CAESARS ENTERTAINMENT INC (CZR) Stock Fundamental Analysis
NASDAQ:CZR - Nasdaq - US12769G1004 - Common Stock - Currency: USD
We assign a fundamental rating of 2 out of 10 to CZR. CZR was compared to 136 industry peers in the Hotels, Restaurants & Leisure industry. CZR has a bad profitability rating. Also its financial health evaluation is rather negative. CZR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CZR had negative earnings in the past year.
CZR had a positive operating cash flow in the past year.
In the past 5 years CZR reported 4 times negative net income.
CZR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of -0.85%, CZR is not doing good in the industry: 66.18% of the companies in the same industry are doing better.
CZR has a Return On Equity (-6.69%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 5.93%, CZR is in line with its industry, outperforming 52.94% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CZR is significantly below the industry average of 15.70%.
The 3 year average ROIC (5.76%) for CZR is below the current ROIC(5.93%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.85% | ||
| ROE | -6.69% | ||
| ROIC | 5.93% |
ROA(3y)-0.39%
ROA(5y)-1.74%
ROE(3y)-4.54%
ROE(5y)-14.28%
ROIC(3y)5.76%
ROIC(5y)4.32%
1.3 Margins
Looking at the Operating Margin, with a value of 20.23%, CZR is in the better half of the industry, outperforming 78.68% of the companies in the same industry.
In the last couple of years the Operating Margin of CZR has grown nicely.
Looking at the Gross Margin, with a value of 49.08%, CZR is in line with its industry, outperforming 56.62% of the companies in the same industry.
In the last couple of years the Gross Margin of CZR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.23% | ||
| PM (TTM) | N/A | ||
| GM | 49.08% |
OM growth 3Y4.31%
OM growth 5Y2.68%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.6%
GM growth 5Y-0.56%
2. Health
2.1 Basic Checks
CZR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CZR has less shares outstanding
Compared to 5 years ago, CZR has more shares outstanding
CZR has a worse debt/assets ratio than last year.
2.2 Solvency
CZR has an Altman-Z score of 0.55. This is a bad value and indicates that CZR is not financially healthy and even has some risk of bankruptcy.
CZR's Altman-Z score of 0.55 is on the low side compared to the rest of the industry. CZR is outperformed by 76.47% of its industry peers.
A Debt/Equity ratio of 6.00 is on the high side and indicates that CZR has dependencies on debt financing.
CZR has a worse Debt to Equity ratio (6.00) than 61.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.55 |
ROIC/WACC1.07
WACC5.56%
2.3 Liquidity
A Current Ratio of 0.77 indicates that CZR may have some problems paying its short term obligations.
With a Current ratio value of 0.77, CZR perfoms like the industry average, outperforming 41.91% of the companies in the same industry.
CZR has a Quick Ratio of 0.77. This is a bad value and indicates that CZR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.75, CZR perfoms like the industry average, outperforming 45.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The earnings per share for CZR have decreased by -2.78% in the last year.
Looking at the last year, CZR shows a decrease in Revenue. The Revenue has decreased by -2.45% in the last year.
CZR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 34.78% yearly.
EPS 1Y (TTM)-2.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%114.71%
Revenue 1Y (TTM)-2.45%
Revenue growth 3Y5.52%
Revenue growth 5Y34.78%
Sales Q2Q%-0.92%
3.2 Future
The Earnings Per Share is expected to grow by 56.53% on average over the next years. This is a very strong growth
CZR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.79% yearly.
EPS Next Y239.22%
EPS Next 2Y107.83%
EPS Next 3Y69.12%
EPS Next 5Y56.53%
Revenue Next Year3.22%
Revenue Next 2Y2.86%
Revenue Next 3Y2.72%
Revenue Next 5Y3.79%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for CZR. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 24.76, CZR is valued on the expensive side.
CZR's Price/Forward Earnings ratio is in line with the industry average.
CZR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 24.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CZR is valued a bit cheaper than the industry average as 72.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.22 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CZR's earnings are expected to grow with 69.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y107.83%
EPS Next 3Y69.12%
5. Dividend
5.1 Amount
No dividends for CZR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.51
+0.76 (+3.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners103.97%
Inst Owner Change0%
Ins Owners0.79%
Ins Owner Change3.19%
Market Cap5.41B
Analysts79.05
Price Target48.55 (90.32%)
Short Float %8.39%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.2%
Min EPS beat(2)-132.55%
Max EPS beat(2)136.94%
EPS beat(4)1
Avg EPS beat(4)-334.67%
Min EPS beat(4)-1227.16%
Max EPS beat(4)136.94%
EPS beat(8)2
Avg EPS beat(8)-1507.65%
EPS beat(12)3
Avg EPS beat(12)-1064.82%
EPS beat(16)4
Avg EPS beat(16)-824.12%
Revenue beat(2)0
Avg Revenue beat(2)-2.13%
Min Revenue beat(2)-2.68%
Max Revenue beat(2)-1.58%
Revenue beat(4)0
Avg Revenue beat(4)-2.77%
Min Revenue beat(4)-4.26%
Max Revenue beat(4)-1.58%
Revenue beat(8)2
Avg Revenue beat(8)-1.35%
Revenue beat(12)4
Avg Revenue beat(12)-1.01%
Revenue beat(16)7
Avg Revenue beat(16)-0.12%
PT rev (1m)-1.92%
PT rev (3m)-10.73%
EPS NQ rev (1m)3.57%
EPS NQ rev (3m)-396.25%
EPS NY rev (1m)-9.97%
EPS NY rev (3m)-18.62%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-1.99%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 24.76 | ||
| P/S | 0.48 | ||
| P/FCF | N/A | ||
| P/OCF | 5.03 | ||
| P/B | 1.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.22 |
EPS(TTM)-0.74
EYN/A
EPS(NY)1.03
Fwd EY4.04%
FCF(TTM)-1.11
FCFYN/A
OCF(TTM)5.07
OCFY19.88%
SpS53.04
BVpS19.61
TBVpS-49.89
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.85% | ||
| ROE | -6.69% | ||
| ROCE | 7.5% | ||
| ROIC | 5.93% | ||
| ROICexc | 6.1% | ||
| ROICexgc | 12.21% | ||
| OM | 20.23% | ||
| PM (TTM) | N/A | ||
| GM | 49.08% | ||
| FCFM | N/A |
ROA(3y)-0.39%
ROA(5y)-1.74%
ROE(3y)-4.54%
ROE(5y)-14.28%
ROIC(3y)5.76%
ROIC(5y)4.32%
ROICexc(3y)5.94%
ROICexc(5y)4.47%
ROICexgc(3y)12.3%
ROICexgc(5y)9.19%
ROCE(3y)7.29%
ROCE(5y)5.47%
ROICexcg growth 3Y12.39%
ROICexcg growth 5Y-1.47%
ROICexc growth 3Y12.76%
ROICexc growth 5Y-4.07%
OM growth 3Y4.31%
OM growth 5Y2.68%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.6%
GM growth 5Y-0.56%
F-Score4
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.93 | ||
| Cap/Depr | 99.02% | ||
| Cap/Sales | 11.66% | ||
| Interest Coverage | 2.16 | ||
| Cash Conversion | 29.87% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 0.55 |
F-Score4
WACC5.56%
ROIC/WACC1.07
Cap/Depr(3y)93.85%
Cap/Depr(5y)77.92%
Cap/Sales(3y)10.59%
Cap/Sales(5y)9.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%114.71%
EPS Next Y239.22%
EPS Next 2Y107.83%
EPS Next 3Y69.12%
EPS Next 5Y56.53%
Revenue 1Y (TTM)-2.45%
Revenue growth 3Y5.52%
Revenue growth 5Y34.78%
Sales Q2Q%-0.92%
Revenue Next Year3.22%
Revenue Next 2Y2.86%
Revenue Next 3Y2.72%
Revenue Next 5Y3.79%
EBIT growth 1Y-10.92%
EBIT growth 3Y10.07%
EBIT growth 5Y38.4%
EBIT Next Year76.62%
EBIT Next 3Y23.32%
EBIT Next 5Y16.79%
FCF growth 1Y-145.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-40.57%
OCF growth 3Y-3.11%
OCF growth 5Y28.03%