Analysts rate Dave & Buster’s Entertainment (PLAY:NSD) with a Hold rating and a $51 target

STA Research
by: STA Research
Dave & Buster’s Entertainment

Based on the Dave & Buster’s Entertainment stock forecasts from 6 analysts, the average analyst target price for Dave & Buster’s stock is USD 51.70 over the next 12 months. Dave & Buster’s Entertainment’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Dave & Buster’s stock is Neutral, which is based on 5 positive signals and 5 negative signals. At the last closing, Dave & Buster’s stock price was USD 43.94Dave & Buster’s stock price has changed by +2.60% over the past week, +4.88% over the past month and +26.37% over the last year.

About Dave & Buster’s Enetertainment (PLAY:NSD):

Dave & Buster’s Entertainment, Inc. owns and operates entertainment and dining venues for adults and families in North America. 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 January 30, 2022, it owned and operated 144 stores located in 40 states, Puerto Rico, and one Canadian Province. The company was founded in 1982 and is headquartered in Coppell, Texas.

 

Most Recent Analyst ratings for Dave & Busters:

 

 

What we like:

Superior return on equity:

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization:

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets:

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow:

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow:

The company had positive total free cash flow in the most recent four quarters.

 

What we don’t like:

Overpriced compared to book value:

PLAY stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

PLAY stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the PLAY stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis:

PLAY stock price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Revenue Growth:

Dave & Buster’s stock has shown below median revenue growth in the previous 5 years compared to its sector.

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