NasdaqGS:PLAY

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 17.9% below its fair value

Risk Analysis

Earnings are forecast to decline by an average of -2% per year for the next 3 years

Has a high level of debt



Snowflake Analysis

Fair value with questionable track record.


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: PLAY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.0%

PLAY

2.5%

US Hospitality

1.5%

US Market


1 Year Return

-4.0%

PLAY

8.1%

US Hospitality

20.1%

US Market

Return vs Industry: PLAY underperformed the US Hospitality industry which returned 8.1% over the past year.

Return vs Market: PLAY underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

PLAYIndustryMarket
7 Day2.0%2.5%1.5%
30 Day-0.7%-4.9%1.4%
90 Day21.6%5.7%8.7%
1 Year-2.6%-4.0%10.9%8.1%22.7%20.1%
3 Year-17.5%-19.1%36.0%27.0%50.1%40.5%
5 Year58.6%55.4%46.2%30.6%73.1%54.1%

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

Valuation

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

17.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PLAY ($47.05) is trading below our estimate of fair value ($57.31)

Significantly Below Fair Value: PLAY is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PLAY is good value based on its PE Ratio (15.9x) compared to the Hospitality industry average (24.2x).

PE vs Market: PLAY is good value based on its PE Ratio (15.9x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: PLAY's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: PLAY is overvalued based on its PB Ratio (9.7x) compared to the US Hospitality industry average (2.2x).


Next Steps

Future Growth

How is Dave & Buster's Entertainment forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PLAY's earnings are forecast to decline over the next 3 years (-2% per year).

Earnings vs Market: PLAY's earnings are forecast to decline over the next 3 years (-2% per year).

High Growth Earnings: PLAY's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PLAY's revenue (7.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: PLAY's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PLAY's Return on Equity is forecast to be high in 3 years time (29.5%)


Next Steps

Past Performance

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

27.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PLAY has high quality earnings.

Growing Profit Margin: PLAY's current net profit margins (7.8%) are lower than last year (10%).


Past Earnings Growth Analysis

Earnings Trend: PLAY has become profitable over the past 5 years, growing earnings by 27.7% per year.

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

Earnings vs Industry: PLAY had negative earnings growth (-15.2%) over the past year, making it difficult to compare to the Hospitality industry average (-9.8%).


Return on Equity

High ROE: Whilst PLAY's Return on Equity (70.7%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: PLAY's short term assets ($71.6M) do not cover its short term liabilities ($281.4M).

Long Term Liabilities: PLAY's short term assets ($71.6M) do not cover its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: PLAY's debt to equity ratio (449.4%) is considered high.

Reducing Debt: PLAY's debt to equity ratio has increased from 175.5% to 449.4% over the past 5 years.

Debt Coverage: PLAY's debt is well covered by operating cash flow (47.8%).

Interest Coverage: PLAY's interest payments on its debt are well covered by EBIT (8.2x coverage).


Balance Sheet

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

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


Next Steps

Dividend

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

1.36%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: PLAY's dividend (1.36%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: PLAY's dividend (1.36%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether PLAY's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if PLAY's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.6%), PLAY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PLAY's dividends in 3 years are forecast to be well covered by earnings (19.2% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Brian Jenkins (57yo)

1.5yrs

Tenure

US$4,098,160

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 ($USD4.10M) is about average for companies of similar size in the US market ($USD3.76M).

Compensation vs Earnings: Brian's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Brian Jenkins
CEO & Director1.5yrsUS$4.10m0.18% $2.6m
Margo Manning
COO & Senior VP3.2yrsUS$1.42m0.046% $656.8k
John Gleason
Chief Marketing Officer & Senior VP10.5yrsUS$961.86k0.070% $1.0m
Joseph DeProspero
Senior Vice President of Supply Chain & Business Development0.8yrsUS$556.05k0.048% $690.8k
John Mulleady
Senior Vice President of Real Estate & Development7.8yrsUS$1.13m0.045% $650.1k
Scott Bowman
Senior VP & CFO0.8yrsno data0.0056% $80.4k
Michael Metzinger
VP of Accounting & Controller15.1yrsno data0.0072% $104.0k
JP Hurtado
Senior VP & CIO0.8yrsno datano data
Robert Edmund
General Counsel1.3yrsno data0.0074% $106.0k
Kevin Bachus
Senior Vice President of Entertainment & Games Strategy7.3yrsUS$701.72k0.011% $164.5k

2.3yrs

Average Tenure

54yo

Average Age

Experienced Management: PLAY's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brian Jenkins
CEO & Director1.5yrsUS$4.10m0.18% $2.6m
Kevin Sheehan
Independent Director8.3yrsUS$209.99k0.23% $3.3m
Victor Crawford
Independent Director3.5yrsUS$189.99k0.029% $419.0k
Stephen King
Chairman of the Board2.6yrsUS$2.07m0.19% $2.7m
Jonathan Halkyard
Independent Director8.3yrsUS$214.99k0.073% $1.0m
Hamish Dodds
Independent Director2.8yrsUS$189.99k0.025% $353.5k
Michael Griffith
Lead Independent Director2.1yrsUS$254.99k0.13% $1.8m
Jennifer Storms
Independent Director3.8yrsUS$189.99k0.029% $418.6k
Patricia Mueller
Independent Director4.8yrsUS$189.99k0.035% $504.3k

3.5yrs

Average Tenure

57yo

Average Age

Experienced Board: PLAY's board of directors are considered experienced (3.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

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


Key Information

  • Name: Dave & Buster's Entertainment, Inc.
  • Ticker: PLAY
  • Exchange: NasdaqGS
  • Founded: 1982
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$1.438b
  • Shares outstanding: 30.57m
  • 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. 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 June 11, 2019, it owned and operated 128 venues. 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 Analysis2020/02/17 00:40
End of Day Share Price2020/02/14 00:00
Earnings2019/11/03
Annual Earnings2019/02/03


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.