IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
© 2026 Blank Capital Research. All rights reserved. System Version: Aegis V8 (God Mode).
Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#4228
Positioning
Market Dominance
Retail Trade
Restaurants, Hotels, Motels
$491M
Christopher D. Morris
Dave & Buster's Entertainment, Inc. owns and operates entertainment and dining venues for adults and families. As of January 30, 2022, it owned and operated 144 stores in 40 states, Puerto Rico, and one Canadian Province. The company was founded in 1982 and is headquartered in Coppell, Texas.
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = PLAY ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$ARCO Arcos Dorados Holdings Inc. | 73 | 85 | 89 | 65 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$IMKTA INGLES MARKETS INC | 70 | 73 | 89 | 76 | 11.3x | 4.1x | 6.9% | 4.1% | 24.3% | 2.8% | 1.9% | -3.4% | 1.1% | 33.0x | $1.2B | VS | |
$SGU STAR GROUP, L.P. | 69 | 82 | 79 | 63 | - | - | -25.2% | -10.6% | 28.1% | -6.3% | -5.4% | -7.8% | 6.1% | 57.0x | $396M | VS | |
$EZPW EZCORP INC | 68 | 77 | 82 | 89 | 7.2x | 4.2x | 12.0% | 6.2% | 59.1% | 11.6% | 8.5% | 10.5% | 0.0% | 52.0x | $764M | VS | |
$HTHT H World Group Ltd | 68 | 91 | 44 | 84 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$DDL Dingdong (Cayman) Ltd | 68 | 86 | 82 | 57 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$SBH Sally Beauty Holdings, Inc. | 68 | 83 | 92 | 77 | 5.1x | 2.3x | 32.0% | 6.6% | 51.5% | 8.4% | 4.9% | -1.0% | 0.0% | 178.0x | $934M | VS | |
$SPH SUBURBAN PROPANE PARTNERS LP | 67 | 80 | 90 | 53 | - | 13.0x | 0.4% | -3.5% | 61.7% | 2.1% | -5.7% | 2.2% | 7.1% | 190.0x | $1.2B | VS | |
$IHG INTERCONTINENTAL HOTELS GROUP PLC /NEW/ | 67 | 63 | 81 | 67 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ROST ROSS STORES, INC. | 67 | 63 | 55 | 83 | 25.2x | 16.5x | 34.8% | 13.3% | 28.0% | 11.6% | 9.1% | 10.4% | 1.0% | 26.0x | $51.6B | VS | |
$PLAY Dave & Buster's Entertainment, Inc. | 34 | 28 | 35 | 31 | 17.1x | 4.8x | 23.9% | 0.8% | 85.7% | 8.1% | 0.9% | -23.8% | 0.0% | 1193.0x | $491M | ||
| SECTOR BENCH | - | - | - | - | - | 21.4x | 9.1x | 9.6% | 3.6% | 37.3% | 4.4% | 2.4% | 3.7% | 0.0% | 0.7x | - | REF |
Dave & Buster's Entertainment, Inc. (PLAY) receives a "Avoid" rating with a composite score of 33.8/100. It ranks #4228 out of 7,333 stocks in our coverage universe and carries a 1-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
Sign in to join the discussion.
Lagging peers — losers tend to keep underperforming
Fair valuation relative to peers
Weak fundamentals — higher risk of value trap
High volatility — wider range of outcomes increases timing risk
Moderate investment profile
Below-average composite — caution warranted
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Relative valuation derived from Retail Trade sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for PLAY.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 28 | 10 | +18ALPHA |
| MOMENTUM | 31 | 27 | +4NEUTRAL |
| VALUATION | 35 | 28 | +7ALPHA |
| INVESTMENT | 49 | 89 | -40DRAG |
| STABILITY | 31 | 27 | +4NEUTRAL |
| SHORT INT | 34 | 23 | +11ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC -0.8% vs WACC 4.0% (spread -4.8%)
GM 86% vs sector 37%, OM 8% vs sector 4%
Capital turnover 0.29x
Rev growth -24%, 11yr history
Interest coverage -0.4x, Net debt/EBITDA 33.0x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Dave & Buster's Entertainment, Inc. (PLAY) as Avoid with a composite score of 33.8/100 at a current price of $14.85. The stock falls in the bottom quintile, and the multi-factor weakness suggests a high probability of continued underperformance.
Dave & Buster's Entertainment, Inc. holds a top-quartile position (#0 of 50) within the Retail Trade sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 33.8/100 places it at rank #4228 in our full universe.
No Moat
High
Poor
Fair Value
Gross margins of 86% signal strong pricing power.
Returns on equity of 23.9% exceed cost of capital.
Stable competitive position in a defensive sector.
Leverage of 1193% D/E amplifies downside risk.
Weak momentum suggests persistent institutional selling pressure.
Below-average quality raises earnings sustainability concerns.
Dave & Buster's Entertainment, Inc. represents a avoid based on multi-factor quantitative performance.
Our quantitative model flags Dave & Buster's Entertainment, Inc. with an Avoid rating, assigning a composite score of 33.8/100 and 1 out of 5 stars. Ranked #4228 of 7,333 stocks, PLAY falls in the bottom tier across key factors. Historically, stocks with this profile have faced elevated risk of underperformance and capital loss.
PLAY's quality score of 28/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of 23.9% (sector avg: 9.6%), gross margins of 85.7% (sector avg: 37.3%), net margins of 0.9% (sector avg: 2.4%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
With a value score of 35/100, PLAY appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/E ratio of 17.07x, an EV/EBITDA of 4.80x, a P/B ratio of 4.09x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
With an investment score of 49/100, PLAY exhibits moderate growth-oriented spending. Key growth metrics include revenue growth of -23.8% vs. a sector average of 3.7% and a return on assets of 0.8% (sector: 3.6%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
PLAY is currently showing below-average momentum at 31/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at -23.8% year-over-year, while a beta of 1.07 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
PLAY's stability score of 31/100 signals elevated volatility and/or leverage concerns. Key stability metrics include a beta of 1.07 and a debt-to-equity ratio of 1193.00x (sector avg: 0.7x). Investors should be prepared for wider-than-average price swings and consider position sizing accordingly to manage portfolio risk.
Dave & Buster's Entertainment, Inc.'s short interest score of 34/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include elevated leverage (D/E: 1193.00x), small-cap liquidity risk. At $491M (small-cap), PLAY carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
Dave & Buster's Entertainment, Inc. is a small-cap company in the Retail Trade sector, ranked #0 of 50 in its sector (100th percentile) and #4228 of 7,333 overall (42nd percentile). Key comparisons include ROE of 23.9% exceeding the 9.6% sector median and operating margins of 8.1% above the 4.4% sector average. This top-quartile standing reflects exceptional competitive strength relative to Retail Trade peers.
While PLAY currently exhibits a AVOID profile, superior opportunities exist within the RETAIL TRADE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Retail Trade Alpha →Quant Factor Profile
Upgrade catalyst
Improvement in Quality (28) would have the largest impact on the composite score.
EV/EBITDA 47% BELOW SECTOR MEDIAN (FAVORABLE)
ROE 150% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 130% ABOVE SECTOR MEDIAN (FAVORABLE)
Above 50MA
37.18%
Net New Highs
+51081
U.S. stock futures rose ahead of the Federal Reserve's two-day meeting, with investors anticipating potential interest rate cuts. The market showed mixed performance, with Communication Services and Technology sectors leading gains, while the FOMC's decision on Wednesday is a key focus.
Upcoming earnings reports from FedEx, General Mills, Lennar, and restaurant companies will provide insights into consumer sentiment, economic growth, and the potential impact of tariffs on consumer spending.
As February 2026 begins, U.S. markets have experienced a robust start with key indices like the Dow Jones Industrial Average and S&P 500 posting significant gains, reflecting renewed investor optimism amid positive economic indicators such as the expansion in manufacturing activity. In this dynamic environment, identifying small-cap stocks with potential for growth can be particularly rewarding; factors such as insider activity may offer additional insights into their valuation and future...
Dave & Buster reported tepid Q2 revenue growth with margin contraction, but found a new CEO and remains focused on turnaround efforts. The company is maintaining financial health through strategic share buybacks and exploring international market expansion.
Dave & Buster's reported flat revenue and missed earnings estimates, with comparable sales declining 3%. A new CEO, Tarun Lai, was appointed to drive potential turnaround amid broader restaurant industry challenges.