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Century Casinos (CNTY)
:CNTY
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Century Casinos
(NASDAQ:CNTY)44Neutral
Positive Factors
Business Development
Management is seeing green shoots across several areas within its business, indicating positive momentum.
Liquidity and Financial Health
Liquidity is sufficient, and cash on the balance sheet exceeds the current market cap with no debt maturities until 2029.
Stock Valuation
Shares are seen as mispriced due to positive catalysts, including inflecting free cash flow and an improving balance sheet.
Negative Factors
Century Casinos (CNTY) vs. S&P 500 (SPY)
Market Cap
$76.09M
Dividend YieldN/A
Average Volume (3M)50.42K
Price to Earnings (P/E)―
Beta (1Y)1.58
Revenue Growth14.06%
EPS Growth-241.92%
CountryUS
Employees4,153
SectorConsumer Cyclical
Sector Strength53
IndustryHotels, Lodging & Leisure
Share Statistics
EPS (TTM)-2.42
Shares Outstanding30,682,604
10 Day Avg. Volume63,705
30 Day Avg. Volume50,420
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.13
Price to Cash Flow (P/CF)2.60
P/FCF Ratio0.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.00Price Target Upside101.61% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Century Casinos Business Overview & Revenue Model
Company DescriptionCentury Casinos, Inc. (CNTY) is an international casino entertainment company that operates gaming establishments across multiple countries. The company is involved in the development and operation of gaming establishments, including casinos, racetracks, and associated hospitality venues. Century Casinos is known for its diverse range of gaming options that include slot machines, table games, and betting facilities, catering to a wide range of customers seeking entertainment and gaming experiences.
How the Company Makes MoneyCentury Casinos generates revenue primarily through its gaming operations, which constitute the largest portion of its income. The company earns money from slot machines and table games at its casino properties. Additional revenue streams include food and beverage sales at its hospitality venues, hotel accommodations, and entertainment events hosted at its facilities. Century Casinos may also benefit from strategic partnerships and joint ventures in various regions, which can enhance its market presence and contribute to its overall profitability. By continuously expanding its portfolio and optimizing its operations, Century Casinos aims to maximize its revenue potential in the highly competitive gaming and entertainment industry.
Century Casinos Financial Statement Overview
Summary
Century Casinos faces challenges with profitability and cash flow, alongside high leverage, which could hinder financial stability. While revenue shows positive growth, the company needs to address its high debt levels and improve cash generation to enhance its financial health.Income Statement
Century Casinos has shown a steady revenue growth with a TTM revenue of $581.9M compared to $550.2M in the previous year. However, the net profit margin is negative due to a significant net loss, indicating challenges in achieving profitability. Gross profit margin has decreased to 38.3% TTM from 44.1% in the previous year, impacting overall performance.55
Neutral
Balance Sheet
The company has a high debt-to-equity ratio of 17.95, indicating significant leverage, which could pose a risk. Stockholders' equity has decreased significantly, affecting the equity ratio to a low 4.36% TTM. These indicate potential financial instability and risk.40
Negative
Cash Flow
Century Casinos is experiencing negative free cash flow growth and operating cash flow, which are concerning. The operating cash flow to net income ratio is also negative, indicating inefficiencies in cash generation relative to earnings.35
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 581.91M | 550.21M | 430.53M | 388.51M | 304.27M | 218.23M | Gross Profit |
| 222.99M | 242.81M | 199.09M | 188.77M | 154.62M | 105.09M | EBIT |
| 62.96M | 64.05M | 33.25M | 37.72M | -149.78M | -118.36M | EBITDA |
| 108.16M | 115.36M | 102.95M | 101.78M | 30.01M | 13.74M | Net Income Common Stockholders |
| -74.10M | -28.20M | 13.67M | 20.62M | -48.14M | -16.14M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 45.58M | 171.33M | 101.78M | 107.82M | 63.41M | 54.75M | Total Assets |
| 278.82M | 1.36B | 884.97M | 703.36M | 680.76M | 726.90M | Total Debt |
| 59.52M | 1.02B | 665.00M | 494.61M | 500.31M | 502.12M | Net Debt |
| 13.95M | 849.22M | 563.21M | 386.79M | 436.89M | 447.37M | Total Liabilities |
| 95.44M | 1.15B | 730.77M | 553.00M | 553.78M | 554.83M | Stockholders Equity |
| 176.32M | 121.39M | 144.03M | 141.62M | 118.15M | 163.31M |
| Cash Flow | Free Cash Flow | ||||
| -67.67M | -33.85M | 17.81M | 49.18M | -1.70M | -5.26M | Operating Cash Flow |
| -4.98M | 26.31M | 37.40M | 59.19M | 9.01M | 18.78M | Investing Cash Flow |
| -63.88M | -209.25M | -103.14M | -9.99M | -5.29M | -120.69M | Financing Cash Flow |
| -687.00K | 149.86M | 161.16M | -4.71M | 3.13M | 113.87M |
Century Casinos Technical Analysis
Negative
2.48
Price Trends
2.99
Negative
3.36
Negative
2.94
Negative
Market Momentum
-0.14
Positive
28.99
Positive
6.94
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNTY, the sentiment is Negative. The current price of 2.48 is below the 20-day moving average (MA) of 2.90, below the 50-day MA of 2.99, and below the 200-day MA of 2.94, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 28.99 is Positive, neither overbought nor oversold. The STOCH value of 6.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNTY.
Century Casinos Risk Analysis
Century Casinos disclosed 29 risk factors in its most recent earnings report. Century Casinos reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Century Casinos Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.59B | 22.62 | 18.25% | 1.38% | 4.13% | 17.73% | |
74 Outperform | $5.56B | 11.15 | 34.76% | 0.98% | 5.13% | 2.04% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
58 Neutral | $736.21M | 16.79 | 10.03% | 3.49% | -33.47% | -86.04% | |
49 Neutral | $5.78B | ― | -6.38% | ― | -2.45% | -135.17% | |
44 Neutral | $76.09M | ― | -79.81% | ― | 14.06% | -241.92% | |
44 Neutral | $2.53B | ― | -10.27% | ― | 3.38% | 38.18% |
* Consumer Cyclical Sector Average
Performance Comparison
CNTY
Century Casinos
2.48
-0.70
-22.01%
BYD
Boyd Gaming
66.34
3.72
5.94%
MCRI
Monarch Casino & Resort
84.93
14.95
21.36%
PENN
Penn National Gaming
16.55
-2.56
-13.40%
CZR
Caesars Entertainment
27.26
-14.98
-35.46%
GDEN
Golden Entertainment
27.77
-4.97
-15.18%
Century Casinos Earnings Call Summary
Earnings Call Date: Nov 4, 2024 | % Change Since: -25.08% | Next Earnings Date: Mar 13, 2025
Earnings Call Sentiment Positive
The earnings call presented a balanced perspective with significant achievements like increased EBITDAR margin, successful property openings, and strong liquidity, countered by challenges such as a slight revenue decline and macroeconomic pressures on non-rated play. The sentiment leans positive with strategic growth and operational improvements in place.Highlights
Increased EBITDAR Margin
Consolidated EBITDAR margin increased from 20.6% to 21.1% despite a small decrease in net revenue.
Successful Openings
Reopened the casino in Poland and opened a new land-based casino and hotel in Caruthersville, Missouri, with a fantastic opening weekend setting an all-time record for coin-in and daily revenue.
East Segment Growth
Revenue in the East segment was up 7%, with EBITDAR up 5% due to improved performances at Mountaineer Casino Resort and Rocky Gap Casino Resort.
Nugget Casino Resurgence
Sequential revenue at the Nugget Casino Resort in Reno was up 40% with EBITDA doubling compared to Q2.
Positive Canadian Operations
Canada saw a 6% growth in EBITDAR primarily due to better cost control, despite a revenue decrease.
Strong Liquidity Position
Ended the quarter with $119 million in cash and no debt maturities until 2029, with plans to delever.
Lowlights
Revenue Decline
Net revenue decreased by 3% compared to Q3 of last year, mainly due to the temporary closure of a casino in Poland.
Challenges in Non-Rated Play
Non-rated play was down throughout the portfolio, attributed to macroeconomic factors and wallet softness.
Decline in Canadian Revenues
Revenues in Canada were down year-on-year, mainly due to competition and the absence of a previously profitable event.
Company Guidance
During the Century Casinos Q3 2024 earnings call, the company provided guidance on several key metrics and operational updates. The company reported net revenue of $156 million, a decrease of 3% compared to the same quarter last year, with an adjusted EBITDAR of $32.9 million, down by 1%. Despite these declines, the consolidated EBITDAR margin increased from 20.6% to 21.1%. The temporary closure of a casino in Poland impacted revenue, but recent reopenings are expected to return to a run-rate of $10 million to $12 million in annual EBITDAR. The Nugget Casino Resort in Reno showed sequential growth with a 40% increase in revenue and doubled EBITDA compared to Q2, although still trailing last year's third quarter. Across its segments, including notable developments in Missouri and Colorado, the company anticipates a strong performance in 2025, projecting a transition to positive cash flow and aiming to delever significantly. They ended the quarter with $119 million in cash and $340 million in debt, targeting a net leverage reduction to 3x traditional and 5x lease-adjusted by next year. Additionally, the company plans to reduce CapEx to $16 million in 2025, facilitating substantial free cash flow growth and potential stock buybacks.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.