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Golden Entertainment (GDEN)
NASDAQ:GDEN
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Golden Entertainment
(NASDAQ:GDEN)
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Rating:57Neutral
Price Target:
$29.00
▲(3.61% Upside)
Golden Entertainment's overall stock score is primarily influenced by its financial performance challenges, including declining revenue and high leverage. However, recent corporate events, such as major transactions and restructuring agreements, provide a positive outlook for future shareholder value. The technical analysis shows moderate momentum, while the high P/E ratio suggests potential overvaluation.
Positive Factors
Diversified Revenue Streams
The company's diversified revenue streams, including casino operations, distributed gaming, and sports betting, provide resilience against market fluctuations and regulatory changes, supporting long-term financial stability.
Strategic Transactions
The strategic transactions aim to restructure the company and enhance shareholder value, potentially improving market positioning and operational efficiency, which could lead to sustainable growth.
Positive Free Cash Flow Growth
Positive free cash flow growth indicates effective cash management and the ability to reinvest in business operations, supporting long-term growth and financial health.
Negative Factors
Declining Revenue
Declining revenue suggests challenges in maintaining market share and competitive positioning, potentially impacting long-term profitability and growth prospects.
High Leverage
High leverage can strain financial flexibility and increase risk, particularly in downturns, potentially limiting the company's ability to invest in growth opportunities.
Concerns Over Asset Sale
Concerns over asset sales and transaction terms may indicate potential misalignment with shareholder interests, affecting investor confidence and long-term strategic direction.
Golden Entertainment (GDEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$727.22M
Dividend Yield3.6%
Average Volume (3M)541.09K
Price to Earnings (P/E)148.8
Beta (1Y)0.64
Revenue Growth-12.25%
EPS Growth-84.89%
CountryUS
Employees5,300
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)-0.09
Shares Outstanding26,177,677
10 Day Avg. Volume277,665
30 Day Avg. Volume541,090
Financial Highlights & Ratios
PEG Ratio-0.22
Price to Book (P/B)1.88
Price to Sales (P/S)1.34
P/FCF Ratio20.98
Enterprise Value/Market Cap1.47
Enterprise Value/Revenue1.66
Enterprise Value/Gross Profit3.08
Enterprise Value/Ebitda8.32
Forecast
1Y Price Target
$28.33Price Target Upside1.21% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Golden Entertainment Business Overview & Revenue Model
Company DescriptionGolden Entertainment, Inc. is a diversified gaming company based in the United States, primarily engaged in the ownership and operation of casinos and gaming properties. The company operates in several segments, including casino operations, distributed gaming, and sports betting. Its portfolio includes a range of gaming facilities, hotels, and entertainment venues, particularly in Nevada and Maryland, where it provides a variety of gaming options, dining, and hospitality services.
How the Company Makes MoneyGolden Entertainment generates revenue through multiple streams, primarily from its casino operations, which include slot machines, table games, and poker. The company also benefits from its distributed gaming segment, which involves operating gaming machines in non-casino locations such as bars and restaurants. Additionally, sports betting has become a significant revenue source, especially with the increasing legalization of sports wagering in various states. Key partnerships with local businesses for distributed gaming and ongoing investments in its properties enhance its earnings potential. The company also focuses on customer loyalty programs and promotional activities to drive foot traffic and enhance the gaming experience, contributing to its overall revenue.
Golden Entertainment Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with strong performance in Nevada locals casinos and positive legislative impacts, but challenges on the Las Vegas Strip and in the tavern business. While the Laughlin market remains stable, the STRAT faces occupancy and revenue pressures.Q2-2025 Updates
Positive Updates
Strong Performance in Nevada Locals Casinos
Nevada locals casinos achieved their highest quarterly EBITDA in the past 2 years, growing EBITDA by over 9% and improving margins by 170 basis points to over 46%.
Tax Legislation Benefits
Recent legislation is expected to provide tax relief on tips, overtime, and additional deductions for seniors, potentially benefiting the company by $10 million to $15 million in tax shield and $2 million to $3 million in cash flow.
Stable Outlook for Laughlin
Laughlin market remains consistent with a positive outlook, supported by frequent smaller events and a strong market position.
Negative Updates
Summer Slowdown on Las Vegas Strip
The Las Vegas Strip experienced a significant slowdown, with STRAT occupancy falling to 60% in June from 76% the previous year, impacting EBITDA.
Decline in Tavern Business
Tavern business revenue declined by 7% year-over-year, affected by a challenging promotional environment and lower volume during late-night shifts.
Low Table Game Hold in Laughlin
Laughlin's table games held less than 10%, negatively impacting EBITDA by $1.5 million.
Company Guidance
During the Golden Entertainment Second Quarter 2025 Earnings Conference Call, the company provided several key metrics and insights into its performance and future outlook. In Q2, the company reported revenue of $163.6 million and EBITDA of $38.4 million. Their Nevada locals' casinos exhibited strong performance, with quarterly EBITDA showing a 7% increase from the prior year, driven by a 9% EBITDA growth in their Las Vegas Locals Casinos, and improved margins up 170 basis points to over 46%. The Casino Resorts segment saw a revenue decline of 3% and a 5% drop in EBITDA, primarily due to a low table game hold in Laughlin. The STRAT faced a challenging environment with a 4% drop in occupancy to 69%, resulting in a 5% decrease in EBITDA, despite cost management efforts. The tavern business experienced a 7% revenue decline year-over-year. Looking ahead, the company anticipates benefits from recent legislation, including tax relief on tips and increased deductions for seniors, which are expected to positively impact their local properties in 2026. The company also expects to gain from the "Big Beautiful Bill," predicting an extra $10 to $15 million in tax shield. Golden Entertainment remains optimistic about future demand stabilization and growth, particularly in their local properties and taverns, as they continue to navigate a dynamic market landscape.Golden Entertainment Financial Statement Overview
Summary
Golden Entertainment faces challenges with declining revenue and profitability, as seen in the income statement. The balance sheet shows high leverage, though there is some improvement. Cash flow generation is moderate, with positive free cash flow growth. The company should focus on reversing revenue decline and reducing leverage to improve its financial health.Income Statement
Golden Entertainment's income statement shows a declining trend in revenue with a significant drop in the TTM period. The gross profit margin remains moderate, but the net profit margin has decreased sharply in the TTM period. EBIT and EBITDA margins have also contracted, indicating reduced operational efficiency. The company needs to address revenue decline and improve profitability.45
Neutral
Balance Sheet
The balance sheet reflects a high debt-to-equity ratio, indicating significant leverage, though it has improved from previous years. Return on equity has decreased, suggesting lower profitability for shareholders. The equity ratio is relatively stable, but the company should focus on reducing debt to enhance financial stability.50
Neutral
Cash Flow
Cash flow analysis shows a positive free cash flow growth in the TTM period, but the operating cash flow to net income ratio is slightly above 1, indicating moderate cash generation efficiency. The free cash flow to net income ratio is healthy, suggesting the company is generating adequate cash relative to its net income.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 643.49M | 666.82M | 1.05B | 1.12B | 1.10B | 694.15M |
| Gross Profit | 347.12M | 360.93M | 453.13M | 484.57M | 496.20M | 275.19M |
| EBITDA | 128.26M | 135.11M | 486.41M | 249.00M | 273.99M | 91.76M |
| Net Income | 5.45M | 50.73M | 255.76M | 82.35M | 161.78M | -136.61M |
Balance Sheet | ||||||
| Total Assets | 1.04B | 1.08B | 1.45B | 1.51B | 1.62B | 1.57B |
| Cash, Cash Equivalents and Short-Term Investments | 58.27M | 57.73M | 157.55M | 136.89M | 220.54M | 103.56M |
| Total Debt | 508.92M | 504.04M | 758.19M | 1.07B | 1.21B | 1.33B |
| Total Liabilities | 601.89M | 605.68M | 914.55M | 1.16B | 1.30B | 1.41B |
| Stockholders Equity | 434.15M | 474.23M | 537.73M | 352.92M | 319.54M | 161.26M |
Cash Flow | ||||||
| Free Cash Flow | 54.28M | 42.44M | 33.33M | 98.78M | 266.52M | 233.00K |
| Operating Cash Flow | 95.37M | 92.34M | 119.20M | 150.20M | 295.77M | 36.73M |
| Investing Cash Flow | -40.68M | 147.23M | 266.92M | -51.27M | -28.89M | -35.85M |
| Financing Cash Flow | -64.98M | -379.44M | -330.56M | -177.44M | -149.91M | -9.00M |
Golden Entertainment Technical Analysis
Positive
27.99
Price Trends
25.43
Positive
25.34
Positive
26.38
Positive
Market Momentum
0.64
Positive
52.68
Neutral
5.05
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GDEN, the sentiment is Positive. The current price of 27.99 is below the 20-day moving average (MA) of 29.07, above the 50-day MA of 25.43, and above the 200-day MA of 26.38, indicating a neutral trend. The MACD of 0.64 indicates Positive momentum. The RSI at 52.68 is Neutral, neither overbought nor oversold. The STOCH value of 5.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GDEN.
Golden Entertainment Risk Analysis
Golden Entertainment disclosed 28 risk factors in its most recent earnings report. Golden Entertainment 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
Golden Entertainment Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $862.03M | 20.94 | 18.43% | ― | 7.97% | 0.92% | |
69 Neutral | $209.49M | 3.91 | ― | ― | 4.03% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $727.22M | 148.79 | 1.15% | 3.60% | -12.25% | -84.89% | |
54 Neutral | $745.79M | ― | -114.88% | ― | 0.36% | 47.55% | |
51 Neutral | $87.03M | ― | -121.54% | ― | 7.45% | 5.03% | |
40 Neutral | $735.40M | ― | -11.41% | ― | 9.50% | 24.64% |
* Consumer Cyclical Sector Average
GDEN
Golden Entertainment
27.99
-4.44
-13.69%
FLL
Full House Resorts
2.83
-1.61
-36.26%
INSE
Inspired Entertainment
9.34
0.00
0.00%
ACEL
Accel Entertainment
10.76
-1.24
-10.33%
MSC
Studio City International Holdings
3.61
-2.89
-44.46%
BALY
Bally's Corporation
15.36
-2.39
-13.46%
Golden Entertainment Corporate Events
M&A TransactionsDividendsBusiness Operations and Strategy
Golden Entertainment Announces Major Transaction Agreement
Positive
Nov 7, 2025
On November 6, 2025, Golden Entertainment, Inc. announced a Master Transaction Agreement with Argento, LLC, VICI Properties Inc., and VICI Royal Merger Sub LLC, involving a series of complex transactions including restructuring, mergers, and sales. The agreement, which is subject to shareholder approval and regulatory conditions, aims to restructure the company and distribute dividends to shareholders. The transactions are expected to close in mid-2026, potentially impacting the company’s operations and market positioning by aligning with strategic goals and enhancing shareholder value.
M&A TransactionsBusiness Operations and Strategy
Golden Entertainment Announces Asset Sale to VICI Properties
Positive
Nov 6, 2025
On November 6, 2025, Golden Entertainment announced a definitive agreement to sell its operating assets to Blake L. Sartini and affiliates, and seven of its casino real estate assets to VICI Properties in a sale-leaseback transaction. The transaction, which offers a 41% premium to Golden’s closing share price as of November 5, 2025, is expected to close in mid-2026, subject to customary conditions and shareholder approval. Golden stockholders will receive a fixed exchange ratio of 0.902 shares of VICI common stock and a $2.75 cash distribution per share. The transaction aims to maximize shareholder value and strengthen Golden’s market position in Nevada’s gaming sector.
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.