📊 ACEL Key Takeaways
Is Accel Entertainment, Inc. (ACEL) a Good Investment?
Revenue growth of 8.1% is positive, but severe profit growth deceleration (net income +0.4% vs. revenue +8.1%) indicates margin compression. High leverage (2.13x debt/equity) with weak interest coverage (2.0x) presents financial risk, while strong liquidity and positive free cash flow provide near-term stability.
Accel Entertainment shows solid revenue growth, strong liquidity, and positive free cash flow, which supports a fundamentally stable operating profile. However, net income growth is nearly flat, margins remain thin, and leverage is elevated, limiting the quality of earnings and reducing balance-sheet flexibility. The business looks fundamentally sound but not strong enough to justify an aggressive rating without clearer improvement in margin expansion and deleveraging.
Why Buy Accel Entertainment, Inc. Stock? ACEL Key Strengths
- Solid 8.1% YoY revenue growth demonstrating market demand and traction
- Strong liquidity position with current ratio of 2.71x and $274.1M cash buffer
- Positive free cash flow generation of $19.9M with 5.7% FCF margin providing financial flexibility
- Revenue grew 8.1% year over year while operating income remained solid, indicating continued underlying demand and operating scale
- Liquidity is strong, with $296.57M of cash and current and quick ratios above 2.5x, which provides near-term financial flexibility
- Operating cash flow of $150.88M and positive free cash flow of $61.95M show the business is converting earnings into cash despite capital intensity
ACEL Stock Risks: Accel Entertainment, Inc. Investment Risks
- Severe profit growth deceleration—net income up only 0.4% while revenue grows 8.1%, indicating margin compression and operational headwinds
- Elevated financial leverage with 2.13x debt/equity ratio and weak 2.0x interest coverage ratio creating vulnerability to economic shocks
- Poor capital efficiency with ROE of 5.4% and ROA of 1.4%, indicating inefficient asset utilization and insufficient returns to equity holders
- Net income increased only 0.4% year over year and net margin is just 3.9%, suggesting limited earnings leverage and vulnerability to cost pressure
- Debt remains high at $607.42M with debt-to-equity of 2.25x, which increases financial risk even though interest coverage is currently acceptable
- Free cash flow margin of 4.7% is modest, leaving less room for operational missteps, higher capex, or weaker consumer spending
Key Metrics to Watch
- Net profit margin expansion trajectory—currently 4.2%, needs acceleration to offset revenue growth deceleration
- Interest coverage ratio movement—2.0x is concerning and should trend toward 3.0x+ for debt sustainability
- Debt/equity ratio reduction path—current 2.13x should target sub-1.5x within 24 months to improve financial flexibility
- Net margin and operating margin trend
- Debt reduction and interest coverage
Accel Entertainment, Inc. (ACEL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.71x current ratio provides a solid financial cushion.
ACEL Profit Margin, ROE & Profitability Analysis
ACEL vs Services Sector: How Accel Entertainment, Inc. Compares
How Accel Entertainment, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Accel Entertainment, Inc. Stock Overvalued? ACEL Valuation Analysis 2026
Based on fundamental analysis, Accel Entertainment, Inc. shows some fundamental concerns relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Accel Entertainment, Inc. Balance Sheet: ACEL Debt, Cash & Liquidity
ACEL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Accel Entertainment, Inc.'s revenue has grown significantly by 81% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.53 reflects profitable operations.
ACEL Revenue Growth, EPS Growth & YoY Performance
ACEL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $323.9M | $14.6M | $0.17 |
| Q3 2025 | $302.2M | $4.9M | $0.06 |
| Q2 2025 | $309.4M | $7.3M | $0.08 |
| Q1 2025 | $301.8M | $7.4M | $0.09 |
| Q3 2024 | $287.5M | $4.9M | $0.06 |
| Q2 2024 | $292.6M | $7.4M | $0.11 |
| Q1 2024 | $293.2M | $7.4M | $0.09 |
| Q3 2023 | $267.0M | $9.2M | $0.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Accel Entertainment, Inc. Dividends, Buybacks & Capital Allocation
ACEL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Accel Entertainment, Inc. (CIK: 0001698991)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ACEL
What is the AI rating for ACEL?
Accel Entertainment, Inc. (ACEL) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ACEL's key strengths?
Claude: Solid 8.1% YoY revenue growth demonstrating market demand and traction. Strong liquidity position with current ratio of 2.71x and $274.1M cash buffer. ChatGPT: Revenue grew 8.1% year over year while operating income remained solid, indicating continued underlying demand and operating scale. Liquidity is strong, with $296.57M of cash and current and quick ratios above 2.5x, which provides near-term financial flexibility.
What are the risks of investing in ACEL?
Claude: Severe profit growth deceleration—net income up only 0.4% while revenue grows 8.1%, indicating margin compression and operational headwinds. Elevated financial leverage with 2.13x debt/equity ratio and weak 2.0x interest coverage ratio creating vulnerability to economic shocks. ChatGPT: Net income increased only 0.4% year over year and net margin is just 3.9%, suggesting limited earnings leverage and vulnerability to cost pressure. Debt remains high at $607.42M with debt-to-equity of 2.25x, which increases financial risk even though interest coverage is currently acceptable.
What is ACEL's revenue and growth?
Accel Entertainment, Inc. reported revenue of $351.6M.
Does ACEL pay dividends?
Accel Entertainment, Inc. does not currently pay dividends.
Where can I find ACEL SEC filings?
Official SEC filings for Accel Entertainment, Inc. (CIK: 0001698991) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ACEL's EPS?
Accel Entertainment, Inc. has a diluted EPS of $0.17.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ACEL a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Accel Entertainment, Inc. has a HOLD rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ACEL stock overvalued or undervalued?
Valuation metrics for ACEL: ROE of 5.4% (sector avg: 16%), net margin of 4.2% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy ACEL stock in 2026?
Our dual AI analysis gives Accel Entertainment, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ACEL's free cash flow?
Accel Entertainment, Inc.'s operating cash flow is $42.7M, with capital expenditures of $22.9M. FCF margin is 5.7%.
How does ACEL compare to other Services stocks?
Vs Services sector averages: Net margin 4.2% (avg: 10%), ROE 5.4% (avg: 16%), current ratio 2.71 (avg: 1.5).
Is Accel Entertainment, Inc. carrying too much debt?
ACEL has a debt-to-equity ratio of 2.13x, which is above the Services sector average of 0.7x. However, the current ratio of 2.71 suggests adequate short-term liquidity.