Important note

This AI stock analysis for Dave & Buster's is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Dave & Buster's - AI Stock Analysis

Analysis generated August 13, 2024

Dave & Buster's is a dining and entertainment company known for its unique combination of a full-service restaurant, bar, and gaming arcade. Established in 1982, the company has grown to become a popular destination for those seeking food, beverages, and a variety of arcade games all under one roof. With locations across North America, Dave & Buster's aims to provide a fun and engaging experience for adults and families alike. The company trades under the ticker symbol "PLAY".

Fundamental Analysis

Revenue for the last quarter was $555 million. This represents a decrease of 1.56% compared to the quarter before it, indicating a need for concern. More disconcertingly, compared to the same quarter last year, there is a decrease of 1.91%, which may signal deeper issues in maintaining growth. This trend in decreasing revenue could highlight problems in market demand, competitive pressure, or ineffective marketing strategies.

Net income for the last quarter was $41 million, an increase of 14.68% compared to the quarter before it. This is a positive indicator of the company’s ability to manage expenses effectively and improve profitability. However, compared to the same quarter last year, net income decreased by 40.94%, which paints a worrying picture of long-term sustainable growth and profitability.

EBITDA for the last quarter stood at $148 million. This is an increase of 3.56% compared to the previous quarter, signaling positive operational performance. However, on a year-over-year basis, there is a decrease of 12.92%, suggesting that operating efficiencies may be declining, or costs are rising compared to revenue generation.

The current Price-to-Earnings (P/E) ratio is 13.12. This value appears within a normal range and neither particularly high nor low, indicating that the stock is neither overvalued nor undervalued based on current earnings.

Technical Analysis

Today’s stock price for Dave & Buster's is $31.87, representing a significant decrease of 20.98% compared to a month ago. This sharp decline could be concerning in the short term. Over the past year, the stock has decreased by 22.81%, which could be troubling from a long-term perspective. The overall trend appears bearish.

The current Simple Moving Average over 10 days (SMA10) is $31.93, slightly lower than the previous SMA10 of $32.10. This suggests a consistent downward trend in price movement. Furthermore, the Relative Strength Index (RSI) is 28.2, which lies in the oversold category, indicating a potentially bullish reversal could be on the horizon if market conditions improve.

Alternative Data Analysis

Dave & Buster's job postings are currently at 1,239, a number that has remained stable over the past few months. This stability indicates a consistent operational stance and no significant changes in staffing requirements.

However, customer acquisition data is not as optimistic. The company's website receives an estimated 1.7 million visitors, which is down by 13% over the past couple of months. This decline is concerning as it suggests a potential drop in interest or market penetration.

App downloads are also flagging, with an estimated 2,500 users downloading their mobile app daily, which represents a 48% decline over recent months. This trend is alarming as it could imply deteriorating customer engagement and potential revenue loss.

On the brighter side, Dave & Buster's social media engagement shows some signs of growth. The company has 130,000 followers on Instagram, with a 4% increase noted recently, indicating some growing interest. Twitter followers have stagnated at 44,000, showing no significant change.

AltIndex's AI score for Dave & Buster's stands at 40, which is a sell signal. This AI score takes into account fundamental, technical, and alternative data, providing a comprehensive perspective on the stock’s potential performance.

Conclusion

Dave & Buster's presents a mixed picture based on the data analyzed. On one hand, the company shows positive short-term profitability improvements in metrics like net income and EBITDA on a quarter-over-quarter basis. On the other hand, declining revenue and long-term profitability measures alongside bearish stock trends raise concerns.

Alternative data suggests waning customer interest, as evidenced by declining website visits and app downloads, which could impact future revenue. However, the stable job postings and modest growth in social media following provide some balance.

Given the current bearish stock trend, declining alternative data metrics, and the AI score of 40 recommending a sell, the overall recommendation would be to hold or sell the stock. Potential investors should tread cautiously and consider these indicators before making any further investments in Dave & Buster's.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.