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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At the close, Nevada Gold & Casinos ( UWN) was down $0.05 (3.0%) to $1.63 on light volume. Throughout the day, 33,877 shares of Nevada Gold & Casinos exchanged hands as compared to its average daily volume of 48,400 shares. The stock ranged in price between $1.62-$1.67 after having opened the day at $1.65 as compared to the previous trading day's close of $1.68.

Nevada Gold & Casinos, Inc., a gaming company, engages in financing, developing, owning, and operating gaming properties and projects primarily in Washington and South Dakota. The company operates in three segments: Washington Gold, South Dakota Gold, and Corporate. Nevada Gold & Casinos has a market cap of $28.9 million and is part of the services sector. Shares are up 34.4% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Nevada Gold & Casinos 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 solid stock price performance. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from TheStreet Ratings analysis on UWN go as follows:

  • UWN's revenue growth has slightly outpaced the industry average of 3.8%. Since the same quarter one year prior, revenues slightly increased by 1.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • UWN's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, UWN has a quick ratio of 2.28, which demonstrates the ability of the company to cover short-term liquidity needs.
  • NEVADA GOLD & CASINOS INC reported flat earnings per share in the most recent quarter. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, NEVADA GOLD & CASINOS INC increased its bottom line by earning $0.12 versus $0.03 in the prior year.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Hotels, Restaurants & Leisure industry and the overall market, NEVADA GOLD & CASINOS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has declined marginally to $2.38 million or 1.57% when compared to the same quarter last year. Despite a decrease in cash flow NEVADA GOLD & CASINOS INC is still fairing well by exceeding its industry average cash flow growth rate of -14.37%.

You can view the full analysis from the report here: Nevada Gold & Casinos Ratings Report

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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 $1.01 on light volume. Throughout the day, 3,979 shares of Dover Downs Gaming & Entertainment exchanged hands as compared to its average daily volume of 15,700 shares. The stock ranged in price between $1.00-$1.02 after having opened the day at $1.00 as compared to the previous trading day's close of $1.03.

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 $18.2 million and is part of the services sector. Shares are up 24.1% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates Dover Downs Gaming & Entertainment as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and poor profit margins.

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Highlights from TheStreet Ratings analysis on DDE go as follows:

  • DDE has underperformed the S&P 500 Index, declining 15.13% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • The gross profit margin for DOVER DOWNS GAMING & ENTMT is currently extremely low, coming in at 10.83%. Regardless of DDE's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, DDE's net profit margin of 1.39% is significantly lower than the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength 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.
  • DOVER DOWNS GAMING & ENTMT reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, DOVER DOWNS GAMING & ENTMT swung to a loss, reporting -$0.02 versus $0.01 in the prior year.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 3.8%. Since the same quarter one year prior, revenues slightly dropped by 2.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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

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