20.54 USD
-0.15 (-0.72%)
20.1619 USD
-0.38 (-1.84%)
Overall PLAY gets a fundamental rating of 2 out of 10. We evaluated PLAY against 133 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 valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year PLAY has reported negative net income.
- PLAY had a positive operating cash flow in the past year.
- Of the past 5 years PLAY 4 years were profitable.
- PLAY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 0.01%, PLAY is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
- PLAY has a Return On Equity (0.23%) which is in line with its industry peers.
- Looking at the Return On Invested Capital, with a value of 3.90%, PLAY is in line with its industry, outperforming 43.61% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for PLAY is below the industry average of 10.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.01% | ||
| ROE | 0.23% | ||
| ROIC | 3.9% |
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 worse Profit Margin (0.01%) than 63.16% of its industry peers.
- PLAY's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 8.61%, PLAY perfoms like the industry average, outperforming 53.38% of the companies in the same industry.
- PLAY's Operating Margin has improved in the last couple of years.
- PLAY has a Gross Margin of 85.79%. This is amongst the best in the industry. PLAY outperforms 96.24% 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 | 8.61% | ||
| PM (TTM) | 0.01% | ||
| GM | 85.79% |
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.
- PLAY has less shares outstanding than it did 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 0.91, we must say that PLAY is in the distress zone and has some risk of bankruptcy.
- PLAY has a Altman-Z score of 0.91. This is in the lower half of the industry: PLAY underperforms 67.67% of its industry peers.
- A Debt/Equity ratio of 12.12 is on the high side and indicates that PLAY has dependencies on debt financing.
- PLAY has a worse Debt to Equity ratio (12.12) than 66.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 12.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.91 |
ROIC/WACC0.41
WACC9.62%
2.3 Liquidity
- A Current Ratio of 0.32 indicates that PLAY may have some problems paying its short term obligations.
- With a Current ratio value of 0.32, PLAY is not doing good in the industry: 89.47% of the companies in the same industry are doing better.
- A Quick Ratio of 0.22 indicates that PLAY may have some problems paying its short term obligations.
- PLAY's Quick ratio of 0.22 is on the low side compared to the rest of the industry. PLAY is outperformed by 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
- PLAY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -101.73%.
- 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 -4.07% 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)-101.73%
EPS 3Y-8.78%
EPS 5Y-10.14%
EPS Q2Q%-121.82%
Revenue 1Y (TTM)-4.07%
Revenue growth 3Y17.82%
Revenue growth 5Y9.5%
Sales Q2Q%-1.06%
3.2 Future
- Based on estimates for the next years, PLAY will show a decrease in Earnings Per Share. The EPS will decrease by -6.04% on average per year.
- Based on estimates for the next years, PLAY will show a small growth in Revenue. The Revenue will grow by 2.96% on average per year.
EPS Next Y-92.29%
EPS Next 2Y-28.47%
EPS Next 3Y-6.04%
EPS Next 5YN/A
Revenue Next Year-1.59%
Revenue Next 2Y1.51%
Revenue Next 3Y2.96%
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
- The Price/Earnings Ratio is negative for PLAY. In the last year negative earnings were reported.
- PLAY is valuated rather expensively with a Price/Forward Earnings ratio of 24.04.
- The rest of the industry has a similar Price/Forward Earnings ratio as PLAY.
- When comparing the Price/Forward Earnings ratio of PLAY to the average of the S&P500 Index (24.26), we can say PLAY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 24.04 |
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 93.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.26 |
4.3 Compensation for Growth
- A cheap valuation may be justified as PLAY's earnings are expected to decrease with -6.04% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-28.47%
EPS Next 3Y-6.04%
5. Dividend
5.1 Amount
- No dividends for PLAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
DAVE & BUSTER'S ENTERTAINMEN / PLAY FAQ
What is the fundamental rating for PLAY stock?
ChartMill assigns a fundamental rating of 2 / 10 to PLAY.
What is the valuation status for PLAY stock?
ChartMill assigns a valuation rating of 1 / 10 to DAVE & BUSTER'S ENTERTAINMEN (PLAY). This can be considered as Overvalued.
What is the profitability of PLAY stock?
DAVE & BUSTER'S ENTERTAINMEN (PLAY) has a profitability rating of 4 / 10.
Is the dividend of DAVE & BUSTER'S ENTERTAINMEN sustainable?
The dividend rating of DAVE & BUSTER'S ENTERTAINMEN (PLAY) is 0 / 10 and the dividend payout ratio is 0%.