Accel Entertainment, Inc.
Accel Entertainment, Inc. Fundamental Analysis
Accel Entertainment, Inc. (ACEL) shows moderate financial fundamentals with a PE ratio of 21.28, profit margin of 3.34%, and ROE of 16.77%. The company generates $1.3B in annual revenue with moderate year-over-year growth of 5.17%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ACEL's fundamental strength across five key dimensions:
Efficiency Score
WeakACEL struggles to generate sufficient returns from assets.
Valuation Score
ExcellentACEL trades at attractive valuation levels.
Growth Score
ModerateACEL shows steady but slowing expansion.
Financial Health Score
ModerateACEL shows balanced financial health with some risks.
Profitability Score
ModerateACEL maintains healthy but balanced margins.
Key Financial Metrics
Is ACEL Expensive or Cheap?
P/E Ratio
ACEL trades at 21.28 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ACEL's PEG of 0.87 indicates potential undervaluation.
Price to Book
The market values Accel Entertainment, Inc. at 3.48 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 3.53 times EBITDA. This is generally considered low.
How Well Does ACEL Make Money?
Net Profit Margin
For every $100 in sales, Accel Entertainment, Inc. keeps $3.34 as profit after all expenses.
Operating Margin
Core operations generate 7.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.77 in profit for every $100 of shareholder equity.
ROA
Accel Entertainment, Inc. generates $4.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Accel Entertainment, Inc. produces operating cash flow of $132.65M, showing steady but balanced cash generation.
Free Cash Flow
Accel Entertainment, Inc. produces free cash flow of $47.81M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.57 in free cash annually.
FCF Yield
ACEL converts 5.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.87
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How ACEL Stacks Against Its Sector Peers
| Metric | ACEL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.28 | 24.85 | Better (Cheaper) |
| ROE | 16.77% | 1165.00% | Weak |
| Net Margin | 3.34% | 749.00% | Weak |
| Debt/Equity | 2.26 | 0.76 | Weak (High Leverage) |
| Current Ratio | 2.57 | 9.23 | Strong Liquidity |
| ROA | 4.02% | 1271.00% | Weak |
ACEL outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Accel Entertainment, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
112.07%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
170.82%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
96.44%
Industry Style: Cyclical, Growth, Discretionary
High Growth