Drive Shack (DSHK) AI Stock Analysis

• Market Cap: $12.19M
• Dividend Yield: N/A
• Average Volume (3M): 213.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 3,451
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): -0.02
• Shares Outstanding: 92,385,020
• 10 Day Avg. Volume: 220,123
• 30 Day Avg. Volume: 213,865
• PEG Ratio: 0.02
• Price to Book (P/B): -0.15
• Price to Sales (P/S): 0.04
• P/FCF Ratio: 0.63
• Enterprise Value/Market Cap: 27.74
• Enterprise Value/Revenue: 0.99
• Enterprise Value/Gross Profit: 1.85
• Enterprise Value/Ebitda: 14.93
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $0.00 ▼(-100.00% Downside)

Drive Shack's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues, high leverage, and negative equity. Technical analysis provides some positive momentum, but valuation metrics are limited, making it difficult to fully assess the stock's potential. The absence of earnings call data and corporate events further limits the analysis.

Positive Factors

Diverse Revenue Streams

Drive Shack's diverse revenue streams, including golf activities, F&B, and events, provide resilience against market fluctuations, supporting long-term stability.

Improved Gross Profit Margin

An improved gross profit margin indicates better cost management and pricing strategies, which can enhance profitability over the long term.

Market Position in Leisure Sector

Drive Shack's focus on golf entertainment positions it well in the growing leisure sector, leveraging consumer trends towards experiential activities.

Negative Factors

Declining Revenues

Significant revenue decline suggests challenges in maintaining customer engagement and market share, impacting long-term growth prospects.

High Leverage

High leverage and negative equity indicate financial distress, limiting the company's ability to invest in growth and weather economic downturns.

Weak Cash Flow Generation

Weak cash flow generation limits the company's ability to fund operations and invest in strategic initiatives, posing long-term sustainability risks.

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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	340.72M	343.64M	369.47M	325.74M	281.86M	219.99M
Gross Profit	182.67M	54.05M	347.34M	306.37M	269.05M	211.15M
EBITDA	22.65M	25.91M	775.00K	-8.06M	3.51M	-8.11M
Net Income	-50.37M	-44.15M	-41.98M	-51.90M	-31.37M	-56.35M
Balance Sheet
Total Assets	395.38M	402.03M	435.87M	457.98M	482.79M	457.05M
Cash, Cash Equivalents and Short-Term Investments	12.40M	10.23M	12.80M	13.98M	61.77M	51.01M
Total Debt	254.93M	267.09M	273.49M	258.59M	248.20M	258.13M
Total Liabilities	502.91M	497.71M	488.87M	484.94M	452.94M	447.02M
Stockholders Equity	-112.15M	-100.63M	-58.80M	-32.03M	28.40M	10.04M
Cash Flow
Free Cash Flow	19.25M	23.98M	-33.48M	-41.00M	-32.33M	-12.00M
Operating Cash Flow	36.19M	47.39M	17.99M	15.45M	254.00K	-1.32M
Investing Cash Flow	-11.69M	-17.86M	-46.05M	-50.82M	-32.59M	24.94M
Financing Cash Flow	-30.54M	-32.27M	31.75M	-10.25M	44.06M	-4.75M

Drive Shack Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 0.13 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.12, and above the 200-day MA of 0.11, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.55 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DSHK.

Drive Shack Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOLF	74 Outperform	$4.90B	22.85	25.91%	1.17%	4.20%	24.12%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MODG	55 Neutral	$2.27B	―	-46.95%	―	-3.58%	-12720.97%
PRKS	53 Neutral	$1.93B	10.82	―	―	-3.27%	-17.93%
DSHK	47 Neutral	$12.19M	―	71.39%	―	―	―
LUCK	46 Neutral	$1.17B	―	―	2.76%	3.88%	34.36%
NWTG	44 Neutral	$6.13M	-0.05	-383.63%	―	178.32%	70.79%