Dave & Buster's Entertainment, Inc. Fundamental Analysis (NASDAQ: PLAY)
Dave & Buster's Entertainment, Inc. Fundamental Analysis (NASDAQ: PLAY)
Dave & Buster's Entertainment, Inc. (NASDAQ: PLAY) shows weak financial fundamentals with a PE ratio of -2.86, profit margin of -4.26%, and ROE of -86.54%. The company generates $2.1B in annual revenue with weak year-over-year growth of -1.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -90.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PLAY's fundamental strength across five key dimensions:
Efficiency Score
WeakPLAY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPLAY trades at attractive valuation levels.
Growth Score
WeakPLAY faces weak or negative growth trends.
Financial Health Score
WeakPLAY carries high financial risk with limited liquidity.
Profitability Score
WeakPLAY struggles to sustain strong margins.
Key Financial Metrics
Is PLAY Expensive or Cheap?
P/E Ratio
PLAY trades at -2.86 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PLAY's PEG of -0.05 indicates potential undervaluation.
Price to Book
The market values Dave & Buster's Entertainment, Inc. at 2.90 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -9.68 times EBITDA. This is generally considered low.
How Well Does PLAY Make Money?
Net Profit Margin
For every $100 in sales, Dave & Buster's Entertainment, Inc. keeps $-4.26 as profit after all expenses.
Operating Margin
Core operations generate 2.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-86.54 in profit for every $100 of shareholder equity.
ROA
Dave & Buster's Entertainment, Inc. generates $-2.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Dave & Buster's Entertainment, Inc. produces operating cash flow of $321.79M, showing steady but balanced cash generation.
Free Cash Flow
Dave & Buster's Entertainment, Inc. generates weak or negative free cash flow of $-16.01M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.46 in free cash annually.
FCF Yield
PLAY converts -6.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-2.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.90
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.12
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
40.79
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.87
vs 25 benchmark
ROA
Return on assets percentage
-0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How PLAY Stacks Against Its Sector Peers
| Metric | PLAY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -2.86 | 24.30 | Better (Cheaper) |
| ROE | -86.54% | 975.00% | Weak |
| Net Margin | -4.26% | -2427.00% (disorted) | Weak |
| Debt/Equity | 40.79 | 0.63 | Weak (High Leverage) |
| Current Ratio | 0.30 | 2.36 | Weak Liquidity |
| ROA | -2.15% | 347.00% | Weak |
PLAY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Dave & Buster's Entertainment, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
505.11%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
70.44%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
842.08%
Industry Style: Cyclical, Growth, Discretionary
High Growth