Golf Entertainment Group (GLFE) AI Stock Analysis

• Market Cap: $20.20M
• Dividend Yield: N/A
• Average Volume (3M): 4.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 3,451
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): -2.45
• Shares Outstanding: 1,994,425
• 10 Day Avg. Volume: 4,509
• 30 Day Avg. Volume: 4,842
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 14.66
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $11.50
• Action: Reiterated Date: 01/13/26
• Date: Action: Reiterated 01/13/26

The score is held down primarily by weak financial performance—sharp revenue decline, persistent losses, and a high-risk balance sheet with negative equity. Technicals are a supporting positive (price above major moving averages with positive MACD), but missing valuation inputs (P/E and dividend yield) reduce conviction and keep the overall score below average.

Positive Factors

Diversified Revenue Streams

Multiple revenue streams (F&B, hourly rentals, events, sponsorships) create durable cash inflows and reduce dependence on a single demand source. This diversification supports more stable venue-level economics and cross-selling, improving resilience over the next several months.

Experiential Competitive Position

The combination of technology-driven simulators with dining and social experiences differentiates the company from traditional golf venues. That experiential appeal targets broader demographics and aligns with structural leisure trends, supporting sustained customer acquisition and repeat visits.

Improved Gross Margin

An improved gross margin suggests better unit economics at the venue or improved mix toward higher-margin offerings. If maintained, stronger gross margins provide room to invest in marketing or cover fixed costs, which helps operational recovery over a multi-month horizon.

Negative Factors

Severe Revenue Decline

A two-thirds revenue decline materially reduces scale economy benefits and weakens coverage of fixed costs. Sustained low revenue compresses operating leverage, hinders reinvestment in venues, and makes multi-month recovery and profitable growth more difficult without meaningful demand restoration.

Negative Stockholders' Equity

Negative equity signals solvency stress and can limit access to bank financing or raise borrowing costs. Over months this constrains capital for renovations, new openings, or marketing, forcing reliance on dilutive or costly capital and limiting strategic flexibility.

Weak Cash Generation

Declining free cash flow and OCF insufficient to cover losses indicate the company cannot reliably self-fund operations. Persisting cash-generation shortfalls increase refinancing risk and may necessitate asset sales or equity raises, impairing execution over the medium term.

Golf Entertainment Group Business Overview & Revenue Model

Company Description

Drive Shack Inc. is a leading golf and entertainment company that operates a network of golf entertainment venues across the United States. The company specializes in combining technology and social experiences in its venues, offering customers a unique blend of golf simulation, dining, and entertainment. Drive Shack operates its flagship locations, as well as a range of smaller venues, providing a modern twist on traditional golf experiences with a focus on accessibility and enjoyment for all skill levels.

How the Company Makes Money

Drive Shack generates revenue through multiple streams including the sale of food and beverages, hourly rental fees for golf bays, and the operation of golf-related events and tournaments. The company capitalizes on its high-tech golf simulators and entertainment offerings, which attract both avid golfers and non-golfers alike. Additionally, revenue is supplemented by partnerships with brands in the golf industry and local businesses, allowing for sponsorship opportunities and promotional events that enhance customer engagement and drive traffic to its venues.

Golf Entertainment Group Financial Statement Overview

Summary

Financial health is weak: revenue fell sharply (TTM -66.4%) with continued losses (net margin -12.52%) and negative EBIT/EBITDA margins. The balance sheet is a major concern due to negative stockholders’ equity (solvency risk), and cash generation is also soft with declining free cash flow (TTM -13.85%).

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
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Golf Entertainment Group Technical Analysis

• Last Price: ―

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLFE, the sentiment is undefined. The current price of undefined is equal to the 20-day moving average (MA) of ―, equal to the 50-day MA of ―, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a undefined sentiment for GLFE.

Golf Entertainment Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%