Chuck E. Cheese’s parent company is having another go at the NYSE, through a merger with a special purpose company, making it the first restaurant company to enter the public market in four years.
With the closing of the merger with Leo Holdings, Queso Holdings - which owns CEC Entertainment, the parent company of Chuck E. Cheese and Peter Piper Pizza, is likely to see itself trading again this summer at NYSE with the ticker CEC.
Special purpose companies are asset-less and could only use the proceeds of an IPO to buy and take privately held consumer companies public.
The deal is expected to close in Q2 of 2019 and at the end of which Leo Holdings is planning to rename itself as Chuck E. Cheese Brands, while CEC Entertainment is likely to emerge as a subsidiary of Chuck E. Cheese Brands.
The IPO’s proceeds is likely to go towards paying down CEC’s outstanding debt of $978.9 million as of 30 December 2018.
CEC is expected to have an enterprise value $1.4 billion. In fiscal 2018, the company reported a net sales of $896 million, with more than half of its revenue coming from entertainment and merchandise. In its first quarter of fiscal 2019, the company reported a preliminary same-store sales growth of 7.7%.
The company has plans to reimage 60 stores by end of 2019, bringing its total number of remodelled locations to 92 out of its 515 company-owned stores.
However, private equity firm Apollo Global Management who had bought Chuck E. Cheese’s parent company in 2014 for about $948 million to take it private, is likely to not to sell its shares as part of the deal and is expected to hold a 51% stake in the newly formed company.
LEVI may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 32 cases where LEVI's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where LEVI's RSI Oscillator exited the oversold zone, of 24 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 57 cases where LEVI's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for LEVI just turned positive on May 22, 2023. Looking at past instances where LEVI's MACD turned positive, the stock continued to rise in of 42 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LEVI advanced for three days, in of 261 cases, the price rose further within the following month. The odds of a continued upward trend are .
The 50-day moving average for LEVI moved below the 200-day moving average on April 26, 2023. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LEVI declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for LEVI entered a downward trend on May 30, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.731) is normal, around the industry mean (2.977). P/E Ratio (11.111) is within average values for comparable stocks, (24.709). LEVI's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.778). Dividend Yield (0.035) settles around the average of (0.041) among similar stocks. P/S Ratio (0.870) is also within normal values, averaging (1.664).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. LEVI’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LEVI’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of jeans, casual apparel, and sportswear
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A.I.dvisor indicates that over the last year, LEVI has been closely correlated with SHOO. These tickers have moved in lockstep 71% of the time. This A.I.-generated data suggests there is a high statistical probability that if LEVI jumps, then SHOO could also see price increases.
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