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Bally's Corporation (BALY)
NYSE:BALY
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Bally's Corporation
(NYSE:BALY)
47Neutral
Positive Factors
Expansion
Bally's shareholders approved a merger with QC&E, expanding its footprint to 19 facilities across 11 states.
Financing
Bally's secured a financing commitment from Gaming and Leisure Properties for nearly all the $1.4 billion needed to complete its Chicago casino, enhancing financial stability.
Negative Factors
Investor Sentiment
Investors are not expected to give Bally's credit for long-term outlook due to the macroeconomic backdrop and execution risks.
Leverage
Lease-adjusted leverage will hover around 6.5x through the completion of the Chicago casino, making Bally's the most levered company in the gaming coverage.
Bally's Corporation (BALY) vs. S&P 500 (SPY)
Market Cap
$741.76M
Dividend YieldN/A
Average Volume (3M)52.94K
Price to Earnings (P/E)―
Beta (1Y)2.07
Revenue Growth0.06%
EPS Growth-248.51%
CountryUS
Employees10,500
SectorConsumer Cyclical
Sector Strength64
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)-12.06
Shares Outstanding48,737,410
10 Day Avg. Volume30,237
30 Day Avg. Volume52,935
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.36
Price to Cash Flow (P/CF)6.10
P/FCF Ratio4.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$15.00Price Target Upside23.76% Upside
Rating ConsensusHold
Number of Analyst Covering4
Bally's Corporation Business Overview & Revenue Model
Company DescriptionBallys Corp operates in the casino industry. The company owns gaming and racing facilities, including slot machines and various casinos. It operates in three reportable segments: Casinos and Resorts, North America Interactive, and International Interactive. The majority of the revenue is derived from Casinos and Resorts. Bally's Twin River, Bally's Tiverton, Bally's Dover, Bally's Atlantic City, and other Bally's Casinos & Resorts are just a few of the many Casinos & Resorts. Bally's Interactive, SportCaller, MKF, AVP, Telescope, Degree 53, Live at the Bike, Gamesys' North American business, and online and mobile sports betting operations are all part of the North America Interactive segment. Gamesys' Europe and Asia businesses make up the International Interactive segment.
How the Company Makes MoneyBally's Corporation generates revenue through several key streams. Primarily, the company earns money from its portfolio of casino and resort properties, where it offers gaming activities, hospitality services, food and beverage sales, and entertainment amenities. Additionally, Bally's capitalizes on the growing market of online gaming and sports betting through its interactive platforms, which include digital casino games and online sports wagering. The company's earnings are further enhanced by strategic partnerships and acquisitions that expand its market reach and service offerings. These partnerships often involve collaborations with technology providers, gaming software developers, and media companies to enhance their digital and interactive segments. Together, these revenue streams and partnerships contribute significantly to Bally's financial performance.
Bally's Corporation Financial Statement Overview
Summary
Bally's Corporation is facing financial challenges with negative profitability and high leverage. The income statement shows declining profitability, while the balance sheet highlights high debt and low equity. Cash flow generation is strained, though operating cash flow remains positive.Income Statement
The income statement shows a declining trend in profitability, with negative net income and EBIT margins in the TTM. Gross profit margin is approximately 39.96%, indicating some control over direct costs. Revenue growth is modest at 1.33% year-over-year, but the significant negative net profit margin of -30.03% raises concerns about operational efficiency and cost management.45
Neutral
Balance Sheet
The balance sheet reflects a high debt burden with a debt-to-equity ratio of 21.58, suggesting potential financial risk. Return on equity is strongly negative at -319.42%, highlighting inefficiencies in generating returns from equity. The equity ratio stands at a low 3.64%, indicating high leverage and reduced financial flexibility.40
Negative
Cash Flow
Cash flow analysis reveals challenges in generating positive free cash flow, with a minor improvement in free cash flow growth. The operating cash flow to net income ratio is negative, suggesting cash flow struggles. However, operating cash flow remains positive, indicating some ability to meet operational needs.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.45B | 2.45B | 2.26B | 1.32B | 372.79M | Gross Profit |
| 1.33B | 1.34B | 1.25B | 787.36M | 234.12M | EBIT |
| -258.33M | 104.01M | 217.66M | 159.92M | -38.63M | EBITDA |
| 137.39M | 442.23M | 54.24M | 143.64M | 27.08M | Net Income Common Stockholders |
| -567.75M | -187.50M | -425.55M | -71.80M | -5.49M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 171.23M | 163.19M | 212.51M | 206.19M | 123.44M | Total Assets |
| 5.86B | 6.86B | 6.30B | 6.55B | 1.93B | Total Debt |
| 1.55B | 5.07B | 4.52B | 3.98B | 1.16B | Net Debt |
| 1.38B | 4.90B | 4.31B | 3.77B | 1.04B | Total Liabilities |
| 5.83B | 6.23B | 5.49B | 4.94B | 1.60B | Stockholders Equity |
| 30.90M | 635.43M | 805.82M | 1.61B | 326.60M |
| Cash Flow | Free Cash Flow | |||
| -85.83M | -313.55M | -34.19M | -79.98M | 3.72M | Operating Cash Flow |
| 114.00M | 188.61M | 270.97M | 82.75M | 19.50M | Investing Cash Flow |
| 97.83M | -207.79M | -302.92M | -2.30B | -444.85M | Financing Cash Flow |
| -287.84M | 65.75M | 43.24M | 2.40B | 366.40M |
Bally's Corporation Technical Analysis
Positive
12.12
Price Trends
15.34
Positive
17.70
Positive
15.94
Positive
Market Momentum
-0.94
Positive
38.85
Neutral
7.26
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BALY, the sentiment is Positive. The current price of 12.12 is below the 20-day moving average (MA) of 14.43, below the 50-day MA of 15.34, and below the 200-day MA of 15.94, indicating a bullish trend. The MACD of -0.94 indicates Positive momentum. The RSI at 38.85 is Neutral, neither overbought nor oversold. The STOCH value of 7.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BALY.
Bally's Corporation Risk Analysis
Bally's Corporation disclosed 56 risk factors in its most recent earnings report. Bally's Corporation reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bally's Corporation Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $411.25M | 13.87 | 25.34% | ― | 17.05% | 73.00% | |
72 Outperform | $937.75M | 26.44 | 15.55% | ― | 5.17% | -20.75% | |
67 Neutral | $682.29M | 11.24 | 12.86% | 5.81% | -11.10% | -23.77% | |
65 Neutral | $493.04M | 10.07 | 53.82% | ― | 10.75% | 10405.31% | |
59 Neutral | $11.48B | 10.33 | -0.84% | 4.02% | 1.25% | -16.06% | |
58 Neutral | $674.10M | 14.93 | 10.03% | 3.98% | -36.68% | -79.99% | |
47 Neutral | $741.76M | ― | -170.41% | ― | 0.06% | -248.51% |
* Consumer Cyclical Sector Average
Performance Comparison
BALY
Bally's Corporation
15.46
-6.61
-29.95%
ETD
Ethan Allen
26.83
-2.26
-7.77%
GDEN
Golden Entertainment
25.12
-8.00
-24.15%
ACEL
Accel Entertainment
10.96
0.05
0.46%
AGS
Playags
11.95
3.08
34.72%
GAMB
Gambling.com
11.83
3.37
39.83%
Bally's Corporation Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -6.70% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed performance for Bally's Corporation. While there were significant achievements such as strong growth in the North America Interactive segment and successful operations in the UK, there were notable challenges, including revenue declines in certain segments and specific regional difficulties in Rhode Island and Atlantic City. The company is focused on strategic developments and operational improvements to enhance future growth.Highlights
North America Interactive Revenue Growth
The North America Interactive segment experienced a 55% increase in revenue, reaching $46 million. This growth was driven by strong performance in iGaming operations, particularly in Rhode Island, contributing $9.7 million in gross gaming revenue.
Successful UK Operations
The UK Interactive business saw a 12% increase in revenues, with adjusted EBITDA margins improving by approximately 400 basis points year-over-year. The segment benefited from all-time high active customer levels and robust average revenue per user metrics.
Chicago Temporary Casino Performance
In Chicago, operations at the temporary facility are stabilizing with a 6% growth in quarterly admissions and an increased market share. The player database now exceeds 113,000 customers, and the property celebrated its first-year anniversary with over 1.3 million visitors.
Capital Structure and Future Prospects
Bally's is actively working on several development projects, including a flagship casino in Chicago and a proposal for a resort in New York. The company ended the quarter with $191 million in cash and is preparing for the addition of Casino Queen assets.
Lowlights
Revenue Decline in International Interactive Segment
The International Interactive segment experienced a 5% decline in revenue, primarily due to underperformance outside the UK.
Challenges in Atlantic City and Rhode Island
In Atlantic City, the departure of a key relationship marketing team led to a challenging quarter. Rhode Island faced revenue headwinds due to disruptions on Interstate 195, affecting the Lincoln property.
Decreased EBITDA in Casino & Resorts Segment
The Casino & Resorts segment saw a 2% revenue decline to $353 million, with adjusted EBITDA decreasing by 15% from the previous year. Segment margins fell from 33% to 28%.
Company Guidance
During Bally’s Corporation's third-quarter 2024 earnings call, the company provided guidance on several key metrics and strategic developments. Overall, third-quarter revenue slightly decreased by less than 1% year-over-year to $630 million, with notable performance variations across segments. The North America Interactive segment experienced significant growth, with a 55% increase in revenue, while the Casinos & Resorts segment saw a 2% decline, primarily due to challenges in Rhode Island and Atlantic City. The International Interactive segment faced a 5% revenue decline, although the UK operations alone reported a 12% increase. Adjusted EBITDA margins improved by approximately 400 basis points for the International Interactive segment, reflecting operational efficiency. The company plans to continue expanding its North America Interactive business, aiming for positive EBITDA. Bally’s also shared updates on its development projects, including the flagship casino in Chicago, expected to open in September 2026, and its strategic efforts in Las Vegas and New York. The acquisition of Aspers Casino Newcastle aims to enhance Bally's UK presence, leveraging its online player database for increased engagement. Additionally, the company is restructuring its operations in Asia and other markets to focus on high-margin licensing revenue. The call emphasized Bally's commitment to improving efficiency and profitability while navigating market-specific challenges.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.