NasdaqGM:GDEN

Stock Analysis Report

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Market Cap

US$1.2b

Last Updated

2021/06/19 02:03 UTC

Data Sources

Company Financials +

Executive Summary

Golden Entertainment, Inc., together with its subsidiaries, engages in the ownership and operation of a diversified entertainment platform in the United States. More Details


Snowflake Analysis

Mediocre balance sheet with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GDEN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: GDEN's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-5.3%

GDEN

-1.8%

US Hospitality

-0.2%

US Market


1 Year Return

345.0%

GDEN

51.4%

US Hospitality

39.4%

US Market

Return vs Industry: GDEN exceeded the US Hospitality industry which returned 51.4% over the past year.

Return vs Market: GDEN exceeded the US Market which returned 39.4% over the past year.


Shareholder returns

GDENIndustryMarket
7 Day-5.3%-1.8%-0.2%
30 Day10.5%2.5%3.1%
90 Day56.5%-8.3%5.6%
1 Year345.0%345.0%51.9%51.4%41.7%39.4%
3 Year52.3%52.3%5.5%1.2%59.7%49.9%
5 Year279.7%230.8%62.4%50.5%122.6%97.6%

Long-Term 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

Valuation

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

23.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GDEN ($43.7) is trading below our estimate of fair value ($57.4)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GDEN is overvalued based on its PB Ratio (7.3x) compared to the US Hospitality industry average (3.9x).


Future Growth

How is Golden Entertainment forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

55.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GDEN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: GDEN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GDEN's is expected to become profitable in the next 3 years.

Revenue vs Market: GDEN's revenue (6.9% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: GDEN's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GDEN's Return on Equity is forecast to be low in 3 years time (18.4%).


Past Performance

How has Golden Entertainment performed over the past 5 years?

-74.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GDEN is currently unprofitable.

Growing Profit Margin: GDEN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GDEN is unprofitable, and losses have increased over the past 5 years at a rate of 74.3% per year.

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

Earnings vs Industry: GDEN is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-8.1%).


Return on Equity

High ROE: GDEN has a negative Return on Equity (-54.53%), as it is currently unprofitable.


Financial Health

How is Golden Entertainment's financial position?


Financial Position Analysis

Short Term Liabilities: GDEN's short term assets ($190.0M) exceed its short term liabilities ($141.9M).

Long Term Liabilities: GDEN's short term assets ($190.0M) do not cover its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: GDEN's debt to equity ratio (658.9%) is considered high.

Reducing Debt: GDEN's debt to equity ratio has increased from 74% to 658.9% over the past 5 years.


Balance Sheet


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.

Stable Cash Runway: Whilst unprofitable GDEN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: GDEN is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 6.8% per year.


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate GDEN'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 GDEN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GDEN'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 GDEN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Blake Sartini (61 yo)

5.92yrs

Tenure

US$5,225,783

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: Blake's total compensation ($USD5.23M) is above average for companies of similar size in the US market ($USD3.72M).

Compensation vs Earnings: Blake's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: GDEN's management team is seasoned and experienced (5.9 years average tenure).


Board Members

Experienced Board: GDEN's board of directors are considered experienced (5.9 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Golden Entertainment, Inc.
  • Ticker: GDEN
  • Exchange: NasdaqGM
  • Founded: 1998
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: US$1.244b
  • Shares outstanding: 28.47m
  • Website: https://www.goldenent.com

Number of Employees


Location

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

Listings


Biography

Golden Entertainment, Inc., together with its subsidiaries, engages in the ownership and operation of a diversified entertainment platform in the United States. The company operates through two segments, C...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/19 02:03
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.