10Y annualized return is
very good
at 11.6% per year
CZR has met or exceeded earnings expectations in
few
recent quarters (0/2)
Attractive Price-to-Sales Ratio
Reasonable Price-to-Book Ratio
Strong Gross Profit Margin
Good Operating Profit Margin
Strong Operating Cash Flow
Substantial Cash Per Share
Strong Regional Performance
Robust Digital Segment Growth
Operational Efficiency and Cost Management
Dramatic Increase in Free Cash Flow
Strategic Investments in New Markets
Continued Digital Expansion
Negative Earnings Ratios
High EV-to-EBITDA Ratio
Negative Net Profit Margin
Negative Return on Equity
High Debt Levels
Low Liquidity Ratios
Regional Competitive Pressures
Potential Regulatory Risks in Digital Space
Overall, Caesars Entertainment exhibits a strong business model characterized by robust revenue growth in both regional and digital segments, operational efficiency, and strategic investments. However, the company faces competitive pressures and regulatory risks that could impact its future performance.
Analysis Date: February 25, 2025
Last Updated: March 11, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Caesars Entertainment, Inc. is a company that runs casinos and hotels across the United States. They offer a variety of fun activities like poker, slot machines, and sports betting. In addition to gaming, they have restaurants, bars, and entertainment events for people to enjoy. Basically, they create places where people can relax, have fun, and try their luck at winning.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Consumer
Competitive Advantages
Key Business Risks
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
CZR: No Graham value data available
Margin of Safety
Gap between intrinsic value and market price
CZR: No margin of safety data available
Graham Criteria Checklist
Benjamin Graham's value investing checklist for CZR
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (-17.93)
P/B ratio ≤ 1.5 (1.20)
Current ratio ≥ 2.0 (0.77x)
Long-term debt < Net current assets (-47.49x)
Margin of safety
CZR does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
CZR has a gross profit margin of 46.00%, indicating effective management of production costs relative to sales.
The operating profit margin of 21.71% demonstrates that the company retains a good portion of revenue as profit after covering operational expenses.
The net profit margin is -2.47%, indicating that the company is currently not generating profit after all expenses are accounted for.
A return on equity of -6.52% suggests the company is not effectively utilizing shareholders' equity to generate profits.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
-6.52%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-25)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
46.00%
Higher values indicate better efficiency in production
TTM (as of 2025-04-25)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
-2.47%
Higher values indicate better overall profitability
TTM (as of 2025-04-25)
CZR has an operating cash flow per share of 5.0, indicating solid cash generation from core operations.
With 4.03 cash per share, the company has a reasonable amount to cover short-term obligations.
The debt-to-equity ratio is extremely high at 6.03, indicating significant leverage which may pose risks during downturns.
The current ratio of 0.769 and quick ratio of 0.749 indicate potential liquidity issues, suggesting that the company may struggle to meet short-term obligations.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
5.73x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
0.77x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
The company reported sequential improvement in regional performance, with the opening of new properties such as Caesars New Orleans and Caesars Virginia contributing positively. This shows effective market expansion and asset utilization.
The digital segment achieved record results, with iGaming showing an impressive 64% growth year-over-year, highlighting the company's competitive position in online gaming.
The management has effectively managed labor costs and expenses, positioning the company favorably amid competitive pressures and potential economic challenges.
Despite the positive performance from new properties, there is still ongoing competitive pressure in regional markets that could impact future performance.
The company expects significant growth in free cash flow driven by investments made during the capital investment cycle that concluded in 2024.
The opening of new facilities and ongoing upgrades to existing properties are expected to drive growth and enhance market positioning in 2025.
The rollout of a proprietary player account management system and improvements to technology are expected to bolster the digital segment further, with ambitions to achieve $500 million in EBITDA.
There are concerns regarding potential tax increases and regulatory changes that may impact the digital segment's growth and profitability.
