Accel Entertainment (ACEL) AI Stock Analysis

• Market Cap: $1.02B
• Dividend Yield: N/A
• Average Volume (3M): 242.07K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 0.84
• Revenue Growth: 6.28%
• EPS Growth: -1.99%
• Country: US
• Employees: 1,500
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.23
• Shares Outstanding: 84,641,290
• 10 Day Avg. Volume: 261,118
• 30 Day Avg. Volume: 242,075
• PEG Ratio: 0.71
• Price to Book (P/B): 9.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.21
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 2.51
• Enterprise Value/Ebitda: 1.74
• 1Y Price Target: $15.00
• Price Target Upside: 23.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: $12.50 ▲(2.80%Upside)

Accel Entertainment's stock is rated well due to its strong financial performance, highlighted by consistent revenue growth and robust cash flows, which are supported by positive technical indicators. The earnings call underscores operational successes and strategic expansions, despite minor setbacks. The valuation is moderate, reflecting a balanced risk-reward profile.

Accel Entertainment Business Overview & Revenue Model

Company Description

Accel 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 Money

Accel Entertainment generates revenue primarily by operating video gaming terminals (VGTs) in licensed establishments, such as bars, restaurants, and other venues. The company's revenue model is based on a revenue-sharing agreement with these establishments, where a percentage of the net terminal income (NTI) from the VGTs is shared between Accel Entertainment and the location owners. The company also earns revenue from providing related services, including installation, maintenance, and repair of the gaming machines. Additionally, Accel Entertainment benefits from strategic partnerships with manufacturers and distributors of gaming equipment, which support its operations and growth in the gaming sector.

Accel Entertainment Financial Statement Overview

Summary

Accel Entertainment demonstrates strong financial health with consistent revenue and profit growth, improving leverage metrics, and robust cash flow generation. While the balance sheet could benefit from higher equity levels, the company maintains a solid financial footing with efficient operations and cash management.

Income Statement

Accel Entertainment shows strong revenue growth and improved profitability. The TTM revenue growth rate of 1.79% and consistent gross profit margin near 32% suggest stable operations. The net profit margin also improved to 3.39% in TTM, indicating better cost management.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.13 in TTM, down from previous years, which is favorable. However, the equity ratio stands at 24.74%, reflecting a decent but not high level of equity cushioning. ROE improved to 16.39% in TTM, showing efficient use of equity capital.

Cash Flow

Free cash flow growth was robust at 18.05% in TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 3.23 in TTM suggests efficient cash conversion from profits. Free cash flow to net income ratio is 1.52, affirming solid cash retention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.25B	1.23B	1.17B	969.80M	734.71M	316.35M
Gross Profit	405.42M	378.60M	353.23M	298.90M	240.68M	105.27M
EBITDA	134.86M	133.56M	157.99M	163.18M	105.95M	39.96M
Net Income	42.48M	35.25M	45.60M	74.10M	31.56M	-12.98M
Balance Sheet
Total Assets	1.05B	1.05B	912.89M	862.77M	616.07M	560.24M
Cash, Cash Equivalents and Short-Term Investments	271.94M	281.31M	261.61M	256.18M	230.85M	134.45M
Total Debt	34.28M	595.38M	542.57M	542.03M	341.52M	340.14M
Total Liabilities	653.17M	789.09M	714.49M	684.18M	457.61M	432.36M
Stockholders Equity	259.07M	255.03M	198.40M	178.59M	158.46M	127.88M
Cash Flow
Free Cash Flow	64.53M	54.65M	50.79M	60.62M	81.00M	-29.47M
Operating Cash Flow	137.20M	121.19M	132.53M	108.00M	110.75M	-3.71M
Investing Cash Flow	-124.44M	-124.15M	-59.79M	-189.26M	-34.54M	-61.44M
Financing Cash Flow	5.26M	22.65M	-35.24M	106.59M	-11.88M	74.19M

Accel Entertainment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 12.16 is above the 20-day moving average (MA) of 11.63, above the 50-day MA of 11.40, and above the 200-day MA of 11.21, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 65.78 is Neutral, neither overbought nor oversold. The STOCH value of 87.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACEL.

Accel Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCRI	77 Outperform	$1.64B	17.54	18.31%	1.34%	3.84%	19.95%
AGS	68 Neutral	$518.40M	10.86	49.64%	―	6.60%	778.46%
ACEL	67 Neutral	$1.02B	24.40	18.42%	―	6.28%	-1.99%
EVRI	62 Neutral	$1.24B	87.85	5.81%	―	-6.41%	-75.66%
Sector *	60 Neutral	€5.76B	12.60	-9.84%	4.05%	3.79%	-34.20%
GDEN	57 Neutral	$800.99M	77.47	2.18%	3.26%	-31.14%	-95.88%
BALY	53 Neutral	$547.48M	―	-65.87%	―	-1.93%	15.16%

Accel Entertainment Corporate Events

Accel Entertainment Approves Key Amendments at Annual Meeting

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.

The most recent analyst rating on (ACEL) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Accel Entertainment stock, see the ACEL Stock Forecast page.

Accel Entertainment CFO Resignation Announced

On April 29, 2025, Accel Entertainment announced the resignation of its Chief Financial Officer, Mathew Ellis, effective May 9, 2025, as he pursues other career opportunities. Mark Phelan, the company’s President of U.S. Gaming, will serve as the acting CFO while Accel searches for a permanent replacement. The transition is expected to be smooth, with Phelan’s experience and the company’s strong finance team ensuring continuity in operations. The company is focused on finding a leader who can drive growth and innovation.

Accel Entertainment Expands Board with New Director

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.