DAVE & BUSTER'S ENTERTAINMEN (PLAY) Stock Fundamental Analysis
NASDAQ:PLAY - Nasdaq - US2383371091 - Common Stock - Currency: USD
PLAY gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 136 industry peers in the Hotels, Restaurants & Leisure industry. PLAY has a medium profitability rating, but doesn't score so well on its financial health evaluation. PLAY scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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
With a Return On Assets value of 1.45%, PLAY perfoms like the industry average, outperforming 47.79% of the companies in the same industry.
Looking at the Return On Equity, with a value of 39.99%, PLAY belongs to the top of the industry, outperforming 89.71% of the companies in the same industry.
The Return On Invested Capital of PLAY (5.02%) is comparable to the rest of the industry.
PLAY had an Average Return On Invested Capital over the past 3 years of 6.37%. This is significantly below the industry average of 15.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.45% | ||
| ROE | 39.99% | ||
| ROIC | 5.02% |
ROA(3y)2.83%
ROA(5y)0.86%
ROE(3y)41.3%
ROE(5y)5.64%
ROIC(3y)6.37%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of PLAY (2.73%) is comparable to the rest of the industry.
PLAY's Profit Margin has declined in the last couple of years.
PLAY has a Operating Margin of 10.47%. This is comparable to the rest of the industry: PLAY outperforms 55.88% of its industry peers.
PLAY's Operating Margin has been stable in the last couple of years.
PLAY has a better Gross Margin (85.26%) than 97.79% of its industry peers.
PLAY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.47% | ||
| PM (TTM) | 2.73% | ||
| GM | 85.26% |
OM growth 3Y-8.45%
OM growth 5Y0.15%
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
PLAY has more shares outstanding than it did 5 years ago.
PLAY has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that PLAY is in the distress zone and has some risk of bankruptcy.
PLAY's Altman-Z score of 0.95 is on the low side compared to the rest of the industry. PLAY is outperformed by 69.85% of its industry peers.
PLAY has a Debt/Equity ratio of 10.14. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 10.14, PLAY is not doing good in the industry: 63.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.95 |
ROIC/WACC0.5
WACC10.02%
2.3 Liquidity
PLAY has a Current Ratio of 0.22. 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 Current ratio (0.22) than 95.59% of its industry peers.
A Quick Ratio of 0.13 indicates that PLAY may have some problems paying its short term obligations.
PLAY has a worse Quick ratio (0.13) than 97.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.13 |
3. Growth
3.1 Past
The earnings per share for PLAY have decreased strongly by -40.57% 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.
PLAY shows a decrease in Revenue. In the last year, the revenue decreased by -3.29%.
The Revenue has been growing by 9.50% on average over the past years. This is quite good.
EPS 1Y (TTM)-40.57%
EPS 3Y-8.78%
EPS 5Y-10.14%
EPS Q2Q%-72.73%
Revenue 1Y (TTM)-3.29%
Revenue growth 3Y17.82%
Revenue growth 5Y9.5%
Sales Q2Q%-10.78%
3.2 Future
Based on estimates for the next years, PLAY will show a very strong growth in Earnings Per Share. The EPS will grow by 28.20% on average per year.
The Revenue is expected to grow by 3.17% on average over the next years.
EPS Next Y45.67%
EPS Next 2Y32.6%
EPS Next 3Y28.2%
EPS Next 5YN/A
Revenue Next Year2.94%
Revenue Next 2Y3.76%
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.
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
The Price/Earnings ratio is 11.65, which indicates a very decent valuation of PLAY.
Based on the Price/Earnings ratio, PLAY is valued cheaply inside the industry as 84.56% of the companies are valued more expensively.
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 8.00, the valuation of PLAY can be described as very cheap.
91.18% of the companies in the same industry are more expensive than PLAY, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.32. PLAY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 8 |
4.2 Price Multiples
93.38% 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 | 4.7 |
4.3 Compensation for Growth
PLAY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as PLAY's earnings are expected to grow with 28.20% in the coming years.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y32.6%
EPS Next 3Y28.2%
5. Dividend
5.1 Amount
PLAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.46
-0.52 (-2.6%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners110.09%
Inst Owner Change-0.17%
Ins Owners1.47%
Ins Owner Change-2.32%
Market Cap671.76M
Analysts73.75
Price Target39.2 (101.44%)
Short Float %22.35%
Short Ratio4.35
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)-56.98%
Min EPS beat(2)-66.74%
Max EPS beat(2)-47.23%
EPS beat(4)1
Avg EPS beat(4)-35.35%
Min EPS beat(4)-66.74%
Max EPS beat(4)15.37%
EPS beat(8)3
Avg EPS beat(8)-21.95%
EPS beat(12)6
Avg EPS beat(12)-16.51%
EPS beat(16)9
Avg EPS beat(16)17.23%
Revenue beat(2)0
Avg Revenue beat(2)-4.69%
Min Revenue beat(2)-4.79%
Max Revenue beat(2)-4.6%
Revenue beat(4)0
Avg Revenue beat(4)-4.79%
Min Revenue beat(4)-7.19%
Max Revenue beat(4)-2.58%
Revenue beat(8)0
Avg Revenue beat(8)-4.07%
Revenue beat(12)3
Avg Revenue beat(12)-1.92%
Revenue beat(16)5
Avg Revenue beat(16)-1.82%
PT rev (1m)0%
PT rev (3m)-5.28%
EPS NQ rev (1m)-18.57%
EPS NQ rev (3m)-22.4%
EPS NY rev (1m)-25.21%
EPS NY rev (3m)-31.21%
Revenue NQ rev (1m)-3.83%
Revenue NQ rev (3m)-4.92%
Revenue NY rev (1m)-1.69%
Revenue NY rev (3m)-2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 8 | ||
| P/S | 0.31 | ||
| P/FCF | N/A | ||
| P/OCF | 2.15 | ||
| P/B | 4.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.7 |
EPS(TTM)1.67
EY8.58%
EPS(NY)2.43
Fwd EY12.5%
FCF(TTM)-6.31
FCFYN/A
OCF(TTM)9.05
OCFY46.49%
SpS61.78
BVpS4.22
TBVpS-22.45
PEG (NY)0.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.45% | ||
| ROE | 39.99% | ||
| ROCE | 6.23% | ||
| ROIC | 5.02% | ||
| ROICexc | 5.03% | ||
| ROICexgc | 6.78% | ||
| OM | 10.47% | ||
| PM (TTM) | 2.73% | ||
| GM | 85.26% | ||
| FCFM | N/A |
ROA(3y)2.83%
ROA(5y)0.86%
ROE(3y)41.3%
ROE(5y)5.64%
ROIC(3y)6.37%
ROIC(5y)N/A
ROICexc(3y)6.52%
ROICexc(5y)N/A
ROICexgc(3y)9.05%
ROICexgc(5y)N/A
ROCE(3y)7.9%
ROCE(5y)N/A
ROICexcg growth 3Y-7.82%
ROICexcg growth 5Y0.35%
ROICexc growth 3Y-11%
ROICexc growth 5Y-1.84%
OM growth 3Y-8.45%
OM growth 5Y0.15%
PM growth 3Y-31.02%
PM growth 5Y-18.07%
GM growth 3Y0.39%
GM growth 5Y0.59%
F-Score5
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.14 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.21 | ||
| Cap/Depr | 222.59% | ||
| Cap/Sales | 24.86% | ||
| Interest Coverage | 1.81 | ||
| Cash Conversion | 67.69% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.13 | ||
| Altman-Z | 0.95 |
F-Score5
WACC10.02%
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)-40.57%
EPS 3Y-8.78%
EPS 5Y-10.14%
EPS Q2Q%-72.73%
EPS Next Y45.67%
EPS Next 2Y32.6%
EPS Next 3Y28.2%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.29%
Revenue growth 3Y17.82%
Revenue growth 5Y9.5%
Sales Q2Q%-10.78%
Revenue Next Year2.94%
Revenue Next 2Y3.76%
Revenue Next 3Y3.17%
Revenue Next 5YN/A
EBIT growth 1Y-27.2%
EBIT growth 3Y7.86%
EBIT growth 5Y9.66%
EBIT Next Year103.11%
EBIT Next 3Y29.48%
EBIT Next 5YN/A
FCF growth 1Y-740.88%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-14.25%
OCF growth 3Y3.33%
OCF growth 5Y1.57%