One-glance verdict
Overvalued
$-102.39 our estimate vs market $12.31
Wall Street consensus: $9.33 (-109.1% lower than our fair-value estimate)
112% below our estimate, beyond the bull case
Fundamentals snapshot
Bally's Corporation
BALY · NYQ · Consumer Cyclical · Resorts & Casinos
Current price
$12.31
52-week range
$8.44 - $20.74
Market cap
$621.28M
Balance sheet
Distressed
-0.10x Concerning
Net debt $6.51B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Revenue grew 21.4% last year.
- Reward Free cash flow was positive in 4/10 years.
- Risk Return on equity was -56.6% last year — the company lost money on shareholders' equity.
- Risk Net debt grew 30.7% over 3 years.
What this company does
Bally's Corporation
Bally's Corporation makes most of its money from its physical casinos, where people play slot machines and table games. The company is trying to grow by expanding into online sports betting and building large new casino resorts in major cities like Chicago and New York.
How the company got here
Bally's Corporation started in 2004 as BLB Investors and later became Twin River Worldwide Holdings, operating a smaller number of casinos. A major turning point came in 2020 when it bought the iconic 'Bally's' brand name from Caesars Entertainment. This kicked off a period of rapid growth, where the company went on an acquisition spree, buying up more casinos across the United States, as well as companies in online sports betting and internet gaming to build its digital presence. This series of deals transformed it from a regional casino owner into a global entertainment company with both physical and online businesses.
What it actually does
Bally's is an entertainment and gaming company that operates in two main ways: through physical locations and online. You might visit one of their casinos to play slot machines, table games like blackjack, or stay in their hotels. They also run online and mobile platforms where people can bet on sports or play casino-style games like slots and bingo from their own devices. Additionally, the company is involved in providing technology and services for lotteries in different parts of the world.
Casinos & Resorts
This is Bally's largest and most traditional business, making up more than half of its revenue (the total money a company brings in from sales). It includes the physical casinos and hotels the company owns and operates across the United States, plus a casino in the UK, a golf course, and horse racetracks. Customers pay to play games like slot machines and poker, stay in hotel rooms, and buy food and drinks. This segment is the main cash generator for the company.
International Interactive
This part of the business focuses on online gaming outside of North America, with a strong presence in the United Kingdom and Spain. It's the company's second-largest source of revenue and includes online casino games, bingo, and sports betting that customers access through websites and apps. The company makes money when players wager on these digital games. This segment grew significantly after Bally's acquired a British online gambling company called Gamesys Group.
North America Interactive
This is a smaller but fast-growing part of Bally's, centered on its online sports betting (Bally Bet) and internet casino (Bally Casino) platforms in the United States. As more states legalize online gambling, this segment expands, allowing people to place bets on sports and play casino games through their computers and phones. The company also owns platforms for free-to-play games and daily fantasy sports, which help attract new customers to its paying services.
What management is betting on now
Management's main strategy is to connect their physical casinos with their online gaming apps, creating an 'omni-channel' experience where customers can be engaged with the Bally's brand both in-person and online. A key part of this is a unified rewards program that works across all their properties and platforms. The company is also making huge investments in major new projects, including building large-scale casino resorts in Chicago, The Bronx, New York, and on the Las Vegas Strip, betting that these will become major entertainment destinations.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-55.84M
FY2024 Q4
$-5.93M
FY2025 Q1
$-96.61M
FY2025 Q2
$-32.17M
FY2025 Q3
$-188.31M
FY2025 Q4
$7.54M
FY2026 Q1
$-183.88M
FY2026 Q2
$-156.00M
Revenue
$792.23M
Net income
$-146.07M
Diluted EPS
-2.41
Operating cash flow
$-120.92M
Free cash flow
$-156.00M
Fetching…
Sources
Revenue
$755.72M
Net income
$-161.91M
Diluted EPS
-2.69
Operating cash flow
$-145.02M
Free cash flow
$-183.88M
Fetching…
Sources
Revenue
$746.25M
Net income
$-353.24M
Diluted EPS
-5.84
Operating cash flow
$18.80M
Free cash flow
$7.54M
Fetching…
Sources
Revenue
$663.72M
Net income
$-102.91M
Diluted EPS
-1.70
Operating cash flow
$-88.61M
Free cash flow
$-188.31M
Fetching…
Sources
Revenue
$657.53M
Net income
$-228.44M
Diluted EPS
-3.76
Operating cash flow
$16.80M
Free cash flow
$-32.17M
Fetching…
Sources
Revenue
$220.50M
Net income
$-51.02M
Diluted EPS
-1.05
Operating cash flow
$-80.19M
Free cash flow
$-96.61M
Fetching…
Sources
Revenue
$580.37M
Net income
$-85.79M
Diluted EPS
-1.76
Operating cash flow
$37.82M
Free cash flow
$-5.93M
Fetching…
Sources
Revenue
$629.97M
Net income
$-247.85M
Diluted EPS
-5.10
Operating cash flow
$36.48M
Free cash flow
$-55.84M
Fetching…
Sources
Is it cheap or expensive?
Fair value $-102.39 vs current price $12.31
Wall Street consensus is the average analyst price target: $9.33 (-109.1% lower than our fair-value estimate).
Our most-likely fair value is $-102.39 a share — about 931.7% below today's price of $12.31, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $6.5B. Interest coverage -0.1x.
Net debt
$6.51B
Interest coverage
-0.10x
Bally's Corporation's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
BALY
BASELINE
Bally's Corporation
Total debt $6.91B Interest coverage -0.10x This is the baseline the peer rows are being compared against.
Total debt $11.06B Interest coverage 0.67x This peer still has a real interest-payment cushion, while BALY does not.
Total debt $12.79M Interest coverage 1,225.91x This peer still has a real interest-payment cushion, while BALY does not.
Total debt $526.60M Interest coverage 0.09x This peer still has a real interest-payment cushion, while BALY does not.
Total debt $1.07B Interest coverage 0.49x This peer still has a real interest-payment cushion, while BALY does not.
What you should know
The case for and against BALY
2 Rewards
3 Risks
Rewards
-
Revenue grew 21.4% last year.
-
Free cash flow was positive in 4/10 years.
Risks
-
Return on equity was -56.6% last year — the company lost money on shareholders' equity.
-
Net debt grew 30.7% over 3 years.
-
Operating margin compressed from 11.0% to -0.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
-3.60x
P/B
0.94x
P/S
0.21x
EV/EBITDA
24.45x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
57.7%
Operating margin
-0.8%
Net margin
-25.8%
ROE
-56.6%
ROA
-0.1%
Health
Liquidity and balance-sheet strength
Debt / equity
3.18x
Current ratio
0.91x
Quick ratio
0.60x
Total debt
$6.91B
Total cash
$390.26M
Growth
How the business has been compounding
Revenue TTM
$2.96B
Revenue 5Y CAGR
16.5%
EPS TTM
-12.86
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-335.75M
Free CF TTM
$-178.88M
FCF margin
-6.0%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2020-03-05