CAESARS ENTERTAINMENT INC (CZR)
US12769G1004 - Common Stock
Taking everything into account, CZR scores 3 out of 10 in our fundamental rating. CZR was compared to 135 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 quite expensive at the moment. It does show a decent growth rate.
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.
Of the past 5 years CZR 4 years had a positive operating cash flow.
1.2 Ratios
CZR has a Return On Assets of -1.09%. This is in the lower half of the industry: CZR underperforms 65.67% of its industry peers.
CZR has a Return On Equity of -8.64%. This is comparable to the rest of the industry: CZR outperforms 45.52% of its industry peers.
CZR's Return On Invested Capital of 6.04% is in line compared to the rest of the industry. CZR outperforms 52.99% of 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 10.46%.
The last Return On Invested Capital (6.04%) for CZR is above the 3 year average (5.15%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
In the last couple of years the Profit Margin of CZR has grown nicely.
CZR has a Operating Margin of 20.84%. This is in the better half of the industry: CZR outperforms 79.10% of its industry peers.
CZR's Operating Margin has improved in the last couple of years.
CZR has a Gross Margin (49.37%) which is comparable to the rest of the industry.
CZR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
CZR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CZR has been increased compared to 1 year ago.
Compared to 5 years ago, CZR has more shares outstanding
The debt/assets ratio for CZR has been reduced compared to a year ago.
2.2 Solvency
CZR has an Altman-Z score of 0.61. This is a bad value and indicates that CZR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.61, CZR is doing worse than 75.37% of the companies in the same industry.
A Debt/Equity ratio of 6.06 is on the high side and indicates that CZR has dependencies on debt financing.
The Debt to Equity ratio of CZR (6.06) is worse than 61.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.61 |
ROIC/WACC0.68
WACC8.93%
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.
The Current ratio of CZR (0.84) is comparable to the rest of the 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.
CZR has a Quick ratio (0.82) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for CZR have decreased by -4.63% in the last year.
CZR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.43% yearly.
Looking at the last year, CZR shows a decrease in Revenue. The Revenue has decreased by -2.20% in the last year.
CZR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 41.17% yearly.
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 59.75% yearly.
Based on estimates for the next years, CZR will show a small growth in Revenue. The Revenue will grow by 4.04% on average per year.
EPS Next Y-68.63%
EPS Next 2Y96.92%
EPS Next 3Y69.53%
EPS Next 5Y59.75%
Revenue Next Year-1.78%
Revenue Next 2Y0.93%
Revenue Next 3Y1.47%
Revenue Next 5Y4.04%
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.
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.
Based on the Price/Forward Earnings ratio of 27.81, the valuation of CZR can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CZR is on the same level as its industry peers.
CZR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 27.81 |
4.2 Price Multiples
73.13% of the companies in the same industry are more expensive than CZR, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.94 |
4.3 Compensation for Growth
A more expensive valuation may be justified as CZR's earnings are expected to grow with 69.53% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y96.92%
EPS Next 3Y69.53%
5. Dividend
5.1 Amount
No dividends for CZR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CAESARS ENTERTAINMENT INC
NASDAQ:CZR (11/22/2024, 4:46:27 PM)
After market: 37.6 0 (0%)37.6
+0.04 (+0.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.99B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 27.81 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.09% | ||
| ROE | -8.64% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.84% | ||
| PM (TTM) | N/A | ||
| GM | 49.37% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.06 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-4.63%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-68.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.2%
Revenue growth 3Y47.02%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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OCF growth 1Y
OCF growth 3Y
OCF growth 5Y