13.15 USD
-0.1 (-0.75%)
13.07 USD
-0.08 (-0.61%)
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 may be in some trouble as it scores bad on both profitability and health. PENN is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- PENN had negative earnings in the past year.
- 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.
- In the past 5 years PENN always reported a positive cash flow from operatings.
1.2 Ratios
- PENN has a Return On Assets of -6.31%. This is in the lower half of the industry: PENN underperforms 78.03% of its industry peers.
- PENN has a Return On Equity of -46.13%. This is in the lower half of the industry: PENN underperforms 64.39% of its industry peers.
- The Return On Invested Capital of PENN (1.62%) is worse than 71.21% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for PENN is significantly below the industry average of 10.37%.
| 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
- With a Operating Margin value of 3.86%, PENN is not doing good in the industry: 64.39% of the companies in the same industry are doing better.
- PENN's Operating Margin has declined in the last couple of years.
- PENN has a Gross Margin of 37.58%. This is in the lower half of the industry: PENN underperforms 66.67% of its industry peers.
- PENN's Gross Margin has declined in the last couple of years.
| 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
- PENN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
- PENN has a worse debt/assets ratio than last year.
2.2 Solvency
- PENN has an Altman-Z score of 0.45. This is a bad value and indicates that PENN is not financially healthy and even has some risk of bankruptcy.
- PENN's Altman-Z score of 0.45 is on the low side compared to the rest of the industry. PENN is outperformed by 75.00% of its industry peers.
- 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 43.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.45 |
ROIC/WACC0.24
WACC6.7%
2.3 Liquidity
- A Current Ratio of 0.75 indicates that PENN may have some problems paying its short term obligations.
- PENN has a Current ratio of 0.75. This is comparable to the rest of the industry: PENN outperforms 40.15% of its industry peers.
- A Quick Ratio of 0.75 indicates that PENN may have some problems paying its short term obligations.
- PENN's Quick ratio of 0.75 is in line compared to the rest of the industry. PENN outperforms 42.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 82.54% over the past year.
- PENN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.24%.
- PENN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.41% yearly.
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
- The Earnings Per Share is expected to grow by 40.76% on average over the next years. This is a very strong growth
- 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-127.68%
EPS Next 2Y62.38%
EPS Next 3Y44.17%
EPS Next 5Y40.76%
Revenue Next Year4.93%
Revenue Next 2Y4.03%
Revenue Next 3Y3.98%
Revenue Next 5Y4.08%
3.3 Evolution
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for PENN. In the last year negative earnings were reported.
- PENN is valuated reasonably with a Price/Forward Earnings ratio of 10.02.
- Based on the Price/Forward Earnings ratio, PENN is valued cheaply inside the industry as 87.88% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, PENN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 10.02 |
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 | 11.91 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as PENN's earnings are expected to grow with 44.17% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y62.38%
EPS Next 3Y44.17%
5. Dividend
5.1 Amount
- No dividends for PENN!.
| 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 -127.68% in the next year.