Dave and Buster's Entertainment (PLAY) stock: reasons to be bullish

2:36 pm ET, 13 Sep 2018

Dave & Buster's Entertainment, Inc. (PLAY) shares are trading at $57.19.  The company is announcing its quarterly earnings on Friday, September 14, before the market opens.  What's driving PLAY stock price? What's PLAY stock price forecast, and what should investors know about Dave & Buster's?

Dave & Buster’s Entertainment currently operates 110 stores in 37 states, Puerto Rico, and Canada. The revenue mix includes amusement  (57% of first-quarter sales for the fiscal year 2018) and food & beverage (43%).

The company’s revenue grew 9.2% to $332.2 million and earnings per share were $1.04 compared to $0.98 for the same quarter last year. The stock jumped 17% after the last quarter's results were announced. The bulls are enthusiastic about the stock due to strong revenue growth and a positive customer feedback on Jurassic-World virtual reality game. The bears worry that the margins could decline with increasing competition and operating costs.

The company boasts that the cash flow is sufficient to fund growth. It increased with a CAGR of 15.4% between the fiscal year 2013 and the fiscal year 2017, from $635.6 million to $1.1 billion.  The next quarter's results will be released before the market opens on September 14, 2018.

What is the sentiment towards the PLAY stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending positive;
  • The mid-term sentiment (3-6 months) is trending positive;
  • The long-term sentiment (9-12 months) is positive.

Over the last month, Dave & Buster's Entertainment, Inc. (PLAY) returned +16.58%.

Dave & Buster's Entertainment, Inc. (PLAY) average analyst price target ($64.44) is 11.74% above its current price ($57.67).

For the latest price and information on Dave & Buster's Entertainment, Inc., please visit Finstead and search for "PLAY price" or "PLAY news".

Dave & Buster's Entertainment, Inc. (PLAY) Stock Guide

Updated at: 10:45 am ET, 18 Sep 2020

Before we start: if you're looking for PLAY stock price, you can quickly find it out by visiting Finny and typing "PLAY quote". If you're looking for a quick scoop on PLAY stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "PLAY". You'll get all this info in one place. Or you can just type "PLAY news" to get the latest stock news.

Looking to buy or sell Dave & Buster's Entertainment, Inc. (PLAY)? Interested in getting the full scoop on PLAY, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this PLAY stock guide, we'll address key questions about PLAY, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are PLAY earnings?
2. What is PLAY stock forecast (i.e., prediction)?
3. PLAY buy or sell? What is PLAY Finny Score?
4. What are the reasons to buy PLAY? Why should I buy PLAY stock?
5. What are the reasons to sell PLAY? Why should I sell PLAY stock?
6. What are PLAY key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are PLAY earnings?

PLAY trailing 12-month earnings per share (EPS) is $0.43.

Analyst Predictions

2. What is PLAY stock forecast (i.e., prediction)?

Based on PLAY analyst price targets, PLAY stock forecast is $16.90 (for a year from now). That means the average analyst price target for PLAY stock is $16.90. The prediction is based on 10 analyst estimates.

The low price target for PLAY is $13.00, while the high price target is $25.00.

PLAY analyst rating is Buy.

Analysis

3. PLAY buy or sell? What is PLAY Finny Score?

#{finnyScore:38}Our quantitative analysis shows 3 reasons to buy and 5 reasons to sell PLAY, resulting in Finny Score of 38.

4. What are the reasons to buy PLAY? Why should I buy PLAY stock?

Here are the reasons to buy PLAY stock:

5. What are the reasons to sell PLAY? Why should I sell PLAY stock?

Let's look at the reasons to sell PLAY stock (i.e., the bear case):

  • PLAY quarterly revenue growth was -56.00%, lower than the industry and sector average revenue growth (1.25% and 0.78%, respectively). See PLAY revenue growth chart.
  • PLAY forward P/E ratio is 62.48, which is high compared to its industry peers’ P/E ratios. See PLAY forward P/E ratio chart.
  • PLAY short share of float is 40.56%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See PLAY short share of float chart.
  • PLAY short interest (days to cover the shorts) ratio is 2.51. The stock garners more short interest than the average industry, sector or S&P 500 stock. See PLAY short interest ratio chart.
  • PLAY cash to debt ratio is 0.08, lower than the average industry (0.12) and sector (0.13) cash to debt ratio. See PLAY cash to debt chart.

Key Stats

6. What are PLAY key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for PLAY:

Metrics PLAY
Price $15.82
Average Price Target / Upside $16.90 / 6.83%
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Restaurants
Sector Consumer Cyclical
Number of Employees 14,840
Market Cap $859.84M
Forward P/E Ratio 62.48
Price/Book Ratio 0.75
Revenue (TTM) $1.15B
YoY Quarterly Revenue Growth -56.00%
Profit Margin 1.24%

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