Caesars Entertainment Inc
Exchange: NASDAQSector: Consumer CyclicalIndustry: Resorts & Casinos
Caesars Entertainment, Inc. is the largest casino-entertainment Company in the U.S. and one of the world’s most diversified casino-entertainment providers. Since its beginning in Reno, NV, in 1937, Caesars Entertainment, Inc. has grown through development of new resorts, expansions and acquisitions. Caesars Entertainment, Inc.’s resorts operate primarily under the Caesars®, Harrah’s®, Horseshoe®, and Eldorado® brand names. Caesars Entertainment, Inc. offers diversified gaming, entertainment and hospitality amenities, one-of-a-kind destinations, and a full suite of mobile and online gaming and sports betting experiences. All tied to its industry-leading Caesars Rewards loyalty program, the Company focuses on building value with its guests through a unique combination of impeccable service, operational excellence and technology leadership. Caesars is committed to its employees, suppliers, communities and the environment through its PEOPLE PLANET PLAY framework. Know When To Stop Before You Start.® Gambling Problem? Call or text 1-800-GAMBLER.
Did you know?
Capital expenditures decreased by 21% from FY24 to FY25.
Current Price
$27.41
-3.42%GoodMoat Value
$88.83
224.1% undervaluedProfile
Valuation (TTM)
Market Cap$5.58B
P/E-11.50
EV$29.30B
P/B1.59
Shares Out203.52M
P/Sales0.48
Revenue$11.56B
EV/EBITDA9.13
Caesars Entertainment Inc (CZR) Stock Analysis
GoodMoat Analysis
Caesars Entertainment is a major casino and resort operator with a portfolio of iconic properties, but it faces significant financial strain. The company's high debt load and lack of profitability are major concerns, though its free cash flow yield is strong. The GoodMoat target price of $88 suggests a substantial margin of safety, but this hinges on a successful turnaround.
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Caesars Entertainment operates a leading portfolio of casino resorts and online gaming platforms across the United States. Applying the GoodMoat framework, the business shows some potential moat characteristics, such as a strong brand, regulatory barriers in its key markets, and scale in physical infrastructure, which could yield a Moat Score of 5 or more, allowing us to proceed to quality assessment. However, the Quality Indicators are largely unfavourable. The company is not GAAP profitable, with a negative EPS of -$2.42 and profit margin of -4.4%. Its balance sheet is heavily leveraged with a Debt/Equity ratio of 7.1, far exceeding the favourable threshold of less than 1.0x. While the 13.1% Free Cash Flow Yield and 16.2% Operating Margin are positive, they are overshadowed by the weak ROE of -14.3% and the substantial leverage.
Following the Decision Framework, the business likely fails the 'Moat & Quality Gate' due to multiple weak quality ratings, particularly on profitability and balance sheet strength. Even if one argued it passed, the valuation presents a paradox. At a price of $26.82, the GoodMoat target of $88 implies a margin of safety of over 200%, which would be deeply undervalued. However, this target price is inconsistent with the current negative earnings and high financial risk, suggesting it is predicated on a highly optimistic future recovery. For a value investor, this is a speculative situation requiring deep due diligence into the company's debt restructuring plans and path to sustainable profitability before the valuation disconnect can be considered actionable.
Analysis based on data as of 2024-05-15.
Market Cap$5.58B
Current Price$27.41
P/E Ratio-11.50
Forward P/E—
PEG Ratio1.04
EPS$-2.42
Book Value$17.22
P/B Ratio1.59
CZR Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 30.9% FCF growth (CAGR)
Cash vs Debt
Net Debt: 23.9B
Revenue
2.5B
FY19
3.6B
FY20
9.6B
FY21
10.8B
FY22
11.5B
FY23
11.2B
FY24
11.5B
FY25
Net Income
81M
FY19
—
FY20
—
FY21
—
FY22
786M
FY23
—
FY24
—
FY25
CZR 52-Week Range
$18.14
$31.51
50-Day MA: $26.48200-Day MA: $24.45
Did you know?
CZR's revenue grew at a 28.7% CAGR over the last 6 years.
Caesars Entertainment Inc (CZR) Financial Summary
Caesars Entertainment Inc (CZR) is a Consumer Cyclical company in the Resorts & Casinos industry, listed on NASDAQ. The stock currently trades at $27.41 with a market capitalization of $5.58B.
Key valuation metrics include a P/E ratio of -11.50, price-to-book ratio of 1.59, and EPS of $-2.42. The company reports a profit margin of -4.2% and return on equity of -13.8%.
CZR Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $5.58B |
| P/E Ratio | -11.50 |
| EPS | $-2.42 |
| P/B Ratio | 1.59 |
| P/S Ratio | 0.48 |
| EV/EBITDA | 9.13 |
| Profit Margin | -4.2% |
| Return on Equity | -13.8% |
| Debt/Equity | 7.10 |
CZR Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $2.53B | $81.00M |
| FY20 | $3.63B | $-1.76B |
| FY21 | $9.57B | $-1.02B |
| FY22 | $10.82B | $-899.00M |
| FY23 | $11.53B | $786.00M |
| FY24 | $11.24B | $-278.00M |
| FY25 | $11.49B | $-502.00M |
Caesars Entertainment Inc (CZR) Valuation
Based on GoodMoat's DCF model, Caesars Entertainment Inc has a fair value estimate of $88.83. At the current price of $27.41, the stock appears 69.1% undervalued relative to our intrinsic value estimate.
CZR Quality Indicators
Caesars Entertainment Inc maintains a profit margin of -4.2% and an operating margin of 16.2%. Return on equity stands at -13.8%. The current ratio is 0.80. Debt-to-equity ratio is 7.10.
About Caesars Entertainment Inc
Caesars Entertainment, Inc. is the largest casino-entertainment Company in the U.S. and one of the world’s most diversified casino-entertainment providers. Since its beginning in Reno, NV, in 1937, Caesars Entertainment, Inc. has grown through development of new resorts, expansions and acquisitions. Caesars Entertainment, Inc.’s resorts operate primarily under the Caesars®, Harrah’s®, Horseshoe®, and Eldorado® brand names. Caesars Entertainment, Inc. offers diversified gaming, entertainment and hospitality amenities, one-of-a-kind destinations, and a full suite of mobile and online gaming and sports betting experiences. All tied to its industry-leading Caesars Rewards loyalty program, the Company focuses on building value with its guests through a unique combination of impeccable service, operational excellence and technology leadership. Caesars is committed to its employees, suppliers, communities and the environment through its PEOPLE PLANET PLAY framework. Know When To Stop Before You Start.® Gambling Problem? Call or text 1-800-GAMBLER.
CZR Free Cash Flow
Caesars Entertainment Inc generated $715.00M in trailing twelve-month free cash flow, representing an FCF yield of 12.82%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
CZR Shares Outstanding
Caesars Entertainment Inc has 0.20 billion shares outstanding at a share price of $27.41, giving it a market capitalization of $5.58B.