Accel Entertainment (ACEL) AI Stock Analysis

• Market Cap: $883.40M
• Dividend Yield: N/A
• Average Volume (3M): 289.75K
• Price to Earnings (P/E): 25.2
• Beta (1Y): 0.82
• Revenue Growth: 7.01%
• EPS Growth: -27.45%
• Country: US
• Employees: 1,500
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.26
• Shares Outstanding: 84,293,800
• 10 Day Avg. Volume: 263,093
• 30 Day Avg. Volume: 289,745
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 1.07
• Enterprise Value/Gross Profit: 3.47
• Enterprise Value/Ebitda: 8.69
• 1Y Price Target: $16.50
• Price Target Upside: 60.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 64 Neutral
• Price Target: $12.00 ▲(16.62% 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 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 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.28B	1.23B	1.17B	969.80M	734.71M	316.35M
Gross Profit	394.78M	378.60M	353.23M	298.90M	240.68M	105.27M
EBITDA	157.72M	133.56M	157.99M	163.18M	105.95M	39.96M
Net Income	35.20M	35.25M	45.60M	74.10M	31.56M	-410.00K
Balance Sheet
Total Assets	1.06B	1.05B	912.89M	862.77M	616.07M	560.24M
Cash, Cash Equivalents and Short-Term Investments	264.63M	281.31M	261.61M	256.18M	230.85M	134.45M
Total Debt	595.48M	595.38M	542.57M	542.03M	341.52M	340.14M
Total Liabilities	791.52M	789.09M	714.49M	684.18M	457.61M	432.36M
Stockholders Equity	260.54M	255.03M	198.40M	178.59M	158.46M	127.88M
Cash Flow
Free Cash Flow	46.95M	54.65M	50.79M	60.62M	81.00M	-29.47M
Operating Cash Flow	128.14M	121.19M	132.53M	108.00M	110.75M	-3.71M
Investing Cash Flow	-114.79M	-124.15M	-59.79M	-189.26M	-34.54M	-61.44M
Financing Cash Flow	-3.64M	22.65M	-35.24M	106.59M	-11.88M	74.19M

Accel Entertainment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 10.29 is below the 20-day moving average (MA) of 10.56, below the 50-day MA of 10.99, and below the 200-day MA of 11.20, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 38.05 is Neutral, neither overbought nor oversold. The STOCH value of 53.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACEL.

Accel Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACEL	―	$883.40M	25.22	14.99%	―	7.01%	-27.45%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
INSE	―	$216.44M	3.68	―	―	-4.95%	―
BALY	―	$938.74M	―	-113.09%	―	-1.10%	-1.69%
GDEN	―	$576.53M	40.78	3.11%	4.48%	-21.68%	-94.08%
FLL	―	$101.83M	―	-101.45%	―	8.24%	-43.10%
MSC	―	$874.47M	―	-11.87%	―	15.03%	27.99%

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.