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PENN ENTERTAINMENT INC (PENN) Stock Fundamental Analysis

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

17.34  -0.41 (-2.31%)

After market: 17.27 -0.07 (-0.4%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to PENN. PENN was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. PENN has a bad profitability rating. Also its financial health evaluation is rather negative. PENN has a decent growth rate and is not valued too expensively.


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.
In multiple years PENN reported negative net income over the last 5 years.
In the past 5 years PENN always reported a positive cash flow from operatings.
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

Looking at the Return On Assets, with a value of -0.56%, PENN is doing worse than 65.15% of the companies in the same industry.
PENN's Return On Equity of -2.86% is in line compared to the rest of the industry. PENN outperforms 50.00% of its industry peers.
PENN's Return On Invested Capital of 1.41% is on the low side compared to the rest of the industry. PENN is outperformed by 72.73% of its industry peers.
PENN had an Average Return On Invested Capital over the past 3 years of 2.90%. This is significantly below the industry average of 13.91%.
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 67.42% of its industry peers.
In the last couple of years the Operating Margin of PENN has declined.
PENN's Gross Margin of 33.73% is on the low side compared to the rest of the industry. PENN is outperformed by 71.97% of its industry peers.
In the last couple of years the Gross Margin of PENN has declined.
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
PENN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PENN has a worse debt to assets ratio.
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 0.55, we must say that PENN is in the distress zone and has some risk of bankruptcy.
PENN has a Altman-Z score of 0.55. This is in the lower half of the industry: PENN underperforms 74.24% of its industry peers.
A Debt/Equity ratio of 2.34 is on the high side and indicates that PENN has dependencies on debt financing.
PENN has a Debt to Equity ratio (2.34) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 2.34
Debt/FCF N/A
Altman-Z 0.55
ROIC/WACC0.19
WACC7.55%
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.
PENN has a Current ratio (0.74) which is comparable to the rest of the industry.
A Quick Ratio of 0.74 indicates that PENN may have some problems paying its short term obligations.
PENN has a Quick ratio (0.74) which 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

PENN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 56.94%, which is quite impressive.
Looking at the last year, PENN shows a small growth in Revenue. The Revenue has grown by 5.51% 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)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

Based on estimates for the next years, PENN will show a very strong growth in Earnings Per Share. The EPS will grow by 40.86% on average per year.
The Revenue is expected to grow by 5.57% on average over the next years.
EPS Next Y139.45%
EPS Next 2Y63.04%
EPS Next 3Y48.9%
EPS Next 5Y40.86%
Revenue Next Year5.52%
Revenue Next 2Y5.55%
Revenue Next 3Y5.24%
Revenue Next 5Y5.57%

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.
The Price/Forward Earnings ratio is 12.79, which indicates a correct valuation of PENN.
Based on the Price/Forward Earnings ratio, PENN is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PENN to the average of the S&P500 Index (35.33), we can say PENN is valued rather cheaply.
Industry RankSector Rank
PE N/A
Fwd PE 12.79
PENN Price Earnings VS Forward Price EarningsPENN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40 60 80

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as PENN.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.54
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

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as PENN's earnings are expected to grow with 48.90% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y63.04%
EPS Next 3Y48.9%

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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 (7/15/2025, 8:13:29 PM)

After market: 17.27 -0.07 (-0.4%)

17.34

-0.41 (-2.31%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)05-08 2025-05-08/bmo
Earnings (Next)08-07 2025-08-07/bmo
Inst Owners99.62%
Inst Owner Change0%
Ins Owners0.52%
Ins Owner Change-0.21%
Market Cap2.61B
Analysts73.08
Price Target21.76 (25.49%)
Short Float %11.76%
Short Ratio4.12
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)0.16%
PT rev (3m)-9.67%
EPS NQ rev (1m)-41.55%
EPS NQ rev (3m)-57.62%
EPS NY rev (1m)20.19%
EPS NY rev (3m)194.3%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.98%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 12.79
P/S 0.39
P/FCF N/A
P/OCF 5.56
P/B 0.88
P/tB N/A
EV/EBITDA 13.54
EPS(TTM)-0.62
EYN/A
EPS(NY)1.36
Fwd EY7.82%
FCF(TTM)-1.03
FCFYN/A
OCF(TTM)3.12
OCFY17.99%
SpS44.11
BVpS19.75
TBVpS-7.39
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 0.55
F-Score5
WACC7.55%
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 Y139.45%
EPS Next 2Y63.04%
EPS Next 3Y48.9%
EPS Next 5Y40.86%
Revenue 1Y (TTM)5.51%
Revenue growth 3Y3.66%
Revenue growth 5Y4.41%
Sales Q2Q%4.08%
Revenue Next Year5.52%
Revenue Next 2Y5.55%
Revenue Next 3Y5.24%
Revenue Next 5Y5.57%
EBIT growth 1Y57.31%
EBIT growth 3Y-45.78%
EBIT growth 5Y-24.95%
EBIT Next Year819.16%
EBIT Next 3Y132.93%
EBIT Next 5Y68.68%
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%