14.27 USD
-0.26 (-1.79%)
14.27 USD
0 (0%)
Overall PENN gets a fundamental rating of 2 out of 10. We evaluated PENN against 133 industry peers in the Hotels, Restaurants & Leisure industry. PENN may be in some trouble as it scores bad on both profitability and health. PENN is quite expensive at the moment. It does show a decent growth rate.
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.
- PENN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of -6.31%, PENN is doing worse than 78.20% of the companies in the same industry.
- The Return On Equity of PENN (-46.13%) is worse than 64.66% of its industry peers.
- PENN has a worse Return On Invested Capital (1.62%) than 71.43% 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 10.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.31% | ||
| ROE | -46.13% | ||
| ROIC | 1.62% |
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
- The Operating Margin of PENN (3.86%) is worse than 64.66% of its industry peers.
- In the last couple of years the Operating Margin of PENN has declined.
- With a Gross Margin value of 37.58%, PENN is not doing good in the industry: 66.92% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of PENN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.86% | ||
| PM (TTM) | N/A | ||
| GM | 37.58% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PENN is destroying value.
- PENN has more shares outstanding than it did 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
- PENN has an Altman-Z score of 0.46. This is a bad value and indicates that PENN is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.46, PENN is doing worse than 75.94% of the companies in the same industry.
- PENN has a Debt/Equity ratio of 3.64. This is a high value indicating a heavy dependency on external financing.
- PENN's Debt to Equity ratio of 3.64 is in line compared to the rest of the industry. PENN outperforms 43.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.46 |
ROIC/WACC0.24
WACC6.84%
2.3 Liquidity
- A Current Ratio of 0.75 indicates that PENN may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.75, PENN is in line with its industry, outperforming 40.60% of the companies in the same industry.
- A Quick Ratio of 0.75 indicates that PENN may have some problems paying its short term obligations.
- With a Quick ratio value of 0.75, PENN perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
- PENN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 82.54%, which is quite impressive.
- Looking at the last year, PENN shows a quite strong growth in Revenue. The Revenue has grown by 8.24% in the last year.
- Measured over the past years, PENN shows a small growth in Revenue. The Revenue has been growing by 4.41% on average per year.
EPS 1Y (TTM)82.54%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-25%
Revenue 1Y (TTM)8.24%
Revenue growth 3Y3.66%
Revenue growth 5Y4.41%
Sales Q2Q%4.76%
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 40.76% on average per year.
- PENN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.08% yearly.
EPS Next Y-129.6%
EPS Next 2Y62.34%
EPS Next 3Y44.11%
EPS Next 5Y40.76%
Revenue Next Year4.93%
Revenue Next 2Y3.95%
Revenue Next 3Y3.92%
Revenue Next 5Y4.08%
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 stable.
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 10.90 indicates a reasonable valuation of PENN.
- Based on the Price/Forward Earnings ratio, PENN is valued cheaply inside the industry as 87.22% of the companies are valued more expensively.
- PENN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 10.9 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as PENN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.15 |
4.3 Compensation for Growth
- PENN's earnings are expected to grow with 44.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y62.34%
EPS Next 3Y44.11%
5. Dividend
5.1 Amount
- PENN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
PENN ENTERTAINMENT INC / PENN FAQ
What is the fundamental rating for PENN stock?
ChartMill assigns a fundamental rating of 2 / 10 to PENN.
Can you provide the valuation status for PENN ENTERTAINMENT INC?
ChartMill assigns a valuation rating of 3 / 10 to PENN ENTERTAINMENT INC (PENN). This can be considered as Overvalued.
How profitable is PENN ENTERTAINMENT INC (PENN) stock?
PENN ENTERTAINMENT INC (PENN) has a profitability rating of 1 / 10.
What is the expected EPS growth for PENN ENTERTAINMENT INC (PENN) stock?
The Earnings per Share (EPS) of PENN ENTERTAINMENT INC (PENN) is expected to decline by -129.6% in the next year.