Bedrijfsoverzicht
Dave & Buster's Entertainment, Inc. owns and operates a network of entertainment and dining venues across North America designed for both adult and family demographics, offering a comprehensive selection of entrées, appetizers, and alcoholic and non-alcoholic beverages alongside various entertainment attractions. The company operates within the Communication Services sector, specifically categorized under the Entertainment industry, which signifies its role in providing leisure and recreational experiences rather than traditional financial or industrial services. At a market capitalization of $447.44M and with annual revenue totaling $2.10B, the entity employs a workforce of 23,610 individuals to manage its extensive footprint of locations. These valuation and revenue figures indicate that while the company possesses a significant operational scale and a substantial market presence, its current market capitalization reflects a valuation that is relatively modest compared to its total sales volume, suggesting the market prices the stock based on future earnings potential rather than current asset size.
Financiële gezondheid
The company reported revenue of $2.10B over the trailing twelve months, yet this generated net income of -$48,700,000 and an EBITDA of $403.10M, revealing a significant gap between operational profitability and net profit that highlights the heavy impact of interest expenses, taxes, and other non-operating costs on the bottom line. The free cash flow stands at -$133,712,496, indicating a substantial cash outflow that limits the company's immediate financial flexibility and suggests a reliance on external financing or existing cash reserves to fund operations and capital expenditures. The gross margin is recorded at 39.8%, operating margin at 3.1%, and profit margin at -2.3%; these figures collectively demonstrate that while the core business retains a healthy portion of sales as gross profit, high operating expenses compress operating margins, and the negative profit margin confirms that the final bottom line is currently eroded by significant fixed costs or financing charges. On the liability side, the company holds $16.60M in cash against $3.57B in debt, resulting in a debt-to-equity ratio of 3909.32, which characterizes the balance sheet as highly leveraged rather than conservative and exposes the firm to significant interest rate and refinancing risks. Short-term liquidity is constrained as evidenced by a current ratio of 0.29, meaning current assets are less than one-third of current liabilities, which implies a challenging environment for meeting immediate financial obligations without additional financing. Furthermore, the return on equity is -41.1% and the return on assets is 1.9%, metrics that reveal management's current ineffectiveness in generating positive returns on shareholder capital and indicate that assets are barely covering their cost of capital before accounting for interest and taxes.
Waarderingsbeoordeling
The valuation metrics present a complex picture, with a trailing P/E ratio listed as N/A due to the lack of positive net income, while the forward P/E ratio is 136.33, implying that the market is pricing in a significant recovery in earnings or expecting high growth to justify the current share price. The price-to-book ratio is 4.90, suggesting that the market values the company at nearly five times its book value, which indicates a substantial premium over the tangible assets recorded on the balance sheet. Alternative valuation multiples such as the price-to-sales ratio of 0.21 and the EV/EBITDA of 9.91 provide different perspectives, where the low P/S ratio suggests the stock trades at a fraction of its sales, potentially offering value, while the EV/EBITDA of 9.91 places the company's enterprise value relative to earnings before interest, taxes, depreciation, and amortization in a range that can be compared to industry peers but must be interpreted with caution given the high debt load. The stock's price volatility is captured by a 52-week high of $35.53 and a 52-week low of $9.61, meaning the current trading price sits significantly closer to the yearly low, reflecting a depressed market sentiment or a sharp correction from previous highs. The beta value of 1.83 indicates that the stock price is substantially more volatile than the broader market, moving with a high degree of sensitivity to general market fluctuations and increasing the risk profile for risk-averse investors.
Growth & Income
Revenue growth year-over-year is -0.9%, and earnings growth is N/A, indicating that the company is currently contracting in terms of top-line sales and lacks positive earnings growth to offset this decline. The absence of a positive earnings trajectory suggests that the company is not growing faster than revenue; in fact, it is shrinking, which implies challenges in expanding its customer base or maintaining pricing power in its dining and entertainment venues. As the dividend yield is N/A and the payout ratio is 0.0%, the company does not distribute dividends to shareholders, meaning it retains all earnings to reinvest into growth initiatives, debt reduction, or operational improvements rather than providing immediate income to investors. Consequently, the overall growth and income profile is characterized by a contraction in revenue, a lack of dividend income, and a reliance on future operational improvements to restore profitability and generate positive cash flows to support potential capital returns in the future.