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Dave & Buster's Entertainment

Executive Summary

Dave & Buster's Entertainment, Inc. owns and operates entertainment and dining venues for adults and families in North America.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Dave & Buster's Entertainment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 9DB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.4%

9DB

3.9%

DE Hospitality

3.5%

DE Market


1 Year Return

-68.5%

9DB

-34.8%

DE Hospitality

3.0%

DE Market

Return vs Industry: 9DB underperformed the German Hospitality industry which returned -34.8% over the past year.

Return vs Market: 9DB underperformed the German Market which returned 3% over the past year.


Shareholder returns

9DBIndustryMarket
7 Day-3.4%3.9%3.5%
30 Day-46.2%-13.4%-0.08%
90 Day-2.6%14.9%21.0%
1 Year-68.3%-68.5%-32.2%-34.8%5.2%3.0%
3 Year-79.9%-80.3%-47.1%-54.2%4.5%-4.0%
5 Year-67.3%-68.0%-47.6%-58.6%11.5%-3.2%

Price Volatility Vs. Market

How volatile is Dave & Buster's Entertainment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Dave & Buster's Entertainment undervalued compared to its fair value and its price relative to the market?

48.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 9DB (€11.2) is trading below our estimate of fair value (€21.64)

Significantly Below Fair Value: 9DB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 9DB is poor value based on its PE Ratio (27.4x) compared to the Hospitality industry average (22x).

PE vs Market: 9DB is poor value based on its PE Ratio (27.4x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: 9DB is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: 9DB is overvalued based on its PB Ratio (2.3x) compared to the DE Hospitality industry average (2x).


Next Steps

Future Growth

How is Dave & Buster's Entertainment forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

142.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 9DB's forecast earnings growth (142.2% per year) is above the savings rate (0.2%).

Earnings vs Market: 9DB's earnings (142.2% per year) are forecast to grow faster than the German market (22.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 9DB's revenue (18.4% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: 9DB's revenue (18.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 9DB's Return on Equity is forecast to be low in 3 years time (1.4%).


Next Steps

Past Performance

How has Dave & Buster's Entertainment performed over the past 5 years?

12.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 9DB has a large one-off loss of $11.5M impacting its May 3 2020 financial results.

Growing Profit Margin: 9DB's current net profit margins (1.2%) are lower than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: 9DB's earnings have grown by 12.1% per year over the past 5 years.

Accelerating Growth: 9DB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 9DB had negative earnings growth (-87.9%) over the past year, making it difficult to compare to the Hospitality industry average (-15.6%).


Return on Equity

High ROE: 9DB's Return on Equity (7.4%) is considered low.


Next Steps

Financial Health

How is Dave & Buster's Entertainment's financial position?


Financial Position Analysis

Short Term Liabilities: 9DB's short term assets ($229.8M) do not cover its short term liabilities ($316.7M).

Long Term Liabilities: 9DB's short term assets ($229.8M) do not cover its long term liabilities ($2.1B).


Debt to Equity History and Analysis

Debt Level: 9DB's debt to equity ratio (398.8%) is considered high.

Reducing Debt: 9DB's debt to equity ratio has increased from 150.7% to 398.8% over the past 5 years.

Debt Coverage: 9DB's debt is well covered by operating cash flow (28.6%).

Interest Coverage: 9DB's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Dave & Buster's Entertainment current dividend yield, its reliability and sustainability?

0.94%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 9DB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 9DB's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 9DB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 9DB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 9DB is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 9DB's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Brian Jenkins (58yo)

1.92yrs

Tenure

US$3,044,168

Compensation

Mr. Brian A. Jenkins serves as Chief Executive Officer at Dave & Buster's Entertainment, Inc. since August 05, 2018 and its Director since September 13, 2018. Mr. Jenkins was Senior Vice President and Chie ...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD3.04M) is above average for companies of similar size in the German market ($USD1.43M).

Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Brian Jenkins
CEO & Director1.92yrsUS$3.04m0.35% $1.9m
Scott Bowman
Senior VP & CFO1.17yrsUS$1.18m0.089% $480.9k
Margo Manning
COO & Senior VP3.58yrsUS$1.37m0.14% $770.3k
Joseph DeProspero
Senior Vice President of Supply Chain & Business Development1.17yrsUS$460.36k0.031% $168.1k
John Mulleady
Senior Vice President of Real Estate & Development8.25yrsUS$1.18m0.095% $513.7k
Michael Metzinger
VP of Accounting & Controller15.5yrsno data0.027% $146.4k
JP Hurtado
Senior VP & Chief Information Officer1.17yrsno datano data
Robert Edmund
General Counsel1.75yrsno data0.066% $356.8k
Brandon Coleman
Senior VP & Chief Marketing Officer0.42yrno data0.046% $252.2k
Kevin Bachus
Senior Vice President of Entertainment & Games Strategy7.67yrsUS$701.72k0.050% $271.8k

1.8yrs

Average Tenure

53yo

Average Age

Experienced Management: 9DB's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Brian Jenkins
CEO & Director1.92yrsUS$3.04m0.35% $1.9m
John Hockin
Independent Director0.17yrno datano data
Kevin Sheehan
Independent Director8.75yrsUS$209.96k0.17% $919.3k
Stephen King
Chairman of the Board3yrsUS$264.96k0.14% $761.2k
Jonathan Halkyard
Independent Director8.75yrsUS$207.46k0.067% $365.4k
Hamish Dodds
Independent Director3.25yrsUS$189.96k0.036% $197.4k
Michael Griffith
Lead Independent Director2.5yrsUS$254.96k0.10% $555.0k
Jennifer Storms
Independent Director4.25yrsUS$189.96k0.039% $213.2k
Patricia Mueller
Independent Director5.25yrsUS$197.46k0.043% $234.1k

3.3yrs

Average Tenure

60yo

Average Age

Experienced Board: 9DB's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 9DB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 30.5%.


Top Shareholders

Company Information

Dave & Buster's Entertainment, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dave & Buster's Entertainment, Inc.
  • Ticker: 9DB
  • Exchange: DB
  • Founded: 1982
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$613.801m
  • Listing Market Cap: US$543.337m
  • Shares outstanding: 47.45m
  • Website: https://ir.daveandbusters.com

Number of Employees


Location

  • Dave & Buster's Entertainment, Inc.
  • 2481 Mañana Drive
  • Dallas
  • Texas
  • 75220
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PLAYNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2014
9DBDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2014

Biography

Dave & Buster's Entertainment, Inc. owns and operates entertainment and dining venues for adults and families in North America. Its venues offer a menu of entrées and appetizers, as well as a selection of non-alcoholic and alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events. The company operates its venues under the Dave & Buster’s name. As of February 2, 2020, it owned and operated 136 stores located in 39 states, Puerto Rico, and one Canadian Province. The company was founded in 1982 and is headquartered in Dallas, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 21:28
End of Day Share Price2020/07/07 00:00
Earnings2020/05/03
Annual Earnings2020/02/02


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.