Dave & Buster's Entertainment
Market Cap
US$1.4b
Last Updated
2020/02/17 00:40 UTC
Data Sources
Company Financials +
Executive Summary
Dave & Buster's Entertainment, Inc. owns and operates entertainment and dining venues for adults and families.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -2% per year for the next 3 years
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
| PLAY | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.0% | 2.5% | 1.5% |
| 30 Day | -0.7% | -4.9% | 1.4% |
| 90 Day | 21.6% | 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 Year | 58.6%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
1 week ago | Simply Wall St
Should You Be Excited About Dave & Buster's Entertainment, Inc.'s (NASDAQ:PLAY) 71% Return On Equity?2 weeks ago | Simply Wall St
Are Dave & Buster's Entertainment, Inc.’s (NASDAQ:PLAY) Returns Worth Your While?1 month ago | Simply Wall St
Dave & Buster's Entertainment (NASDAQ:PLAY) Takes On Some Risk With Its Use Of DebtValuation
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
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.5yrs | US$4.10m | 0.18% $2.6m | |
| COO & Senior VP | 3.2yrs | US$1.42m | 0.046% $656.8k | |
| Chief Marketing Officer & Senior VP | 10.5yrs | US$961.86k | 0.070% $1.0m | |
| Senior Vice President of Supply Chain & Business Development | 0.8yrs | US$556.05k | 0.048% $690.8k | |
| Senior Vice President of Real Estate & Development | 7.8yrs | US$1.13m | 0.045% $650.1k | |
| Senior VP & CFO | 0.8yrs | no data | 0.0056% $80.4k | |
| VP of Accounting & Controller | 15.1yrs | no data | 0.0072% $104.0k | |
| Senior VP & CIO | 0.8yrs | no data | no data | |
| General Counsel | 1.3yrs | no data | 0.0074% $106.0k | |
| Senior Vice President of Entertainment & Games Strategy | 7.3yrs | US$701.72k | 0.011% $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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.5yrs | US$4.10m | 0.18% $2.6m | |
| Independent Director | 8.3yrs | US$209.99k | 0.23% $3.3m | |
| Independent Director | 3.5yrs | US$189.99k | 0.029% $419.0k | |
| Chairman of the Board | 2.6yrs | US$2.07m | 0.19% $2.7m | |
| Independent Director | 8.3yrs | US$214.99k | 0.073% $1.0m | |
| Independent Director | 2.8yrs | US$189.99k | 0.025% $353.5k | |
| Lead Independent Director | 2.1yrs | US$254.99k | 0.13% $1.8m | |
| Independent Director | 3.8yrs | US$189.99k | 0.029% $418.6k | |
| Independent Director | 4.8yrs | US$189.99k | 0.035% $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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PLAY | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Oct 2014 |
| 9DB | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Oct 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 00:40 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/11/03 |
| Annual Earnings | 2019/02/03 |
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.