DAVE & BUSTER'S ENTERTAINMEN (PLAY) Stock Fundamental Analysis
USA - NASDAQ:PLAY - US2383371091 - Common Stock
19.61 USD
-0.78 (-3.83%)
19.74 USD
+0.13 (+0.66%)
We assign a fundamental rating of 3 out of 10 to PLAY. PLAY was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of PLAY while its profitability can be described as average. 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.
PLAY had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 0.95%, PLAY is doing worse than 62.41% of the companies in the same industry.
The Return On Equity of PLAY (26.29%) is better than 83.46% of its industry peers.
PLAY has a Return On Invested Capital (5.17%) which is comparable to the rest of the industry.
PLAY had an Average Return On Invested Capital over the past 3 years of 6.77%. This is significantly below the industry average of 15.68%.
| 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 worse than 60.90% of its industry peers.
PLAY's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 11.04%, PLAY is doing good in the industry, outperforming 60.15% of the companies in the same industry.
PLAY's Operating Margin has improved in the last couple of years.
PLAY has a better Gross Margin (85.36%) than 95.49% 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.
PLAY has less shares outstanding than it did 1 year ago.
The number of shares outstanding for PLAY has been increased compared to 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 0.96. 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 0.96, PLAY is doing worse than 69.92% 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.
Looking at the Debt to Equity ratio, with a value of 10.69, PLAY is doing worse than 66.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.96 |
ROIC/WACC0.52
WACC9.97%
2.3 Liquidity
A Current Ratio of 0.26 indicates that PLAY may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.26, PLAY is doing worse than 93.23% of the companies in the same industry.
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 96.24% 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 -74.09% in the last year.
PLAY shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.14% yearly.
The Revenue has decreased by -3.29% in the past 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)-74.09%
EPS 3Y-8.78%
EPS 5Y-10.14%
EPS Q2Q%-59.6%
Revenue 1Y (TTM)-3.29%
Revenue growth 3Y17.82%
Revenue growth 5Y9.5%
Sales Q2Q%0.05%
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 17.06% yearly.
The Revenue is expected to grow by 3.47% on average over the next years.
EPS Next Y-0.27%
EPS Next 2Y22.8%
EPS Next 3Y17.06%
EPS Next 5YN/A
Revenue Next Year0.23%
Revenue Next 2Y3.23%
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.
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
With a Price/Earnings ratio of 27.62, PLAY can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as PLAY.
The average S&P500 Price/Earnings ratio is at 27.38. PLAY is around the same levels.
With a Price/Forward Earnings ratio of 7.79, the valuation of PLAY can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PLAY indicates a rather cheap valuation: PLAY is cheaper than 93.23% of the companies listed 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 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.62 | ||
| Fwd PE | 7.79 |
4.2 Price Multiples
PLAY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PLAY is cheaper than 91.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.81 |
4.3 Compensation for Growth
A more expensive valuation may be justified as PLAY's earnings are expected to grow with 17.06% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y22.8%
EPS Next 3Y17.06%
5. Dividend
5.1 Amount
PLAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.61
-0.78 (-3.83%)
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 Change9.25%
Market Cap678.11M
Analysts74.12
Price Target35.32 (80.11%)
Short Float %22.69%
Short Ratio6.27
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)-0.72%
PT rev (3m)40.1%
EPS NQ rev (1m)-3.27%
EPS NQ rev (3m)-19.28%
EPS NY rev (1m)-1.04%
EPS NY rev (3m)-22.34%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-1.62%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.62 | ||
| Fwd PE | 7.79 | ||
| P/S | 0.32 | ||
| P/FCF | N/A | ||
| P/OCF | 2.27 | ||
| P/B | 4.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.81 |
EPS(TTM)0.71
EY3.62%
EPS(NY)2.52
Fwd EY12.84%
FCF(TTM)-7.88
FCFYN/A
OCF(TTM)8.66
OCFY44.14%
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 | 0.96 |
F-Score5
WACC9.97%
ROIC/WACC0.52
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)-74.09%
EPS 3Y-8.78%
EPS 5Y-10.14%
EPS Q2Q%-59.6%
EPS Next Y-0.27%
EPS Next 2Y22.8%
EPS Next 3Y17.06%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.29%
Revenue growth 3Y17.82%
Revenue growth 5Y9.5%
Sales Q2Q%0.05%
Revenue Next Year0.23%
Revenue Next 2Y3.23%
Revenue Next 3Y3.47%
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%