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Accel Entertainment (ACEL)
NYSE:ACEL
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Accel Entertainment
(NYSE:ACEL)
Rating:75Outperform
Price Target:
$14.50
▲(11.71%Upside)
Accel Entertainment (ACEL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.09B
Dividend YieldN/A
Average Volume (3M)259.15K
Price to Earnings (P/E)26.2
Beta (1Y)0.84
Revenue Growth6.28%
EPS Growth-1.99%
CountryUS
Employees1,500
SectorConsumer Cyclical
Sector Strength72
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.23
Shares Outstanding84,641,290
10 Day Avg. Volume321,049
30 Day Avg. Volume259,152
Financial Highlights & Ratios
PEG Ratio1.34
Price to Book (P/B)4.20
Price to Sales (P/S)0.00
P/FCF Ratio16.58
Enterprise Value/Market Cap0.77
Enterprise Value/Revenue0.17
Enterprise Value/Gross Profit2.18
Enterprise Value/Ebitda1.33
Forecast
1Y Price Target
$16.00Price Target Upside23.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Accel Entertainment Business Overview & Revenue Model
Company DescriptionAccel Entertainment, Inc. (ACEL) is a prominent player in the gaming and amusement industry, primarily operating in the United States. The company offers a comprehensive suite of gaming solutions, including video gaming terminals, redemption terminals, and amusement devices, to licensed bar and restaurant locations. Accel Entertainment is focused on providing high-quality gaming experiences through its network of terminals, while also offering related services such as installation, maintenance, and on-site support.
How the Company Makes MoneyAccel 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 Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q1-2025)
| % Change Since: 20.74%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call for Accel Entertainment highlighted significant achievements, such as record revenue and successful expansions, despite facing some challenges like a revenue decline in Nevada and a key leadership change. The company's strong performance in various markets and successful integration of acquisitions suggest a positive outlook.Q1-2025 Updates
Positive Updates
Record-Breaking Quarterly Revenue
Accel Entertainment reported total revenue of $344 million for Q1 2025, marking its highest quarterly revenue since going public. This represents a 7% year-over-year growth.
Strong Adjusted EBITDA Growth
The company achieved an adjusted EBITDA of $50 million, reflecting a 7% year-over-year increase.
Successful Fairmount Park Casino Opening
Fairmount Park Casino opened on April 18, ahead of schedule and under budget, contributing to the company's growth and marking a significant milestone as the first racino in Illinois.
Growth in Key Markets
Illinois and Montana saw revenue growth of 4% and 8% year-over-year respectively. Nebraska and Georgia experienced strong double-digit revenue growth, with Georgia's revenue per day increasing by 59.3% year-over-year.
Strategic Expansion and Acquisition
Completed the integration of recently acquired operations in Louisiana, adding 96 locations and 614 terminals, expected to drive future synergies and performance improvements.
Negative Updates
Revenue Decline in Nevada
Nevada experienced a small revenue decline in the first quarter due to the loss of a key customer from an ownership change, with revenue per day decreasing by 5.3% year-over-year.
CFO Departure
Matt Ellis, the CFO, announced his departure, effective May 9, creating a temporary leadership gap as the company searches for a permanent replacement.
Company Guidance
During the Accel Entertainment Q1 2025 earnings call, several key financial metrics and guidance were provided. The company reported a record quarterly revenue of $344 million, marking a 7% year-over-year increase, alongside an adjusted EBITDA of $50 million, also up by 7%. The growth was driven by stable revenue increases in Illinois and Montana, with 4% and 8% year-over-year growth, respectively. Nebraska and Georgia experienced double-digit growth, while Nevada faced a slight decline. The company completed integration in Louisiana, adding 96 locations and 614 terminals, and announced the opening of Fairmount Park Casino, Illinois's first racino. Looking forward, Accel projects capital expenditures for 2025 to be between $75 million and $80 million, with future normalized annual CapEx expected to return to $40 million to $45 million. The company emphasized its strategy of optimizing locations and leveraging its distributed gaming model to drive growth and improve free cash flow.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.85
Very Positive
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.70
Positive
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.80
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 |
| EBITDA | 133.56M | 157.99M | 163.18M | 105.95M | 39.96M |
| Net Income | 35.25M | 45.60M | 74.10M | 31.56M | -410.00K |
Balance Sheet | |||||
| Total Assets | 1.05B | 912.89M | 862.77M | 616.07M | 560.24M |
| Cash, Cash Equivalents and Short-Term Investments | 281.31M | 261.61M | 256.18M | 230.85M | 134.45M |
| Total Debt | 595.38M | 542.57M | 542.03M | 341.52M | 340.14M |
| 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
12.98
Price Trends
11.79
Positive
11.19
Positive
11.27
Positive
Market Momentum
0.30
Negative
68.05
Neutral
87.02
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 12.98 is above the 20-day moving average (MA) of 12.36, above the 50-day MA of 11.79, and above the 200-day MA of 11.27, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 68.05 is Neutral, neither overbought nor oversold. The STOCH value of 87.02 is Negative, 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 (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.90B | 19.59 | 19.27% | 1.16% | 4.65% | 24.60% | |
75 Outperform | $1.09B | 26.20 | 18.42% | ― | 6.28% | -1.99% | |
57 Neutral | HK$25.35B | 4.17 | -2.03% | 5.82% | -0.23% | -68.02% | |
56 Neutral | $776.93M | 75.15 | 2.18% | 3.46% | -31.14% | -95.88% | |
49 Neutral | $477.39M | ― | -65.87% | ― | -1.93% | 15.16% |
* Consumer Cyclical Sector Average
Performance Comparison
ACEL
Accel Entertainment
12.98
0.78
6.39%
MCRI
Monarch Casino & Resort
102.89
25.73
33.35%
GDEN
Golden Entertainment
28.53
-3.81
-11.78%
BALY
Bally's Corporation
9.30
-12.77
-57.86%
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.
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.
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.