Golden Entertainment, Inc. (NASDAQ: GDEN)

Sector: Consumer Cyclical Industry: Resorts & Casinos CIK: 0001071255
Market Cap 386.28 Mn
P/B 3.45
P/E 360.00
P/S 31.42
ROIC (Qtr) 2.47
Div Yield % 0.87
Rev 1y % (Qtr) -3.98
Total Debt (Qtr) 508.92 Mn
Debt/Equity (Qtr) 1.17
Add ratio to table...

About

Investment thesis

Bull case

  • Healthy cash reserves of 58.27M provide 2.68x coverage of short-term debt 21.77M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 95.37M provides strong 10.92x coverage of stock compensation 8.73M, indicating sustainable incentive practices.
  • Cash reserves of 58.27M provide ample 198.18x coverage of acquisition spending 294000, enabling strategic growth opportunities.
  • Robust tangible asset base of 898.13M provides 99.15x coverage of working capital 9.06M, indicating strong operational backing.
  • Tangible assets of 898.13M provide robust 17.31x coverage of other current liabilities 51.88M, indicating strong asset backing.

Bear case

  • Operating cash flow of 95.37M barely covers its investment activities of (40.68M), with a coverage ratio of -2.34, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 95.37M provides thin coverage of dividend payments of (26.75M) with a -3.56 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating cash flow of 95.37M provides minimal -144.29x coverage of tax expenses of (661000), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 35.59M show weak coverage of depreciation charges of 90.48M, with a 0.39 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 90.48M relative to operating cash flow of 95.37M, which is 0.95x suggests significant maintenance capital requirements affecting free cash flow.

Product and Service Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

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 0.34 1.18
EV to Cash from Ops. EV/CFO 30.82 39.36
EV to Debt EV to Debt 0.70 32.02
EV to EBIT EV/EBIT 235.55 44.55
EV to EBITDA EV/EBITDA -54.41 19.91
EV to Free Cash Flow [EV/FCF] EV/FCF -1,902.15 -82.04
EV to Market Cap EV to Market Cap 0.92 4.40
EV to Revenue EV/Rev 28.78 4.33
Price to Book Value [P/B] P/B 3.45 3.49
Price to Earnings [P/E] P/E 360.00 199.09
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.20 2.40
Dividend Payout Ratio % Div Payout % (Qtr) 454.50 38.73
Dividend per Basic Share Div per Share (Qtr) 1.00 1.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 48.10 21.58
Interest Coverage Int. cover (Qtr) 1.16 -1.90
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 26.47 7.02
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -15.00 3.69
Dividend Growth (1y) % Div 1y % (Qtr) 33.33 6.21
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -36.41 -15.96
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -36.15 -13.29
EBIT Growth (1y) % EBIT 1y % (Qtr) -65.02 -1.32
EBT Growth (1y) % EBT 1y % (Qtr) -92.19 -10.90
EPS Growth (1y) % EPS 1y % (Qtr) -83.58 9.03
FCF Growth (1y) % FCF 1y % (Qtr) 995.07 81.04
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -7.17 4.33
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.62 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.20 0.11
Cash Ratio Cash Ratio (Qtr) 0.62 0.59
Current Ratio Curr Ratio (Qtr) 1.10 0.90
Debt to Equity Ratio Debt/Equity (Qtr) 1.17 4.57
Interest Cover Ratio Int Coverage (Qtr) 1.16 -1.90
Times Interest Earned Times Interest Earned (Qtr) 1.16 -1.90
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 19.60 18.45
EBIT Margin % EBIT Margin % (Qtr) 5.53 11.71
EBT Margin % EBT Margin % (Qtr) 0.74 4.06
Gross Margin % Gross Margin % (Qtr) 56.40 47.91
Net Profit Margin % Net Margin % (Qtr) 0.80 2.46