75.46 | ||
| Fwd PE | 33.1 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GDEN indicates a somewhat cheap valuation: GDEN is cheaper than 78.95% of the companies listed in the same industry.
GDEN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GDEN is cheaper than 81.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.7 | ||
| EV/EBITDA | 8.2 |
4.3 Compensation for Growth
GDEN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as GDEN's earnings are expected to grow with 56.14% in the coming years.
PEG (NY)1.15
PEG (5Y)N/A
EPS Next 2Y61.71%
EPS Next 3Y56.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.41%, GDEN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.71, GDEN pays a better dividend. On top of this GDEN pays more dividend than 86.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, GDEN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
5.2 History
GDEN has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
248.00% of the earnings are spent on dividend by GDEN. This is not a sustainable payout ratio.
DP248%
EPS Next 2Y61.71%
EPS Next 3Y56.14%
29.43
-0.08 (-0.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners72.53%
Inst Owner Change-1.22%
Ins Owners25.71%
Ins Owner Change8.34%
Market Cap778.13M
Analysts80
Price Target36.08 (22.6%)
Short Float %5.24%
Short Ratio4.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
Yearly Dividend0.77
Dividend Growth(5Y)N/A
DP248%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-41.09%
Min EPS beat(2)-53.76%
Max EPS beat(2)-28.43%
EPS beat(4)1
Avg EPS beat(4)-8.07%
Min EPS beat(4)-89.86%
Max EPS beat(4)139.77%
EPS beat(8)1
Avg EPS beat(8)-156.86%
EPS beat(12)1
Avg EPS beat(12)-115.21%
EPS beat(16)4
Avg EPS beat(16)-43.83%
Revenue beat(2)0
Avg Revenue beat(2)-4.05%
Min Revenue beat(2)-4.44%
Max Revenue beat(2)-3.67%
Revenue beat(4)0
Avg Revenue beat(4)-4.05%
Min Revenue beat(4)-5.51%
Max Revenue beat(4)-2.58%
Revenue beat(8)2
Avg Revenue beat(8)-2.12%
Revenue beat(12)3
Avg Revenue beat(12)-1.65%
Revenue beat(16)6
Avg Revenue beat(16)-0.02%
PT rev (1m)-1.74%
PT rev (3m)-4.02%
EPS NQ rev (1m)-4.44%
EPS NQ rev (3m)-15.11%
EPS NY rev (1m)-4.12%
EPS NY rev (3m)-38.68%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-0.91%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 75.46 | ||
| Fwd PE | 33.1 | ||
| P/S | 1.19 | ||
| P/FCF | 15.7 | ||
| P/OCF | 8.18 | ||
| P/B | 1.68 | ||
| P/tB | 2.41 | ||
| EV/EBITDA | 8.2 |
EPS(TTM)0.39
EY1.33%
EPS(NY)0.89
Fwd EY3.02%
FCF(TTM)1.87
FCFY6.37%
OCF(TTM)3.6
OCFY12.22%
SpS24.72
BVpS17.47
TBVpS12.21
PEG (NY)1.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.06% | ||
| ROE | 2.44% | ||
| ROCE | 5.01% | ||
| ROIC | 3.68% | ||
| ROICexc | 3.88% | ||
| ROICexgc | 4.59% | ||
| OM | 7.34% | ||
| PM (TTM) | 1.72% | ||
| GM | 54.48% | ||
| FCFM | 7.58% |
ROA(3y)9.25%
ROA(5y)5.82%
ROE(3y)27.19%
ROE(5y)9.51%
ROIC(3y)5.89%
ROIC(5y)N/A
ROICexc(3y)6.55%
ROICexc(5y)N/A
ROICexgc(3y)7.84%
ROICexgc(5y)N/A
ROCE(3y)8.03%
ROCE(5y)N/A
ROICexcg growth 3Y-28.43%
ROICexcg growth 5Y7.12%
ROICexc growth 3Y-26.95%
ROICexc growth 5Y8.75%
OM growth 3Y-22.49%
OM growth 5Y6.45%
PM growth 3Y-19.81%
PM growth 5YN/A
GM growth 3Y6.15%
GM growth 5Y5.94%
F-Score6
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 8.16 | ||
| Debt/EBITDA | 2.89 | ||
| Cap/Depr | 50.41% | ||
| Cap/Sales | 6.97% | ||
| Interest Coverage | 1.17 | ||
| Cash Conversion | 68.74% | ||
| Profit Quality | 439.83% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.52 |
F-Score6
WACC7.79%
ROIC/WACC0.47
Cap/Depr(3y)67.78%
Cap/Depr(5y)52.03%
Cap/Sales(3y)6.74%
Cap/Sales(5y)5.63%
Profit Quality(3y)72.25%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)124.84%
EPS 3Y-59.56%
EPS 5YN/A
EPS Q2Q%125%
EPS Next Y65.6%
EPS Next 2Y61.71%
EPS Next 3Y56.14%
EPS Next 5YN/A
Revenue 1Y (TTM)-31.14%
Revenue growth 3Y-15.28%
Revenue growth 5Y-7.29%
Sales Q2Q%-7.59%
Revenue Next Year-1.18%
Revenue Next 2Y0.83%
Revenue Next 3Y1.46%
Revenue Next 5YN/A
EBIT growth 1Y-45.31%
EBIT growth 3Y-34.33%
EBIT growth 5Y-1.31%
EBIT Next Year34.71%
EBIT Next 3Y14.99%
EBIT Next 5YN/A
FCF growth 1Y-48.11%
FCF growth 3Y-45.79%
FCF growth 5Y45.1%
OCF growth 1Y-41%
OCF growth 3Y-32.16%
OCF growth 5Y-4.11%