CAESARS ENTERTAINMENT INC (CZR) Stock Fundamental Analysis
NASDAQ:CZR - Nasdaq - US12769G1004 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to CZR. CZR was compared to 131 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and financial health of CZR have multiple concerns. CZR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CZR has reported negative net income.
In the past year CZR had a positive cash flow from operations.
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
CZR has a Return On Assets of -0.60%. This is in the lower half of the industry: CZR underperforms 67.18% of its industry peers.
Looking at the Return On Equity, with a value of -5.01%, CZR is in line with its industry, outperforming 46.56% of the companies in the same industry.
CZR has a Return On Invested Capital of 5.76%. This is comparable to the rest of the industry: CZR outperforms 51.91% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CZR is significantly below the industry average of 15.91%.
The last Return On Invested Capital (5.76%) for CZR is above the 3 year average (5.76%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.6% | ||
| ROE | -5.01% | ||
| ROIC | 5.76% |
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
With a decent Operating Margin value of 19.32%, CZR is doing good in the industry, outperforming 77.86% of the companies in the same industry.
CZR's Operating Margin has improved in the last couple of years.
CZR has a Gross Margin (48.39%) which is comparable to the rest of the 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 | 19.32% | ||
| PM (TTM) | N/A | ||
| GM | 48.39% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CZR is still creating some value.
Compared to 1 year ago, CZR has less shares outstanding
The number of shares outstanding for CZR has been increased compared to 5 years ago.
The debt/assets ratio for CZR is higher compared to a year ago.
2.2 Solvency
CZR has an Altman-Z score of 0.54. 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 0.54, CZR is doing worse than 75.57% of the companies in the same industry.
CZR has a debt to FCF ratio of 503.20. This is a negative value and a sign of low solvency as CZR would need 503.20 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 503.20, CZR is doing worse than 61.83% of the companies in the same industry.
CZR has a Debt/Equity ratio of 6.43. This is a high value indicating a heavy dependency on external financing.
CZR's Debt to Equity ratio of 6.43 is on the low side compared to the rest of the industry. CZR is outperformed by 63.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.43 | ||
| Debt/FCF | 503.2 | ||
| Altman-Z | 0.54 |
ROIC/WACC1.04
WACC5.53%
2.3 Liquidity
A Current Ratio of 0.82 indicates that CZR may have some problems paying its short term obligations.
With a Current ratio value of 0.82, CZR perfoms like the industry average, outperforming 45.04% of the companies in the same industry.
A Quick Ratio of 0.81 indicates that CZR may have some problems paying its short term obligations.
CZR's Quick ratio of 0.81 is in line compared to the rest of the industry. CZR outperforms 46.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
CZR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.67%.
The Revenue has decreased by -0.15% in the past year.
The Revenue has been growing by 34.78% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-22.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1850%
Revenue 1Y (TTM)-0.15%
Revenue growth 3Y5.52%
Revenue growth 5Y34.78%
Sales Q2Q%2.72%
3.2 Future
The Earnings Per Share is expected to grow by 55.94% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.73% on average over the next years.
EPS Next Y111.87%
EPS Next 2Y81.46%
EPS Next 3Y51.56%
EPS Next 5Y55.94%
Revenue Next Year2.14%
Revenue Next 2Y2.32%
Revenue Next 3Y2.29%
Revenue Next 5Y3.73%
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.
Based on the Price/Forward Earnings ratio of 26.90, the valuation of CZR can be described as expensive.
CZR's Price/Forward Earnings ratio is in line with the industry average.
CZR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 26.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CZR is valued a bit cheaper than the industry average as 78.63% of the companies are valued more expensively.
CZR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 107.07 | ||
| EV/EBITDA | 8.16 |
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 51.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y81.46%
EPS Next 3Y51.56%
5. Dividend
5.1 Amount
CZR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.74
+1.1 (+4.46%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners111.4%
Inst Owner Change-1.07%
Ins Owners0.93%
Ins Owner Change1.04%
Market Cap5.35B
Analysts79.13
Price Target43.52 (69.08%)
Short Float %13.04%
Short Ratio5.31
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)0
Avg EPS beat(2)-535.76%
Min EPS beat(2)-888.04%
Max EPS beat(2)-183.48%
EPS beat(4)1
Avg EPS beat(4)-266.78%
Min EPS beat(4)-888.04%
Max EPS beat(4)136.94%
EPS beat(8)2
Avg EPS beat(8)-394.68%
EPS beat(12)3
Avg EPS beat(12)-1114.77%
EPS beat(16)3
Avg EPS beat(16)-916.08%
Revenue beat(2)1
Avg Revenue beat(2)-0.17%
Min Revenue beat(2)-0.85%
Max Revenue beat(2)0.52%
Revenue beat(4)1
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-2.68%
Max Revenue beat(4)0.52%
Revenue beat(8)2
Avg Revenue beat(8)-1.52%
Revenue beat(12)4
Avg Revenue beat(12)-0.83%
Revenue beat(16)6
Avg Revenue beat(16)-0.82%
PT rev (1m)0%
PT rev (3m)1.59%
EPS NQ rev (1m)-49.51%
EPS NQ rev (3m)-68.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-90.42%
Revenue NQ rev (1m)-0.85%
Revenue NQ rev (3m)-1.85%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 26.9 | ||
| P/S | 0.47 | ||
| P/FCF | 107.07 | ||
| P/OCF | 4.38 | ||
| P/B | 1.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.16 |
EPS(TTM)-0.92
EYN/A
EPS(NY)0.96
Fwd EY3.72%
FCF(TTM)0.24
FCFY0.93%
OCF(TTM)5.87
OCFY22.81%
SpS54.69
BVpS18.73
TBVpS-51.8
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.6% | ||
| ROE | -5.01% | ||
| ROCE | 7.29% | ||
| ROIC | 5.76% | ||
| ROICexc | 5.95% | ||
| ROICexgc | 11.98% | ||
| OM | 19.32% | ||
| PM (TTM) | N/A | ||
| GM | 48.39% | ||
| FCFM | 0.44% |
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-Score5
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.43 | ||
| Debt/FCF | 503.2 | ||
| Debt/EBITDA | 6.98 | ||
| Cap/Depr | 84.12% | ||
| Cap/Sales | 10.3% | ||
| Interest Coverage | 8.08 | ||
| Cash Conversion | 34.02% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 0.54 |
F-Score5
WACC5.53%
ROIC/WACC1.04
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)-22.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1850%
EPS Next Y111.87%
EPS Next 2Y81.46%
EPS Next 3Y51.56%
EPS Next 5Y55.94%
Revenue 1Y (TTM)-0.15%
Revenue growth 3Y5.52%
Revenue growth 5Y34.78%
Sales Q2Q%2.72%
Revenue Next Year2.14%
Revenue Next 2Y2.32%
Revenue Next 3Y2.29%
Revenue Next 5Y3.73%
EBIT growth 1Y-9.25%
EBIT growth 3Y10.07%
EBIT growth 5Y38.4%
EBIT Next Year68.18%
EBIT Next 3Y18.96%
EBIT Next 5Y16.6%
FCF growth 1Y-93.33%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-33.28%
OCF growth 3Y-3.11%
OCF growth 5Y28.03%