Accel Entertainment, Inc. (ACEL)
For informational purposes only. Not financial advice. Analysis by Sedat Aydin, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Accel Entertainment, Inc. (ACEL) trades at $11.00 with AI Score 52/100 (Hold). Accel Entertainment operates as a distributed gaming operator in the United States, focusing on installing and maintaining gaming terminals in non-casino locations. Market cap: $897.31M, Sector: Consumer cyclical.
Last analyzed: Feb 9, 2026Accel Entertainment, Inc. (ACEL) Consumer Business Overview
Accel Entertainment dominates the distributed gaming market in Illinois, offering a notable research candidate through its established network of gaming terminals in diverse non-casino locations, generating consistent revenue and demonstrating potential for expansion into new markets, despite its modest profit margin of 3.3%.
Investment Thesis
Accel Entertainment presents a notable research candidate due to its dominant position in the Illinois distributed gaming market. The company's extensive network of 13,639 video gaming terminals across 2,584 locations provides a stable revenue base. Key value drivers include the continued expansion of gaming terminals within existing and new establishments, as well as potential entry into new geographic markets. The company's P/E ratio of 21.88 suggests reasonable valuation relative to earnings. Growth catalysts include ongoing efforts to enhance the gaming experience for players and strategic partnerships with establishment owners. While the profit margin of 3.3% is modest, there is potential for improvement through operational efficiencies and increased scale.
Based on FMP financials and quantitative analysis
Key Highlights
- Operates 13,639 video gaming terminals across Illinois, demonstrating a significant market presence.
- Serves 2,584 locations in Illinois, indicating a broad and diversified network.
- P/E ratio of 21.88 suggests a reasonable valuation relative to earnings.
- Gross Margin of 31.0% reflects the profitability of the company's core operations.
- Beta of 1.06 indicates market correlation, suggesting moderate volatility.
Competitors & Peers
Strengths
- Dominant market share in the Illinois distributed gaming market.
- Established network of gaming terminals and locations.
- Strong relationships with licensed establishment partners.
- Recurring revenue stream from net gaming revenue (NGR) sharing.
Weaknesses
- High dependence on the Illinois market.
- Modest profit margin of 3.3%.
- Exposure to regulatory changes and economic fluctuations.
- Limited geographic diversification.
Catalysts
- Ongoing: Expansion into new geographic markets beyond Illinois.
- Ongoing: Increase in the number of video gaming terminals per location.
- Ongoing: Enhancement of gaming technology and content offerings.
- Upcoming: Potential acquisitions of smaller distributed gaming operators.
- Upcoming: Favorable changes in gaming regulations in target markets.
Risks
- Ongoing: Regulatory changes impacting gaming operations and tax rates.
- Potential: Economic downturns reducing consumer spending on gaming.
- Potential: Increased competition from other gaming operators.
- Potential: Technological disruptions rendering existing gaming terminals obsolete.
- Ongoing: Dependence on relationships with licensed establishment partners.
Growth Opportunities
- Expansion into New Geographies: Accel Entertainment has the opportunity to expand its operations into new states and regions beyond Illinois. By replicating its successful business model in other jurisdictions with favorable regulatory environments, Accel can significantly increase its market reach and revenue potential. The timeline for this expansion depends on regulatory approvals and market entry strategies, but represents a substantial long-term growth driver.
- Increase Gaming Terminal Density: Accel can increase the number of video gaming terminals (VGTs) per location within its existing network. By working with establishment partners to optimize the gaming floor layout and introduce new and engaging games, Accel can drive higher revenue per location. This strategy can be implemented in the near term and offers a relatively low-risk path to growth.
- Enhance Gaming Technology and Content: Investing in advanced gaming technology and developing compelling game content can attract more players and increase engagement. By partnering with leading game developers and incorporating innovative features such as mobile integration and loyalty programs, Accel can differentiate its offerings and enhance the overall gaming experience. This ongoing effort is crucial for maintaining a competitive edge.
- Strategic Acquisitions: Accel Entertainment can pursue strategic acquisitions of smaller distributed gaming operators or related businesses. Acquiring complementary assets or expanding into new market segments can accelerate growth and create synergies. The timing and success of acquisitions depend on market conditions and deal execution, but this represents a viable growth avenue.
- ATM and Amusement Device Expansion: Accel can expand its ATM and amusement device offerings within its existing network and into new locations. By providing a broader range of entertainment and convenience services, Accel can increase its revenue per location and attract more customers. This strategy aligns with the company's focus on providing comprehensive solutions to its establishment partners.
Opportunities
- Expansion into new geographic markets.
- Increase gaming terminal density within existing locations.
- Enhance gaming technology and content.
- Strategic acquisitions of complementary businesses.
Threats
- Increased competition from other distributed gaming operators.
- Changes in gaming regulations and tax rates.
- Economic downturns impacting consumer spending.
- Technological disruptions in the gaming industry.
Competitive Advantages
- Established network of gaming terminals and locations in Illinois.
- Strong relationships with licensed establishment partners.
- Proprietary technology and expertise in distributed gaming operations.
- Regulatory barriers to entry in the distributed gaming market.
About ACEL
Accel Entertainment, Inc. is a leading distributed gaming operator in the United States, primarily focused on the Illinois market. The company was founded to capitalize on the growing demand for convenient gaming options outside of traditional casinos. Accel specializes in the installation, maintenance, and operation of video gaming terminals (VGTs), redemption devices, and amusement devices in licensed non-casino establishments. These locations include restaurants, bars, taverns, convenience stores, liquor stores, truck stops, and grocery stores. Accel provides its establishment partners with comprehensive gaming solutions designed to appeal to their patrons, enhancing the overall customer experience and driving revenue for both Accel and its partners. The company's offerings extend beyond VGTs to include stand-alone ATMs in both gaming and non-gaming locations, as well as amusement devices such as jukeboxes, dartboards, pool tables, and pinball machines. As of December 31, 2021, Accel Entertainment operated 13,639 VGTs across 2,584 locations in Illinois, solidifying its position as a key player in the distributed gaming market. Headquartered in Burr Ridge, Illinois, Accel Entertainment continues to explore opportunities for strategic growth and expansion within the evolving gaming landscape.
What They Do
- Installs and maintains video gaming terminals (VGTs) in non-casino locations.
- Operates redemption devices that disburse winnings and contain ATM functionality.
- Provides gaming solutions to licensed establishment partners.
- Operates stand-alone ATMs in gaming and non-gaming locations.
- Offers amusement devices such as jukeboxes, dartboards, and pool tables.
- Provides entertainment equipment to restaurants, bars, and convenience stores.
Business Model
- Generates revenue from a share of the net gaming revenue (NGR) generated by its VGTs.
- Earns fees from ATM transactions.
- Receives revenue from the operation of amusement devices.
- Partners with licensed establishments to provide gaming and entertainment solutions.
Industry Context
The gambling, resorts, and casinos industry is experiencing growth driven by increasing consumer spending on leisure activities and the expansion of legalized gaming. Accel Entertainment operates within the distributed gaming segment, which offers convenient and accessible gaming options outside of traditional casinos. The competitive landscape includes companies such as BALY and regional gaming operators. Accel's focus on non-casino locations differentiates it within the industry. The market is subject to regulatory changes and economic fluctuations, impacting growth and profitability.
Key Customers
- Restaurants
- Bars and Taverns
- Convenience Stores
- Liquor Stores
- Truck Stops
- Grocery Stores
Financials
Chart & Info
Accel Entertainment, Inc. (ACEL) stock price: $11.00 (-0.34, -3.07%)
Latest News
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3 Small-Cap Stocks We Approach with Caution
Yahoo! Finance: ACEL News · Mar 24, 2026
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Wall Street Analysts Believe Accel Entertainment (ACEL) Could Rally 37.66%: Here's is How to Trade
zacks.com · Mar 24, 2026
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Should Value Investors Buy Accel Entertainment (ACEL) Stock?
zacks.com · Mar 23, 2026
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4 Consumer Discretionary Stocks to Grab as Inflation Continues to Ease
zacks.com · Mar 18, 2026
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for ACEL.
Price Targets
Consensus target: $15.00
MoonshotScore
What does this score mean?
The MoonshotScore rates ACEL's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Latest News
3 Small-Cap Stocks We Approach with Caution
Wall Street Analysts Believe Accel Entertainment (ACEL) Could Rally 37.66%: Here's is How to Trade
Should Value Investors Buy Accel Entertainment (ACEL) Stock?
4 Consumer Discretionary Stocks to Grab as Inflation Continues to Ease
Latest Accel Entertainment, Inc. Analysis
Accel Entertainment, Inc. Stock: Key Questions Answered
What does Accel Entertainment, Inc. do?
Accel Entertainment operates as a distributed gaming operator, primarily in Illinois. They install, maintain, and operate video gaming terminals (VGTs) in licensed non-casino establishments like restaurants, bars, and convenience stores. Their business model involves sharing net gaming revenue (NGR) with these establishments. They also provide ATMs and amusement devices, offering a comprehensive suite of entertainment solutions. Accel's market position is strong in Illinois, with a significant network of VGTs and established relationships with numerous establishment partners.
Is ACEL stock worth researching?
ACEL stock presents a mixed investment profile. Its dominant position in the Illinois distributed gaming market and established network provide a stable revenue base. However, the modest profit margin of 3.3% and dependence on a single geographic market are concerns. The P/E ratio of 21.88 suggests a reasonable valuation, but potential investors should carefully consider the regulatory risks and competitive landscape. Growth opportunities, such as geographic expansion and increased terminal density, could drive future value.
What are the main risks for ACEL?
The main risks for ACEL include regulatory changes that could impact gaming operations and tax rates, economic downturns that could reduce consumer spending on gaming, and increased competition from other gaming operators. Technological disruptions could also render existing gaming terminals obsolete. Additionally, the company's dependence on relationships with licensed establishment partners poses a risk if those relationships are disrupted or terminated. These factors could negatively impact Accel's revenue and profitability.
What are the key factors to evaluate for ACEL?
Accel Entertainment, Inc. (ACEL) currently holds an AI score of 52/100, indicating moderate score. The stock trades at a P/E of 11.8x, below the S&P 500 average (~20-25x), potentially signaling value. Analysts target $15.00 (+36% from $11.00). Key strength: Dominant market share in the Illinois distributed gaming market.. Primary risk to monitor: Ongoing: Regulatory changes impacting gaming operations and tax rates.. This is not financial advice.
How frequently does ACEL data refresh on this page?
ACEL prices update in real time during U.S. market hours (9:30 AM-4:00 PM ET, weekdays). Fundamentals refresh after quarterly or annual filings. Analyst ratings and AI insights update daily. News is aggregated continuously from financial sources.
What has driven ACEL's recent stock price performance?
Recent price movement in Accel Entertainment, Inc. (ACEL) can be influenced by earnings results, analyst revisions, sector rotation, and broader market sentiment. The current analyst target of $15.00 implies 36% upside from here. Notable catalyst: Dominant market share in the Illinois distributed gaming market.. Check the News and Technical Analysis tabs for the latest drivers. Past performance does not predict future results.
Should investors consider ACEL overvalued or undervalued right now?
Determining whether Accel Entertainment, Inc. (ACEL) is overvalued or undervalued requires examining multiple metrics. Its P/E ratio is 11.8. Analysts target $15.00 (+36% from current price), suggesting analysts see upside potential. Compare valuation ratios (P/E, P/S, EV/EBITDA) against sector peers for a comprehensive view.
What research should beginners do before buying ACEL?
Before investing in Accel Entertainment, Inc. (ACEL), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Financial data is based on information available as of December 31, 2021. Stock data pending update.