3 Stocks Pushing The Leisure Industry Lower

The Leisure industry as a whole closed the day down 2.7% versus the S&P 500, which was down 1.3%. Laggards within the Leisure industry included Dover Downs Gaming & Entertainment ( DDE), down 2.0%, Nevada Gold & Casinos ( UWN), down 3.0%, Century Casinos ( CNTY), down 3.5%, RCI Hospitality Holdings ( RICK), down 1.8% and Chanticleer Holdings ( HOTR), down 3.8%.

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

Century Casinos ( CNTY) is one of the companies that pushed the Leisure industry lower today. Century Casinos was down $0.22 (3.5%) to $6.16 on light volume. Throughout the day, 16,533 shares of Century Casinos exchanged hands as compared to its average daily volume of 33,100 shares. The stock ranged in price between $6.15-$6.30 after having opened the day at $6.29 as compared to the previous trading day's close of $6.38.

Century Casinos, Inc., a casino entertainment company, develops and operates gaming establishments worldwide. It also provides lodging, restaurant, and entertainment facilities related to gaming establishments. Century Casinos has a market cap of $155.2 million and is part of the services sector. Shares are up 26.3% year-to-date as of the close of trading on Wednesday. Currently there are 3 analysts who rate Century Casinos a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Century Casinos as a buy. 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, increase in net income, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on CNTY go as follows:

  • CNTY's revenue growth has slightly outpaced the industry average of 3.8%. Since the same quarter one year prior, revenues slightly increased by 4.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.36, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.06, which illustrates the ability to avoid short-term cash problems.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 261.8% when compared to the same quarter one year prior, rising from $0.51 million to $1.85 million.
  • Net operating cash flow has significantly increased by 736.68% to $2.58 million when compared to the same quarter last year. In addition, CENTURY CASINOS INC has also vastly surpassed the industry average cash flow growth rate of -14.37%.
  • 44.20% is the gross profit margin for CENTURY CASINOS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 6.06% trails the industry average.

You can view the full analysis from the report here: Century Casinos Ratings Report

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