Dave & Buster's Entertainment Inc.
Find Ratings ReportsDAVE & BUSTER'S ENTMT INC's gross profit margin for the third quarter of its fiscal year 2023 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its subsector. DAVE & BUSTER'S ENTMT INC has very weak liquidity. Currently, the Quick Ratio is 0.22 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 41.38% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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Income Statement | Q3 FY23 | Q3 FY22 |
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Net Sales ($mil) | 466.9 | 481.21 |
EBITDA ($mil) | 72.1 | 82.56 |
EBIT ($mil) | 20.2 | 34.14 |
Net Income ($mil) | -5.2 | 1.92 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 64.0 | 108.21 |
Total Assets ($mil) | 3697.8 | 3685.09 |
Total Debt ($mil) | 2944.5 | 2874.3 |
Equity ($mil) | 211.6 | 361.02 |
Profitability | Q3 FY23 | Q3 FY22 |
---|---|---|
Gross Profit Margin | 22.04 | 23.94 |
EBITDA Margin | 15.44 | 17.15 |
Operating Margin | 4.33 | 7.09 |
Sales Turnover | 0.59 | 0.47 |
Return on Assets | 3.51 | 3.35 |
Return on Equity | 61.41 | 34.25 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 0.37 | 0.58 |
Debt/Capital | 0.93 | 0.89 |
Interest Expense | 28.9 | 28.37 |
Interest Coverage | 0.7 | 1.2 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 40.19 | 48.28 |
Div / share | 0.0 | 0.0 |
EPS | -0.12 | 0.04 |
Book value / share | 5.27 | 7.48 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 949973.0 | 958315.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 44.29 for the Food Services and Drinking Places subsector and a discount compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 11.86 indicates a significant premium versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 13.92. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, DAVE & BUSTER'S ENTMT INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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PLAY 22.86 | Peers 44.29 | PLAY 6.51 | Peers 24.08 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. PLAY is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. PLAY is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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PLAY 14.70 | Peers 28.31 | PLAY 1.77 | Peers 3.38 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. PLAY is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. PLAY trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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PLAY 11.86 | Peers 13.92 | PLAY 9.20 | Peers 40.00 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. PLAY is trading at a discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, PLAY is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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PLAY 1.16 | Peers 5.79 | PLAY 24.44 | Peers 10.97 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. PLAY is trading at a significant discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. PLAY has a sales growth rate that significantly exceeds its peers. |
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