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Golden Entertainment (GDEN)
NASDAQ:GDEN
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Golden Entertainment
(NASDAQ:GDEN)
60Neutral
Positive Factors
Financial Performance
The company's valuation seems reasonable at current levels, indicating potential for future growth.
Management Strategy
Management remains proactive in unlocking shareholder value through buybacks or utilizing its strong balance sheet and real estate ownership.
Strategic Initiatives
Management is exploring strategic alternatives, including 'transformational' M&A, to diversify the enterprise.
Negative Factors
Earnings Miss
Golden Entertainment posts mixed results in 4Q24, missing revenue expectations by 2%.
Market Performance
The share price of Golden Entertainment Inc has underperformed by 15% compared to the S&P 500.
Operational Challenges
Golden Entertainment misses consensus. The company continued to see weakness at the lower end of its database, while extreme weather in Las Vegas also impacted results.
Golden Entertainment (GDEN) vs. S&P 500 (SPY)
Market Cap
$678.33M
Dividend Yield3.85%
Average Volume (3M)212.33K
Price to Earnings (P/E)15.2
Beta (1Y)1.11
Revenue Growth-31.14%
EPS Growth-95.88%
CountryUS
Employees5,300
SectorConsumer Cyclical
Sector Strength60
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.05
Shares Outstanding26,435,286
10 Day Avg. Volume138,183
30 Day Avg. Volume212,330
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.98
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit3.58
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$36.75Price Target Upside34.52% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Golden Entertainment Business Overview & Revenue Model
Company DescriptionGolden Entertainment, Inc., together with its subsidiaries, engages in the ownership and operation of a diversified entertainment platform in the United States. The company operates through four segments: Nevada Casino Resorts, Nevada Locals Casinos, Maryland Casino Resort, and Distributed Gaming. The Nevada Casino Resorts segment comprises of destination casino resort properties that include various food and beverage outlets, entertainment venues, and other amenities. The Nevada Locals Casinos segment consists of casino properties that cater to local customers. The Maryland Casino Resort segment operates Rocky Gap casino resort, including various food and beverage outlets, signature golf course, spa, and pool. The Distributed Gaming segment operates slot machines and amusement devices in non-casino locations, such as restaurants, bars, taverns, convenience stores, liquor stores, and grocery stores. As of February 17, 2022, the company operated approximately 16,900 slots, 120 table games, and 6,200 hotel rooms; 10 casinos; and video gaming devices at 1,100 locations, as well as owned 60 traditional taverns. The company was formerly known as Lakes Entertainment, Inc. and changed its name to Golden Entertainment, Inc. in July 2015. Golden Entertainment, Inc. was incorporated in 1998 and is headquartered in Las Vegas, Nevada.
How the Company Makes MoneyGolden Entertainment generates revenue primarily through its casino operations, which include gaming activities such as slot machines, table games, and other casino-related services. The company also earns income from its taverns, which offer food, beverages, and gaming options. Another significant revenue stream comes from its distributed gaming operations, where Golden Entertainment places gaming devices in third-party locations and shares the revenue with the venue owners. This diversified approach allows the company to capitalize on various aspects of the gaming and hospitality industries, while strategic partnerships and acquisitions enhance its market presence and operational efficiency.
Golden Entertainment Financial Statement Overview
Summary
Golden Entertainment's financial performance is mixed, with improvements in leverage and cash flow, but revenue and profitability remain unstable. The company needs to stabilize income and optimize capital management.Income Statement
The company's gross profit margin and net profit margin have shown volatility over the years, with a significant drop in revenue and profit in 2024 compared to 2023. The EBIT and EBITDA margins also reflect this decline. Revenue growth rate has been inconsistent, with a notable decrease in 2024. Profitability remains a concern, needing stabilization and strategic improvement.55
Neutral
Balance Sheet
The debt-to-equity ratio has improved over time, indicating better leverage management, although still relatively high. Return on equity shows fluctuation, with a downward trend in 2024. The equity ratio is moderate, suggesting a balanced capital structure. However, potential risks exist due to significant debt levels.60
Neutral
Cash Flow
Free cash flow has shown some growth but remains inconsistent. The operating cash flow to net income ratio indicates healthy cash generation relative to net income, although free cash flow to net income needs improvement. Cash flow management needs focus to enhance liquidity and operational efficiency.58
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 666.82M | 1.05B | 1.12B | 1.10B | 694.15M | Gross Profit |
| 375.29M | 475.55M | 504.46M | 513.17M | 286.98M | EBIT |
| 112.12M | 399.21M | 147.95M | 227.30M | -28.96M | EBITDA |
| 197.71M | 486.89M | 249.00M | 331.76M | 56.99M | Net Income Common Stockholders |
| 50.73M | 255.76M | 82.35M | 161.78M | -136.61M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 57.73M | 157.55M | 136.89M | 220.54M | 103.56M | Total Assets |
| 1.08B | 1.45B | 1.51B | 1.62B | 1.57B | Total Debt |
| 425.88M | 758.19M | 1.07B | 1.21B | 1.33B | Net Debt |
| 368.16M | 600.64M | 928.31M | 986.24M | 1.23B | Total Liabilities |
| 605.68M | 914.55M | 1.16B | 1.30B | 1.41B | Stockholders Equity |
| 474.23M | 537.73M | 352.92M | 319.54M | 161.26M |
| Cash Flow | Free Cash Flow | |||
| 42.44M | 33.33M | 98.78M | 266.52M | 233.00K | Operating Cash Flow |
| 92.34M | 119.20M | 150.20M | 295.77M | 36.73M | Investing Cash Flow |
| 147.23M | 266.92M | -51.27M | -28.89M | -35.85M | Financing Cash Flow |
| -379.44M | -330.56M | -177.44M | -149.91M | -9.00M |
Golden Entertainment Technical Analysis
Positive
27.32
Price Trends
26.67
Positive
29.31
Negative
30.07
Negative
Market Momentum
-0.11
Negative
59.01
Neutral
60.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GDEN, the sentiment is Positive. The current price of 27.32 is above the 20-day moving average (MA) of 25.84, above the 50-day MA of 26.67, and below the 200-day MA of 30.07, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 59.01 is Neutral, neither overbought nor oversold. The STOCH value of 60.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GDEN.
Golden Entertainment Risk Analysis
Golden Entertainment disclosed 28 risk factors in its most recent earnings report. Golden Entertainment reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Golden Entertainment Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $953.06M | 22.73 | 18.42% | ― | 6.28% | -1.99% | |
65 Neutral | $500.05M | 10.21 | 49.64% | ― | 6.60% | 778.46% | |
62 Neutral | $1.21B | 82.29 | 6.23% | ― | -6.97% | -81.42% | |
61 Neutral | $6.66B | 11.77 | 3.06% | 3.96% | 2.60% | -21.54% | |
60 Neutral | $678.33M | 15.15 | 10.03% | 3.85% | -31.14% | -95.88% | |
47 Neutral | $741.76M | ― | -170.41% | ― | 0.06% | -248.51% | |
38 Underperform | $632.15M | ― | -16.16% | ― | 19.57% | 10.86% |
* Consumer Cyclical Sector Average
Performance Comparison
GDEN
Golden Entertainment
27.32
-3.40
-11.07%
EVRI
Everi Holdings
14.06
6.33
81.89%
ACEL
Accel Entertainment
11.40
1.39
13.89%
AGS
Playags
12.12
0.83
7.35%
MSC
Studio City International Holdings
3.36
-4.06
-54.72%
BALY
Bally's Corporation
11.24
-10.83
-49.07%
Golden Entertainment Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 5.32%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance with strong operational efficiencies and a robust liquidity position, but challenges remain, particularly with declining occupancy at The Strat and increased tavern competition. The company is focusing on share repurchases due to limited M&A opportunities.Q1-2025 Updates
Positive Updates
Strong Start to Q2 for The Strat
Hotel revenue at The Strat is up in April with higher occupancy and rates, leading to improved EBITDA. Occupancy is pacing up 6% over last year for May, with June also showing strength.
Operational Efficiencies Boost Nevada Locals' Casinos
Revenue for Nevada locals' casinos was flat year-over-year, but EBITDA was up 2%, driven by operational efficiencies, with EBITDA margins at 46% for the second straight quarter.
Successful Share Repurchases
Since 2024, the company repurchased 3.2 million shares totaling almost $100 million and paid out $35 million in dividends. $92 million remains on the current buyback authorization.
Low Net Leverage and Strong Liquidity Position
The company ended the quarter with just over $400 million of debt, $50 million in cash, and $225 million available under the revolving credit facility, with a low net leverage at 2.4 times EBITDA.
Negative Updates
Declining Occupancy at The Strat Due to Super Bowl Impact
The Strat experienced a $3 million EBITDA headwind from last year's Super Bowl, with occupancy down 5% for the quarter and 13% in February.
Slight Decline in Tavern Revenue and EBITDA
Tavern revenue and EBITDA were down slightly year-over-year, though EBITDA increased sequentially over Q4. There is increased promotional activity from smaller private operators, which may impact Q2 performance.
Limited M&A Opportunities
The company notes limited M&A opportunities in the market, with current assets having high price expectations relative to their quality. The macroeconomic environment and interest rates are also dampening strategic M&A discussions.
Company Guidance
In the Golden Entertainment, Inc. First Quarter 2025 Earnings Conference Call, the company provided guidance indicating stable operating trends and a promising start for the second quarter, despite not hosting last year's Super Bowl, which impacted The Strat's EBITDA by $3 million. The Strat's occupancy was down 5% for the quarter, with a significant 13% drop in February. However, The Strat's hotel revenue has improved in April with higher occupancy and rates, and May's occupancy is pacing 6% higher year-over-year. Nevada locals' casinos maintained a 46% EBITDA margin for two consecutive quarters, with revenue flat but EBITDA up by 2% due to operational efficiencies. The company ended Q1 with over $400 million in debt, $50 million in cash, and $225 million available under its revolving credit facility, maintaining a low net leverage of 2.4 times EBITDA. Despite some challenges in the tavern market due to increased competition, EBITDA from the taverns improved sequentially over Q4. The company repurchased 274,000 shares worth $7.6 million during Q1 and has $92 million remaining on its buyback authorization. The management emphasized prioritizing share repurchases over M&A due to current market conditions and continues to focus on strengthening the core business and leveraging favorable economic trends in Nevada.Golden Entertainment Corporate Events
Executive/Board Changes
Golden Entertainment Announces New Chief Accounting Officer
Neutral
Mar 18, 2025
Golden Entertainment, Inc. announced the retirement of Thomas E. Haas, Senior Vice President and Chief Accounting Officer, effective March 21, 2025. His retirement is amicable, and he will receive a separation package including salary continuation and benefits. Viktoryia G. Pulliam will succeed him as the new Chief Accounting Officer, bringing over 15 years of financial leadership experience, including a significant tenure at Deloitte & Touche.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.