Caesars Entertainment, Inc. (NASDAQ: CZR)

Sector: Consumer Cyclical Industry: Resorts & Casinos CIK: 0001590895
Market Cap 3.93 Bn
P/B 1.12
P/E -7.83
P/S 0.34
ROIC (Qtr) 6.27
Div Yield % 0.00
Rev 1y % (Qtr) 4.18
Total Debt (Qtr) 24.88 Bn
Debt/Equity (Qtr) 7.10
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About

Caesars Entertainment, Inc., a prominent player in the gaming and hospitality industry, has built a diverse portfolio of properties across the United States and Canada since its inception in 1973. The company has expanded its footprint through strategic acquisitions, including MTR Gaming Group, Isle of Capri Casinos, Tropicana Entertainment, and William Hill PLC. Caesars Entertainment's core business activities revolve around gaming and hospitality services. The company operates over 50 properties in 18 states, offering a wide range of amenities...

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Investment thesis

Bull case

  • Healthy cash reserves of 972M provide 8.53x coverage of short-term debt 114M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 1.30B provides exceptional 20.03x coverage of minority interest expenses 65M, showing strong core operations.
  • Operating cash flow of 1.30B provides strong 13.71x coverage of stock compensation 95M, indicating sustainable incentive practices.
  • Tangible assets of 17.21B provide robust 9.34x coverage of other current liabilities 1.84B, indicating strong asset backing.
  • Operating cash flow of 1.30B fully covers other non-current liabilities 934M by 1.39x, showing strong long-term stability.

Bear case

  • Operating cash flow of 1.30B barely covers its investment activities of (571M), with a coverage ratio of -2.28, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • High receivables of 476M relative to inventory of 43M (11.07 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating cash flow of 1.30B provides minimal -118.36x coverage of tax expenses of (11M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 1.79B show weak coverage of depreciation charges of 1.44B, with a 1.24 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 1.44B relative to operating cash flow of 1.30B, which is 1.11x suggests significant maintenance capital requirements affecting free cash flow.

Segments Breakdown of Revenue (2025)

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 0.88 1.18
EV to Cash from Ops. EV/CFO 21.40 39.36
EV to Debt EV to Debt 1.12 32.02
EV to EBIT EV/EBIT 15.56 44.55
EV to EBITDA EV/EBITDA 8.45 19.91
EV to Free Cash Flow [EV/FCF] EV/FCF 38.98 -82.04
EV to Market Cap EV to Market Cap 7.09 4.40
EV to Revenue EV/Rev 2.43 4.33
Price to Book Value [P/B] P/B 1.12 3.49
Price to Earnings [P/E] P/E -7.83 199.09
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 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) 0.78 -1.90
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 20.89 7.02
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1.14 3.69
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 6.21
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -44.64 -15.96
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -9.72 -13.29
EBIT Growth (1y) % EBIT 1y % (Qtr) -17.66 -1.32
EBT Growth (1y) % EBT 1y % (Qtr) -168.59 -10.90
EPS Growth (1y) % EPS 1y % (Qtr) -87.60 9.03
FCF Growth (1y) % FCF 1y % (Qtr) 114.71 81.04
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.95 4.33
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.36 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.11
Cash Ratio Cash Ratio (Qtr) 0.43 0.59
Current Ratio Curr Ratio (Qtr) 0.80 0.90
Debt to Equity Ratio Debt/Equity (Qtr) 7.10 4.57
Interest Cover Ratio Int Coverage (Qtr) 0.78 -1.90
Times Interest Earned Times Interest Earned (Qtr) 0.78 -1.90
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 28.10 18.45
EBIT Margin % EBIT Margin % (Qtr) 15.59 11.71
EBT Margin % EBT Margin % (Qtr) -4.47 4.06
Gross Margin % Gross Margin % (Qtr) 53.70 47.91
Net Profit Margin % Net Margin % (Qtr) -4.40 2.46