Golden Entertainment, Inc.

GDEN

Services-Miscellaneous Amusement & Recreation

Mkt Cap

$839.8M

PE

2.94

Debt

$671.3M

Cash

$404.3M

EV

$1.107B

FCF

$13.39M

Market Cap

$839.8M

P/E Ratio

2.94

Debt

$671.3M

Cash

$404.3M

EV

$1.107B

FCF

$13.39M

Charts data: {"Earnings":[{"time":"2014-12-27","value":-24845000},{"time":"2015-12-30","value":24520000},{"time":"2016-12-30","value":16300000},{"time":"2017-12-30","value":2084000},{"time":"2018-12-30","value":-20914000},{"time":"2019-12-30","value":-39545000},{"time":"2020-12-30","value":-136611000},{"time":"2021-12-30","value":161776000},{"time":"2022-12-30","value":82346000},{"time":"2023-12-30","value":255756000}],"Sales":[{"time":"2014-12-27","value":58356000},{"time":"2015-12-30","value":185924000},{"time":"2016-12-30","value":403204000},{"time":"2017-12-30","value":509808000},{"time":"2018-12-30","value":851794000},{"time":"2019-12-30","value":973410000},{"time":"2020-12-30","value":694155000},{"time":"2021-12-30","value":1096543000},{"time":"2022-12-30","value":1121719000},{"time":"2023-12-30","value":1053149000}],"Net Margins":[{"time":"2014-12-27","value":-0.42574885187470013},{"time":"2015-12-30","value":0.13188184419440202},{"time":"2016-12-30","value":0.0404261862481523},{"time":"2017-12-30","value":0.004087813451338543},{"time":"2018-12-30","value":-0.024552884852440848},{"time":"2019-12-30","value":-0.04062522472544971},{"time":"2020-12-30","value":-0.19680186701817318},{"time":"2021-12-30","value":0.14753274609386044},{"time":"2022-12-30","value":0.07341054221244359},{"time":"2023-12-30","value":0.24284882765876434}],"Assets":[{"time":"2014-12-27","value":122029000},{"time":"2015-12-30","value":378784000},{"time":"2016-12-30","value":419078000},{"time":"2017-12-30","value":1365175000},{"time":"2018-12-30","value":1366569000},{"time":"2019-12-30","value":1740917000},{"time":"2020-12-30","value":1570949000},{"time":"2021-12-30","value":1615564000},{"time":"2022-12-30","value":1508670000},{"time":"2023-12-30","value":1452283000}],"Stockholders Equity":[{"time":"2014-12-27","value":107616000},{"time":"2015-12-30","value":210485000},{"time":"2016-12-30","value":209426000},{"time":"2017-12-30","value":320991000},{"time":"2018-12-30","value":315152000},{"time":"2019-12-30","value":289744000},{"time":"2020-12-30","value":161262000},{"time":"2021-12-30","value":319541000},{"time":"2022-12-30","value":352920000},{"time":"2023-12-30","value":537733000}],"ROE":[{"time":"2014-12-27","value":-0.23086715730002974},{"time":"2015-12-30","value":0.11649286172411336},{"time":"2016-12-30","value":0.07783178783914127},{"time":"2017-12-30","value":0.00649239386774084},{"time":"2018-12-30","value":-0.06636162867441743},{"time":"2019-12-30","value":-0.13648255011320337},{"time":"2020-12-30","value":-0.8471369572496931},{"time":"2021-12-30","value":0.506276189909902},{"time":"2022-12-30","value":0.23332766632664625},{"time":"2023-12-30","value":0.4756189409985997}],"ROA":[{"time":"2014-12-27","value":-0.19627301706971292},{"time":"2015-12-30","value":0.04847881642308017},{"time":"2016-12-30","value":0.031103994960365373},{"time":"2017-12-30","value":0.011264489900562199},{"time":"2018-12-30","value":0.037295592099630535},{"time":"2019-12-30","value":0.026490062421126337},{"time":"2020-12-30","value":-0.042928828370621834},{"time":"2021-12-30","value":0.10277525371944411},{"time":"2022-12-30","value":0.09806452040539018},{"time":"2023-12-30","value":0.2748858177090829}]}

Golden Entertainment, Inc., together with its subsidiaries, engages in the ownership and operation of a diversified entertainment platform in the United States. The company operates through five segments: Nevada Casino Resorts, Nevada Locals Casinos, Maryland Casino Resort, Nevada Taverns, and Distributed Gaming. The Nevada Casino Resorts segment comprises of destination casino resort properties that include various food and beverage outlets, entertainment venues, and other amenities. The Nevada Locals Casinos segment consists of casino properties that cater to local customers. The Maryland Casino Resort segment operates Rocky Gap casino resort, including various food and beverage outlets, signature golf course, spa, and pool. The Nevada Taverns segment comprises food and beverage operations, and the slot machines, as well as provides a casual and upscale environment catering to local patrons offering food, craft beer, and other alcoholic beverages. The Distributed Gaming segment operates slot machines and amusement devices in non-casino locations, such as restaurants, bars, taverns, convenience stores, liquor stores, and grocery stores. The company was formerly known as Lakes Entertainment, Inc. and changed its name to Golden Entertainment, Inc. in July 2015. Golden Entertainment, Inc. was incorporated in 1998 and is headquartered in Las Vegas, Nevada.

Sector

10-Q
9/30/23
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6/30/23
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10-K
12/31/22
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10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Golden Entertainment, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$13.39M	$17.4M	$22.14M	$27.55M	$33.53M	$39.86M	$46.28M	$52.45M	$57.99M	$62.5M	$65.62M	$656.2M
DCF		$15.13M	$16.74M	$18.12M	$19.17M	$19.82M	$20.01M	$19.72M	$18.96M	$17.77M	$16.22M	$162.2M
Value	$343.9M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 49%

Earnings Stability 11%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	13%	4%	0.41%	-2.5%	-4.1%	-20%	15%	7.3%	24%	30%
ROA	4.8%	3.1%	1.1%	3.7%	2.6%	-4.3%	10%	9.8%	27%	30%
ROE	12%	7.8%	0.65%	-6.6%	-14%	-85%	51%	23%	48%	50%

What is the average Net Margin?

The average Net Margin over the past 5 years is +3.36%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +5.78%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +8.28%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +4.42%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +2.75%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +14.78%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	113.05	29.80	-138.13	33.95	176.91	5028.74	3.86	9.25	20.44	50.14
Debt Equity	0.75	0.96	3.17	3.21	4.05	7.27	3.22	2.59	1.27	1.18
MIN
Graham Stability	-	-	39%	-150%	-	-	-	-	100%	-150%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 50.14.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -159.87.

What is the Graham’s Stability?

Graham’s Stability measure stands at -1.46.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	15%	4.3%	15%	-6.1%	-21%
Net Income	48%	-	-	210%	26%
Stockholders Equity	14%	11%	49%	52%	-1.5%
FCF	26%	2.3%	420%	-66%	3K%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +4.34%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -21.25%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +25.67%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +11.28%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -1.55%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +2.28%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +3.03K%.