By analyzing existing technical and fundamental indicators between Accel Entertainment and Everi, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Everi with a short position in Accel Entertainment. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Accel Entertainment has an asset utilization ratio of 42745.88 percent. This denotes that the company is making $427.46 for each dollar of assets. An increasing asset utilization means that Accel Entertainment is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Accel or PlayAGS is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Accel Entertainment's Liquidity
Accel Entertainment
financial leverage refers to using borrowed capital as a funding source to finance Accel Entertainment ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Accel Entertainment financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Accel Entertainment's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Accel Entertainment's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Accel Entertainment's total debt and its cash.
Correlation Between Accel and PlayAGS
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Accel Entertainment together with similar or unrelated positions with a negative correlation. For example, you can also add PlayAGS to your portfolio. If PlayAGS is not perfectly correlated to Accel Entertainment it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Accel Entertainment, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Accel Entertainment and PlayAGS in your portfolio? Please note if you are using this as a pair-trade strategy between Accel Entertainment and PlayAGS, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between ACEL and AGS for more information.
What is driving Accel Entertainment Investor Appetite?
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now analyze Accel Entertainment revenue. Based on the latest financial disclosure, Accel Entertainment reported 363.34
M of revenue. This is 94.9% lower than that of the Consumer Cyclical sector and 53.55% lower than that of the
Gambling industry. The revenue for all United States stocks is 96.15% higher than that of Accel Entertainment. As for Everi Holdings we see revenue of 383.67
M, which is 50.95% lower than that of the Gambling
| Accel | 363.34 Million |
| Sector | 782.26 Million |
| Everi | 383.67 Million |
Is Accel showing trail of lower volatility?
New treynor ratio is at 0.29. Accel Entertainment currently demonstrates below-average downside deviation. It has Information Ratio of 0.1 and Jensen Alpha of 0.22. However, we advise investors to further question Accel Entertainment expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Accel Entertainment's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Accel Entertainment's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
The Current Takeaway on Accel Entertainment Investment
While some other companies in the gambling industry are either recovering or due for a correction, Accel Entertainment may not be performing as strong as the other in terms of long-term growth potentials. To sum up, as of the 15th of March 2021, we believe that Accel Entertainment is currently
fairly valued with
below average chance of distress in the next two years. Our up-to-date 30 days buy-hold-sell recommendation on the company is
Strong Buy.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Accel Entertainment. Please refer to our
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