PENN ENTERTAINMENT INC (PENN) Stock Fundamental Analysis
USA - NASDAQ:PENN - US7075691094 - Common Stock
19.8 USD
+0.26 (+1.33%)
19.8 USD
0 (0%)
PENN gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. PENN may be in some trouble as it scores bad on both profitability and health. PENN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year PENN has reported negative net income.
In the past year PENN had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: PENN reported negative net income in multiple years.
Each year in the past 5 years PENN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PENN (-0.50%) is worse than 67.91% of its industry peers.
PENN has a Return On Equity (-2.53%) which is comparable to the rest of the industry.
PENN's Return On Invested Capital of 1.57% is on the low side compared to the rest of the industry. PENN is outperformed by 71.64% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PENN is significantly below the industry average of 15.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.5% | ||
| ROE | -2.53% | ||
| ROIC | 1.57% |
ROA(3y)-1.28%
ROA(5y)-1.18%
ROE(3y)-6.68%
ROE(5y)-7.01%
ROIC(3y)2.9%
ROIC(5y)3.09%
1.3 Margins
With a Operating Margin value of 4.08%, PENN is not doing good in the industry: 66.42% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of PENN has declined.
PENN has a worse Gross Margin (36.58%) than 70.15% of its industry peers.
In the last couple of years the Gross Margin of PENN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.08% | ||
| PM (TTM) | N/A | ||
| GM | 36.58% |
OM growth 3Y-47.69%
OM growth 5Y-28.12%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.02%
GM growth 5Y-6.23%
2. Health
2.1 Basic Checks
PENN 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 PENN has been increased compared to 1 year ago.
PENN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PENN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.57, we must say that PENN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.57, PENN is doing worse than 73.88% of the companies in the same industry.
A Debt/Equity ratio of 2.38 is on the high side and indicates that PENN has dependencies on debt financing.
PENN has a Debt to Equity ratio (2.38) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.57 |
ROIC/WACC0.2
WACC7.71%
2.3 Liquidity
PENN has a Current Ratio of 0.79. This is a bad value and indicates that PENN is not financially healthy enough and could expect problems in meeting its short term obligations.
PENN's Current ratio of 0.79 is in line compared to the rest of the industry. PENN outperforms 41.79% of its industry peers.
PENN has a Quick Ratio of 0.79. This is a bad value and indicates that PENN is not financially healthy enough and could expect problems in meeting its short term obligations.
PENN has a Quick ratio of 0.79. This is comparable to the rest of the industry: PENN outperforms 46.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 73.33% over the past year.
The Revenue has been growing slightly by 7.34% in the past year.
PENN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.41% yearly.
EPS 1Y (TTM)73.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
Revenue 1Y (TTM)7.34%
Revenue growth 3Y3.66%
Revenue growth 5Y4.41%
Sales Q2Q%6.13%
3.2 Future
Based on estimates for the next years, PENN will show a very strong growth in Earnings Per Share. The EPS will grow by 40.85% on average per year.
Based on estimates for the next years, PENN will show a small growth in Revenue. The Revenue will grow by 5.67% on average per year.
EPS Next Y139.22%
EPS Next 2Y63.45%
EPS Next 3Y46.89%
EPS Next 5Y40.85%
Revenue Next Year6.06%
Revenue Next 2Y5.79%
Revenue Next 3Y5.5%
Revenue Next 5Y5.67%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for PENN. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 14.31 indicates a correct valuation of PENN.
75.37% of the companies in the same industry are more expensive than PENN, based on the Price/Forward Earnings ratio.
PENN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14.31 |
4.2 Price Multiples
PENN's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.3 |
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.
PENN's earnings are expected to grow with 46.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y63.45%
EPS Next 3Y46.89%
5. Dividend
5.1 Amount
PENN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.8
+0.26 (+1.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners98.75%
Inst Owner Change5.81%
Ins Owners0.57%
Ins Owner Change2.13%
Market Cap2.89B
Analysts73.08
Price Target22.63 (14.29%)
Short Float %12.38%
Short Ratio4.74
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)36.83%
Min EPS beat(2)-382.33%
Max EPS beat(2)455.99%
EPS beat(4)2
Avg EPS beat(4)-13.05%
Min EPS beat(4)-382.33%
Max EPS beat(4)455.99%
EPS beat(8)4
Avg EPS beat(8)-22.89%
EPS beat(12)7
Avg EPS beat(12)46.09%
EPS beat(16)7
Avg EPS beat(16)21.88%
Revenue beat(2)0
Avg Revenue beat(2)-1.91%
Min Revenue beat(2)-3.66%
Max Revenue beat(2)-0.17%
Revenue beat(4)0
Avg Revenue beat(4)-2.35%
Min Revenue beat(4)-3.66%
Max Revenue beat(4)-0.17%
Revenue beat(8)0
Avg Revenue beat(8)-3.28%
Revenue beat(12)2
Avg Revenue beat(12)-2.19%
Revenue beat(16)4
Avg Revenue beat(16)-1.61%
PT rev (1m)2.4%
PT rev (3m)4%
EPS NQ rev (1m)-350%
EPS NQ rev (3m)-108.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14.31 | ||
| P/S | 0.43 | ||
| P/FCF | N/A | ||
| P/OCF | 5.81 | ||
| P/B | 0.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.3 |
EPS(TTM)-0.56
EYN/A
EPS(NY)1.38
Fwd EY6.99%
FCF(TTM)-1.38
FCFYN/A
OCF(TTM)3.41
OCFY17.22%
SpS46.2
BVpS20.47
TBVpS-8.02
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.5% | ||
| ROE | -2.53% | ||
| ROCE | 1.99% | ||
| ROIC | 1.57% | ||
| ROICexc | 1.65% | ||
| ROICexgc | 2.42% | ||
| OM | 4.08% | ||
| PM (TTM) | N/A | ||
| GM | 36.58% | ||
| FCFM | N/A |
ROA(3y)-1.28%
ROA(5y)-1.18%
ROE(3y)-6.68%
ROE(5y)-7.01%
ROIC(3y)2.9%
ROIC(5y)3.09%
ROICexc(3y)3.18%
ROICexc(5y)3.44%
ROICexgc(3y)4.59%
ROICexgc(5y)5.01%
ROCE(3y)3.67%
ROCE(5y)3.91%
ROICexcg growth 3Y-45.52%
ROICexcg growth 5Y-24.13%
ROICexc growth 3Y-44.78%
ROICexc growth 5Y-25.28%
OM growth 3Y-47.69%
OM growth 5Y-28.12%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.02%
GM growth 5Y-6.23%
F-Score6
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.38 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 10.04 | ||
| Cap/Depr | 160.83% | ||
| Cap/Sales | 10.35% | ||
| Interest Coverage | 0.7 | ||
| Cash Conversion | 70.18% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 0.57 |
F-Score6
WACC7.71%
ROIC/WACC0.2
Cap/Depr(3y)90.72%
Cap/Depr(5y)77.74%
Cap/Sales(3y)6.43%
Cap/Sales(5y)5.56%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)73.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
EPS Next Y139.22%
EPS Next 2Y63.45%
EPS Next 3Y46.89%
EPS Next 5Y40.85%
Revenue 1Y (TTM)7.34%
Revenue growth 3Y3.66%
Revenue growth 5Y4.41%
Sales Q2Q%6.13%
Revenue Next Year6.06%
Revenue Next 2Y5.79%
Revenue Next 3Y5.5%
Revenue Next 5Y5.67%
EBIT growth 1Y330.2%
EBIT growth 3Y-45.78%
EBIT growth 5Y-24.95%
EBIT Next Year850.71%
EBIT Next 3Y131.2%
EBIT Next 5Y68.68%
FCF growth 1Y-142.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-34.98%
OCF growth 3Y-26.26%
OCF growth 5Y-12.58%