NYSE:DVD

Stock Analysis Report

Executive Summary

Dover Motorsports, Inc. markets and promotes motorsports entertainment in the United States.

Rewards

PE ratio (10.4x) is below the US market (18.6x)

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results

Profit margins (14.3%) are lower than last year (23.1%)

Does not have a meaningful market cap ($69M)



Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Dover Motorsports's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DVD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

DVD

3.1%

US Hospitality

0.7%

US Market


1 Year Return

-5.5%

DVD

18.1%

US Hospitality

21.1%

US Market

Return vs Industry: DVD underperformed the US Hospitality industry which returned 18.1% over the past year.

Return vs Market: DVD underperformed the US Market which returned 21.1% over the past year.


Shareholder returns

DVDIndustryMarket
7 Day1.6%3.1%0.7%
30 Day0.5%5.0%2.3%
90 Day-5.9%4.3%5.0%
1 Year-0.4%-5.5%21.2%18.1%23.7%21.1%
3 Year-7.7%-19.1%39.3%29.7%47.0%37.4%
5 Year-6.8%-21.8%49.0%33.4%65.7%47.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Dover Motorsports undervalued compared to its fair value and its price relative to the market?

10.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DVD ($1.9) is trading above our estimate of fair value ($1.51)

Significantly Below Fair Value: DVD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DVD is good value based on its PE Ratio (10.4x) compared to the Hospitality industry average (23.3x).

PE vs Market: DVD is good value based on its PE Ratio (10.4x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DVD is good value based on its PB Ratio (1.1x) compared to the US Hospitality industry average (2.3x).


Next Steps

Future Growth

How is Dover Motorsports forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.9%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Dover Motorsports has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Dover Motorsports performed over the past 5 years?

24.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DVD has a large one-off gain of $2.8M impacting its September 30 2019 financial results.

Growing Profit Margin: DVD's current net profit margins (14.3%) are lower than last year (23.1%).


Past Earnings Growth Analysis

Earnings Trend: DVD's earnings have grown significantly by 24.1% per year over the past 5 years.

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

Earnings vs Industry: DVD had negative earnings growth (-36.3%) over the past year, making it difficult to compare to the Hospitality industry average (-15.8%).


Return on Equity

High ROE: DVD's Return on Equity (10.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dover Motorsports's financial position?


Financial Position Analysis

Short Term Liabilities: DVD's short term assets ($12.9M) exceed its short term liabilities ($9.3M).

Long Term Liabilities: DVD's short term assets ($12.9M) exceed its long term liabilities ($11.7M).


Debt to Equity History and Analysis

Debt Level: DVD is debt free.

Reducing Debt: DVD has no debt compared to 5 years ago when its debt to equity ratio was 27.3%.

Debt Coverage: DVD has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DVD has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: DVD's debt is not covered by short term assets (assets are -4.6653689259856E+17x debt).


Next Steps

Dividend

What is Dover Motorsports's current dividend yield, its reliability and sustainability?

5.26%

Current Dividend Yield


Dividend Yield vs Market

company5.3%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: DVD's dividend (5.26%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: DVD's dividend (5.26%) is in the top 25% of dividend payers in the US market (3.71%)


Stability and Growth of Payments

Stable Dividend: DVD's dividend payments have been volatile in the past 10 years.

Growing Dividend: DVD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.9%), DVD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

19.2yrs

Average management tenure


CEO

Denis McGlynn (73yo)

40.9yrs

Tenure

US$337,217

Compensation

Mr. Denis L. McGlynn has been Chief Executive Officer and President of Dover Motorsports, Inc. since 1979 and Chief Executive Officer and President of its subsidiary Dover Downs Gaming & Entertainment, Inc ...


CEO Compensation Analysis

Compensation vs Market: Denis's total compensation ($USD337.22K) is below average for companies of similar size in the US market ($USD528.59K).

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


Management Age and Tenure

19.2yrs

Average Tenure

59yo

Average Age

Experienced Management: DVD's management team is seasoned and experienced (19.2 years average tenure).


Board Age and Tenure

23.9yrs

Average Tenure

72yo

Average Age

Experienced Board: DVD's board of directors are seasoned and experienced ( 23.9 years average tenure).


Insider Trading

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


Ownership Breakdown

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


Management Team

  • Klaus Belohoubek (59yo)

    Senior VP

    • Tenure: 20.9yrs
    • Compensation: US$288.25k
  • Denis McGlynn (73yo)

    President

    • Tenure: 40.9yrs
    • Compensation: US$337.22k
  • Tim Horne (53yo)

    Senior VP of Finance

    • Tenure: 5.9yrs
    • Compensation: US$226.66k
  • Michael Tatoian (58yo)

    Executive VP & COO

    • Tenure: 0yrs
    • Compensation: US$299.91k
  • Thomas Wintermantel (60yo)

    Treasurer & Assistant Secretary

    • Tenure: 17.4yrs
    • Compensation: US$218.20k

Board Members

  • Patrick Bagley (71yo)

    Director

    • Tenure: 23.9yrs
    • Compensation: US$64.50k
  • R. Rollins (87yo)

    Independent Director

    • Tenure: 23.9yrs
    • Compensation: US$51.50k
  • Henry Tippie (92yo)

    Chairman & Presiding Director

    • Tenure: 0yrs
    • Compensation: US$102.72k
  • Denis McGlynn (73yo)

    President

    • Tenure: 40.9yrs
    • Compensation: US$337.22k
  • Tim Horne (53yo)

    Senior VP of Finance

    • Tenure: 5.9yrs
    • Compensation: US$226.66k
  • Jeffrey Rollins (54yo)

    Independent Director

    • Tenure: 26.9yrs
    • Compensation: US$45.50k

Company Information

Dover Motorsports, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dover Motorsports, Inc.
  • Ticker: DVD
  • Exchange: NYSE
  • Founded: 1969
  • Industry: Leisure Facilities
  • Sector: Consumer Services
  • Market Cap: US$69.239m
  • Shares outstanding: 36.44m
  • Website: https://www.dovermotorsports.com

Number of Employees


Location

  • Dover Motorsports, Inc.
  • 1131 North DuPont Highway
  • Dover
  • Delaware
  • 19901
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DVDNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1996

Biography

Dover Motorsports, Inc. markets and promotes motorsports entertainment in the United States. It owns and operates Dover International Speedway in Dover, Delaware; and Nashville Superspeedway near Nashville ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 23:36
End of Day Share Price2019/12/13 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.