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Drive Shack (DSHK)
OTHER OTC:DSHK
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Drive Shack (DSHK) AI Stock Analysis

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DSHK

Drive Shack

(OTC:DSHK)

Rating:47Neutral
Price Target:
$0.00
▼(-100.00% Downside)
Drive Shack's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, negative profit margins, and high leverage. The technical analysis provides some short-term bullish signals, but potential overbought conditions could limit upside. The lack of valuation metrics further complicates the investment case.

Drive Shack (DSHK) vs. SPDR S&P 500 ETF (SPY)

Drive Shack Business Overview & Revenue Model

Company DescriptionDrive 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 MoneyDrive Shack generates revenue through multiple streams, primarily from the sale of golf-related activities, food and beverage sales, and event hosting. The company earns money by charging customers for access to its driving range and simulator experiences, which are priced per hour or per game. Additionally, food and beverage sales contribute significantly to revenue, as guests often dine while enjoying their time at the facilities. Drive Shack also hosts corporate events, parties, and tournaments, providing another layer of income. The company may engage in partnerships with local businesses or brands for promotional events, which can enhance revenue opportunities. Moreover, merchandise sales related to golf and the Drive Shack brand further supplement earnings.

Drive Shack Financial Statement Overview

Summary
Drive Shack faces significant financial challenges across all statements. The income statement highlights declining revenues and persistent losses. The balance sheet shows high leverage and negative equity, raising concerns about financial stability. Cash flow analysis indicates weak cash generation, further complicating the company's financial health. Overall, Drive Shack needs strategic improvements to stabilize and grow its financial position.
Income Statement
45
Neutral
Drive Shack's income statement shows significant challenges with declining revenue and negative profit margins. The TTM data indicates a revenue decline of 66.4%, and the net profit margin is negative at -12.52%. Although the gross profit margin improved to 32.87% in the TTM, the company struggles with negative EBIT and EBITDA margins, reflecting operational inefficiencies.
Balance Sheet
30
Negative
The balance sheet reveals a precarious financial position with negative stockholders' equity, resulting in a negative debt-to-equity ratio. The return on equity is positive due to negative equity, but this is misleading as it reflects financial distress rather than profitability. The equity ratio is also negative, indicating high leverage and potential solvency issues.
Cash Flow
40
Negative
Cash flow analysis shows a decline in free cash flow growth by 13.85% in the TTM. The operating cash flow to net income ratio is below 1, indicating insufficient cash generation to cover net losses. The free cash flow to net income ratio is positive, suggesting some ability to cover net losses, but overall cash flow remains weak.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue340.72M343.64M369.47M325.74M281.86M219.99M
Gross Profit182.67M54.05M347.34M306.37M269.05M211.15M
EBITDA22.65M25.91M775.00K-8.06M3.51M-16.53M
Net Income-50.37M-44.15M-41.98M-51.90M-31.37M-56.35M
Balance Sheet
Total Assets395.38M402.03M435.87M457.98M482.79M457.05M
Cash, Cash Equivalents and Short-Term Investments12.40M10.23M12.80M13.98M61.77M51.01M
Total Debt254.93M267.09M273.49M258.59M231.68M238.24M
Total Liabilities502.91M497.71M488.87M484.94M452.94M447.02M
Stockholders Equity-112.15M-100.63M-58.80M-32.03M28.40M10.04M
Cash Flow
Free Cash Flow19.25M23.98M-33.48M-41.00M-32.33M-12.00M
Operating Cash Flow36.19M47.39M17.99M15.45M254.00K-1.32M
Investing Cash Flow-11.69M-17.86M-46.05M-50.82M-32.59M24.94M
Financing Cash Flow-30.54M-32.27M31.75M-10.25M44.06M-4.75M

Drive Shack Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.12
Price Trends
50DMA
0.10
Positive
100DMA
0.11
Positive
200DMA
0.12
Positive
Market Momentum
MACD
<0.01
Negative
RSI
75.03
Negative
STOCH
101.49
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DSHK, the sentiment is Positive. The current price of 0.12 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.10, and above the 200-day MA of 0.12, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 75.03 is Negative, neither overbought nor oversold. The STOCH value of 101.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DSHK.

Drive Shack Risk Analysis

Drive Shack disclosed 41 risk factors in its most recent earnings report. Drive Shack 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 3 New Risks
1.
We are not in compliance with the continued listing standard set forth in Section 802.01C of the NYSE Listed Company Manual, and, as a result, shares of our common stock may be delisted from the NYSE. Q3, 2022
2.
We have a material weakness in our internal control over financial reporting and our inability to remediate this weakness or otherwise implement and maintain effective internal control over financial reporting, or the inability of our independent registered public accounting firm to provide an unqualified report thereon, could have a material adverse effect on us. Q3, 2022
3.
Our financial statements contain a statement regarding a substantial doubt about the Company's ability to continue as a going concern. Q3, 2022

Drive Shack Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$4.40B20.0427.51%1.25%3.83%28.57%
68
Neutral
$2.90B14.46-52.57%-1.43%-2.50%
61
Neutral
$17.96B13.14-5.29%3.00%1.25%-13.95%
58
Neutral
$1.46B-108.04%2.12%4.05%77.32%
57
Neutral
$1.73B-46.53%-2.35%-7104.57%
47
Neutral
$10.16M71.39%
46
Neutral
$8.39M-259.77%304.51%75.05%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DSHK
Drive Shack
0.12
-0.01
-7.69%
MODG
Topgolf Callaway Brands
9.12
-1.08
-10.59%
GOLF
Acushnet Holdings
76.19
11.42
17.63%
PRKS
United Parks & Resorts
54.35
2.29
4.40%
LUCK
Lucky Strike Entertainment
10.38
-0.88
-7.82%
NWTG
Newton Golf Company
1.76
-82.84
-97.92%
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.Date of analysis: Aug 30, 2025