- LACO's revenue growth has slightly outpaced the industry average of 4.5%. Since the same quarter one year prior, revenues slightly increased by 3.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- LACO's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 13.92, which clearly demonstrates the ability to cover short-term cash needs.
- After a year of stock price fluctuations, the net result is that LACO's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- 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, LAKES ENTERTAINMENT 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 -$0.98 million or 66.55% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, LAKES ENTERTAINMENT INC has marginally lower results.
The Leisure industry as a whole closed the day down 0.5% versus the S&P 500, which was up 0.1%. Laggards within the Leisure industry included Dover Downs Gaming & Entertainment ( DDE), down 2.0%, Flanigan's ( BDL), down 2.9%, Country Style Cooking Restaurant Chain Co L ( CCSC), down 2.2%, Lakes Entertainment ( LACO), down 2.0% and Luby's ( LUB), down 2.9%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today: Lakes Entertainment ( LACO) is one of the companies that pushed the Leisure industry lower today. Lakes Entertainment was down $0.18 (2.0%) to $8.71 on heavy volume. Throughout the day, 15,152 shares of Lakes Entertainment exchanged hands as compared to its average daily volume of 9,000 shares. The stock ranged in price between $8.46-$9.03 after having opened the day at $8.79 as compared to the previous trading day's close of $8.89. Lakes Entertainment, Inc. develops, finances, manages, and owns casino properties in the United States. Lakes Entertainment has a market cap of $121.9 million and is part of the services sector. Shares are up 32.3% year-to-date as of the close of trading on Tuesday. EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE. TheStreet Ratings rates Lakes Entertainment 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 increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow. Highlights from TheStreet Ratings analysis on LACO go as follows: