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Golden Entertainment (GDEN)
NASDAQ:GDEN
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Golden Entertainment
(NASDAQ:GDEN)
Rating:62Neutral
Price Target:
$34.00
▲(5.69%Upside)
Positive Factors
Financial Performance
EBITDA was 1% above consensus, driven by the Locals segment outperforming expectations.
Management Strategy
Management remains proactive in unlocking shareholder value through buybacks or utilizing its strong balance sheet and real estate ownership.
Valuation
Analyst's price target of $38 implies a 23% upside, based on a sum-of-the-parts valuation on 2026 estimated EBITDA.
Negative Factors
Earnings Report
Golden Entertainment posts mixed results in 4Q24, missing revenue expectations by 2%.
Operational Performance
Trends improved sequentially across all properties except for Laughlin, with year-over-year growth showing month-to-month improvement.
Stock Performance
The share price of Golden Entertainment Inc has underperformed by 15% compared to the S&P 500 over the last twelve months.
Golden Entertainment (GDEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$850.42M
Dividend Yield3.11%
Average Volume (3M)184.22K
Price to Earnings (P/E)82.3
Beta (1Y)1.07
Revenue Growth-31.14%
EPS Growth-95.88%
CountryUS
Employees5,300
SectorConsumer Cyclical
Sector Strength66
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.05
Shares Outstanding26,435,286
10 Day Avg. Volume152,414
30 Day Avg. Volume184,224
Financial Highlights & Ratios
PEG Ratio-0.72
Price to Book (P/B)1.58
Price to Sales (P/S)0.00
P/FCF Ratio14.64
Enterprise Value/Market Cap1.29
Enterprise Value/Revenue0.38
Enterprise Value/Gross Profit2.96
Enterprise Value/Ebitda1.07
Forecast
1Y Price Target
$37.00Price Target Upside15.01% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Golden Entertainment Business Overview & Revenue Model
Company DescriptionGolden Entertainment, Inc. (GDEN) is a diversified gaming company that operates a range of gaming establishments, including casinos and distributed gaming operations in the United States. The company is headquartered in Las Vegas, Nevada, and its core operations are focused on casino entertainment and the distribution of gaming devices. Golden Entertainment's portfolio includes traditional casino properties, such as hotel-casinos, and a wide array of gaming machines distributed across various non-casino locations.
How the Company Makes MoneyGolden Entertainment generates revenue primarily through its casino operations and distributed gaming services. The casino operations revenue stream comes from gaming activities, hotel accommodations, food and beverage sales, and entertainment services provided at its casino locations. The distributed gaming segment involves placing gaming devices in third-party non-casino locations such as bars, restaurants, and other retail venues, where Golden Entertainment earns a share of the gaming revenue generated by these machines. Additionally, partnerships with local establishments and strategic acquisitions of gaming assets contribute to the company's overall earnings and expansion in the gaming industry.
Golden Entertainment Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 25.08%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance with strong operational efficiencies and a robust liquidity position, but challenges remain, particularly with declining occupancy at The Strat and increased tavern competition. The company is focusing on share repurchases due to limited M&A opportunities.Q1-2025 Updates
Positive Updates
Strong Start to Q2 for The Strat
Hotel revenue at The Strat is up in April with higher occupancy and rates, leading to improved EBITDA. Occupancy is pacing up 6% over last year for May, with June also showing strength.
Operational Efficiencies Boost Nevada Locals' Casinos
Revenue for Nevada locals' casinos was flat year-over-year, but EBITDA was up 2%, driven by operational efficiencies, with EBITDA margins at 46% for the second straight quarter.
Successful Share Repurchases
Since 2024, the company repurchased 3.2 million shares totaling almost $100 million and paid out $35 million in dividends. $92 million remains on the current buyback authorization.
Low Net Leverage and Strong Liquidity Position
The company ended the quarter with just over $400 million of debt, $50 million in cash, and $225 million available under the revolving credit facility, with a low net leverage at 2.4 times EBITDA.
Negative Updates
Declining Occupancy at The Strat Due to Super Bowl Impact
The Strat experienced a $3 million EBITDA headwind from last year's Super Bowl, with occupancy down 5% for the quarter and 13% in February.
Slight Decline in Tavern Revenue and EBITDA
Tavern revenue and EBITDA were down slightly year-over-year, though EBITDA increased sequentially over Q4. There is increased promotional activity from smaller private operators, which may impact Q2 performance.
Limited M&A Opportunities
The company notes limited M&A opportunities in the market, with current assets having high price expectations relative to their quality. The macroeconomic environment and interest rates are also dampening strategic M&A discussions.
Company Guidance
In the Golden Entertainment, Inc. First Quarter 2025 Earnings Conference Call, the company provided guidance indicating stable operating trends and a promising start for the second quarter, despite not hosting last year's Super Bowl, which impacted The Strat's EBITDA by $3 million. The Strat's occupancy was down 5% for the quarter, with a significant 13% drop in February. However, The Strat's hotel revenue has improved in April with higher occupancy and rates, and May's occupancy is pacing 6% higher year-over-year. Nevada locals' casinos maintained a 46% EBITDA margin for two consecutive quarters, with revenue flat but EBITDA up by 2% due to operational efficiencies. The company ended Q1 with over $400 million in debt, $50 million in cash, and $225 million available under its revolving credit facility, maintaining a low net leverage of 2.4 times EBITDA. Despite some challenges in the tavern market due to increased competition, EBITDA from the taverns improved sequentially over Q4. The company repurchased 274,000 shares worth $7.6 million during Q1 and has $92 million remaining on its buyback authorization. The management emphasized prioritizing share repurchases over M&A due to current market conditions and continues to focus on strengthening the core business and leveraging favorable economic trends in Nevada.Golden Entertainment Financial Statement Overview
Summary
Golden Entertainment exhibits moderate financial health with mixed results. While cash flow remains stable and the equity position has strengthened, declining revenue and profitability pose concerns. High leverage remains a risk, though operational resilience is noted through a positive EBITDA margin.Income Statement
Golden Entertainment shows a mixed financial performance with several challenges. The TTM (Trailing-Twelve-Months) results indicate a decline in revenue and profitability compared to the previous year. Gross Profit Margin and Net Profit Margin are decreasing, indicating pressure on both top-line and bottom-line performance. Revenue growth has been negative, which is concerning for future prospects. However, the company maintains a positive EBITDA Margin, suggesting operational resilience.55
Neutral
Balance Sheet
The balance sheet reflects a moderate financial position with notable leverage. The Debt-to-Equity Ratio remains high, indicating significant reliance on debt financing, which could pose risks if not managed carefully. However, the Return on Equity (ROE) is positive, suggesting that the company is generating returns on shareholders' investment. The Equity Ratio has improved from previous years, indicating a stronger equity base relative to total assets.60
Neutral
Cash Flow
Cash flow performance is relatively stable with positive free cash flow, although growth is limited. The Operating Cash Flow to Net Income Ratio indicates healthy cash generation relative to net income, which is a positive sign for liquidity. However, the Free Cash Flow Growth Rate is low, reflecting challenges in expanding cash flow from operations. The company has managed to maintain positive cash flows despite a challenging operating environment.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 653.61M | 666.82M | 1.05B | 1.12B | 1.10B | 694.15M |
| Gross Profit | 369.36M | 375.29M | 475.55M | 504.46M | 513.17M | 286.98M |
| EBITDA | 128.99M | 197.71M | 486.41M | 249.00M | 331.76M | 56.99M |
| Net Income | 11.27M | 50.73M | 255.76M | 82.35M | 161.78M | -136.61M |
Balance Sheet | ||||||
| Total Assets | 1.51B | 1.08B | 1.45B | 1.51B | 1.62B | 1.57B |
| Cash, Cash Equivalents and Short-Term Investments | 157.55M | 57.73M | 157.55M | 136.89M | 220.54M | 103.56M |
| Total Debt | 758.19M | 504.04M | 758.19M | 1.07B | 1.21B | 1.33B |
| Total Liabilities | 975.34M | 605.68M | 914.55M | 1.16B | 1.30B | 1.41B |
| Stockholders Equity | 537.73M | 474.23M | 537.73M | 352.92M | 319.54M | 161.26M |
Cash Flow | ||||||
| Free Cash Flow | 49.56M | 42.44M | 33.33M | 98.78M | 266.52M | 233.00K |
| Operating Cash Flow | 95.11M | 92.34M | 119.20M | 150.20M | 295.77M | 36.73M |
| Investing Cash Flow | -53.26M | 147.23M | 266.92M | -51.27M | -28.89M | -35.85M |
| Financing Cash Flow | -395.69M | -379.44M | -330.56M | -177.44M | -149.91M | -9.00M |
Golden Entertainment Technical Analysis
Positive
32.17
Price Trends
28.30
Positive
27.84
Positive
29.55
Positive
Market Momentum
1.05
Negative
72.40
Negative
93.62
Negative
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 32.17 is above the 20-day moving average (MA) of 29.58, above the 50-day MA of 28.30, and above the 200-day MA of 29.55, indicating a bullish trend. The MACD of 1.05 indicates Negative momentum. The RSI at 72.40 is Negative, neither overbought nor oversold. The STOCH value of 93.62 is Negative, 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
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.03B | 24.55 | 18.42% | ― | 6.28% | -1.99% | |
62 Neutral | $850.42M | 82.26 | 2.18% | 3.11% | -31.14% | -95.88% | |
60 Neutral | €5.99B | 12.41 | -11.12% | 4.06% | 3.79% | -34.20% | |
53 Neutral | $537.67M | ― | -65.87% | ― | -1.93% | 15.16% | |
52 Neutral | $1.02B | ― | -16.16% | ― | 19.57% | 10.86% |
* Consumer Cyclical Sector Average
Performance Comparison
GDEN
Golden Entertainment
32.17
3.39
11.78%
ACEL
Accel Entertainment
12.16
1.69
16.14%
MSC
Studio City International Holdings
4.84
-2.13
-30.56%
BALY
Bally's Corporation
10.97
-11.10
-50.29%
Golden Entertainment Corporate Events
Executive/Board ChangesShareholder Meetings
Golden Entertainment Approves Key Proposals at Annual Meeting
Neutral
May 23, 2025
Golden Entertainment, Inc. held its 2025 annual meeting of shareholders on May 22, 2025, where several key proposals were approved. Shareholders approved the amended and restated 2015 Incentive Award Plan, the election of directors, and the compensation of named executive officers, among other proposals. The board also decided to hold future advisory votes on executive compensation annually.
The most recent analyst rating on (GDEN) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Golden Entertainment stock, see the GDEN Stock Forecast page.
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.