Drive Shack (DSHK) AI Stock Analysis

• Market Cap: $9.24M
• Dividend Yield: N/A
• Average Volume (3M): 48.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 3,451
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Leisure
• EPS (TTM): -0.19
• Shares Outstanding: 92,385,020
• 10 Day Avg. Volume: 106,279
• 30 Day Avg. Volume: 48,445
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.12
• Price to Cash Flow (P/CF): 2.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 36.61
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.81
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Drive Shack faces significant financial challenges with negative equity and ongoing losses, which are the primary concerns reflected in the low overall score. Weak technical indicators and a negative valuation further weigh on the stock's outlook. Without positive earnings call insights or corporate events to offset these challenges, the stock's position remains precarious.

Drive Shack Business Overview & Revenue Model

Company Description

Drive Shack Inc. (DSHK) is an innovative entertainment company that operates within the leisure and hospitality sectors. The company provides a unique blend of sports entertainment and leisure services, primarily through its golf-related venues. Drive Shack's core offerings include state-of-the-art driving ranges, high-tech golf gaming experiences, and vibrant social venues designed to cater to both avid golfers and casual visitors. The company's aim is to create fun, engaging environments that combine sports, dining, and social interaction.

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 with persistent net losses, declining gross profit margins, and negative equity. While there is some revenue growth and improvement in operating cash flow, the company struggles with profitability and maintains a high leverage position. The negative free cash flow and equity further underscore the need for strategic improvements to stabilize the financial health and reduce risk exposure.

Income Statement

Drive Shack has shown some improvement in revenue, with a growth rate of approximately 13.42% from 2022 to 2023, but it remains unprofitable with a negative net profit margin of -11.36% in 2023. Gross profit margin has significantly decreased to 15.75% in 2023, indicating reduced operational efficiency. While EBITDA has turned positive, the EBIT margin remains negative, showing ongoing core operational challenges. Overall, the income statement reflects a company still struggling to achieve profitability despite revenue growth.

Balance Sheet

The balance sheet of Drive Shack presents stability concerns, with a negative stockholders' equity of -$58.8 million as of 2023, down further from 2022. The debt-to-equity ratio is not applicable due to negative equity, indicating potential financial distress. The total liabilities exceed total assets, and there are significant leverage risks. These factors highlight a precarious financial position with limited equity buffer against liabilities.

Cash Flow

Drive Shack’s cash flow statement shows a modest improvement in operating cash flow from $15.45 million in 2022 to $17.99 million in 2023. However, free cash flow remains negative at -$33.49 million, despite an improvement from the previous year. The operating cash flow to net income ratio is positive, indicating some operational cash generation, but the persistent negative free cash flow highlights continued challenges in covering capital expenditures and debt obligations from operating activities.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
369.47M	325.74M	281.86M	219.99M	272.06M
	Gross Profit
58.19M	306.37M	269.05M	211.15M	256.85M
	EBIT
-35.86M	-43.56M	-20.62M	-36.63M	-67.28M
	EBITDA
775.00K	-8.06M	3.51M	-8.11M	-16.01M
	Net Income Common Stockholders
-41.98M	-51.90M	-31.37M	-56.35M	-54.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.80M	13.98M	61.77M	51.01M	31.48M
	Total Assets
435.87M	457.98M	482.79M	457.05M	515.99M
	Total Debt
273.49M	258.59M	231.68M	238.24M	258.15M
	Net Debt
261.08M	246.25M	173.39M	190.45M	229.72M
	Total Liabilities
488.87M	484.94M	452.94M	447.02M	450.42M
	Stockholders Equity
-58.80M	-32.03M	28.40M	10.04M	65.58M
Cash Flow		Free Cash Flow
-33.48M	-41.00M	-32.33M	-12.00M	-102.99M
	Operating Cash Flow
17.99M	15.45M	254.00K	-1.32M	-28.12M
	Investing Cash Flow
-46.05M	-50.82M	-32.59M	24.94M	-11.99M
	Financing Cash Flow
31.75M	-10.25M	44.06M	-4.75M	-10.74M

Drive Shack Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DSHK, the sentiment is Negative. The current price of 0.12 is above the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.13, and below the 200-day MA of 0.14, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.42 is Neutral, neither overbought nor oversold. The STOCH value of 99.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DSHK.

Drive Shack Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAVE	69 Neutral	$36.04M	13.52	21.44%	―	2.83%	37.01%
Sector *	61 Neutral	$6.65B	11.71	3.09%	3.98%	2.65%	-20.82%
STKS	59 Neutral	$96.18M	―	-11.53%	―	102.35%	-846.68%
SPWH	56 Neutral	$67.77M	―	-13.22%	―	-7.02%	-13.44%
ARKR	47 Neutral	$33.84M	―	-4.24%	7.99%	-2.05%	66.57%
DSHK	41 Neutral	$9.24M	―	71.39%	―	―	―
NDLS	41 Neutral	$48.20M	―	-335.60%	―	-2.01%	-267.04%