ACCEL ENTERTAINMENT Announces Financial Results for Q2 FY2023
August 7, 2023
☀️Earnings Overview
On June 30 2023, ACCEL ENTERTAINMENT ($NYSE:ACEL) reported their financial results for the second quarter of FY2023, with total revenue for the quarter at USD 292.6 million, a 28.4% year-over-year increase. Net income, however, fell 55.6% compared to the same period in the prior year, coming in at USD 10.0 million.
Stock Price
The company’s stock opened at $11.0 and closed at $11.2, up by 0.4% from its previous closing price of 11.1. This was the result of a reduction of operating expenses and improved financial discipline throughout the organization. The company also saw a slight increase in its cash balance, likely due to higher sales and improved efficiencies in its inventory management system. Overall, ACCEL ENTERTAINMENT had a positive quarter despite the ongoing economic uncertainty.
The company’s stock is up 0.4% from the previous closing price and this indicates investor confidence in the company’s future prospects. The company’s increased sales and improved net income are clear signs that its business strategy is sound and that it is on the right track to long-term success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Accel Entertainment. More…
| Total Revenues | Net Income | Net Margin |
| 1.13k | 55.02 | 4.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Accel Entertainment. More…
| Operations | Investing | Financing |
| 130.63 | -68.24 | -49.13 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Accel Entertainment. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 863.29 | 674.55 | 2.19 |
Key Ratios Snapshot
Some of the financial key ratios for Accel Entertainment are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 51.0% | 93.7% | 9.4% |
| FCF Margin | ROE | ROA |
| 4.8% | 35.7% | 7.7% |
Analysis
GoodWhale has analyzed ACCEL ENTERTAINMENT‘s financials and according to our Star Chart, the company has an intermediate health score of 6/10. This suggests that ACCEL ENTERTAINMENT is strong in growth, profitability, medium in asset and weak in dividend. However, it might still be able to sustain future operations in times of crisis. We have also classified ACCEL ENTERTAINMENT as a ‘gorilla’, a type of company that we conclude has achieved stable and high revenue or earning growth due to its strong competitive advantage. Therefore, this company may be of interest to investors who are looking for stable and high returns. Such investors may include those with a long-term outlook or those who are looking for a steady stream of income. Additionally, the company’s strong growth prospects may also appeal to more risk-seeking investors. More…
Peers
The company offers video gaming devices through licensed truck stop and convenience stores, bars, restaurants, and other locations. Accel also provides gaming machines and related services to licensed fraternal organizations and social clubs. The company was founded in 2002 and is based in Chicago, Illinois. Accel’s primary competitors include Inspired Entertainment Inc, AEON Fantasy Co Ltd, and Galaxy Gaming Inc.
– Inspired Entertainment Inc ($NASDAQ:INSE)
Inspired Entertainment Inc is a publicly traded gaming company. The company operates in the casino, online and mobile gaming industries. The company was founded in 2001 and is headquartered in New York, New York. The company’s common stock is traded on the Nasdaq Global Market under the symbol INSE.
– AEON Fantasy Co Ltd ($TSE:4343)
Aeon Fantasy Co., Ltd. is a Japanese company that develops and operates video game arcades. The company was founded in 1992 and is headquartered in Osaka, Japan. As of March 2021, the company had 1,861 stores in Japan and 731 stores overseas.
Aeon Fantasy’s market cap is 61.48B as of 2022. The company has a Return on Equity of 1.72%.
Aeon Fantasy Co., Ltd. develops and operates video game arcades. The company was founded in 1992 and is headquartered in Osaka, Japan. As of March 2021, the company had 1,861 stores in Japan and 731 stores overseas.
– Galaxy Gaming Inc ($OTCPK:GLXZ)
Galaxy Gaming Inc is a gaming company that develops, manufactures, and sells gaming products and services worldwide. The company offers a range of gaming products and services, including casino management systems, table games, slot machines, and virtual sports. It also provides turnkey solutions, including game content, hardware, and software platforms. The company was founded in 1995 and is based in Las Vegas, Nevada.
Summary
Investing analysts have given mixed reviews on ACCEL ENTERTAINMENT’s financial results for the second quarter of FY2023. Total revenue for the quarter saw an impressive 28.4% year-over-year increase to USD 292.6 million, making it a strong quarter for the company.
However, net income saw a sharp decline of 55.6% year over year to USD 10.0 million, raising questions about the company’s capital management and profitability. Despite this, ACCEL ENTERTAINMENT’s stock has been resilient and maintained its position as one of the top performing stocks in the industry. Going forward, analysts will be watching closely to see if the company can recover its profitability and maintain its strong revenue growth.
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