Education
About Us
Working with TipRanks
Follow Us
Accel Entertainment (ACEL)
NYSE:ACEL
Top Page
Accel Entertainment
(NYSE:ACEL)
72Outperform
Accel Entertainment (ACEL) vs. S&P 500 (SPY)
Market Cap
$918.93M
Dividend YieldN/A
Average Volume (3M)487.19K
Price to Earnings (P/E)26.4
Beta (1Y)0.89
Revenue Growth5.17%
EPS Growth-20.75%
CountryUS
Employees1,500
SectorConsumer Cyclical
Sector Strength62
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.41
Shares Outstanding85,561,070
10 Day Avg. Volume653,958
30 Day Avg. Volume487,187
Financial Highlights & Ratios
PEG Ratio9.67
Price to Book (P/B)N/A
Price to Sales (P/S)0.69
Price to Cash Flow (P/CF)15.70
P/FCF Ratio102.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$15.00Price Target Upside36.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Accel Entertainment Business Overview & Revenue Model
Company DescriptionAccel Entertainment, Inc., together with its subsidiaries, operates as a distributed gaming operator in the United States. It is involved in the installation, maintenance, and operation of gaming terminals; redemption devices that disburse winnings and contain automated teller machine (ATM) functionality; and other amusement devices in authorized non-casino locations, such as restaurants, bars, taverns, convenience stores, liquor stores, truck stops, and grocery stores. The company also provides licensed establishment partners gaming solutions that appeal to players who patronize those businesses. In addition, it operates stand-alone ATMs in gaming and non-gaming locations, as well as amusement devices, including jukeboxes, dartboards, pool tables, pinball machines, and other related entertainment equipment. As of December 31, 2021, the company operated 13,639 video gaming terminals across 2,584 locations in Illinois. Accel Entertainment, Inc. is headquartered in Burr Ridge, Illinois.
How the Company Makes MoneyAccel Entertainment makes money through a revenue-sharing model with its partner establishments where video gaming terminals (VGTs) are installed. These VGTs generate income from players, and the revenue is split between Accel, the partnering venue, and the state or local government. The company earns a percentage of the net terminal income, which is the total amount wagered minus the winnings paid out to players. Accel also benefits from economies of scale by managing a large network of gaming terminals, which helps optimize operational efficiencies and maximize profitability. Additionally, Accel Entertainment's growth is supported by strategic partnerships and agreements with various establishments, expanding its footprint in the distributed gaming market.
Accel Entertainment Financial Statement Overview
Summary
Accel Entertainment maintains a healthy financial position with consistent revenue growth and strong cash flow generation. Despite a slight dip in net income and profitability margins in 2024, the company has strengthened its balance sheet by reducing debt and increasing equity. Continued focus on improving profit margins and return on equity will be essential for sustaining long-term growth.Income Statement
Accel Entertainment has demonstrated a strong revenue trajectory with consistent growth over the years. The revenue growth rate from 2023 to 2024 was 5.18%, showcasing a stable upward trend. Gross profit margins have been solid, although there was a slight decline in EBIT and EBITDA margins in 2024 compared to 2023. Net profit margin decreased due to lower net income, which is a concern to monitor.72
Positive
Balance Sheet
The balance sheet reflects a strong equity base with an improving debt-to-equity ratio, owing to decreased total debt levels. The equity ratio has improved to 24.32%, indicating better financial health. However, the return on equity decreased to 13.82% in 2024, which suggests a need for better utilization of equity to generate income.68
Positive
Cash Flow
Operating cash flow remains robust, closely mirroring net income, indicating healthy cash generation from operations. Free cash flow has grown significantly, reflecting positive cash management. The free cash flow to net income ratio is strong, suggesting efficient conversion of net income into free cash.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.23B | 1.17B | 969.80M | 734.71M | 316.35M | Gross Profit |
| 378.60M | 353.23M | 298.90M | 240.68M | 105.27M | EBIT |
| 90.88M | 107.41M | 96.86M | 70.19M | -24.68M | EBITDA |
| 133.56M | 157.99M | 163.18M | 105.95M | 39.96M | Net Income Common Stockholders |
| 35.25M | 45.60M | 74.10M | 31.56M | -12.98M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 281.31M | 261.61M | 256.18M | 230.85M | 134.45M | Total Assets |
| 1.05B | 912.89M | 862.77M | 616.07M | 560.24M | Total Debt |
| 34.44M | 542.57M | 542.03M | 341.52M | 340.14M | Net Debt |
| -246.86M | 280.96M | 317.92M | 142.74M | 205.69M | Total Liabilities |
| 789.09M | 714.49M | 684.18M | 457.61M | 432.36M | Stockholders Equity |
| 255.03M | 198.40M | 178.59M | 158.46M | 127.88M |
| Cash Flow | Free Cash Flow | |||
| 54.65M | 50.79M | 60.62M | 81.00M | -29.47M | Operating Cash Flow |
| 121.19M | 132.53M | 108.00M | 110.75M | -3.71M | Investing Cash Flow |
| -124.15M | -59.79M | -189.26M | -34.54M | -61.44M | Financing Cash Flow |
| 22.65M | -35.24M | 106.59M | -11.88M | 74.19M |
Accel Entertainment Technical Analysis
Positive
10.96
Price Trends
10.78
Positive
10.99
Negative
11.06
Negative
Market Momentum
-0.26
Negative
40.21
Neutral
43.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACEL, the sentiment is Positive. The current price of 10.96 is above the 20-day moving average (MA) of 10.10, above the 50-day MA of 10.78, and below the 200-day MA of 11.06, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 40.21 is Neutral, neither overbought nor oversold. The STOCH value of 43.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACEL.
Accel Entertainment Risk Analysis
Accel Entertainment disclosed 37 risk factors in its most recent earnings report. Accel 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
Accel Entertainment Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.37B | 19.32 | 18.25% | 1.62% | 4.13% | 17.73% | |
72 Outperform | $918.93M | 26.44 | 15.55% | ― | 5.17% | -20.75% | |
65 Neutral | $492.21M | 10.07 | 53.82% | ― | 10.75% | 10405.31% | |
62 Neutral | $1.17B | 80.23 | 6.23% | ― | -6.97% | -81.42% | |
59 Neutral | $11.38B | 10.18 | -0.84% | 4.04% | 1.25% | -16.04% | |
58 Neutral | $674.10M | 14.93 | 10.03% | 3.92% | -36.68% | -79.99% | |
47 Neutral | $741.76M | ― | -170.41% | ― | 0.06% | -248.51% |
* Consumer Cyclical Sector Average
Performance Comparison
ACEL
Accel Entertainment
10.96
0.05
0.46%
EVRI
Everi Holdings
13.68
4.47
48.53%
MCRI
Monarch Casino & Resort
74.62
5.15
7.41%
GDEN
Golden Entertainment
25.12
-8.00
-24.15%
AGS
Playags
11.95
3.08
34.72%
BALY
Bally's Corporation
15.46
-6.61
-29.95%
Accel Entertainment Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -6.40% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive sentiment overall, with strong financial performance and strategic expansions into new markets. Despite some challenges in the Nevada market and strategic closures in Illinois, the company's growth in revenue, expansion efforts, and share repurchases indicate a robust position and optimistic outlook.Highlights
Record-Setting Annual Revenue
Accel Entertainment achieved a record-setting year with total revenue of $1.2 billion and adjusted EBITDA of $189 million, indicating strong growth and financial performance.
Successful Market Expansion
Entered into Louisiana on November 1st and acquired Fairmont Park outside Saint Louis on December 2nd, showcasing strategic expansion efforts.
Growth in Core Markets
Illinois posted a 4% year-over-year GGR growth, outperforming local casinos and demonstrating resilience in its home market.
Increase in Terminals and Locations
As of December 31st, Accel had 26,346 terminals in 4,117 locations, marking year-over-year increases of 5% and 3.9%, respectively.
Share Repurchase Program
Repurchased 2.4 million shares for $25 million in 2024, with a renewed authorization of $200 million for further repurchases, reflecting confidence in financial strength.
Positive Performance in Several States
Revenue per location increased in Illinois (3.5%), Montana (4.6%), and Nebraska (5.9%), highlighting strong performance across key states.
Lowlights
Decline in Nevada Revenue
Revenue per location in Nevada decreased by 6.7% year-over-year, indicating challenges in that particular market.
Strategic Closures in Illinois
Closed fifty-four underperforming locations in Illinois due to a 1% increase in state gaming tax, reflecting challenges in maintaining profitability across all locations.
Company Guidance
In the Accel Entertainment, Inc. Q4 and full year 2024 earnings call, the company reported a record-setting year with total revenue reaching $1.2 billion and adjusted EBITDA of $189 million. The Illinois market demonstrated strong performance, with a 4% year-over-year growth in market-wide gross gaming revenue (GGR), despite a 1% increase in state gaming tax. The company strategically closed fifty-four underperforming locations throughout the year, focusing on improving financial performance and free cash flow. During the call, Accel highlighted the acquisition of Fairmont Park and entry into the Louisiana market as significant developments. In terms of future growth, Accel aims for mid-single-digit EBITDA growth and plans to continue investing in high-margin revenue gaming products and labor-light self-service technology. The company also emphasized its ongoing efforts in optimizing its sales and operating model across its footprint, with expectations for significant capital expenditures in 2025, ranging from $75 million to $80 million.Accel Entertainment Corporate Events
Executive/Board ChangesShareholder Meetings
Accel Entertainment Expands Board with New Director
Neutral
Apr 11, 2025
On April 10, 2025, Eden Godsoe, a Class 3 director on the Board of Directors of Accel Entertainment, announced she will not stand for reelection at the company’s 2025 Annual Meeting of Stockholders, with no disagreements cited. Concurrently, Cheryl Kondra was appointed as a Class 2 director, expanding the Board from 8 to 9 members. Mrs. Kondra will serve as Chair of the Audit Committee and a member of the Compensation Committee, receiving prorated compensation and a restricted stock unit grant for her service.
Spark’s Take on ACEL Stock
According to Spark, TipRanks’ AI Analyst, ACEL is a Outperform.
Accel Entertainment displays strong financial performance with robust revenue and cash flow, though profitability margins need attention. The company’s strategic expansions and positive earnings call sentiment support future growth. However, the stock’s valuation is relatively high, and technical indicators suggest caution.
To see Spark’s full report on ACEL stock, click here.
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.