Full House Resorts Inc (NASDAQ: FLL)

Sector: Consumer Cyclical Industry: Resorts & Casinos CIK: 0000891482
Market Cap 79.89 Mn
P/B 5.62
P/E -1.99
P/S 0.27
ROIC (Qtr) 0.48
Div Yield % 0.00
Rev 1y % (Qtr) 2.99
Total Debt (Qtr) 532.21 Mn
Debt/Equity (Qtr) 37.46
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About

Full House Resorts, Inc., often recognized by its stock symbol FLL, operates in the gaming industry, specifically owning, leasing, operating, developing, managing, and investing in casinos and related hospitality and entertainment facilities. Established in 1987, the company's headquarters are located in Las Vegas, Nevada. Full House Resorts' main business activities involve the operation of seven casinos spread across various regions in the United States. These include Silver Slipper Casino and Hotel in Mississippi, Bronco Billy's Casino and Hotel/Chamonix...

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Investment thesis

Bull case

  • Healthy cash reserves of 30.93M provide 5.58x coverage of short-term debt 5.54M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 519.21M provide robust 10.96x coverage of other current liabilities 47.37M, indicating strong asset backing.
  • Cash reserves of 30.93M provide ample 12.82x coverage of acquisition spending 2.41M, enabling strategic growth opportunities.
  • Operating cash flow of 12.77M provides strong 7.47x coverage of inventory 1.71M, indicating efficient inventory management.
  • Operating cash flow of 12.77M provides strong 6.25x coverage of tax liabilities 2.04M, showing excellent fiscal position.

Bear case

  • Operating cash flow of 12.77M barely covers its investment activities of (16.84M), with a coverage ratio of -0.76, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Free cash flow of (6.47M) provides weak coverage of capital expenditures of 19.24M, with a -0.34 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 2.64M show weak coverage of depreciation charges of 42.49M, with a 0.06 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (6.47M) represents just -8.96x of debt issuance 722000, suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High depreciation of 42.49M relative to operating cash flow of 12.77M, which is 3.33x suggests significant maintenance capital requirements affecting free cash flow.

Peer comparison

Companies in the Resorts & Casinos
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 LVS Las Vegas Sands Corp 39.82 Bn 24.48 3.06 15.78 Bn
2 WYNN Wynn Resorts Ltd 20.12 Bn 2,860.00 4.09 12.20 Bn
3 MGM MGM Resorts International 9.16 Bn 44.51 0.52 31.26 Bn
4 BYD Boyd Gaming Corp 8.33 Bn -92.47 2.92 2.46 Bn
5 MTN Vail Resorts Inc 4.91 Bn 196.79 4.35 3.38 Bn
6 HGV Hilton Grand Vacations Inc. 4.44 Bn 83.82 0.89 7.28 Bn
7 CZR Caesars Entertainment, Inc. 3.93 Bn -7.83 0.34 24.88 Bn
8 RRR Red Rock Resorts, Inc. 3.66 Bn 20.78 2.12 3.41 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.89 1.18
EV to Cash from Ops. EV/CFO 44.83 39.36
EV to Debt EV to Debt 1.08 32.02
EV to EBIT EV/EBIT 216.72 44.55
EV to EBITDA EV/EBITDA 12.69 19.91
EV to Free Cash Flow [EV/FCF] EV/FCF -88.55 -82.04
EV to Market Cap EV to Market Cap 7.17 4.40
EV to Revenue EV/Rev 1.91 4.33
Price to Book Value [P/B] P/B 5.62 3.49
Price to Earnings [P/E] P/E -1.99 199.09
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.40
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 38.73
Dividend per Basic Share Div per Share (Qtr) 0.00 1.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 21.58
Interest Coverage Int. cover (Qtr) 0.06 -1.90
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 73.76 7.02
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -7.95 3.69
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 6.21
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 367.31 -15.96
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 15.48 -13.29
EBIT Growth (1y) % EBIT 1y % (Qtr) 372.65 -1.32
EBT Growth (1y) % EBT 1y % (Qtr) -0.18 -10.90
EPS Growth (1y) % EPS 1y % (Qtr) 5.93 9.03
FCF Growth (1y) % FCF 1y % (Qtr) 88.28 81.04
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 8.55 4.33
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.47 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.11
Cash Ratio Cash Ratio (Qtr) 0.53 0.59
Current Ratio Curr Ratio (Qtr) 0.68 0.90
Debt to Equity Ratio Debt/Equity (Qtr) 37.46 4.57
Interest Cover Ratio Int Coverage (Qtr) 0.06 -1.90
Times Interest Earned Times Interest Earned (Qtr) 0.06 -1.90
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 15.00 18.45
EBIT Margin % EBIT Margin % (Qtr) 0.88 11.71
EBT Margin % EBT Margin % (Qtr) -13.34 4.06
Gross Margin % Gross Margin % (Qtr) 52.00 47.91
Net Profit Margin % Net Margin % (Qtr) -13.40 2.46