DAVE & BUSTER'S ENTERTAINMEN (PLAY) Stock Fundamental Analysis
NASDAQ:PLAY - Nasdaq - US2383371091 - Common Stock - Currency: USD
Taking everything into account, PLAY scores 3 out of 10 in our fundamental rating. PLAY was compared to 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
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
Looking at the Return On Assets, with a value of 2.16%, PLAY is in line with its industry, outperforming 51.15% of the companies in the same industry.
PLAY has a Return On Equity of 37.56%. This is amongst the best in the industry. PLAY outperforms 90.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.87%, PLAY is in line with its industry, outperforming 50.38% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PLAY is below the industry average of 10.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 37.56% | ||
| ROIC | 5.87% |
ROA(3y)3.88%
ROA(5y)1.42%
ROE(3y)41.11%
ROE(5y)9.46%
ROIC(3y)6.88%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 3.87%, PLAY perfoms like the industry average, outperforming 53.44% of the companies in the same industry.
In the last couple of years the Profit Margin of PLAY has declined.
PLAY has a Operating Margin (12.10%) which is in line with its industry peers.
In the last couple of years the Operating Margin of PLAY has grown nicely.
PLAY has a better Gross Margin (85.11%) than 97.71% 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 | 12.1% | ||
| PM (TTM) | 3.87% | ||
| GM | 85.11% |
OM growth 3YN/A
OM growth 5Y1.79%
PM growth 3YN/A
PM growth 5Y-9.08%
GM growth 3Y0.75%
GM growth 5Y0.51%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PLAY is destroying value.
Compared to 1 year ago, PLAY has less shares outstanding
PLAY has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PLAY has a worse debt to assets ratio.
2.2 Solvency
PLAY has an Altman-Z score of 1.07. This is a bad value and indicates that PLAY is not financially healthy and even has some risk of bankruptcy.
PLAY has a worse Altman-Z score (1.07) than 65.65% of its industry peers.
A Debt/Equity ratio of 6.38 is on the high side and indicates that PLAY has dependencies on debt financing.
PLAY's Debt to Equity ratio of 6.38 is on the low side compared to the rest of the industry. PLAY is outperformed by 63.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.07 |
ROIC/WACC0.55
WACC10.67%
2.3 Liquidity
A Current Ratio of 0.29 indicates that PLAY may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.29, PLAY is doing worse than 95.42% of the companies in the same industry.
A Quick Ratio of 0.19 indicates that PLAY may have some problems paying its short term obligations.
PLAY's Quick ratio of 0.19 is on the low side compared to the rest of the industry. PLAY is outperformed by 96.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
The earnings per share for PLAY have decreased strongly by -15.38% in the last year.
The Earnings Per Share has been decreasing by -0.83% on average over the past years.
Looking at the last year, PLAY shows a small growth in Revenue. The Revenue has grown by 1.25% in the last year.
PLAY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.75% yearly.
EPS 1Y (TTM)-15.38%
EPS 3YN/A
EPS 5Y-0.83%
EPS Q2Q%-358.33%
Revenue 1Y (TTM)1.25%
Revenue growth 3Y71.59%
Revenue growth 5Y11.75%
Sales Q2Q%-2.98%
3.2 Future
PLAY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.09% yearly.
PLAY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.17% yearly.
EPS Next Y-30.37%
EPS Next 2Y7.59%
EPS Next 3Y12.09%
EPS Next 5YN/A
Revenue Next Year-1.91%
Revenue Next 2Y1.3%
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
With a Price/Earnings ratio of 10.23, the valuation of PLAY can be described as very reasonable.
PLAY's Price/Earnings ratio is rather cheap when compared to the industry. PLAY is cheaper than 94.66% of the companies in the same industry.
PLAY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
Based on the Price/Forward Earnings ratio of 7.27, the valuation of PLAY can be described as very cheap.
PLAY's Price/Forward Earnings ratio is rather cheap when compared to the industry. PLAY is cheaper than 96.95% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. PLAY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.23 | ||
| Fwd PE | 7.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PLAY is valued cheaply inside the industry as 94.66% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.72 |
4.3 Compensation for Growth
A more expensive valuation may be justified as PLAY's earnings are expected to grow with 12.09% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.59%
EPS Next 3Y12.09%
5. Dividend
5.1 Amount
No dividends for PLAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.64
-0.49 (-2.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners110.09%
Inst Owner Change-94.32%
Ins Owners1.47%
Ins Owner Change2.56%
Market Cap910.14M
Analysts73.75
Price Target39.2 (65.82%)
Short Float %21.35%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-15.93%
Min EPS beat(2)-47.23%
Max EPS beat(2)15.37%
EPS beat(4)1
Avg EPS beat(4)-24.13%
Min EPS beat(4)-47.23%
Max EPS beat(4)15.37%
EPS beat(8)4
Avg EPS beat(8)-12.7%
EPS beat(12)6
Avg EPS beat(12)-12.23%
EPS beat(16)10
Avg EPS beat(16)21.83%
Revenue beat(2)0
Avg Revenue beat(2)-3.59%
Min Revenue beat(2)-4.6%
Max Revenue beat(2)-2.58%
Revenue beat(4)0
Avg Revenue beat(4)-4.23%
Min Revenue beat(4)-7.19%
Max Revenue beat(4)-2.53%
Revenue beat(8)1
Avg Revenue beat(8)-3.04%
Revenue beat(12)3
Avg Revenue beat(12)-2.17%
Revenue beat(16)6
Avg Revenue beat(16)-0.74%
PT rev (1m)-5.28%
PT rev (3m)-22.25%
EPS NQ rev (1m)-17.8%
EPS NQ rev (3m)-42%
EPS NY rev (1m)-22.59%
EPS NY rev (3m)-25.93%
Revenue NQ rev (1m)-2.02%
Revenue NQ rev (3m)-9.17%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.23 | ||
| Fwd PE | 7.27 | ||
| P/S | 0.41 | ||
| P/FCF | N/A | ||
| P/OCF | 3.03 | ||
| P/B | 4.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.72 |
EPS(TTM)2.31
EY9.77%
EPS(NY)3.25
Fwd EY13.76%
FCF(TTM)-4.74
FCFYN/A
OCF(TTM)7.81
OCFY33.03%
SpS57.07
BVpS5.89
TBVpS-18.03
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 37.56% | ||
| ROCE | 7.49% | ||
| ROIC | 5.87% | ||
| ROICexc | 5.88% | ||
| ROICexgc | 7.95% | ||
| OM | 12.1% | ||
| PM (TTM) | 3.87% | ||
| GM | 85.11% | ||
| FCFM | N/A |
ROA(3y)3.88%
ROA(5y)1.42%
ROE(3y)41.11%
ROE(5y)9.46%
ROIC(3y)6.88%
ROIC(5y)N/A
ROICexc(3y)7.06%
ROICexc(5y)N/A
ROICexgc(3y)9.44%
ROICexgc(5y)N/A
ROCE(3y)8.78%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-11.96%
ROICexc growth 3YN/A
ROICexc growth 5Y-10.18%
OM growth 3YN/A
OM growth 5Y1.79%
PM growth 3YN/A
PM growth 5Y-9.08%
GM growth 3Y0.75%
GM growth 5Y0.51%
F-Score5
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.38 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.9 | ||
| Cap/Depr | 207.43% | ||
| Cap/Sales | 21.98% | ||
| Interest Coverage | 1.89 | ||
| Cash Conversion | 60.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.19 | ||
| Altman-Z | 1.07 |
F-Score5
WACC10.67%
ROIC/WACC0.55
Cap/Depr(3y)121.12%
Cap/Depr(5y)119.06%
Cap/Sales(3y)11.32%
Cap/Sales(5y)13.96%
Profit Quality(3y)118.66%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.38%
EPS 3YN/A
EPS 5Y-0.83%
EPS Q2Q%-358.33%
EPS Next Y-30.37%
EPS Next 2Y7.59%
EPS Next 3Y12.09%
EPS Next 5YN/A
Revenue 1Y (TTM)1.25%
Revenue growth 3Y71.59%
Revenue growth 5Y11.75%
Sales Q2Q%-2.98%
Revenue Next Year-1.91%
Revenue Next 2Y1.3%
Revenue Next 3Y3.17%
Revenue Next 5YN/A
EBIT growth 1Y-9.68%
EBIT growth 3YN/A
EBIT growth 5Y13.75%
EBIT Next Year61.95%
EBIT Next 3Y23%
EBIT Next 5YN/A
FCF growth 1Y-194.46%
FCF growth 3YN/A
FCF growth 5Y-22.46%
OCF growth 1Y-22.04%
OCF growth 3YN/A
OCF growth 5Y1.53%