Accel Entertainment, Inc. (ACEL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Accel Entertainment, Inc.

Manchester United Plc

Madison Square Garden Entertainment Corp.

Bowlero Corp.

Cinemark Holdings, Inc.

Atlanta Braves Holdings, Inc.

Dave & Buster's Entertainment, Inc.

Cedar Fair LP

AMC Entertainment Holdings, Inc.

Six Flags Entertainment Corp.

Golden Entertainment, Inc.

Why is Accel Entertainment, Inc. ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.59 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.59 times
The company has been able to generate a Return on Capital Employed (avg) of 17.66% signifying low profitability per unit of total capital (equity and debt)

Healthy long term growth as Net Sales has grown by an annual rate of 19.28% and Operating profit at 41.01%

The company declared positive results in Mar'25 after negative results in Dec'24

RAW MATERIAL COST(Y) Fallen by -3.45% (YoY)
CASH AND EQV(HY) Highest at USD 536.57 MM
NET SALES(Q) Highest at USD 335.91 MM

With ROCE of 15.84%, it has a fair valuation with a 2.20 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -8.33%, its profits have fallen by -14.3%

Below par performance in long term as well as near term

Along with generating -8.33% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Accel Entertainment, Inc. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Accel Entertainment, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Accel Entertainment, Inc.

15.0%

0.24

33.21%

S&P 500

25.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

33.29%

EBIT Growth (5y)

46.44%

EBIT to Interest (avg)

2.87

Debt to EBITDA (avg)

2.59

Net Debt to Equity (avg)

1.23

Sales to Capital Employed (avg)

1.52

Tax Ratio

30.52%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

59.69%

ROCE (avg)

17.66%

ROE (avg)

20.32%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.25

EV to EBIT

11.16

EV to EBITDA

6.47

EV to Capital Employed

2.02

EV to Sales

0.90

PEG Ratio

0.40

Dividend Yield

ROCE (Latest)

18.09%

ROE (Latest)

20.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 148.86 MM

NET PROFIT(HY)

At USD 29.99 MM has Grown at 47.34%

DEBT-EQUITY RATIO (HY)

Lowest at 117.35 %

RAW MATERIAL COST(Y)

Fallen by 0.12% (YoY

CASH AND EQV(HY)

Highest at USD 570.66 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 118.29 times

NET SALES(Q)

Highest at USD 351.56 MM

-2What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 90.09 times

OPERATING PROFIT MARGIN(Q)

Lowest at 13.58 %

Here's what is working for Accel Entertainment, Inc.

Operating Cash Flow

Highest at USD 148.86 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Profit

At USD 29.99 MM has Grown at 47.34%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Debt-Equity Ratio

Lowest at 117.35 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales

Highest at USD 351.56 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Cash and Eqv

Highest at USD 570.66 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 118.29 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 0.12% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 20.65 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Accel Entertainment, Inc.

Operating Profit Margin

Lowest at 13.58 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 90.09 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio