Drive Shack (DSHK) AI Stock Analysis

• Market Cap: $9.98M
• Dividend Yield: N/A
• Average Volume (3M): 47.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 3,451
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Leisure
• EPS (TTM): N/A
• Shares Outstanding: 92,385,020
• 10 Day Avg. Volume: 53,014
• 30 Day Avg. Volume: 47,374
• PEG Ratio: -0.11
• Price to Book (P/B): 3.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.38
• Enterprise Value/Market Cap: 47.62
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 4.20
• Enterprise Value/Ebitda: 7.58
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 40 Underperform
• Price Target: $0.00 ▼(-100.00%Downside)

Drive Shack's overall stock score is driven by significant financial instability, as reflected in its negative equity and operational challenges. Technical analysis suggests bearish trends, while valuation metrics do not provide a compelling case for investment in the current state.

Drive Shack Business Overview & Revenue Model

Company Description

Drive Shack Inc. owns and operates golf-related leisure and entertainment venues. It operates through three segments: Entertainment Golf Venues, Traditional Golf Properties, and Corporate. The Entertainment Golf Venues segment operates golf-related leisure and entertainment venues with gaming and golf technology, a chef-inspired menu, craft cocktails, and social events, as well as operates Puttery, an indoor socializing and entertainment platform. It also operates owned or leased entertainment golf venues across various states with locations in Orlando, Florida; West Palm Beach, Florida; Raleigh, North Carolina; and Richmond, Virginia; The Colony, Texas; Charlotte, North Carolina; Washington, District of Columbia; Houston, Texas; and Chicago, Illinois. The Traditional Golf Properties segment operates golf courses and country clubs in the United States. The Corporate segment consists of securities and other investments and executive management. The company was formerly known as Newcastle Investment Corp. and changed its name to Drive Shack Inc. in December 2016. Drive Shack Inc. was founded in 2002 and is based in Dallas, Texas.

How the Company Makes Money

Drive Shack Inc. generates revenue through a diversified model centered around its entertainment venues. Key revenue streams include fees from guests utilizing driving range bays equipped with advanced golf technology, sales from food and beverage services offered at its venues, and event hosting fees for corporate gatherings, parties, and other social events. The company also earns income from merchandise sales within its locations. Significant factors contributing to Drive Shack's earnings include its strategic location choices, partnerships with food and beverage vendors, and a focus on providing premium customer experiences that encourage repeat visits.

Drive Shack Financial Statement Overview

Summary

Drive Shack faces significant financial challenges. The company operates at a net loss with declining revenue and weak profit margins. The balance sheet reveals negative equity, indicating financial distress, while cash flow improvements are inconsistent and insufficient to offset high liabilities.

Income Statement

Drive Shack's revenue has seen fluctuations, with a notable decline in 2024 from 2023. The company consistently operates at a net loss, impacting its net profit margin negatively. Gross profit margin has declined in recent years, indicating pressure on cost management or pricing power. EBIT and EBITDA margins are weak, reflecting ongoing operational challenges.

Balance Sheet

The balance sheet shows negative stockholders' equity, indicating financial distress and potential solvency issues. The debt-to-equity ratio is not meaningful due to negative equity, but the high level of total debt remains a concern. The equity ratio is negative, further highlighting financial instability. The company's liabilities significantly exceed its assets, posing a risk to stakeholders.

Cash Flow

Cash flow from operations shows some improvement, but free cash flow remains volatile, with negative figures in past years. The operating cash flow to net income ratio suggests cash generation is better than earnings, yet not enough to offset losses. Capital expenditures are high relative to cash flow, leading to pressure on liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
343.64M	369.47M	325.74M	281.86M	219.99M
	Gross Profit
54.05M	347.34M	306.37M	269.05M	211.15M
	EBIT
-26.63M	-35.86M	-43.56M	-20.62M	-36.63M
	EBITDA
25.91M	775.00K	-8.06M	3.51M	-16.53M
	Net Income Common Stockholders
-44.15M	-41.98M	-51.90M	-31.37M	-56.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.23M	12.80M	13.98M	61.77M	51.01M
	Total Assets
402.03M	435.87M	457.98M	482.79M	457.05M
	Total Debt
267.09M	273.49M	258.59M	231.68M	238.24M
	Net Debt
256.86M	261.08M	246.25M	173.39M	190.45M
	Total Liabilities
497.71M	488.87M	484.94M	452.94M	447.02M
	Stockholders Equity
-100.63M	-58.80M	-32.03M	28.40M	10.04M
Cash Flow		Free Cash Flow
23.98M	-33.48M	-41.00M	-32.33M	-12.00M
	Operating Cash Flow
47.39M	17.99M	15.45M	254.00K	-1.32M
	Investing Cash Flow
-17.86M	-46.05M	-50.82M	-32.59M	24.94M
	Financing Cash Flow
-32.27M	31.75M	-10.25M	44.06M	-4.75M

Drive Shack Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DSHK, the sentiment is Neutral. The current price of 0.11 is above the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.12, and below the 200-day MA of 0.13, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.66 is Neutral, neither overbought nor oversold. The STOCH value of 60.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DSHK.

Drive Shack Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAVE	76 Outperform	$34.68M	13.08	21.75%	―	2.93%	20.81%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
SPWH	57 Neutral	$159.40M	―	-15.67%	―	-4.92%	-13.73%
ARKR	53 Neutral	$36.69M	―	-22.57%	7.37%	-3.61%	-36.65%
STKS	47 Neutral	$106.61M	―	-9.31%	―	138.50%	-60576.19%
NDLS	40 Underperform	$36.53M	―	-978.37%	―	-0.61%	-200.32%
DSHK	40 Underperform	$9.98M	―	71.39%	―	―	―