Accel Entertainment trades at $12.76 per share and has stayed right on track with the overall market, gaining 12.2% over the last six months. At the same time, the S&P 500 has returned 9.3%. <\/p>\n
Is now the time to buy Accel Entertainment, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it\u2019s free<\/a>. <\/p>\n We don\u2019t have much confidence in Accel Entertainment. Here are three reasons we avoid ACEL, plus one stock we\u2019d rather own. <\/p>\n Revenue growth can be broken down into changes in price and volume (for companies like Accel Entertainment, our preferred volume metric is video gaming terminals sold). While both are important, the latter is the most critical to analyze because prices have a ceiling. <\/p>\n Accel Entertainment\u2019s video gaming terminals sold came in at 28,353 in the latest quarter, and over the last two years, averaged 6.1% year-on-year growth. This performance was underwhelming and suggests it might have to lower prices or invest in product improvements to accelerate growth, factors that can hinder near-term profitability. <\/p>\n If you\u2019ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can\u2019t use accounting profits to pay the bills. <\/p>\n Accel Entertainment has shown poor cash profitability relative to peers over the last two years, giving the company fewer opportunities to return capital to shareholders. Its free cash flow margin averaged 4.9%, below what we\u2019d expect for a consumer discretionary business. <\/p>\n ROIC, or return on invested capital, is a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). <\/p>\n Over the last few years, Accel Entertainment\u2019s ROIC has unfortunately decreased. Paired with its already low returns, these declines suggest its profitable growth opportunities are few and far between. <\/p>\n Accel Entertainment doesn\u2019t pass our quality test. That said, the stock currently trades at 13.3\u00d7 forward P\/E (or $12.76 per share). This valuation is reasonable, but the company\u2019s shaky fundamentals present too much downside risk. There are superior stocks to buy right now. Let us point you toward a safe-and-steady industrials business benefiting from an upgrade cycle<\/a>. <\/p>\n WHILE YOU\u2019RE HERE: Top 9 Market-Beating Stocks.<\/strong> The best stocks don\u2019t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.<\/p>\n But our AI platform says the party isn\u2019t over. Find out which 9 stocks made the cut this week \u2014 FREE. Get Our Top 9 Market-Beating Stocks for Free HERE<\/strong><\/a>.<\/p>\nWhy Do We Think Accel Entertainment Will Underperform? <\/h2>\n
1. Weak Growth in Video Gaming Terminals Sold Points to Soft Demand<\/h3>\n
2. Mediocre Free Cash Flow Margin Limits Reinvestment Potential<\/h3>\n
![\"Accel](\"https:\/\/news-assets.stockstory.org\/chart-images\/Accel-Entertainment-Trailing-12-Month-Free-Cash-Flow-Margin_2026-07-02-040505_tytk.png\"\/)
<\/p>\n3. New Investments Fail to Bear Fruit as ROIC Declines<\/h3>\n
![\"Accel](\"https:\/\/news-assets.stockstory.org\/chart-images\/Accel-Entertainment-Trailing-12-Month-Return-On-Invested-Capital_2026-07-02-040507_ckvd.png\"\/)
<\/p>\nFinal Judgment<\/h2>\n
Stocks We Like More Than Accel Entertainment<\/h2>\n