NYSE:DS

Stock Analysis Report

Executive Summary

Drive Shack Inc. owns and operates golf-related leisure and entertainment businesses.

Rewards

Revenue is forecast to grow 22.65% per year

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over past 3 months



Snowflake Analysis

Limited growth with worrying balance sheet.


Similar Companies

Share Price & News

How has Drive Shack's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.6%

DS

0.5%

US Hospitality

0.3%

US Market


1 Year Return

-17.6%

DS

13.7%

US Hospitality

18.5%

US Market

Return vs Industry: DS underperformed the US Hospitality industry which returned 13.7% over the past year.

Return vs Market: DS underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

DSIndustryMarket
7 Day-3.6%0.5%0.3%
30 Day-6.6%2.1%1.5%
90 Day-21.1%2.5%5.7%
1 Year-17.6%-17.6%16.7%13.7%21.1%18.5%
3 Year-11.7%-14.2%33.6%24.4%45.9%36.4%
5 Year-4.9%-25.4%49.5%33.7%71.4%52.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Drive Shack undervalued compared to its fair value and its price relative to the market?

11.24x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate DS's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate DS's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

PE vs Market: DS 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 DS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DS is overvalued based on its PB Ratio (11.2x) compared to the US Hospitality industry average (2.4x).


Next Steps

Future Growth

How is Drive Shack forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

34.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: DS's revenue (22.6% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: DS's revenue (22.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Drive Shack performed over the past 5 years?

-60.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DS is currently unprofitable.

Growing Profit Margin: DS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DS is unprofitable, and losses have increased over the past 5 years at a rate of -60% per year.

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

Earnings vs Industry: DS is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-16.7%).


Return on Equity

High ROE: DS has a negative Return on Equity (-51.5%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Drive Shack's financial position?


Financial Position Analysis

Short Term Liabilities: DS's short term assets ($82.6M) do not cover its short term liabilities ($91.4M).

Long Term Liabilities: DS's short term assets ($82.6M) do not cover its long term liabilities ($360.9M).


Debt to Equity History and Analysis

Debt Level: DS's debt to equity ratio (61.4%) is considered high.

Reducing Debt: DS's debt to equity ratio has reduced from 226.3% to 61.4% over the past 5 years.

Debt Coverage: DS's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if DS's interest payments on its debt are well covered by EBIT.


Balance Sheet

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

Debt Coverage by Assets: DS's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

What is Drive Shack's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage3.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: DS is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Hana Khouri 0

0.08yrs

Tenure

0

Ms. Hana Khouri has been Chief Executive Officer of Drive Shack Inc. since November 2019 and has been its President since August 2019. From 2013-2018 Ms. Khouri served in various roles including National D ...


Management Age and Tenure

2.2yrs

Average Tenure

51.5yo

Average Age

Experienced Management: DS's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

2.7yrs

Average Tenure

62yo

Average Age

Experienced Board: DS's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$2,076,28318 Nov 19
Acacia Research Corporation
EntityCompany
Shares500,000
Max PriceUS$4.18
BuyUS$24,35010 Jul 19
Virgis Colbert
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$4.87

Ownership Breakdown

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


Management Team

  • Greg Hughes (55yo)

    Executive Officer

    • Tenure: 0yrs
  • Pete Briger (55yo)

    Principal & the Co-Chairman of the Board of Directors - Fortress Investment Group LLC

    • Tenure: 0yrs
  • Lawrence Goodfield (40yo)

    Chief Accounting Officer & Treasurer

    • Tenure: 3.3yrs
    • Compensation: US$575.10k
  • David Hammarley (48yo)

    Chief Financial Officer

    • Tenure: 1.1yrs
    • Compensation: US$402.75k
  • Austin Pruitt

    Head of Investor Relations

    • Tenure: 0yrs
  • Nicholas Foley

    Secretary

    • Tenure: 0yrs
  • Hana Khouri

    CEO & President

    • Tenure: 0.08yrs

Board Members

  • Wes Edens (57yo)

    Chairman

    • Tenure: 17.5yrs
  • Stuart McFarland (72yo)

    Independent Director

    • Tenure: 17.2yrs
    • Compensation: US$135.00k
  • Virgis Colbert (79yo)

    Independent Director

    • Tenure: 0.7yrs
  • Bill Clifford (62yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$124.96k
  • Pete Briger (55yo)

    Principal & the Co-Chairman of the Board of Directors - Fortress Investment Group LLC

    • Tenure: 0yrs
  • Cliff Press (65yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$130.00k
  • Ben Crane (43yo)

    Independent Director

    • Tenure: 0.7yrs

Company Information

Drive Shack Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Drive Shack Inc.
  • Ticker: DS
  • Exchange: NYSE
  • Founded: 2002
  • Industry: Leisure Facilities
  • Sector: Consumer Services
  • Market Cap: US$248.778m
  • Shares outstanding: 67.06m
  • Website: https://www.driveshack.com

Number of Employees


Location

  • Drive Shack Inc.
  • 111 West 19th Street
  • 8th Floor
  • New York
  • New York
  • 10011
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NCI1DB (Deutsche Boerse AG)COM NPV (POST REV SPLIT)DEEURNo data
DSNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2002
NCI2DB (Deutsche Boerse AG)YesCommon StockDEEUROct 2002
DS.PRBNYSE (New York Stock Exchange)PFD SER BUSUSDMar 2003
DS.PRCNYSE (New York Stock Exchange)PFD SER C 8.05%USUSDOct 2005
DS.PRDNYSE (New York Stock Exchange)PFD SER D 8.375%USUSDMar 2007

Biography

Drive Shack Inc. owns and operates golf-related leisure and entertainment businesses. Its Entertainment Golf Venues segment operates an entertainment golf venue in Orlando, Florida. This segment also focus ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 23:46
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
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.