Investing in Dave & Buster's Entertainment stock may be a strategic move considering its robust
financial performance. With a total revenue of
2B and a healthy operating income of
262.5M, the company demonstrates a strong financial footing in the entertainment industry. However, potential investors should note the company's coefficient of variation of 806.21, which indicates a high level of risk relative to the return. Despite this, the company's return on assets of 0.0526 and return on equity of 0.4538 suggest efficient use of resources. Thus, while following analysts' lead may be beneficial, it is crucial to consider these factors to make an informed investment decision.
Main Points
Dave & Buster's Entertainment holds a performance score of 14 out of 100. The firm's Beta, a measure of market volatility, is 1.9, indicating a significant risk compared to the market. This means that if the market rises, the company is expected to outperform it. Conversely, in a negative market, Dave & Buster's is likely to underperform. To make an informed decision about the potential reversion of Dave & Buster's price patterns, it's crucial to examine its Sortino ratio, semi variance, and the relationship between the semi variance and the rate of daily change.
What is the right price you would pay to acquire a share of Dave Busters? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the
future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our
stock advisor page.
What is happening with Dave Busters Entertainment this year
Annual and quarterly reports issued by Dave Busters Entertainment are formal
financial statements that are published yearly and quarterly and sent to Dave stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the
Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Dave Busters often view their annual report as an effective marketing tool to disseminate their perspective on company
future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
Dave Busters Gross Profit
Dave Busters Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Dave Busters previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Dave Busters Gross Profit growth over the last 10 years. Please check Dave Busters'
gross profit and other
fundamental indicators for more details.
Is Dave a risky opportunity?
Let's check the volatility. Dave is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Dave (USA Stocks:PLAY) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of a Dave Busters stock makes you a part-owner of that company.
Dave Busters Entertainment Current Consensus
Here is the current trade recommendation based on an ongoing consensus estimate among financial analysis covering Dave Busters Enterta. The Dave consensus assessment is calculated by taking the average estimates from all of the analysts covering Dave Busters.
| Strong Buy | 5 | 55.56 |
| Buy | 2 | 22.22 |
| Hold | 2 | 22.22 |
| Sell | 0 | 0.0 |
| Strong Sell | 0 | 0.0 |
"Buy low, sell high" is a well-known investment adage that may not apply to Dave & Buster's Entertainment stock at the moment. Despite the company's impressive net income of $137.13M and a strong cash flow from operations at $444.47M, the stock's high beta of 2.08 suggests a higher level of volatility compared to the overall market. Furthermore, the company's high debt to equity ratio of 8.11% and a low current ratio of 0.53X indicate potential financial instability. While the stock is trading near its 52-week high of $65, the downside deviation of 1.95 and a total risk alpha of -0.03 suggest potential risks. Therefore, investors should exercise caution and not solely rely on analysts' recommendations when considering an investment in Dave & Buster's Entertainment.
Dave Busters implied volatility may change after the rise
Dave & Buster's Entertainment stock currently exhibits a skewness of 0.07, suggesting a slight inclination towards positive returns. However, this doesn't necessarily predict a bullish trend, as prices may decline. This potential price fluctuation could affect the implied volatility, a crucial metric for options traders. Therefore, investors should closely monitor the situation. The recent rise in Dave & Buster's stock could alter its implied volatility, impacting the pricing and potential returns of options contracts. The company's stock has relatively low volatility, with a kurtosis of 0.84. Understanding
market volatility trends can help investors time the market.
During bearish trends, the increased volatility can directly affect Dave & Buster's stock price, causing investor stress as share values drop. This often prompts investors to rebalance their portfolios by purchasing different financial instruments as prices fall. Despite a modest market slide, Dave & Buster's Entertainment stock is showing a promising rise of over 2 percent. The company's valuation real value stands at
$56.25, with a naive expected forecast value of $63.69, indicating potential for further growth. Analysts have given 2 buy recommendations, 2 hold recommendations, and a significant
5 strong buy recommendations, reflecting a strong overall consensus towards the stock. The possible upside price is $65.78, while the downside risk is limited to $61.59. Given these factors, Dave & Buster's Entertainment stock presents a compelling investment opportunity. .
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Nico Santiago is a PR Contributor to Macroaxis Editorial Board. Nico is a relatively new author here at Macroaxis and he likes to work on advertising and sponsored content and marketing for the company. Nico spends most of his time surfing when the weather is nice and he spends the rest of the year writing for various blogs and companies, as he works on his upcoming books, The Rise of the Financial Machines and Time Series Modelling with AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nico Santiago do not own shares of Dave Busters Entertainment. Please refer to our
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