| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 0.45 | -47 |
| Graham Formula | 6.01 | 599 |
Evergreen Gaming Corporation is a US-based gaming operator strategically positioned in Washington state's consumer cyclical sector. The company operates four distinct casino properties: The Riverside in Tukwila, Goldies Casino in Shoreline, and both Chips and Palace casinos in Lakewood. Specializing in regional casino entertainment, Evergreen Gaming offers a diverse portfolio of table games including Poker, Blackjack, Spanish 21, 4-Card Poker, PaiGow, and Baccarat, complemented by pull tabs and integrated food and beverage services through on-site bars and restaurants. As a TSXV-listed company with American operations, Evergreen Gaming provides investors with exposure to the Pacific Northwest gaming market. The company's focused regional strategy targets local gaming enthusiasts through multiple property formats, creating a diversified revenue stream within Washington's regulated gaming environment. With its headquarters co-located with two of its operational properties in Lakewood, Evergreen Gaming maintains an efficient operational structure while serving the greater Seattle metropolitan area gaming market.
Evergreen Gaming presents a mixed investment profile based on 2021 financials. The company demonstrated solid profitability with net income of $6.65 million CAD on $45.36 million CAD revenue, translating to a healthy 14.7% net margin. Strong operational cash flow of $8.92 million CAD and a robust cash position of $25.10 million CAD provide financial stability, while moderate debt of $11.44 million CAD suggests manageable leverage. However, significant concerns include zero market capitalization indication, absence of beta data suggesting limited trading activity, and no dividend payments. The company's concentrated geographic exposure in Washington state represents both operational focus and regional risk. Investors should weigh the company's apparent profitability against potential liquidity challenges and limited market recognition on the TSXV exchange.
Evergreen Gaming competes in the highly fragmented regional casino market of Washington state, where it maintains a niche position through its four-property portfolio. The company's competitive advantage stems from its multi-property strategy within the Seattle-Tacoma metropolitan area, allowing for operational synergies and diversified market penetration. Unlike destination resort casinos, Evergreen focuses on local gaming enthusiasts through accessible neighborhood locations rather than large-scale entertainment complexes. This positioning enables lower capital expenditures while maintaining steady revenue streams from repeat customers. However, the company faces significant scale disadvantages compared to larger regional operators with more extensive amenities and marketing resources. The 2021 capital expenditures of just $941,650 CAD suggest limited investment in property upgrades or expansion, potentially hindering long-term competitiveness. Evergreen's strength lies in its efficient operations and local market knowledge, but its small scale limits bargaining power with suppliers and ability to compete on amenities with larger casino resorts. The company's table game-focused approach differentiates it from slot-dominated competitors but may limit mass market appeal. In Washington's competitive gaming landscape, Evergreen appears positioned as a stable, profitability-focused operator rather than a growth-oriented market disruptor.