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Golden Entertainment (GDEN)
NASDAQ:GDEN
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Golden Entertainment
(NASDAQ:GDEN)58Neutral
Positive Factors
Shareholder Value
Management remains proactive in unlocking shareholder value through buybacks or utilizing its strong balance sheet and real estate ownership.
Valuation
Analyst's price target of $38 implies a 23% upside, based on a sum-of-the-parts valuation on 2026 estimated EBITDA.
Negative Factors
Stock Performance
The share price of Golden Entertainment Inc has underperformed by 15% compared to the S&P 500 over the last twelve months.
Golden Entertainment (GDEN) vs. S&P 500 (SPY)
Market Cap
$760.34M
Dividend Yield3.49%
Average Volume (3M)202.60K
Price to Earnings (P/E)16.8
Beta (1Y)1.20
Revenue Growth-33.47%
EPS Growth-86.04%
CountryUS
Employees5,800
SectorConsumer Cyclical
Sector Strength53
IndustryHotels, Lodging & Leisure
Share Statistics
EPS (TTM)1.67
Shares Outstanding26,511,007
10 Day Avg. Volume327,339
30 Day Avg. Volume202,601
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.14
Price to Cash Flow (P/CF)8.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$35.80Price Target Upside24.83% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Golden Entertainment Business Overview & Revenue Model
Company DescriptionGolden Entertainment, Inc. (GDEN) is a diversified gaming company that operates in various sectors within the entertainment industry. It is primarily engaged in the ownership and operation of casino resorts and distributed gaming operations. The company's portfolio includes casinos, taverns, and a robust distributed gaming segment, which involves the installation, maintenance, and operation of slot machines and other gaming devices in non-casino venues such as bars and restaurants.
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
Negative
28.68
Price Trends
32.01
Negative
31.88
Negative
30.97
Negative
Market Momentum
-0.83
Positive
27.27
Positive
18.93
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GDEN, the sentiment is Negative. The current price of 28.68 is below the 20-day moving average (MA) of 31.85, below the 50-day MA of 32.01, and below the 200-day MA of 30.97, indicating a bearish trend. The MACD of -0.83 indicates Positive momentum. The RSI at 27.27 is Positive, neither overbought nor oversold. The STOCH value of 18.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.60B | 22.62 | 18.25% | 1.38% | 4.13% | 17.73% | |
74 Outperform | $5.78B | 11.15 | 34.76% | 0.98% | 5.13% | 2.04% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
58 Neutral | $760.34M | 16.79 | 10.03% | 3.49% | -33.47% | -86.04% | |
49 Neutral | $6.04B | ― | -6.38% | ― | -2.45% | -135.17% | |
44 Neutral | $79.77M | ― | -79.81% | ― | 14.06% | -241.92% | |
44 Neutral | $2.80B | ― | -10.27% | ― | 3.38% | 38.18% |
* Consumer Cyclical Sector Average
Performance Comparison
GDEN
Golden Entertainment
28.68
-3.64
-11.26%
BYD
Boyd Gaming
69.02
6.33
10.10%
CNTY
Century Casinos
2.48
-0.60
-19.48%
MCRI
Monarch Casino & Resort
86.76
16.92
24.23%
PENN
Penn National Gaming
16.55
-2.19
-11.69%
CZR
Caesars Entertainment
28.48
-14.15
-33.19%
Golden Entertainment Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -6.97% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced perspective with significant achievements such as capital optimization and shareholder returns being offset by challenges like year-over-year revenue decline and occupancy issues at The STRAT. The call's sentiment is a blend of positive strategic moves and operational hurdles that need addressing.Highlights
Streamlined Portfolio and Capital Optimization
Golden Entertainment completed the sale of its Nevada distributed business, generating over $600 million, which was used to optimize capital structure and reduce leverage.
Shareholder Returns
The company instituted a regular quarterly dividend and repurchased 2.9 million shares, representing 14% of the free float, with $113 million returned to shareholders in 2024.
Improved Sequential Performance
Q4 2024 operations generated $164 million in revenue and $39 million EBITDA, with material sequential EBITDA improvements at all properties except Laughlin.
Nevada Locals Casinos Performance
Nevada Locals Casinos saw increased revenue and EBITDA over the previous year with an EBITDA margin improving to 46%.
Debt Reduction and Strong Balance Sheet
Total funded debt reduced to approximately $400 million, with net leverage at 2.3x EBITDA and $220 million remaining availability under the revolving credit facility.
Lowlights
Year-over-Year Revenue Decline
Q4 results were lower year-over-year despite being up from Q3, with October and November seeing declines in rated gaming revenue.
Mid-Week Occupancy Decline at The STRAT
Mid-week occupancy at The STRAT was down 6%, contributing to declines in the Nevada Casino Resorts segment.
F1 Event Impact
The F1 event saw a dramatic fall-off, negatively impacting rate compression and occupancy compared to the previous year.
Challenges with New Taverns
Seven recent tavern additions, especially those acquired, have been slow to stabilize, impacting performance negatively.
Company Guidance
During the Golden Entertainment Fourth Quarter 2024 Earnings Conference Call, the company provided detailed guidance on its financial performance and strategic initiatives. The company reported Q4 2024 revenue of $164 million and EBITDA of $39 million, contributing to full-year revenue and EBITDA of $667 million and $155 million, respectively. Despite a year-over-year decline in Q4 results, there was marked improvement from Q3, with sequential EBITDA growth across properties, excluding Laughlin due to seasonal factors. The company highlighted the successful divestiture of non-core assets, generating over $600 million, which was used to optimize the capital structure, including reducing leverage to 2.3x EBITDA and repaying over $500 million of debt. In 2024, Golden Entertainment also returned nearly $190 million to shareholders through share repurchases and dividends, with a Q4 buyback of 1.1 million shares for $36 million. The company anticipates improving performance in 2025, driven by organic growth at The STRAT, stabilization of new taverns, and Nevada's favorable economic conditions. Additionally, Golden Entertainment remains open to strategic acquisitions, focusing on opportunities that align with its commitment to enhancing shareholder value.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.