DAVE & BUSTER'S ENTERTAINMEN (PLAY) Stock Fundamental Analysis
NASDAQ:PLAY - Nasdaq - US2383371091 - Common Stock - Currency: USD
Overall PLAY gets a fundamental rating of 3 out of 10. We evaluated PLAY against 132 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PLAY was profitable.
In the past year PLAY had a positive cash flow from operations.
PLAY had positive earnings in 4 of the past 5 years.
Of the past 5 years PLAY 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.95%, PLAY perfoms like the industry average, outperforming 42.42% of the companies in the same industry.
PLAY's Return On Equity of 26.29% is amongst the best of the industry. PLAY outperforms 83.33% of its industry peers.
PLAY has a Return On Invested Capital (5.17%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for PLAY is significantly below the industry average of 13.91%.
| 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
The Profit Margin of PLAY (1.83%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of PLAY has declined.
The Operating Margin of PLAY (11.04%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PLAY has grown nicely.
The Gross Margin of PLAY (85.36%) is better than 96.97% of its industry peers.
PLAY's Gross Margin has been stable in the last couple of years.
| 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
PLAY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PLAY has less shares outstanding
Compared to 5 years ago, PLAY has more shares outstanding
Compared to 1 year ago, PLAY has a worse debt to assets ratio.
2.2 Solvency
PLAY has an Altman-Z score of 1.02. This is a bad value and indicates that PLAY is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.02, PLAY is doing worse than 68.18% of the companies in the same industry.
A Debt/Equity ratio of 10.69 is on the high side and indicates that PLAY has dependencies on debt financing.
PLAY has a worse Debt to Equity ratio (10.69) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.02 |
ROIC/WACC0.5
WACC10.31%
2.3 Liquidity
A Current Ratio of 0.26 indicates that PLAY may have some problems paying its short term obligations.
With a Current ratio value of 0.26, PLAY is not doing good in the industry: 92.42% of the companies in the same industry are doing better.
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.
PLAY has a worse Quick ratio (0.17) than 95.45% 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
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 22.23% on average over the next years. This is a very strong growth
PLAY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.47% yearly.
EPS Next Y0.78%
EPS Next 2Y19.74%
EPS Next 3Y22.23%
EPS Next 5YN/A
Revenue Next Year0.36%
Revenue Next 2Y3.36%
Revenue Next 3Y3.47%
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.
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 23.40, PLAY is valued on the expensive side.
66.67% 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 (27.19), we can say PLAY is valued inline with the index average.
With a Price/Forward Earnings ratio of 12.70, PLAY is valued correctly.
PLAY's Price/Forward Earnings ratio is rather cheap when compared to the industry. PLAY is cheaper than 80.30% of the companies in the same industry.
PLAY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.4 | ||
| Fwd PE | 12.7 |
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 92.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PLAY does not grow enough to justify the current Price/Earnings ratio.
PLAY's earnings are expected to grow with 22.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)30.06
PEG (5Y)N/A
EPS Next 2Y19.74%
EPS Next 3Y22.23%
5. Dividend
5.1 Amount
No dividends for PLAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.42
-1.64 (-5.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners113%
Inst Owner Change-0.03%
Ins Owners1.42%
Ins Owner Change6.54%
Market Cap1.05B
Analysts73.75
Price Target33.66 (10.65%)
Short Float %23.86%
Short Ratio5.26
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)33.53%
PT rev (3m)-14.13%
EPS NQ rev (1m)-3.13%
EPS NQ rev (3m)-15.01%
EPS NY rev (1m)-21.52%
EPS NY rev (3m)-48.26%
Revenue NQ rev (1m)1.8%
Revenue NQ rev (3m)-1.35%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)-2.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.4 | ||
| Fwd PE | 12.7 | ||
| P/S | 0.5 | ||
| P/FCF | N/A | ||
| P/OCF | 3.51 | ||
| P/B | 7.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.67 |
EPS(TTM)1.3
EY4.27%
EPS(NY)2.39
Fwd EY7.87%
FCF(TTM)-7.88
FCFYN/A
OCF(TTM)8.66
OCFY28.45%
SpS61.08
BVpS4.25
TBVpS-22.38
PEG (NY)30.06
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 | 1.02 |
F-Score5
WACC10.31%
ROIC/WACC0.5
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 3Y22.23%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.82%
Revenue growth 3Y17.82%
Revenue growth 5Y9.5%
Sales Q2Q%-3.47%
Revenue Next Year0.36%
Revenue Next 2Y3.36%
Revenue Next 3Y3.47%
Revenue Next 5YN/A
EBIT growth 1Y-13.85%
EBIT growth 3Y11.89%
EBIT growth 5Y12.1%
EBIT Next Year94.46%
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%