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PENN ENTERTAINMENT INC (PENN) Stock Fundamental Analysis

NASDAQ:PENN - Nasdaq - US7075691094 - Common Stock - Currency: USD

15.08  +0.42 (+2.86%)

After market: 15.08 0 (0%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to PENN. PENN was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and financial health of PENN have multiple concerns. PENN has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

PENN had negative earnings in the past year.
PENN had a positive operating cash flow in the past year.
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.
PENN Yearly Net Income VS EBIT VS OCF VS FCFPENN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B

1.2 Ratios

With a Return On Assets value of -0.56%, PENN is not doing good in the industry: 65.93% of the companies in the same industry are doing better.
PENN has a Return On Equity (-2.86%) which is in line with its industry peers.
With a Return On Invested Capital value of 1.41%, PENN is not doing good in the industry: 74.07% of the companies in the same industry are doing better.
PENN had an Average Return On Invested Capital over the past 3 years of 2.90%. This is significantly below the industry average of 14.13%.
Industry RankSector Rank
ROA -0.56%
ROE -2.86%
ROIC 1.41%
ROA(3y)-1.28%
ROA(5y)-1.18%
ROE(3y)-6.68%
ROE(5y)-7.01%
ROIC(3y)2.9%
ROIC(5y)3.09%
PENN Yearly ROA, ROE, ROICPENN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -200 -400 -600

1.3 Margins

PENN has a Operating Margin of 3.69%. This is in the lower half of the industry: PENN underperforms 68.15% of its industry peers.
PENN's Operating Margin has declined in the last couple of years.
PENN has a Gross Margin of 33.73%. This is in the lower half of the industry: PENN underperforms 73.33% of its industry peers.
PENN's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 3.69%
PM (TTM) N/A
GM 33.73%
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%
PENN Yearly Profit, Operating, Gross MarginsPENN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40

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1

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PENN is destroying value.
Compared to 1 year ago, PENN has more shares outstanding
The number of shares outstanding for PENN has been increased compared to 5 years ago.
The debt/assets ratio for PENN is higher compared to a year ago.
PENN Yearly Shares OutstandingPENN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
PENN Yearly Total Debt VS Total AssetsPENN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

Based on the Altman-Z score of 0.53, we must say that PENN is in the distress zone and has some risk of bankruptcy.
PENN has a worse Altman-Z score (0.53) than 76.30% of its industry peers.
PENN has a Debt/Equity ratio of 2.34. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.34, PENN perfoms like the industry average, outperforming 50.37% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.34
Debt/FCF N/A
Altman-Z 0.53
ROIC/WACC0.19
WACC7.27%
PENN Yearly LT Debt VS Equity VS FCFPENN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B 10B

2.3 Liquidity

A Current Ratio of 0.74 indicates that PENN may have some problems paying its short term obligations.
With a Current ratio value of 0.74, PENN perfoms like the industry average, outperforming 42.22% of the companies in the same industry.
PENN has a Quick Ratio of 0.74. This is a bad value and indicates that PENN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of PENN (0.74) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.74
Quick Ratio 0.74
PENN Yearly Current Assets VS Current LiabilitesPENN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 56.94% over the past year.
Looking at the last year, PENN shows a small growth in Revenue. The Revenue has grown by 5.51% in the last year.
The Revenue has been growing slightly by 4.41% on average over the past years.
EPS 1Y (TTM)56.94%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%189.47%
Revenue 1Y (TTM)5.51%
Revenue growth 3Y3.66%
Revenue growth 5Y4.41%
Sales Q2Q%4.08%

3.2 Future

PENN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.88% yearly.
Based on estimates for the next years, PENN will show a small growth in Revenue. The Revenue will grow by 5.83% on average per year.
EPS Next Y132.82%
EPS Next 2Y64.91%
EPS Next 3Y49.73%
EPS Next 5Y40.88%
Revenue Next Year5.77%
Revenue Next 2Y5.58%
Revenue Next 3Y5.38%
Revenue Next 5Y5.83%

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.
PENN Yearly Revenue VS EstimatesPENN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B 8B 10B
PENN Yearly EPS VS EstimatesPENN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 5 -5 10 15

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for PENN. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 10.18, the valuation of PENN can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PENN indicates a rather cheap valuation: PENN is cheaper than 85.93% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. PENN is valued rather cheaply when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 10.18
PENN Price Earnings VS Forward Price EarningsPENN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40

4.2 Price Multiples

PENN's Enterprise Value to EBITDA is on the same level as the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.86
PENN Per share dataPENN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

PENN's 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 49.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y64.91%
EPS Next 3Y49.73%

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0

5. Dividend

5.1 Amount

PENN does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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PENN ENTERTAINMENT INC

NASDAQ:PENN (5/23/2025, 8:46:05 PM)

After market: 15.08 0 (0%)

15.08

+0.42 (+2.86%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)05-08 2025-05-08/bmo
Earnings (Next)08-06 2025-08-06/bmo
Inst Owners97.35%
Inst Owner Change-5.68%
Ins Owners0.54%
Ins Owner Change9.53%
Market Cap2.27B
Analysts71.54
Price Target22.68 (50.4%)
Short Float %12.64%
Short Ratio4.56
Dividend
Industry RankSector 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)172.11%
Min EPS beat(2)-126.15%
Max EPS beat(2)470.37%
EPS beat(4)3
Avg EPS beat(4)93.21%
Min EPS beat(4)-126.15%
Max EPS beat(4)470.37%
EPS beat(8)5
Avg EPS beat(8)28.32%
EPS beat(12)7
Avg EPS beat(12)73.06%
EPS beat(16)8
Avg EPS beat(16)48.24%
Revenue beat(2)0
Avg Revenue beat(2)-3.17%
Min Revenue beat(2)-3.66%
Max Revenue beat(2)-2.68%
Revenue beat(4)0
Avg Revenue beat(4)-2.68%
Min Revenue beat(4)-3.66%
Max Revenue beat(4)-1.48%
Revenue beat(8)0
Avg Revenue beat(8)-3.45%
Revenue beat(12)2
Avg Revenue beat(12)-2.2%
Revenue beat(16)5
Avg Revenue beat(16)-1.35%
PT rev (1m)-5.86%
PT rev (3m)-3.95%
EPS NQ rev (1m)-81.36%
EPS NQ rev (3m)-95.14%
EPS NY rev (1m)188.51%
EPS NY rev (3m)-4.78%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)1.03%
Revenue NY rev (1m)-0.74%
Revenue NY rev (3m)0.23%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 10.18
P/S 0.34
P/FCF N/A
P/OCF 4.84
P/B 0.76
P/tB N/A
EV/EBITDA 12.86
EPS(TTM)-0.62
EYN/A
EPS(NY)1.48
Fwd EY9.83%
FCF(TTM)-1.02
FCFYN/A
OCF(TTM)3.12
OCFY20.66%
SpS44.04
BVpS19.71
TBVpS-7.38
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.56%
ROE -2.86%
ROCE 1.79%
ROIC 1.41%
ROICexc 1.48%
ROICexgc 2.15%
OM 3.69%
PM (TTM) N/A
GM 33.73%
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-Score5
Asset Turnover0.44
Health
Industry RankSector Rank
Debt/Equity 2.34
Debt/FCF N/A
Debt/EBITDA 10.27
Cap/Depr 144.24%
Cap/Sales 9.4%
Interest Coverage 0.61
Cash Conversion 69.28%
Profit Quality N/A
Current Ratio 0.74
Quick Ratio 0.74
Altman-Z 0.53
F-Score5
WACC7.27%
ROIC/WACC0.19
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)56.94%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%189.47%
EPS Next Y132.82%
EPS Next 2Y64.91%
EPS Next 3Y49.73%
EPS Next 5Y40.88%
Revenue 1Y (TTM)5.51%
Revenue growth 3Y3.66%
Revenue growth 5Y4.41%
Sales Q2Q%4.08%
Revenue Next Year5.77%
Revenue Next 2Y5.58%
Revenue Next 3Y5.38%
Revenue Next 5Y5.83%
EBIT growth 1Y57.31%
EBIT growth 3Y-45.78%
EBIT growth 5Y-24.95%
EBIT Next Year884.64%
EBIT Next 3Y133.37%
EBIT Next 5Y71.1%
FCF growth 1Y-129.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-41.34%
OCF growth 3Y-26.26%
OCF growth 5Y-12.58%