DAVE & BUSTER'S ENTERTAINMEN (PLAY) Stock Fundamental Analysis
NASDAQ:PLAY - Nasdaq - US2383371091 - Common Stock
We assign a fundamental rating of 3 out of 10 to PLAY. PLAY was compared to 134 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year PLAY was profitable.
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
PLAY's Return On Assets of 2.16% is in line compared to the rest of the industry. PLAY outperforms 53.44% of its industry peers.
With an excellent Return On Equity value of 37.56%, PLAY belongs to the best of the industry, outperforming 90.84% of the companies in the same industry.
PLAY has a Return On Invested Capital of 5.87%. This is comparable to the rest of the industry: PLAY outperforms 51.91% of its industry peers.
PLAY had an Average Return On Invested Capital over the past 3 years of 6.88%. This is below the industry average of 10.54%.
| 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
PLAY has a Profit Margin of 3.87%. This is comparable to the rest of the industry: PLAY outperforms 54.20% of its industry peers.
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 Gross Margin of 85.11%. This is amongst the best in the industry. PLAY outperforms 97.71% of its industry peers.
PLAY's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for PLAY has been reduced compared to 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
Based on the Altman-Z score of 1.09, we must say that PLAY is in the distress zone and has some risk of bankruptcy.
PLAY has a Altman-Z score of 1.09. This is in the lower half of the industry: PLAY underperforms 66.41% of its industry peers.
PLAY has a Debt/Equity ratio of 6.38. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 6.38, PLAY is not doing good in the industry: 62.60% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.09 |
ROIC/WACC0.62
WACC9.45%
2.3 Liquidity
A Current Ratio of 0.29 indicates that PLAY may have some problems paying its short term obligations.
PLAY's Current ratio of 0.29 is on the low side compared to the rest of the industry. PLAY is outperformed by 94.66% of its industry peers.
PLAY has a Quick Ratio of 0.29. 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 0.19, PLAY is doing worse than 96.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
PLAY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.08%.
PLAY shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.83% yearly.
The Revenue has been growing slightly by 1.25% in the past year.
Measured over the past years, PLAY shows a quite strong growth in Revenue. The Revenue has been growing by 11.75% on average per year.
EPS 1Y (TTM)1.08%
EPS 3YN/A
EPS 5Y-0.83%
EPS Q2Q%-572.27%
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 19.01% 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-10.05%
EPS Next 2Y12.18%
EPS Next 3Y19.01%
EPS Next 5YN/A
Revenue Next Year-1.86%
Revenue Next 2Y1.69%
Revenue Next 3Y3.17%
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 9.38, the valuation of PLAY can be described as very reasonable.
Based on the Price/Earnings ratio, PLAY is valued cheaper than 95.42% of the companies in the same industry.
When comparing the Price/Earnings ratio of PLAY to the average of the S&P500 Index (28.29), we can say PLAY is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.45, the valuation of PLAY can be described as very cheap.
Based on the Price/Forward Earnings ratio, PLAY is valued cheaper than 96.95% of the companies in the same industry.
PLAY is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.38 | ||
| Fwd PE | 7.45 |
4.2 Price Multiples
93.89% of the companies in the same industry are more expensive than PLAY, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.94 |
4.3 Compensation for Growth
A more expensive valuation may be justified as PLAY's earnings are expected to grow with 19.01% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.18%
EPS Next 3Y19.01%
5. Dividend
5.1 Amount
PLAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DAVE & BUSTER'S ENTERTAINMEN
NASDAQ:PLAY (1/22/2025, 1:04:44 PM)
26.36
-0.14 (-0.53%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners100.75%
Inst Owner Change0.55%
Ins Owners1.66%
Ins Owner Change2.56%
Market Cap1.01B
Analysts73.75
Price Target41.38 (56.98%)
Short Float %20.85%
Short Ratio3.6
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
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)-16.22%
PT rev (3m)-19.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-29.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.3%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.38 | ||
| Fwd PE | 7.45 | ||
| P/S | 0.46 | ||
| P/FCF | N/A | ||
| P/OCF | 3.38 | ||
| P/B | 4.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.94 |
EPS(TTM)2.81
EY10.66%
EPS(NY)3.54
Fwd EY13.42%
FCF(TTM)-4.74
FCFYN/A
OCF(TTM)7.81
OCFY29.62%
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 | 1.09 |
F-Score5
WACC9.45%
ROIC/WACC0.62
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)1.08%
EPS 3YN/A
EPS 5Y-0.83%
EPS Q2Q%-572.27%
EPS Next Y-10.05%
EPS Next 2Y12.18%
EPS Next 3Y19.01%
EPS Next 5YN/A
Revenue 1Y (TTM)1.25%
Revenue growth 3Y71.59%
Revenue growth 5Y11.75%
Sales Q2Q%-2.98%
Revenue Next Year-1.86%
Revenue Next 2Y1.69%
Revenue Next 3Y3.17%
Revenue Next 5YN/A
EBIT growth 1Y-9.68%
EBIT growth 3YN/A
EBIT growth 5Y13.75%
EBIT Next Year64.04%
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%