DB:GE6

Stock Analysis Report

Executive Summary

Golden Entertainment, Inc., together with its subsidiaries, focuses on distributed gaming, and resort casino operations in the United States.

Snowflake

Fundamentals

Fair value with worrying balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.9%

GE6

14.0%

DE Hospitality

4.4%

DE Market


1 Year Return

-34.5%

GE6

-21.1%

DE Hospitality

1.6%

DE Market

Return vs Industry: GE6 underperformed the German Hospitality industry which returned -21.1% over the past year.

Return vs Market: GE6 underperformed the German Market which returned 1.6% over the past year.


Shareholder returns

GE6IndustryMarket
7 Day0.9%14.0%4.4%
30 Day-8.5%15.6%0.8%
90 Day-10.6%27.9%2.3%
1 Year-34.5%-34.5%-15.7%-21.1%4.8%1.6%
3 Yearn/a13.6%-1.6%18.9%8.6%
5 Yearn/a34.5%7.8%43.7%24.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Golden Entertainment undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: GE6 (€11.8) is trading below our estimate of fair value (€30.91)

Significantly Undervalued: GE6 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GE6 is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.

PE vs Market: GE6 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate GE6's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GE6 is good value based on its PB Ratio (1.2x) compared to the DE Hospitality industry average (2.6x).


Next Steps

Future Growth

How is Golden Entertainment forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

102.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GE6 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: GE6 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: GE6 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: GE6's revenue (3.7% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: GE6's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: GE6's Return on Equity is forecast to be low in 3 years time (3.5%).


Next Steps

Past Performance

How has Golden Entertainment performed over the past 5 years?

-14.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GE6 is unprofitable, and losses have increased over the past 5 years at a rate of -14.4% per year.

Accelerating Growth: Unable to compare GE6's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GE6 is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-28.4%).


Return on Equity

High ROE: GE6 has a negative Return on Equity (-16.78%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: GE6 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: GE6 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Golden Entertainment's financial position?


Financial Position Analysis

Short Term Liabilities: GE6's short term assets ($165.5M) exceeds its short term liabilities ($122.8M)

Long Term Liabilities: GE6's short term assets (165.5M) do not cover its long term liabilities (1.3B)


Debt to Equity History and Analysis

Debt Level: GE6's debt to equity ratio (368.9%) is considered high

Reducing Debt: GE6's debt to equity ratio has increased from 8.4% to 368.9% over the past 5 years.

Debt Coverage: GE6's debt is not well covered by operating cash flow (9.1%).

Interest Coverage: GE6 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: GE6 has a high level of physical assets or inventory.

Debt Coverage by Assets: GE6's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Golden Entertainment's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.8%industryaverage6.1%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate GE6's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GE6's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if GE6's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GE6's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GE6's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Blake Sartini (60yo)

4.3yrs

Tenure

US$3,799,863

Compensation

Mr. Blake L. Sartini, Sr., has been Chairman and Chief Executive Officer of Golden Entertainment, Inc. (Formerly Lakes Entertainment Inc.) since July 29, 2015. Mr. Sartini was the President of Golden Enter ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Blake's total compensation is reasonable compared to companies of similar size in the German market.

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


Management Age and Tenure

4.3yrs

Average Tenure

55yo

Average Age

Experienced Management: GE6's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

60yo

Average Age

Experienced Board: GE6's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: GE6 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$119,30221 Aug 19
Anthony Marnell
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$12.40
BuyUS$80,08413 Jun 19
Anthony Marnell
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,800
Max PriceUS$11.78
BuyUS$122,54112 Jun 19
Blake Sartini
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Distributed Gaming
Shares10,000
Max PriceUS$12.25
BuyUS$119,07011 Jun 19
Anthony Marnell
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$11.91
BuyUS$11,58204 Jun 19
Thomas Haas
EntityIndividual
Role
Chief Accounting Officer
Senior Vice President of Accounting
Shares1,000
Max PriceUS$11.58
BuyUS$13,09720 Nov 18
Thomas Haas
EntityIndividual
Role
Chief Accounting Officer
Senior Vice President of Accounting
Shares1,000
Max PriceUS$13.10
BuyUS$29,21716 Nov 18
Thomas Haas
EntityIndividual
Role
Chief Accounting Officer
Senior Vice President of Accounting
Shares2,200
Max PriceUS$13.28
BuyUS$164,30613 Nov 18
Charles Protell
EntityIndividual
Role
President
President & CFO
Shares13,340
Max PriceUS$12.32

Ownership Breakdown


Management Team

  • Blake Sartini (60yo)

    Chairman of the Board & CEO

    • Tenure: 4.3yrs
    • Compensation: US$3.80m
  • Lyle Berman (77yo)

    Director

    • Tenure: 21.8yrs
    • Compensation: US$359.82k
  • Sean Higgins (55yo)

    Executive VP of Compliance & Government Affairs

    • Tenure: 0yrs
    • Compensation: US$1.06m
  • Steve Arcana (54yo)

    Executive VP & COO

    • Tenure: 4.3yrs
    • Compensation: US$1.70m
  • Terry Contreras (56yo)

    Chief Financial Officer of Red Hawk Casino

    • Tenure: 9.6yrs
  • Charles Protell (45yo)

    President & CFO

    • Tenure: 0.2yrs
    • Compensation: US$1.69m
  • Gary Vecchiarelli (41yo)

    Senior Vice President of Finance

    • Tenure: 0yrs
  • Blake Sartini (34yo)

    Senior Vice President of Distributed Gaming

    • Tenure: 4.3yrs
    • Compensation: US$983.35k
  • Tom Haas (58yo)

    Senior Vice President of Accounting

    • Tenure: 1.6yrs

Board Members

  • Bob Miodunski (68yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$252.55k
  • Blake Sartini (60yo)

    Chairman of the Board & CEO

    • Tenure: 4.3yrs
    • Compensation: US$3.80m
  • Lyle Berman (77yo)

    Director

    • Tenure: 21.8yrs
    • Compensation: US$359.82k
  • Terry Wright (69yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$261.75k
  • Mark Lipparelli (54yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$271.28k
  • Anthony Marnell (45yo)

    Independent Director

    • Tenure: 0.3yrs
  • Ann Dozier (51yo)

    Independent Director

    • Tenure: 0.3yrs

Company Information

Golden Entertainment, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Golden Entertainment, Inc.
  • Ticker: GE6
  • Exchange: DB
  • Founded: 1998
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: US$366.709m
  • Listing Market Cap: US$332.275m
  • Shares outstanding: 27.80m
  • Website: https://www.goldenent.com

Number of Employees


Location

  • Golden Entertainment, Inc.
  • 6595 South Jones Boulevard
  • Las Vegas
  • Nevada
  • 89118
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GDENNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJan 1999
GE6DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1999
0A10LSE (London Stock Exchange)YesCommon StockGBEURJan 1999

Biography

Golden Entertainment, Inc., together with its subsidiaries, focuses on distributed gaming, and resort casino operations in the United States. The Distributed Gaming segment is involved in the installation, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 22:01
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
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.