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Full House Resorts (FLL)
NASDAQ:FLL
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Full House Resorts
(NASDAQ:FLL)
52Neutral
Positive Factors
Cash Flow
The company is expected to deleverage and generate positive free cash flow for the first time in several years, which is seen as a catalyst for the stock.
Earnings
Full House Resorts generated revenue of $73M, which is 1% higher than consensus expectations, and its EBITDA increased by 13% compared to consensus, marking its first EBITDA beat in four quarters.
Growth and Expansion
Shares are considered attractive due to the expected growth profile, including a significant EBITDA compound annual growth rate from 2024 to 2026.
Negative Factors
Consumer Headwinds
The company faces challenges with lower-end consumer headwinds and snow levels in Colorado, which are expected to impact EBITDA results negatively.
Expense Management
Chamonix struggled to manage expenses over the year, leading to adjustments in estimates to reflect a slower ramp at the property.
Financial Performance
Full House Resorts generated revenue of ~$76M, -4% vs. consensus, and EBITDA of $12M, -34% vs. consensus of $18M.
Full House Resorts (FLL) vs. S&P 500 (SPY)
Market Cap
$119.47M
Dividend YieldN/A
Average Volume (3M)164.03K
Price to Earnings (P/E)―
Beta (1Y)1.75
Revenue Growth21.16%
EPS Growth-60.96%
CountryUS
Employees1,685
SectorConsumer Cyclical
Sector Strength63
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)-1.16
Shares Outstanding35,875,650
10 Day Avg. Volume153,579
30 Day Avg. Volume164,035
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.53
Price to Cash Flow (P/CF)2.60
P/FCF Ratio1.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.17Price Target Upside55.26% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Full House Resorts Business Overview & Revenue Model
Company DescriptionFull House Resorts, Inc. owns, develops, invests in, operates, manages, and leases casinos, and related hospitality and entertainment facilities in the United States. The company owns and operates the Silver Slipper Casino and Hotel in Hancock County, Mississippi, which has 757 slot machines and 24 table games, a surface parking lot, and a 129 hotel rooms; an on-site sportsbook, a fine-dining restaurant, a buffet, and a quick-service restaurant, as well as an oyster bar, a casino bar, and a beachfront bar; and 37-space beachfront RV park. It also owns and operates the Bronco Billy's Casino and Hotel in Cripple Creek, Colorado that has gaming space and 14 hotel rooms, as well as a steakhouse and a casual dining outlet. In addition, the company owns and operates the Rising Star Casino Resort in Rising Sun, Indiana, which has 642 slot machines and 16 table games; a land-based pavilion with approximately 31,500 square feet of meeting and convention space; a contiguous 190-guest-room hotel and an adjacent leased 104-guest-room hotel; a 56-space RV park; surface parking; an 18-hole golf course on approximately 230 acres; and four dining outlets. Further, it owns and operates the Stockman's Casino that is located in Fallon, Nevada, which has 186 slot machines, a bar, a fine-dining restaurant, and a coffee shop; and the Grand Lodge Casino that has 269 slot machines and 9 table games, which is integrated into the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada. Full House Resorts, Inc. was incorporated in 1987 and is headquartered in Las Vegas, Nevada.
How the Company Makes MoneyFull House Resorts generates revenue primarily through its gaming operations, which include slot machines, table games, and sports betting. The company operates multiple regional casinos, each contributing to its overall income. In addition to gaming, the company earns money from non-gaming amenities such as hotel accommodations, dining, and entertainment offerings within its resorts. These additional services enhance the overall guest experience and contribute supplementary income. Full House Resorts also seeks to increase profitability through strategic partnerships, marketing initiatives, and the expansion of its existing properties, along with potential new developments in the gaming and hospitality sector.
Full House Resorts Financial Statement Overview
Summary
Full House Resorts shows a mixed financial picture. Revenue growth is present, but profitability suffers with consistent net losses. The balance sheet is strong with a significant equity base and low leverage, enhancing financial stability. However, cash flow challenges persist with negative free cash flow and reduced operating cash flow, indicating a need for improved cash management. The company shows potential for financial improvement but requires strategic focus on profitability and cash flow stability.Income Statement
Full House Resorts has shown a mixed financial performance. Total revenue increased slightly from $241.06 million to $258.75 million, indicating a modest growth of 7.34%. However, the company reported a net loss, with a net profit margin of -15.71% for 2024, compared to -10.33% in 2023, showing worsening profitability. EBIT margin improved from -0.48% to 1.06%, but EBITDA margin decreased drastically due to negative EBITDA. Overall, revenue growth is positive, but profitability challenges remain significant.55
Neutral
Balance Sheet
The balance sheet indicates a strong equity position with stockholders' equity increasing from $77.85 million to $596.23 million. The debt-to-equity ratio improved significantly from 6.61 to 0.10, showing reduced leverage risk. Return on equity remains negative due to net losses. However, the equity ratio improved to 89.47% from 11.31%, reflecting a strong shift towards equity financing, which enhances financial stability.70
Positive
Cash Flow
Operating cash flow decreased from $22.35 million to $13.85 million, and free cash flow remains negative, although it improved slightly to -$38.74 million from -$176.77 million. The free cash flow to net income ratio is not favorable, indicating cash flow challenges. While the operating cash flow to net income ratio is positive, indicating some cash generation relative to net losses, overall cash flow management remains an area of concern.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 292.06M | 241.06M | 163.28M | 180.16M | 125.59M | Gross Profit |
| 149.90M | 131.37M | 90.15M | 106.21M | 66.83M | EBIT |
| 2.75M | -1.16M | 12.68M | 37.55M | 10.48M | EBITDA |
| 42.63M | 31.26M | 20.66M | 45.45M | 18.83M | Net Income Common Stockholders |
| -40.67M | -24.90M | -14.80M | 11.71M | 147.00K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 40.22M | 36.16M | 56.59M | 88.72M | 37.70M | Total Assets |
| 673.33M | 688.46M | 595.33M | 473.84M | 212.62M | Total Debt |
| 59.26M | 514.84M | 424.06M | 321.36M | 129.24M | Net Debt |
| 19.03M | 478.68M | 367.47M | 232.64M | 91.55M | Total Liabilities |
| 70.39M | 610.61M | 495.54M | 361.13M | 155.94M | Stockholders Equity |
| 596.23M | 77.85M | 99.79M | 112.72M | 56.68M |
| Cash Flow | Free Cash Flow | |||
| -38.74M | -176.77M | -166.56M | -7.49M | 6.35M | Operating Cash Flow |
| 13.85M | 22.34M | 4.38M | 29.50M | 8.99M | Investing Cash Flow |
| -45.67M | -198.76M | -172.11M | -37.22M | -2.62M | Financing Cash Flow |
| -1.50M | 59.03M | 93.62M | 235.31M | 1.48M |
Full House Resorts Technical Analysis
Negative
3.33
Price Trends
4.66
Negative
4.61
Negative
4.83
Negative
Market Momentum
-0.13
Negative
40.94
Neutral
28.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLL, the sentiment is Negative. The current price of 3.33 is below the 20-day moving average (MA) of 4.12, below the 50-day MA of 4.66, and below the 200-day MA of 4.83, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 40.94 is Neutral, neither overbought nor oversold. The STOCH value of 28.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLL.
Full House Resorts Risk Analysis
Full House Resorts disclosed 53 risk factors in its most recent earnings report. Full House Resorts 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
Full House Resorts Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.35B | 19.03 | 18.25% | 1.64% | 4.13% | 17.73% | |
74 Outperform | $5.10B | 9.98 | 34.76% | 1.12% | 5.13% | 2.04% | |
59 Neutral | $11.20B | 10.09 | -1.41% | 3.96% | 1.31% | -16.95% | |
58 Neutral | $652.17M | 14.40 | 10.03% | 4.07% | -36.68% | -79.99% | |
52 Neutral | $119.47M | ― | -68.73% | ― | 21.16% | -60.96% | |
46 Neutral | $4.91B | ― | -6.38% | ― | -2.45% | -135.17% | |
38 Underperform | $47.86M | ― | -228.69% | ― | 4.67% | -349.76% |
* Consumer Cyclical Sector Average
Performance Comparison
FLL
Full House Resorts
3.16
-2.20
-41.04%
BYD
Boyd Gaming
61.24
-4.04
-6.19%
CNTY
Century Casinos
1.56
-1.76
-53.01%
MCRI
Monarch Casino & Resort
72.87
1.76
2.48%
CZR
Caesars Entertainment
23.18
-19.90
-46.19%
GDEN
Golden Entertainment
25.03
-9.17
-26.81%
Full House Resorts Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -19.76% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive growth metrics, particularly for American Place and Chamonix, alongside strategic planning for future development. However, challenges remain in optimizing operations at Chamonix and facing competitive pressures at Rising Sun. The sentiment remains cautiously optimistic with a focus on strategic growth and operational improvements.Highlights
American Place Revenue and Growth
American Place experienced a strong performance with revenues up 27% in Q4 and 42% for the year, while EBITDA increased by 60%. The Illinois Supreme Court ruling in favor of the gaming commission opens the door to secure financing for the permanent structure.
Chamonix Revenue Growth
Colorado's Chamonix reported strong revenue growth, with fourth-quarter revenues more than doubling. Although expenses increased, the property is expected to mature and become more profitable.
Strategic Management Changes
New management appointments, including a General Manager for Chamonix and a new team for Rising Sun, aim to improve operations and optimize property performance.
Positive Outlook for Permanent Facilities
With the transition to permanent facilities, American Place is expected to double its revenues, similar to other comparable locations in Illinois and Virginia.
Lowlights
Chamonix Initial Challenges
Despite increased revenues, Chamonix faced higher expenses and reported a small loss in Q4 due to operational inefficiencies, such as an unprofitable buffet.
Rising Sun Casino Competition
Rising Sun in Indiana faces significant competition from newer casinos, resulting in decreased performance with current earnings around $4-5 million annually.
Operational Challenges
American Place reported slower than expected ramp-up in some areas, such as table games and staffing shortages in specific service areas.
Uncertainty in Relocation and Expansion
Efforts to relocate the Rising Sun license have seen legislative challenges, with the study bill yet to be approved by the House.
Company Guidance
During the Full House Resorts Fourth Quarter and Full Year 2024 earnings call, the company provided guidance on several key metrics and developments. Dan Lee, the CEO, reported that the American Place saw a 27% increase in fourth-quarter revenues and a 42% rise for the year, with EBITDA up by 60%. He emphasized the favorable Illinois Supreme Court ruling, which will facilitate financing for a permanent casino estimated to cost $325 million. The company intends to break ground later in the year and expects to transition smoothly into the permanent facility by August 2027. In Colorado, Chamonix experienced strong revenue growth, more than doubling in the fourth quarter, despite expenses being high due to the transition to a full resort casino. The company aims for Chamonix to eventually generate $50 million annually. Additionally, Full House is exploring the potential relocation of its Indiana license to New Haven, which could significantly increase its revenue and market presence. The company is confident in the future, projecting robust revenue growth across its properties, driven by strategic investments and market expansion.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.