Accel Entertainment (ACEL) AI Stock Analysis

• Market Cap: $940.25M
• Dividend Yield: N/A
• Average Volume (3M): 359.57K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.77
• Revenue Growth: 7.97%
• EPS Growth: 0.92%
• Country: US
• Employees: 1,500
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.16
• Shares Outstanding: 83,207,950
• 10 Day Avg. Volume: 426,352
• 30 Day Avg. Volume: 359,571
• PEG Ratio: -1.22
• Price to Book (P/B): 3.51
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 16.37
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 3.14
• Enterprise Value/Ebitda: 7.32
• 1Y Price Target: $14.50
• Price Target Upside: 28.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.79
• Revenue Forecast (FY): $1.33B

• Rating: 70 Outperform
• Price Target: $11.50 ▲(1.77% Upside)

Accel Entertainment's strong earnings call performance and strategic expansions in developing markets are the most significant factors driving the score. Financial performance is solid, with room for improvement in profitability and return on equity. Technical analysis presents a mixed outlook, while valuation is moderate. The company's strategic initiatives and financial stability position it well for future growth.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.

Market Expansion

Successful market expansion into Nebraska and Georgia demonstrates Accel's ability to grow its footprint and capture new revenue streams.

Acquisition Strategy

Strategic acquisitions like Dynasty Games enhance Accel's market position and operational scale, driving future growth potential.

Negative Factors

Profit Margins

Low net profit margins suggest inefficiencies in cost management, which could hinder profitability and require strategic adjustments.

Revenue Decline in Nevada

Revenue decline in Nevada highlights vulnerability to customer loss, impacting regional performance and necessitating diversification.

Return on Equity

Decreased return on equity indicates less efficient use of shareholder funds, potentially affecting investor confidence and capital allocation.

Accel Entertainment Business Overview & Revenue Model

Company Description

Accel Entertainment (ACEL) is a leading distributed gaming and amusement company in the United States, primarily focused on providing gaming solutions through video gaming terminals (VGTs) and amusement devices. The company operates in the gaming sector, offering a wide range of products and services, including the placement of gaming machines in bars, restaurants, and other licensed establishments. Accel is committed to enhancing the gaming experience for its customers while adhering to regulatory standards.

How the Company Makes Money

Accel Entertainment generates revenue primarily through the operation and management of video gaming terminals (VGTs) and amusement devices. The company earns a percentage of the net gaming revenue generated from these machines, which is derived from the wagers made by players. Key revenue streams include the sharing of revenue with venue operators, where Accel provides the machines in exchange for a specified percentage of the earnings. Additionally, the company may engage in partnerships with various establishments to expand its footprint, and it benefits from the growing acceptance of legalized gaming across different regions. Factors such as market expansion, regulatory developments, and customer engagement strategies also significantly contribute to its earnings.

Accel Entertainment Financial Statement Overview

Summary

Accel Entertainment shows a positive growth trajectory with stable revenue growth and improved debt management. While profitability margins and return on equity have room for enhancement, the company is on a solid path with consistent cash flow generation.

Income Statement

Accel Entertainment has demonstrated consistent revenue growth, with a TTM revenue growth rate of 2.15% and a strong historical trend. Gross profit margins have remained stable around 31%, indicating efficient cost management. However, net profit margins are relatively low at 3.34%, suggesting room for improvement in profitability.

Balance Sheet

The company has significantly reduced its debt levels, with a current debt-to-equity ratio of 0.11, down from previous years. This indicates improved financial stability. However, the return on equity has decreased to 14.35% from higher levels in the past, suggesting a need for more efficient use of equity.

Cash Flow

Operating cash flow has been consistent, with a TTM operating cash flow to net income ratio of 1.03, indicating good cash generation relative to net income. Free cash flow growth is positive at 2.37%, showing improvement. However, the free cash flow to net income ratio of 0.36 suggests limited free cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.31B	1.23B	1.17B	969.80M	734.71M	316.35M
Gross Profit	405.55M	371.50M	353.23M	298.90M	240.68M	105.27M
EBITDA	174.11M	156.18M	157.99M	163.18M	105.95M	39.96M
Net Income	43.67M	35.25M	45.60M	74.10M	31.56M	-410.00K
Balance Sheet
Total Assets	1.09B	1.05B	912.89M	862.77M	616.07M	595.28M
Cash, Cash Equivalents and Short-Term Investments	292.18M	281.31M	261.61M	256.18M	230.85M	134.45M
Total Debt	602.74M	595.38M	542.57M	542.03M	341.52M	345.81M
Total Liabilities	814.12M	789.09M	714.49M	684.18M	457.61M	467.41M
Stockholders Equity	267.12M	255.03M	198.40M	178.59M	158.46M	127.87M
Cash Flow
Free Cash Flow	48.06M	54.65M	50.79M	60.62M	81.00M	-29.47M
Operating Cash Flow	133.32M	121.19M	132.53M	108.00M	110.75M	-3.71M
Investing Cash Flow	-114.62M	-124.15M	-59.79M	-189.26M	-34.54M	-61.44M
Financing Cash Flow	6.45M	22.65M	-35.24M	106.59M	-11.88M	74.19M

Accel Entertainment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.30
• 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 11.3 is above the 20-day moving average (MA) of 10.34, above the 50-day MA of 10.32, and above the 200-day MA of 11.00, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 69.48 is Neutral, neither overbought nor oversold. The STOCH value of 94.94 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
ACEL	70 Outperform	$940.25M	22.37	18.43%	―	7.97%	0.92%
INSE	69 Neutral	$242.34M	4.52	―	―	4.03%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GDEN	57 Neutral	$738.47M	151.10	1.15%	3.54%	-12.25%	-84.89%
BALY	54 Neutral	$788.07M	-2.03	-114.88%	―	0.36%	47.55%
FLL	51 Neutral	$111.25M	-2.75	-121.54%	―	7.45%	5.03%
MSC	40 Neutral	$721.70M	-9.99	-11.41%	―	9.50%	24.64%

Accel Entertainment Corporate Events

Accel Entertainment Appoints New Chief Financial Officer

On September 22, 2025, Accel Entertainment appointed Brett Summerer as its Chief Financial Officer. With over 25 years of experience in finance and operations, Summerer will oversee all financial aspects of the company and play a key role in strategic planning and business development. His appointment is expected to support Accel’s growth and expansion into new markets, enhancing its financial platform and delivering long-term value for stakeholders.

Accel Entertainment Secures $900M Credit Facility

On September 10, 2025, Accel Entertainment announced the closure of a $900 million senior secured credit facility, comprising a $300 million Revolving Credit Facility and a $600 million Term Loan, each with a five-year term. This financial move is aimed at enhancing liquidity, reducing capital costs, and supporting growth in distributed gaming operations and other ventures. The facility, arranged by a syndicate of banks including CIBC Bank USA and others, replaces Accel’s existing credit agreement and positions the company to focus on shareholder value enhancement.