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CAESARS ENTERTAINMENT INC (CZR) Stock Fundamental Analysis

NASDAQ:CZR - Nasdaq - US12769G1004 - Common Stock

33.69  -0.54 (-1.58%)

Fundamental Rating

3

CZR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 134 industry peers in the Hotels, Restaurants & Leisure industry. While CZR is still in line with the averages on profitability rating, there are concerns on its financial health. CZR is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year CZR has reported negative net income.
CZR had a positive operating cash flow in the past year.
In multiple years CZR reported negative net income over the last 5 years.
CZR had a positive operating cash flow in 4 of the past 5 years.
CZR Yearly Net Income VS EBIT VS OCF VS FCFCZR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B 2B

1.2 Ratios

CZR has a worse Return On Assets (-1.09%) than 66.41% of its industry peers.
CZR has a Return On Equity (-8.64%) which is comparable to the rest of the industry.
CZR has a Return On Invested Capital (6.04%) which is in line with its industry peers.
CZR had an Average Return On Invested Capital over the past 3 years of 5.15%. This is significantly below the industry average of 10.54%.
The 3 year average ROIC (5.15%) for CZR is below the current ROIC(6.04%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -1.09%
ROE -8.64%
ROIC 6.04%
ROA(3y)-1%
ROA(5y)-1.28%
ROE(3y)-9.9%
ROE(5y)-11.49%
ROIC(3y)5.15%
ROIC(5y)4.57%
CZR Yearly ROA, ROE, ROICCZR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40

1.3 Margins

CZR's Profit Margin has improved in the last couple of years.
The Operating Margin of CZR (20.84%) is better than 78.63% of its industry peers.
CZR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 49.37%, CZR is in line with its industry, outperforming 54.20% of the companies in the same industry.
CZR's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 20.84%
PM (TTM) N/A
GM 49.37%
OM growth 3Y99%
OM growth 5Y6.02%
PM growth 3YN/A
PM growth 5Y8.09%
GM growth 3Y4.94%
GM growth 5Y1.73%
CZR Yearly Profit, Operating, Gross MarginsCZR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40

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1

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CZR is destroying value.
Compared to 1 year ago, CZR has more shares outstanding
The number of shares outstanding for CZR has been increased compared to 5 years ago.
CZR has a better debt/assets ratio than last year.
CZR Yearly Shares OutstandingCZR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M
CZR Yearly Total Debt VS Total AssetsCZR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B

2.2 Solvency

CZR has an Altman-Z score of 0.60. This is a bad value and indicates that CZR is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.60, CZR is not doing good in the industry: 76.34% of the companies in the same industry are doing better.
A Debt/Equity ratio of 6.06 is on the high side and indicates that CZR has dependencies on debt financing.
CZR has a worse Debt to Equity ratio (6.06) than 61.83% of its industry peers.
Industry RankSector Rank
Debt/Equity 6.06
Debt/FCF N/A
Altman-Z 0.6
ROIC/WACC0.69
WACC8.82%
CZR Yearly LT Debt VS Equity VS FCFCZR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B 20B 25B

2.3 Liquidity

CZR has a Current Ratio of 0.84. This is a bad value and indicates that CZR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.84, CZR is in line with its industry, outperforming 46.56% of the companies in the same industry.
CZR has a Quick Ratio of 0.84. This is a bad value and indicates that CZR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CZR (0.82) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.84
Quick Ratio 0.82
CZR Yearly Current Assets VS Current LiabilitesCZR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

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5

3. Growth

3.1 Past

CZR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.63%.
CZR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.43% yearly.
CZR shows a decrease in Revenue. In the last year, the revenue decreased by -2.20%.
The Revenue has been growing by 41.17% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-4.63%
EPS 3YN/A
EPS 5Y24.43%
EPS Q2Q%-111.76%
Revenue 1Y (TTM)-2.2%
Revenue growth 3Y47.02%
Revenue growth 5Y41.17%
Sales Q2Q%-4.01%

3.2 Future

CZR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 54.89% yearly.
Based on estimates for the next years, CZR will show a small growth in Revenue. The Revenue will grow by 2.97% on average per year.
EPS Next Y-67.98%
EPS Next 2Y93.86%
EPS Next 3Y69.2%
EPS Next 5Y54.89%
Revenue Next Year-1.94%
Revenue Next 2Y0.74%
Revenue Next 3Y1.43%
Revenue Next 5Y2.97%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
CZR Yearly Revenue VS EstimatesCZR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B
CZR Yearly EPS VS EstimatesCZR Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 5 -5 -10

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2

4. Valuation

4.1 Price/Earnings Ratio

CZR reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 26.61, which means the current valuation is very expensive for CZR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CZR is on the same level as its industry peers.
CZR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.44.
Industry RankSector Rank
PE N/A
Fwd PE 26.61
CZR Price Earnings VS Forward Price EarningsCZR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40 60

4.2 Price Multiples

CZR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CZR is cheaper than 75.57% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 8.74
CZR Per share dataCZR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 -40

4.3 Compensation for Growth

A more expensive valuation may be justified as CZR's earnings are expected to grow with 69.20% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y93.86%
EPS Next 3Y69.2%

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0

5. Dividend

5.1 Amount

CZR does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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CAESARS ENTERTAINMENT INC

NASDAQ:CZR (1/22/2025, 10:30:05 AM)

33.69

-0.54 (-1.58%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)10-29 2024-10-29/amc
Earnings (Next)02-18 2025-02-18/amc
Inst Owners106.74%
Inst Owner Change0.45%
Ins Owners0.72%
Ins Owner Change0.63%
Market Cap7.16B
Analysts76.36
Price Target54.39 (61.44%)
Short Float %7.1%
Short Ratio3.52
Dividend
Industry RankSector 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)0
Avg EPS beat(2)-124.23%
Min EPS beat(2)-132.55%
Max EPS beat(2)-115.91%
EPS beat(4)0
Avg EPS beat(4)-560.2%
Min EPS beat(4)-1227.16%
Max EPS beat(4)-115.91%
EPS beat(8)1
Avg EPS beat(8)-1563.36%
EPS beat(12)2
Avg EPS beat(12)-1086.07%
EPS beat(16)3
Avg EPS beat(16)-834.8%
Revenue beat(2)0
Avg Revenue beat(2)-2.63%
Min Revenue beat(2)-2.68%
Max Revenue beat(2)-2.58%
Revenue beat(4)0
Avg Revenue beat(4)-2.84%
Min Revenue beat(4)-4.26%
Max Revenue beat(4)-1.84%
Revenue beat(8)2
Avg Revenue beat(8)-1.18%
Revenue beat(12)4
Avg Revenue beat(12)-0.96%
Revenue beat(16)7
Avg Revenue beat(16)-0.25%
PT rev (1m)0%
PT rev (3m)2.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-86.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-29.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.08%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-1.31%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 26.61
P/S 0.64
P/FCF N/A
P/OCF 5.62
P/B 1.71
P/tB N/A
EV/EBITDA 8.74
EPS(TTM)-1.13
EYN/A
EPS(NY)1.27
Fwd EY3.76%
FCF(TTM)-0.6
FCFYN/A
OCF(TTM)6
OCFY17.8%
SpS53.04
BVpS19.66
TBVpS-51.68
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -1.09%
ROE -8.64%
ROCE 7.65%
ROIC 6.04%
ROICexc 6.21%
ROICexgc 12.59%
OM 20.84%
PM (TTM) N/A
GM 49.37%
FCFM N/A
ROA(3y)-1%
ROA(5y)-1.28%
ROE(3y)-9.9%
ROE(5y)-11.49%
ROIC(3y)5.15%
ROIC(5y)4.57%
ROICexc(3y)5.33%
ROICexc(5y)4.75%
ROICexgc(3y)11.09%
ROICexgc(5y)9.38%
ROCE(3y)6.52%
ROCE(5y)5.78%
ROICexcg growth 3Y216.63%
ROICexcg growth 5Y8.93%
ROICexc growth 3Y200.32%
ROICexc growth 5Y5.9%
OM growth 3Y99%
OM growth 5Y6.02%
PM growth 3YN/A
PM growth 5Y8.09%
GM growth 3Y4.94%
GM growth 5Y1.73%
F-Score3
Asset Turnover0.34
Health
Industry RankSector Rank
Debt/Equity 6.06
Debt/FCF N/A
Debt/EBITDA 6.94
Cap/Depr 108.02%
Cap/Sales 12.43%
Interest Coverage 1.02
Cash Conversion 34.94%
Profit Quality N/A
Current Ratio 0.84
Quick Ratio 0.82
Altman-Z 0.6
F-Score3
WACC8.82%
ROIC/WACC0.69
Cap/Depr(3y)85.47%
Cap/Depr(5y)73.53%
Cap/Sales(3y)9.61%
Cap/Sales(5y)8.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.63%
EPS 3YN/A
EPS 5Y24.43%
EPS Q2Q%-111.76%
EPS Next Y-67.98%
EPS Next 2Y93.86%
EPS Next 3Y69.2%
EPS Next 5Y54.89%
Revenue 1Y (TTM)-2.2%
Revenue growth 3Y47.02%
Revenue growth 5Y41.17%
Sales Q2Q%-4.01%
Revenue Next Year-1.94%
Revenue Next 2Y0.74%
Revenue Next 3Y1.43%
Revenue Next 5Y2.97%
EBIT growth 1Y-9.51%
EBIT growth 3Y192.56%
EBIT growth 5Y49.67%
EBIT Next Year50.81%
EBIT Next 3Y17.88%
EBIT Next 5Y13.71%
FCF growth 1Y51.34%
FCF growth 3YN/A
FCF growth 5Y23.97%
OCF growth 1Y80.97%
OCF growth 3YN/A
OCF growth 5Y41.11%