ACEL, a major player in the video game terminal industry, has shown impressive resilience and success during the COVID-19 pandemic. Despite the challenges, ACEL has experienced significant revenue growth and established a strong business model for the expanding video game terminal market.

In 2020, ACEL faced difficulties as the pandemic disrupted the gaming industry and caused a decline in revenue. However, the company quickly recovered in 2021. This impressive rebound can be attributed to ACEL’s local business model, which has proven to be a source of strength during tough times.

ACEL specializes in installing, maintaining, and operating video gaming terminals, allowing the company to navigate the gaming landscape with ease. This specialization has helped ACEL capture market share and expand its reach, resulting in a 7% year-over-year increase in total gaming terminals.

Illinois has played a crucial role in ACEL’s success, as it is the largest market for video game terminals. With revenue reaching $2.71 billion in 2022, Illinois has provided fertile ground for ACEL’s expansion. The company’s strategic focus on this profitable market has paid off, with new locations in Illinois contributing significantly to ACEL’s revenue growth.

Despite fluctuations in revenue growth, ACEL has displayed remarkable resilience. Even during the impact of COVID-19, ACEL managed to expand margins and return to profitability, highlighting its adaptability and strength. The company’s effective cost management has also kept expenses stable, despite inflationary pressures.

ACEL’s future growth prospects are promising, with market estimates projecting earnings per share (EPS) of $0.85 for 2024. This reflects the market’s confidence in the company’s potential. By applying a conservative EV/Sales multiple of 1.05x to these estimates, ACEL’s projected price target for 2024 is $11.33, indicating significant upside.

ACEL’s strong growth in gaming terminals positions the company for future success. The US video game terminal market has experienced continuous and robust growth, with combined revenue from non-casino locations surpassing $6.05 billion in 2022. ACEL’s presence in this expanding market bodes well for its future prospects.

In its most recent quarter, ACEL reported an impressive 8% year-over-year revenue growth, further solidifying its market position. The successful addition of new locations in Illinois and modest growth in same-store sales were key drivers of the company’s performance. ACEL’s consistent delivery of strong results showcases its operational excellence and market-leading position.

ACEL’s prudent capital management is another factor contributing to its growth trajectory. With a stable debt-to-equity ratio since 2020, the company has maintained financial stability alongside strong revenue growth. This positions ACEL for continued success in the video game terminal market.

In conclusion, ACEL’s journey in the video game terminal market has been marked by resilience, adaptability, and solid growth. Despite the challenges of the COVID-19 pandemic, the company has rebounded and expanded its margins, setting the stage for a prosperous future. With a strong presence in the lucrative Illinois market and a focus on operational excellence, ACEL is well-prepared to capitalize on the growth in the video game terminal industry.