One-glance verdict
Overvalued
$-89.20 our estimate vs market $28.85
Wall Street consensus: $31.27 (-135.1% lower than our fair-value estimate)
132% below our estimate, beyond the bull case
Fundamentals snapshot
Caesars Entertainment, Inc.
CZR · NMS · Consumer Cyclical · Resorts & Casinos
Current price
$28.85
52-week range
$17.86 - $30.88
Market cap
$5.88B
Balance sheet
Distressed
0.89x Concerning
Net debt $24.96B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 2.0% last year.
- Reward Free cash flow was positive in 8/10 years.
- Risk Insider ownership is only 0.8% (peer median: 27.4%).
- Risk Return on equity was -10.4% last year — the company lost money on shareholders' equity.
What this company does
Caesars Entertainment, Inc.
Caesars Entertainment runs casinos and hotels, offering gambling, rooms, dining, and entertainment, with money coming mainly from these in-person experiences and growing online betting. This matters because their success depends on people visiting their properties and betting, both in person and online, which impacts their profit margins (the percentage of sales left after paying for the costs of running the business).
How the company got here
Caesars Entertainment's story is a blend of two major gaming lineages that merged in 2020. One lineage traces back to Bill Harrah's bingo club in Reno, Nevada, founded in 1937, which eventually grew into Harrah's Entertainment. The other significant part of its history comes from the opening of Caesars Palace in Las Vegas in 1966, a landmark in themed resort development. The company that exists today was largely formed when Eldorado Resorts acquired the legacy Caesars Entertainment in 2020, adopting the Caesars name and combining their extensive portfolios. This merger created one of the largest gaming companies in the U.S., bringing together iconic brands and a vast network of properties.
What it actually does
Caesars Entertainment operates as a major player in the gaming and hospitality industry. It owns, manages, or leases a wide array of properties that include casinos with slot machines, video lottery terminals, and table games, alongside hotel accommodations. Beyond the physical casinos, the company is also deeply involved in online gaming and sports wagering, operating in numerous jurisdictions across North America. Essentially, Caesars provides entertainment experiences that range from traditional casino gambling and lodging to digital betting and various other hospitality services like dining and shows.
Las Vegas
This segment represents Caesars Entertainment's presence in the iconic Las Vegas Strip and surrounding areas. It encompasses well-known resorts and casinos that draw visitors from around the world seeking entertainment, gaming, and lodging. These properties are designed to be destination experiences, offering a wide range of amenities beyond just gambling, such as fine dining, live shows, and convention spaces. This part of the business is crucial for attracting tourists and convention-goers, making it a significant contributor to the company's overall revenue.
Regional
The Regional segment includes Caesars Entertainment's casino and resort properties located outside of Las Vegas, spread across numerous U.S. states. These properties often cater to a more local or drive-to customer base, focusing on repeat visitation and community engagement. While they may not have the same global draw as the Las Vegas properties, they form a stable and substantial part of the company's operations, providing consistent revenue streams through gaming, hotel stays, and other entertainment offerings. This segment is key to the company's broad geographic reach and diversified income.
Caesars Digital
This segment represents Caesars Entertainment's ventures into the online and digital gaming space. It includes operations such as online sports wagering (sports betting) and iGaming (online casino games) in various states and jurisdictions where these activities are legal. The company aims to leverage its strong brand recognition and loyalty program to attract and retain customers in the rapidly growing digital gaming market. This segment is focused on expanding the company's reach beyond its physical properties and tapping into the convenience of online entertainment.
What management is betting on now
Caesars Entertainment's current strategy focuses on three main objectives: protecting the cash flow generated by its regional casinos, improving the profitability of its Las Vegas operations through strategic investments and optimizing the mix of guests, and scaling its digital gaming business profitably. The company aims to achieve this by leveraging its integrated loyalty program, "Caesars Rewards," to encourage customers to engage with its properties and digital offerings across different markets. Management is also emphasizing operational discipline to ensure sustainable growth and profitability in a competitive landscape.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$30.00M
FY2025 Q1
$-5.00M
FY2025 Q2
$232.00M
FY2025 Q3
$123.00M
FY2025 Q4
$147.00M
FY2026 Q1
$36.00M
FY2026 Q2
$304.00M
FY2026 Q3
$95.00M
Revenue
$2.94B
Net income
$-123.00M
Diluted EPS
-0.61
Operating cash flow
$267.00M
Free cash flow
$95.00M
Fetching…
Sources
Revenue
$2.99B
Net income
$-62.00M
Diluted EPS
-0.30
Operating cash flow
$471.00M
Free cash flow
$304.00M
Fetching…
Sources
Revenue
$2.87B
Net income
$-98.00M
Diluted EPS
-0.48
Operating cash flow
$204.00M
Free cash flow
$36.00M
Fetching…
Sources
Revenue
$2.92B
Net income
$-250.00M
Diluted EPS
-1.22
Operating cash flow
$304.00M
Free cash flow
$147.00M
Fetching…
Sources
Revenue
$2.87B
Net income
$-55.00M
Diluted EPS
-0.27
Operating cash flow
$318.00M
Free cash flow
$123.00M
Fetching…
Sources
Revenue
$2.91B
Net income
$-82.00M
Diluted EPS
-0.39
Operating cash flow
$462.00M
Free cash flow
$232.00M
Fetching…
Sources
Revenue
$2.79B
Net income
$-115.00M
Diluted EPS
-0.54
Operating cash flow
$218.00M
Free cash flow
$-5.00M
Fetching…
Sources
Revenue
$2.80B
Net income
$11.00M
Diluted EPS
0.04
Operating cash flow
$309.00M
Free cash flow
$30.00M
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Sources
Is it cheap or expensive?
Fair value $-89.20 vs current price $28.85
Wall Street consensus is the average analyst price target: $31.27 (-135.1% lower than our fair-value estimate).
Our most-likely fair value is $-89.20 a share — about 409.2% below today's price of $28.85, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $25.0B. Interest coverage 0.9x.
Net debt
$24.96B
Interest coverage
0.89x
Caesars Entertainment, Inc.'s profit covers its interest bill about 0.9 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
CZR
BASELINE
Caesars Entertainment, Inc.
Total debt $25.92B Interest coverage 0.89x This is the baseline the peer rows are being compared against.
Total debt $30.16B Interest coverage 3.19x +257% vs CZR Carries about 3.6x more debt cushion than CZR.
Total debt $12.34B Interest coverage 1.93x +116% vs CZR Carries about 2.2x more debt cushion than CZR.
Total debt $11.06B Interest coverage 0.67x -25% vs CZR Carries about 1.3x less debt cushion than CZR.
Total debt $3.26B Interest coverage 5.56x +522% vs CZR Carries about 6.2x more debt cushion than CZR.
Total debt $3.64B Interest coverage 3.05x +242% vs CZR Carries about 3.4x more debt cushion than CZR.
What you should know
The case for and against CZR
2 Rewards
2 Risks
Rewards
-
Revenue grew 2.0% last year.
-
Free cash flow was positive in 8/10 years.
Risks
-
Insider ownership is only 0.8% (peer median: 27.4%).
-
Return on equity was -10.4% last year — the company lost money on shareholders' equity.
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)
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Forward P/E
53.76x
P/B
1.67x
P/S
0.50x
EV/EBITDA
8.97x
PEG ratio
4.51x
Profitability
How much profit each dollar creates
Gross margin
49.7%
Operating margin
17.7%
Net margin
-4.0%
ROE
-10.4%
ROA
4.0%
Health
Liquidity and balance-sheet strength
Debt / equity
7.30x
Current ratio
0.85x
Quick ratio
0.62x
Total debt
$25.92B
Total cash
$965.00M
Growth
How the business has been compounding
Revenue TTM
$11.72B
Revenue 5Y CAGR
4.7%
EPS TTM
-2.27
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$1.25B
Free CF TTM
$497.00M
FCF margin
4.2%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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