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Caesars Entertainment (CZR)
NASDAQ:CZR
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Caesars Entertainment
(NASDAQ:CZR)49Neutral
Positive Factors
Financial Strategy
Caesars is considering options to unlock shareholder value, including monetizing the Digital business and selling non-core assets.
Project Completion
The completion of the permanent Danville project and a successful renovation in NOLA create a more attractive setup for 2025.
Negative Factors
Digital Segment Concerns
There is skepticism about the long-term growth of the digital segment, particularly in the sports betting area, which seems to be stalling.
Caesars Entertainment (CZR) vs. S&P 500 (SPY)
Market Cap
$6.67B
Dividend YieldN/A
Average Volume (3M)4.63M
Price to Earnings (P/E)―
Beta (1Y)2.10
Revenue Growth-2.45%
EPS Growth-135.17%
CountryUS
Employees51,000
SectorConsumer Cyclical
Sector Strength53
IndustryHotels, Lodging & Leisure
Share Statistics
EPS (TTM)-1.29
Shares Outstanding212,013,300
10 Day Avg. Volume5,713,700
30 Day Avg. Volume4,627,569
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.59
Price to Cash Flow (P/CF)7.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$48.67Price Target Upside60.26% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
Caesars Entertainment Business Overview & Revenue Model
Company DescriptionEldorado Resorts, Inc. operates as a casino entertainment company. It engages in gaming operations, and manages hotels, restaurants, bars, racing, retail shops, and other services. It operates through the following segments: West, Midwest, South, East, and Central. The West segment consists of seven properties in Nevada and Colorado. The Midwest segment comprises of dockside and land-based casinos in Iowa and Missouri. The South segment includes dockside casinos in Louisiana and Mississippi, and racino in Florida. The East segment is involved in the operation of racinos located in Pennsylvania, Ohio, and West Virginia; and casinos in Pennsylvania and New Jersey. The Central segment is composed of properties in Indiana, Illinois, and Missouri. The company was founded by Donald Louis Carano in 1973 and is headquartered in Reno, NV.
How the Company Makes MoneyCaesars Entertainment makes money primarily through its casino gaming operations, which include slot machines, table games, and sports betting. These activities are the largest contributors to its revenue. Additionally, Caesars generates income from hotel room bookings, food and beverage services, and entertainment events, such as concerts and shows held at its properties. The company also earns revenue from its loyalty program, Caesars Rewards, which encourages repeat visits and spending by offering customers points that can be redeemed for various services. Strategic partnerships, such as those with online gaming and sports betting platforms, further enhance its revenue streams by tapping into the growing digital market.
Caesars Entertainment Financial Statement Overview
Summary
Caesars Entertainment shows mixed financial health with strong revenue growth and operational efficiency but concerning negative profitability metrics and high leverage. Cash flow issues suggest potential liquidity challenges despite operational sustainability.Income Statement
Caesars Entertainment has shown revenue growth over the past years, but the net profit margin is concerning with negative net income in recent periods. The company's EBIT margin is strong, showing operational efficiency, but negative EBITDA in the most recent year indicates challenges in maintaining profitability after accounting for non-cash expenses.55
Neutral
Balance Sheet
Caesars Entertainment has a high debt-to-equity ratio, indicating significant leverage which could pose risks in economic downturns. The company's equity ratio is low, signaling potential vulnerability. Positive return on equity shows that the company is generating returns on shareholders’ investments, despite its high leverage.45
Neutral
Cash Flow
The free cash flow has been negative, indicating potential issues in generating cash after capital expenditures. However, the operating cash flow remains positive, suggesting the company can cover its operational expenses. The free cash flow to net income ratio is unfavorable due to negative net income.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 11.24B | 11.53B | 10.82B | 9.57B | 3.47B | Gross Profit |
| 11.24B | 6.13B | 5.42B | 4.92B | 1.71B | EBIT |
| 2.30B | 2.47B | 1.74B | 1.46B | 222.00M | EBITDA |
| 3.58B | 3.56B | 3.07B | 2.83B | 193.00M | Net Income Common Stockholders |
| -278.00M | 786.00M | -524.00M | -986.00M | -1.76B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 866.00M | 1.00B | 1.04B | 1.07B | 1.76B | Total Assets |
| 32.59B | 33.37B | 33.53B | 38.03B | 36.38B | Total Debt |
| 25.06B | 25.07B | 25.43B | 26.27B | 26.93B | Net Debt |
| 24.20B | 24.07B | 24.39B | 25.20B | 25.17B | Total Liabilities |
| 28.21B | 28.65B | 29.78B | 33.49B | 31.35B | Stockholders Equity |
| 4.38B | 4.55B | 3.71B | 4.48B | 5.02B |
| Cash Flow | Free Cash Flow | |||
| -221.00M | 515.00M | 12.00M | 340.00M | -769.00M | Operating Cash Flow |
| 1.07B | 1.81B | 975.00M | 1.17B | -571.00M | Investing Cash Flow |
| -704.00M | -1.26B | -382.00M | -2.92B | -6.18B | Financing Cash Flow |
| -498.00M | -713.00M | -1.28B | -550.00M | 10.64B |
Caesars Entertainment Technical Analysis
Negative
30.37
Price Trends
34.41
Negative
37.30
Negative
37.38
Negative
Market Momentum
-1.05
Positive
26.94
Positive
9.91
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CZR, the sentiment is Negative. The current price of 30.37 is below the 20-day moving average (MA) of 35.39, below the 50-day MA of 34.41, and below the 200-day MA of 37.38, indicating a bearish trend. The MACD of -1.05 indicates Positive momentum. The RSI at 26.94 is Positive, neither overbought nor oversold. The STOCH value of 9.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CZR.
Caesars Entertainment Risk Analysis
Caesars Entertainment disclosed 31 risk factors in its most recent earnings report. Caesars Entertainment reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Caesars Entertainment Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $6.22B | 12.01 | 36.54% | 0.91% | 5.13% | 2.04% | |
73 Outperform | $32.52B | 23.15 | 50.14% | 1.88% | 8.93% | 22.50% | |
71 Outperform | $9.27B | 20.01 | -51.73% | 1.15% | 9.13% | -30.00% | |
65 Neutral | $9.31B | 13.64 | 24.69% | ― | 6.66% | -24.59% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
49 Neutral | $6.67B | ― | -6.35% | ― | -2.45% | -135.17% | |
48 Neutral | $3.02B | ― | -10.88% | ― | 3.38% | 38.18% |
* Consumer Cyclical Sector Average
Performance Comparison
CZR
Caesars Entertainment
30.37
-10.62
-25.91%
BYD
Boyd Gaming
73.30
10.95
17.56%
LVS
Las Vegas Sands
46.05
-3.56
-7.18%
MGM
MGM Resorts
32.83
-9.20
-21.89%
PENN
Penn National Gaming
20.09
2.38
13.44%
WYNN
Wynn Resorts
90.67
-7.35
-7.50%
Caesars Entertainment Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -12.91% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong overall financial performance for the year, with significant growth in the digital and Las Vegas segments. However, there were challenges in the regional segment and sports betting areas, with competitive pressures and specific incidents impacting results. The company showed progress in debt reduction and stock buybacks, indicating financial stability and strategic focus.Highlights
Strong Full Year Financial Results
Caesars Entertainment delivered consolidated same-store results of $11.2 billion in net revenues and $3.7 billion in EBITDA for 2024, with an EBITDA margin of 33.2%.
Las Vegas Performance
Las Vegas same store net revenues during Q4 were $1.1 billion, with adjusted EBITDA at $478 million. Despite a 1% decline versus last year, the results were strong given the tough comparison against the inaugural F1 race in 2023.
Digital Segment Growth
The digital segment achieved all-time records in net revenue, EBITDA, and cash flow in 2024. Net revenue was $1.2 billion, up 20% year-over-year, and adjusted EBITDA rose to $117 million from $38 million the previous year.
iGaming Success
iGaming showed exceptionally strong performance with 65% net revenue growth in Q4. The launch of new apps and branded studios are contributing factors.
Debt Reduction and Stock Buyback
Caesars Entertainment used asset sale proceeds to repay $500 million in debt and repurchase stock, acquiring 5.1 million shares at an average price of $37 per share.
Lowlights
Decline in Regional Segment
Q4 regional net revenues declined 1% and adjusted EBITDA declined 5%, driven by competitive pressures in certain markets.
Impact of Competitive Openings
The regional segment faced new competitive threats, impacting around $500 million of trailing EBITDA.
Sports Betting Revenue Decline
Q4 sports betting net revenue declined due to customer-friendly outcomes and overall volume decline.
Challenges in New Orleans
Performance in New Orleans was affected by a terrorist event and unusual weather, leading to a rollercoaster of results.
Company Guidance
In the 2024 Fourth Quarter and Full Year Earnings Conference Call for Caesars Entertainment, significant financial metrics and guidance for the future were discussed. For the full year, Caesars reported consolidated same-store net revenues of $11.2 billion and EBITDA of $3.7 billion, resulting in an EBITDA margin of 33.2%. In Las Vegas, the fourth-quarter same-store net revenues were $1.1 billion with an adjusted EBITDA of $478 million, showing a 1% decrease year-over-year. The occupancy rate was 96%, with group business representing 16% of occupied room nights. The regional segment saw a 1% decline in net revenues and a 5% decline in adjusted EBITDA. The company's digital segment achieved record results, with total net revenue of $1.2 billion, up 20% year-over-year, and adjusted EBITDA reaching $117 million. The iGaming segment grew by 65% in net revenue during the fourth quarter. For 2025, Caesars expects significant free cash flow growth, with continued improvements in both brick-and-mortar properties and digital segments, aiming for a $500 million EBITDA goal in digital by 2026.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.