Century Casinos Inc /Co/ (NASDAQ: CNTY)

Sector: Consumer Cyclical Industry: Resorts & Casinos CIK: 0000911147
Market Cap 45.93 Mn
P/B -0.58
P/E -0.34
P/S 0.08
ROIC (Qtr) -2.25
Div Yield % 0.00
Rev 1y % (Qtr) -1.27
Total Debt (Qtr) 1.08 Bn
Debt/Equity (Qtr) -13.73
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About

Century Casinos, Inc. (CNTY), a Delaware corporation, is a prominent player in the casino entertainment industry, operating gaming establishments, lodging, restaurant, horse racing, and entertainment facilities primarily in North America. The company's primary objective is to expand its business through the development or acquisition of new gaming opportunities and reinvestment in its existing operations. Century Casinos' operations span across various segments, including the United States, Canada, and Poland. In the United States, the company...

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Investment thesis

Bull case

  • Healthy cash reserves of 77.69M provide 5.81x coverage of short-term debt 13.37M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 4.55M provides strong 15.06x coverage of stock compensation 302000, indicating sustainable incentive practices.
  • Strong free cash flow of (27.52M) provides 40.64x coverage of acquisition spending (677000), indicating disciplined M&A strategy.
  • Robust tangible asset base of 1.07B provides 31.93x coverage of working capital 33.46M, indicating strong operational backing.
  • Cash position of 77.69M provides exceptional 11.32x coverage of minority interest expenses 6.86M, indicating strong liquidity.

Bear case

  • Operating cash flow of 4.55M barely covers its investment activities of (32.44M), with a coverage ratio of -0.14, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 77.69M provide limited coverage of acquisition spending of (677000), which is -114.76x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 12.10M relative to inventory of 3.65M (3.31 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of (27.52M) provides weak coverage of capital expenditures of 32.06M, with a -0.86 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (25.70M) show weak coverage of depreciation charges of 57.88M, with a -0.44 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2024)

Business Acquisition Breakdown of Revenue (2024)

Peer comparison

Companies in the Resorts & Casinos
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 LVS Las Vegas Sands Corp 39.82 Bn 24.48 3.06 15.78 Bn
2 WYNN Wynn Resorts Ltd 20.12 Bn 2,860.00 4.09 12.20 Bn
3 MGM MGM Resorts International 9.16 Bn 44.51 0.52 31.26 Bn
4 BYD Boyd Gaming Corp 8.33 Bn -92.47 2.92 2.46 Bn
5 MTN Vail Resorts Inc 4.91 Bn 196.79 4.35 3.38 Bn
6 HGV Hilton Grand Vacations Inc. 4.44 Bn 83.82 0.89 7.28 Bn
7 CZR Caesars Entertainment, Inc. 3.93 Bn -7.83 0.34 24.88 Bn
8 RRR Red Rock Resorts, Inc. 3.66 Bn 20.78 2.12 3.41 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.90 1.18
EV to Cash from Ops. EV/CFO 228.88 39.36
EV to Debt EV to Debt 0.96 32.02
EV to EBIT EV/EBIT -40.49 44.55
EV to EBITDA EV/EBITDA 28.83 19.91
EV to Free Cash Flow [EV/FCF] EV/FCF -37.82 -82.04
EV to Market Cap EV to Market Cap 22.66 4.40
EV to Revenue EV/Rev 1.82 4.33
Price to Book Value [P/B] P/B -0.58 3.49
Price to Earnings [P/E] P/E -0.34 199.09
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.40
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 38.73
Dividend per Basic Share Div per Share (Qtr) 0.00 1.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 21.58
Interest Coverage Int. cover (Qtr) -0.25 -1.90
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 48.41 7.02
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -34.59 3.69
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 6.21
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -136.78 -15.96
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -66.38 -13.29
EBIT Growth (1y) % EBIT 1y % (Qtr) -150.28 -1.32
EBT Growth (1y) % EBT 1y % (Qtr) -146.83 -10.90
EPS Growth (1y) % EPS 1y % (Qtr) -79.84 9.03
FCF Growth (1y) % FCF 1y % (Qtr) 59.01 81.04
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -1.95 4.33
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.49 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.11
Cash Ratio Cash Ratio (Qtr) 1.02 0.59
Current Ratio Curr Ratio (Qtr) 1.44 0.90
Debt to Equity Ratio Debt/Equity (Qtr) -13.73 4.57
Interest Cover Ratio Int Coverage (Qtr) -0.25 -1.90
Times Interest Earned Times Interest Earned (Qtr) -0.25 -1.90
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 5.60 18.45
EBIT Margin % EBIT Margin % (Qtr) -4.49 11.71
EBT Margin % EBT Margin % (Qtr) -22.75 4.06
Gross Margin % Gross Margin % (Qtr) 44.40 47.91
Net Profit Margin % Net Margin % (Qtr) -23.40 2.46