CAESARS ENTERTAINMENT INC (CZR)
US12769G1004 - Common Stock
Overall CZR gets a fundamental rating of 4 out of 10. We evaluated CZR against 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 not valued too expensively and it also shows 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.
The reported net income has been mixed in the past 5 years: CZR reported negative net income in multiple years.
Of the past 5 years CZR 4 years had a positive operating cash flow.
1.2 Ratios
CZR has a Return On Assets (2.36%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 17.27%, CZR is in the better half of the industry, outperforming 71.64% of the companies in the same industry.
CZR has a Return On Invested Capital (6.58%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CZR is significantly below the industry average of 10.33%.
The 3 year average ROIC (5.15%) for CZR is below the current ROIC(6.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 17.27% | ||
| ROIC | 6.58% |
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
The Profit Margin of CZR (6.82%) is better than 61.94% of its industry peers.
CZR's Profit Margin has improved in the last couple of years.
The Operating Margin of CZR (22.15%) is better than 84.33% of its industry peers.
In the last couple of years the Operating Margin of CZR has grown nicely.
CZR has a Gross Margin (50.55%) which is in line with its industry peers.
CZR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.15% | ||
| PM (TTM) | 6.82% | ||
| GM | 50.55% |
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
CZR has a better debt/assets ratio than last year.
2.2 Solvency
CZR has an Altman-Z score of 0.64. This is a bad value and indicates that CZR is not financially healthy and even has some risk of bankruptcy.
CZR has a worse Altman-Z score (0.64) than 72.39% of its industry peers.
The Debt to FCF ratio of CZR is 48.64, which is on the high side as it means it would take CZR, 48.64 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CZR (48.64) is worse than 61.94% of its industry peers.
A Debt/Equity ratio of 5.49 is on the high side and indicates that CZR has dependencies on debt financing.
CZR has a Debt to Equity ratio of 5.49. This is in the lower half of the industry: CZR underperforms 64.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.49 | ||
| Debt/FCF | 48.64 | ||
| Altman-Z | 0.64 |
ROIC/WACC0.73
WACC9.04%
2.3 Liquidity
CZR has a Current Ratio of 0.76. 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 Current ratio value of 0.76, CZR is not doing good in the industry: 62.69% of the companies in the same industry are doing better.
CZR has a Quick Ratio of 0.76. 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 (0.74) is worse than 60.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 82.90% over the past year.
CZR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.43% yearly.
The Revenue has been growing slightly by 6.53% in the past year.
Measured over the past years, CZR shows a very strong growth in Revenue. The Revenue has been growing by 41.17% on average per year.
EPS 1Y (TTM)82.9%
EPS 3YN/A
EPS 5Y24.43%
EPS growth Q2Q51.43%
Revenue 1Y (TTM)6.53%
Revenue growth 3Y47.02%
Revenue growth 5Y41.17%
Revenue growth Q2Q0.14%
3.2 Future
The Earnings Per Share is expected to grow by 68.51% 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 4.70% yearly.
EPS Next Y290.74%
EPS Next 2Y133.47%
EPS Next 3Y89.15%
EPS Next 5Y68.51%
Revenue Next Year1.83%
Revenue Next 2Y2.75%
Revenue Next 3Y-1.92%
Revenue Next 5Y4.7%
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.
A Price/Forward Earnings ratio of 26.59 indicates a quite expensive valuation of CZR.
CZR's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.63, CZR is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 26.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CZR indicates a somewhat cheap valuation: CZR is cheaper than 71.64% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CZR indicates a somewhat cheap valuation: CZR is cheaper than 76.87% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.33 | ||
| EV/EBITDA | 8.46 |
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.
The decent profitability rating of CZR may justify a higher PE ratio.
CZR's earnings are expected to grow with 89.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y133.47%
EPS Next 3Y89.15%
5. Dividend
5.1 Amount
CZR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CAESARS ENTERTAINMENT INC
NASDAQ:CZR (4/26/2024, 1:26:05 PM)
36.51
-1.53 (-4.02%)
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 Cap7.90B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 26.59 | ||
| 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 | 2.36% | ||
| ROE | 17.27% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.15% | ||
| PM (TTM) | 6.82% | ||
| GM | 50.55% | ||
| 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 Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.49 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.74 | ||
| 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)
Growth
EPS 1Y (TTM)82.9%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y290.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.53%
Revenue growth 3Y47.02%
Revenue growth 5Y
Revenue growth 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
FCF growth 1Y
FCF growth 3Y
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OCF growth 5Y