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Accel Entertainment (ACEL)
NYSE:ACEL
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Accel Entertainment (ACEL) AI Stock Analysis

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ACEL

Accel Entertainment

(NYSE:ACEL)

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Neutral 64 (OpenAI - 4o)
Rating:64Neutral
Price Target:
$12.00
▲(9.79% Upside)
Accel Entertainment's overall stock score reflects strong financial performance and positive earnings call sentiment, which are offset by technical analysis indicators suggesting bearish momentum and a high P/E ratio indicating overvaluation. The company's strategic growth initiatives and strong balance sheet provide a positive outlook, but operational efficiency and valuation concerns remain.

Accel Entertainment (ACEL) vs. SPDR S&P 500 ETF (SPY)

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 generates revenue primarily through the operation of video gaming terminals, earning a share of the gaming revenue generated from these machines. The company's revenue model is built on a percentage of the net gaming revenue, which varies based on state regulations. In addition to VGT operations, Accel may also earn income from partnerships with establishments that host their gaming terminals, as well as from ancillary services related to gaming operations, such as maintenance and support. The company's strategic partnerships with venues across Illinois and other states further enhance its revenue potential by expanding its footprint and operational reach in the gaming market.

Accel Entertainment Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant growth and record-breaking performance in core and developing markets, alongside successful M&A integrations. However, some challenges were noted in Nevada and Montana. Overall, the company's strategic initiatives and strong financial position suggest a positive outlook.
Q2-2025 Updates
Positive Updates
Record Quarterly Revenue and Adjusted EBITDA
Accel Entertainment generated record quarterly revenue of $336 million and adjusted EBITDA of $53 million in Q2 2025.
Growth in Core and Developing Markets
Illinois revenue increased by over 8% to a quarterly record of $245 million. Developing markets Nebraska and Georgia saw revenue growth of 26.1% and 53.5%, respectively.
Successful M&A Contributions
The acquisition of Toucan Gaming in Louisiana contributed approximately $10 million in revenue for the second quarter.
Positive Fairmount Park Casino & Racing Performance
The completion of Phase 1 at Fairmount Park Casino & Racing showed strong turnout, contributing positively to Accel's revenue.
Strong Balance Sheet and Share Repurchases
Accel repurchased 634,000 shares in Q2 and maintains a strong balance sheet with $392 million in liquidity.
Negative Updates
Nevada Revenue Decline
Revenue in Nevada declined by 7.7% due to the loss of a key customer in 2024 following a change in ownership.
Challenges in Montana Consolidated Operations
A decline in revenue was noted due to timing on software sales as the company updates operating platforms.
Company Guidance
During Accel Entertainment's Second Quarter 2025 Earnings Call, the company reported record quarterly revenue of $336 million and adjusted EBITDA of $53 million. Accel's growth strategy focuses on a multipronged approach, leveraging its strong competitive position with over 27,000 gaming terminals across 4,400 retail partners in 10 states. Core market Illinois reported an 8% revenue increase to $245 million, while developing markets Nebraska and Georgia saw significant growth of 26.1% and 53.5%, respectively. Nevada experienced a 7.7% revenue decline due to losing a key customer, but Accel remains optimistic about future growth potential. The Toucan Gaming acquisition in Louisiana contributed $10 million in revenue, and the company completed Phase 1 of its Fairmount Park casino project. Accel's balance sheet remains strong with $331 million in net debt and $392 million in liquidity, and it plans to continue exploring disciplined M&A opportunities in the fragmented $15 billion local gaming market.

Accel Entertainment Financial Statement Overview

Summary
Accel Entertainment demonstrates strong revenue growth and improved profitability with significant reductions in leverage. However, operational efficiency has seen slight pressure, and free cash flow growth has been negative, which slightly dampens the overall financial performance.
Income Statement
75
Positive
Accel Entertainment has demonstrated consistent revenue growth, with a TTM revenue growth rate of 2.11%. The gross profit margin is stable at 32.35%, and the net profit margin has improved to 3.39% in the TTM. However, the EBIT and EBITDA margins have slightly decreased compared to previous years, indicating some pressure on operational efficiency.
Balance Sheet
60
Neutral
The company's debt-to-equity ratio has significantly improved to 0.13 in the TTM, indicating a strong reduction in leverage. Return on equity has increased to 18.27%, reflecting better profitability. However, the equity ratio remains moderate, suggesting a balanced but cautious approach to asset financing.
Cash Flow
65
Positive
Operating cash flow has remained robust with a coverage ratio of 1.05 in the TTM. However, free cash flow growth has been negative, declining by 27.26%. The free cash flow to net income ratio is healthy at 47.04%, indicating good cash conversion despite the recent decline in free cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.28B1.23B1.17B969.80M734.71M316.35M
Gross Profit394.78M378.60M353.23M298.90M240.68M105.27M
EBITDA157.72M133.56M157.99M163.18M105.95M39.96M
Net Income35.20M35.25M45.60M74.10M31.56M-410.00K
Balance Sheet
Total Assets1.06B1.05B912.89M862.77M616.07M560.24M
Cash, Cash Equivalents and Short-Term Investments264.63M281.31M261.61M256.18M230.85M134.45M
Total Debt595.48M595.38M542.57M542.03M341.52M340.14M
Total Liabilities791.52M789.09M714.49M684.18M457.61M432.36M
Stockholders Equity260.54M255.03M198.40M178.59M158.46M127.88M
Cash Flow
Free Cash Flow46.95M54.65M50.79M60.62M81.00M-29.47M
Operating Cash Flow128.14M121.19M132.53M108.00M110.75M-3.71M
Investing Cash Flow-114.79M-124.15M-59.79M-189.26M-34.54M-61.44M
Financing Cash Flow-3.64M22.65M-35.24M106.59M-11.88M74.19M

Accel Entertainment Technical Analysis

Technical Analysis Sentiment
Negative
Last Price10.93
Price Trends
50DMA
11.42
Negative
100DMA
11.58
Negative
200DMA
11.22
Negative
Market Momentum
MACD
-0.10
Positive
RSI
42.01
Neutral
STOCH
27.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACEL, the sentiment is Negative. The current price of 10.93 is below the 20-day moving average (MA) of 11.13, below the 50-day MA of 11.42, and below the 200-day MA of 11.22, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 42.01 is Neutral, neither overbought nor oversold. The STOCH value of 27.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$249.01M4.26-12.77%-4.95%
64
Neutral
$921.33M26.7914.99%7.01%-27.45%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
54
Neutral
$651.37M-113.09%-1.10%-1.69%
48
Neutral
$598.24M43.783.11%4.23%-21.68%-94.08%
45
Neutral
$104.00M-101.45%8.24%-43.10%
41
Neutral
$811.26M-11.87%15.03%27.99%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ACEL
Accel Entertainment
10.93
-0.53
-4.62%
FLL
Full House Resorts
2.88
-2.12
-42.40%
GDEN
Golden Entertainment
22.87
-6.28
-21.54%
INSE
Inspired Entertainment
9.25
-0.31
-3.24%
MSC
Studio City International Holdings
3.87
-3.23
-45.49%
BALY
Bally's Corporation
13.20
-8.87
-40.19%

Accel Entertainment Corporate Events

Executive/Board ChangesShareholder Meetings
Accel Entertainment Approves Key Amendments at Annual Meeting
Neutral
Jun 9, 2025

On June 6, 2025, Accel Entertainment held its Annual Meeting where stockholders approved several key amendments to the company’s Certificate of Incorporation. These included the Declassification Amendment, which allows for the annual election of directors, and the Exculpation Amendment, which exculpates certain company officers from personal liability for specific breaches of duty. Additionally, Kathleen Philips and Kenneth B. Rotman were elected as directors for a one-year term, and the appointment of KPMG LLP as the independent registered public accounting firm for 2025 was ratified.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Oct 01, 2025