3 Stocks Pushing The Leisure Industry Lower

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The Leisure industry as a whole closed the day down 0.4% versus the S&P 500, which was down 0.3%. Laggards within the Leisure industry included Dover Downs Gaming & Entertainment ( DDE), down 2.0%, Flanigan's ( BDL), down 1.9%, Full House Resorts ( FLL), down 14.5%, Country Style Cooking Restaurant Chain Co L ( CCSC), down 3.7% and Asia Entertainment & Resources ( IKGH), down 6.0%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Country Style Cooking Restaurant Chain Co L ( CCSC) is one of the companies that pushed the Leisure industry lower today. Country Style Cooking Restaurant Chain Co L was down $0.25 (3.7%) to $6.50 on average volume. Throughout the day, 14,286 shares of Country Style Cooking Restaurant Chain Co L exchanged hands as compared to its average daily volume of 14,800 shares. The stock ranged in price between $6.43-$6.64 after having opened the day at $6.64 as compared to the previous trading day's close of $6.75.

Country Style Cooking Restaurant Chain Co., Ltd. operates a quick service restaurant chain in the People's Republic of China. The company specializes in serving Sichuan-style fast food over the counter. As of March 31, 2014, it operated 303 restaurants. Country Style Cooking Restaurant Chain Co L has a market cap of $173.5 million and is part of the services sector. Shares are down 32.9% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Country Style Cooking Restaurant Chain Co L as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on CCSC go as follows:

  • The revenue growth came in higher than the industry average of 5.8%. Since the same quarter one year prior, revenues slightly increased by 4.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • CCSC has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.77, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for COUNTRY STYLE COOK is rather low; currently it is at 22.77%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.96% significantly trails the industry average.
  • Net operating cash flow has decreased to $5.28 million or 42.57% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

You can view the full analysis from the report here: Country Style Cooking Restaurant Chain Co L Ratings Report

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At the close, Full House Resorts ( FLL) was down $0.18 (14.5%) to $1.06 on light volume. Throughout the day, 39,321 shares of Full House Resorts exchanged hands as compared to its average daily volume of 74,000 shares. The stock ranged in price between $1.06-$1.25 after having opened the day at $1.21 as compared to the previous trading day's close of $1.24.

Full House Resorts, Inc. owns, develops, manages, and invests in gaming-related enterprises. Full House Resorts has a market cap of $24.0 million and is part of the services sector. Shares are down 54.6% year-to-date as of the close of trading on Friday. Currently there are 2 analysts who rate Full House Resorts a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Full House Resorts as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on FLL go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 20116.7% when compared to the same quarter one year ago, falling from -$0.04 million to -$8.49 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, FULL HOUSE RESORTS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to $0.66 million or 63.99% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • FULL HOUSE RESORTS INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, FULL HOUSE RESORTS INC swung to a loss, reporting -$0.21 versus $1.49 in the prior year. This year, the market expects an improvement in earnings (-$0.14 versus -$0.21).
  • This stock's share value has moved by only 53.82% over the past year. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

You can view the full analysis from the report here: Full House Resorts Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Dover Downs Gaming & Entertainment ( DDE) was another company that pushed the Leisure industry lower today. Dover Downs Gaming & Entertainment was down $0.02 (2.0%) to $0.97 on light volume. Throughout the day, 3,125 shares of Dover Downs Gaming & Entertainment exchanged hands as compared to its average daily volume of 36,700 shares. The stock ranged in price between $0.97-$1.00 after having opened the day at $0.98 as compared to the previous trading day's close of $0.99.

Dover Downs Gaming & Entertainment, Inc., together with its subsidiaries, operates as a gaming and entertainment resort destination in the United States. Dover Downs Gaming & Entertainment has a market cap of $17.9 million and is part of the services sector. Shares are down 33.1% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates Dover Downs Gaming & Entertainment as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on DDE go as follows:

  • DOVER DOWNS GAMING & ENTMT's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, DOVER DOWNS GAMING & ENTMT reported lower earnings of $0.01 versus $0.15 in the prior year. For the next year, the market is expecting a contraction of 100.0% in earnings ($0.00 versus $0.01).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 66.6% when compared to the same quarter one year ago, falling from $0.49 million to $0.16 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, DOVER DOWNS GAMING & ENTMT's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for DOVER DOWNS GAMING & ENTMT is currently extremely low, coming in at 9.82%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.35% significantly trails the industry average.
  • Net operating cash flow has decreased to $1.49 million or 27.27% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

You can view the full analysis from the report here: Dover Downs Gaming & Entertainment Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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