TSXV:ACES

Stock Analysis Report

Executive Summary

Seven Aces Limited, through its subsidiary, Lucky Bucks, LLC, owns and operates coin operated amusement machines (COAMs) in the state of Georgia, the United States.

Snowflake

Fundamentals

Reasonable growth potential and slightly overvalued.

Risks

  • Seven Aces has significant price volatility in the past 3 months.
  • Seven Aces is covered by less than 3 analysts.

Share Price & News

How has Seven Aces's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

ACES

-1.3%

CA Hospitality

1.3%

CA Market


1 Year Return

22.1%

ACES

-18.9%

CA Hospitality

-0.1%

CA Market

ACES outperformed the Hospitality industry which returned -18.9% over the past year.

ACES outperformed the Market in Canada which returned -0.1% over the past year.


Share holder returns

ACESIndustryMarket
7 Day0%-1.3%1.3%
30 Day14.9%5.7%4.2%
90 Day38.1%-4.2%1.6%
1 Year22.1%22.1%-18.3%-18.9%3.4%-0.1%
3 Year415.6%415.6%20.2%17.0%19.1%8.4%
5 Yearn/a-2.1%-4.9%23.2%5.7%

Price Volatility Vs. Market

How volatile is Seven Aces's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Seven Aces undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Seven Aces's share price is below the future cash flow value, and at a moderate discount (> 20%).

Seven Aces's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Seven Aces is loss making, we can't compare its value to the CA Hospitality industry average.

Seven Aces is loss making, we can't compare the value of its earnings to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Seven Aces, we can't assess if its growth is good value.


Price Based on Value of Assets

Seven Aces has negative assets, we can't compare the value of its assets to the CA Hospitality industry average.


Next Steps

Future Growth

How is Seven Aces expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

116.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Seven Aces's revenue is expected to grow by 7.9% yearly, however this is not considered high growth (20% yearly).

Seven Aces's earnings are expected to grow significantly at over 20% yearly.

Seven Aces's revenue growth is expected to exceed the Canada market average.

Seven Aces's earnings growth is expected to exceed the Canada market average.

Seven Aces's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Seven Aces will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Seven Aces performed over the past 5 years?

-19.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Seven Aces does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Seven Aces's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Seven Aces's 1-year growth to the CA Hospitality industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Seven Aces has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

Seven Aces used its assets less efficiently than the CA Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Seven Aces improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Seven Aces's financial position?


Financial Position Analysis

Seven Aces's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Seven Aces's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Seven Aces has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Seven Aces's debt level has increased considering it has negative shareholder equity.


Balance Sheet

Low level of unsold assets.

Seven Aces has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Whilst loss making Seven Aces has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Seven Aces has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -121.6% per year.


Next Steps

Dividend

What is Seven Aces's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Seven Aces's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Seven Aces's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Seven Aces has not reported any payouts.

Unable to verify if Seven Aces's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Seven Aces has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Seven Aces's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Manu Sekhri 0

3.9yrs

Tenure

US$3,818,328

Compensation

Mr. Manu K. Sekhri has been the Chief Executive Officer of Quantum International Income Corp. since October 28, 2015 and its President since November 2013. Mr. Sekhri serves as the Chief Executive Officer  ...


CEO Compensation Analysis

Insufficient data for Manu to establish whether their remuneration is reasonable compared to companies of similar size in Canada.

Manu's compensation has increased whilst company is loss making.


Management Age and Tenure

2.9yrs

Average Tenure

The tenure for the Seven Aces management team is about average.


Board Age and Tenure

3.5yrs

Average Tenure

The tenure for the Seven Aces board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$735,00004 Jan 19
Anil Damani
EntityIndividual
Role
Unit CEO
Chief Executive Officer of Lucky Bucks LLC
Shares750,000
Max PriceUS$0.98
SellUS$539,00019 Dec 18
Anil Damani
EntityIndividual
Role
Unit CEO
Chief Executive Officer of Lucky Bucks LLC
Shares550,000
Max PriceUS$0.98
SellUS$5,120,99207 Dec 18
Anil Damani
EntityIndividual
Role
Unit CEO
Chief Executive Officer of Lucky Bucks LLC
Shares5,225,500
Max PriceUS$0.98
SellUS$3,603,74803 Dec 18
Trive Capital
EntityCompany
Shares3,750,000
Max PriceUS$0.96

Ownership Breakdown


Management Team

  • Manu Sekhri

    President

    • Tenure: 3.9yrs
    • Compensation: US$3.82m
  • Hassan Ijaz

    Controller

    • Tenure: 2.8yrs
  • Ryan Bouskill

    Chief Financial Officer

    • Tenure: 2.8yrs
    • Compensation: US$92.50k
  • Jamie Boyden

    Executive Vice President of Corporate Development- Lucky Bucks LLC

    • Tenure: 2.9yrs
  • Anil Damani

    Chief Executive Officer of Lucky Bucks LLC

    • Tenure: 2.9yrs

Board Members

  • Chad Williams

    Chairman

    • Tenure: 1.9yrs
    • Compensation: US$18.70k
  • Peter Shippen (38yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: US$28.04k
  • Sheila Ogilvie-Harris

    Director

    • Tenure: 5.8yrs
    • Compensation: US$27.04k
  • Manu Sekhri

    President

    • Tenure: 3.9yrs
    • Compensation: US$3.82m
  • Mark Lerohl

    Director

    • Tenure: 2.6yrs
    • Compensation: US$33.47k

Company Information

Seven Aces Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Seven Aces Limited
  • Ticker: ACES
  • Exchange: TSXV
  • Founded:
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: CA$80.241m
  • Shares outstanding: 69.17m
  • Website: https://www.sevenaces.com

Number of Employees


Location

  • Seven Aces Limited
  • 79 Wellington Street West
  • Suite 1630
  • Toronto
  • Ontario
  • M5K 1H1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QNII.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 2000
ACESTSXV (TSX Venture Exchange)YesCommon SharesCACADOct 2000

Biography

Seven Aces Limited, through its subsidiary, Lucky Bucks, LLC, owns and operates coin operated amusement machines (COAMs) in the state of Georgia, the United States. It operates approximately 1,700 skill-ba ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 23:56
End of Day Share Price2019/09/20 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.