ACCEL Entertainment Reports Increase in Revenue for FY2023 Q3, Despite Decrease in Net Income
November 30, 2023
☀️Earnings Overview
On November 7 2023, ACCEL ENTERTAINMENT ($NYSE:ACEL) reported its Q3 FY2023 earnings results (ending September 30 2023). The total revenue for the period was USD 287.5 million, demonstrating a 7.7% increase from the previous year. However, the net income decreased by 53.4%, amounting to USD 10.4 million year over year.
Price History
ACCEL Entertainment reported their financial results for the third quarter of their fiscal year 2023 on Tuesday. Despite a slight decrease in their net income, the company reported an increase in their overall revenue. The stock opened at $10.3 and closed at $10.3, 0.4% lower than their last closing price of 10.4. This marked the first decline in their net income in over two years.
Despite the slight decrease in net income, ACCEL Entertainment’s stock price remained relatively stable on Tuesday, only dropping by 0.4%. The company’s performance over the past few quarters has been deemed satisfactory by analysts and investors alike, and it is expected to continue to be a strong performer in the future. 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 |
| 1.15k | 43.02 | 4.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Accel Entertainment. More…
| Operations | Investing | Financing |
| 121.76 | -55.8 | -47.63 |
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 |
| 871.41 | 672.63 | 2.33 |
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 |
| 46.9% | 93.7% | 8.3% |
| FCF Margin | ROE | ROA |
| 4.1% | 31.0% | 6.9% |
Analysis
GoodWhale has conducted an analysis of ACCEL ENTERTAINMENT‘s wellbeing and the results are encouraging. According to the Star Chart, ACCEL ENTERTAINMENT has an intermediate health score of 6/10 with regard to its cashflows and debt, indicating that it is likely to safely ride out any crisis without the risk of bankruptcy. Furthermore, ACCEL ENTERTAINMENT is strong in growth and profitability, and has a medium asset score and a weak dividend score. Based on this holistic analysis, ACCEL ENTERTAINMENT is classified as a ‘gorilla’ – a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Investors who are interested in high growth potential and profitability may find ACCEL ENTERTAINMENT an attractive investment opportunity. The company has a solid track record of success and has the potential to continue to grow in the future, making it an attractive option for those looking for long-term investments. 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
ACCEL ENTERTAINMENT experienced a 7.7% increase in total revenue for FY2023 Q3, totalling USD 287.5 million. However, net income was down 53.4%, at USD 10.4 million compared to the same period last year. Investors should further research the company’s increasingly unprofitable trend and its ability to compete with larger companies within the entertainment industry. Analysts should carefully consider the company’s financials and future outlook when making investment decisions.
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