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PENN Entertainment Inc PENN

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Stock XNAS Rating as of
$15.90 −1.00 (5.92%)
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As of Delayed Price Closed
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Company Report

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Penn's Digital Business Should Benefit From Further Product Integration

Dan Wasiolek

Penn Entertainment has a leading omnichannel presence, which includes 43 physical casino assets, a digital portfolio encompassing an upgraded sports betting partnership with ESPN that launched in November 2023, iGaming, media, and a loyalty membership base of over 30 million. We estimate Penn held around a high-single-digit percentage revenue share of the $66.5 billion domestic commercial casino gaming market in 2023.

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Price vs Fair Value

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PENN is trading at a 417% premium.
Price
$16.90
Fair Value
$57.00
Uncertainty
Very High
1-Star Price
$74.80
5-Star Price
$34.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

We see Penn's domestic properties and partnership with ESPN as well positioned to benefit from the more than $40 billion US sports betting and iGaming revenue opportunity by 2030.

Bears

Debt levels are elevated, which could inflate financing costs for future renovations and investment.

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News

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Trading Information

Previous Close Price
$16.90
Day Range
$15.80–17.05
52-Week Range
$13.50–29.38
Bid/Ask
$15.90 / $15.96
Market Cap
$2.42 Bil
Volume/Avg
7.4 Mil / 6.3 Mil

Key Statistics

Price/Earnings (Normalized)
13.32
Price/Sales
0.38
Dividend Yield (Trailing)
—
Dividend Yield (Forward)
—
Total Yield
4.12%

Company Profile

Penn Entertainment’s origins date back to its 1972 racetrack opening in Pennsylvania. Today, Penn operates 43 properties across 20 states and 12 brands, including Hollywood Casino and Ameristar. Land-based casinos represented 89% of total sales in 2023; 11% was from the interactive segment, which includes sports, iGaming, and media revenue. The retail portfolio generates mid-30s EBITDAR margins and helps position the company to obtain licenses for the digital wagering markets. Additionally, Penn’s media assets, theScore and ESPN (starting with its partnership launch in November 2023), provide access to sports betting/iGaming technology and clientele, helping it form a leading digital position.
Sector
Consumer Cyclical
Industry
Resorts & Casinos
Stock Style Box
Small Value
Total Number of Employees
23,333
Website
https://www.pennentertainment.com

Competitors

Valuation

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Metric
PENN
WYNN
MGM
Price/Earnings (Normalized)
 13.3218.0813.71
Price/Book Value
 0.79—3.79
Price/Sales
 0.381.570.86
Price/Cash Flow
 3.687.505.37
Price/Earnings
PENN
WYNN
MGM

Financial Strength

Metric
PENN
WYNN
MGM
Quick Ratio
 0.891.351.23
Current Ratio
 1.041.431.51
Interest Coverage
 −1.861.413.66
Quick Ratio
PENN
WYNN
MGM

Profitability

Metric
PENN
WYNN
MGM
Return on Assets (Normalized)
 −0.86%8.85%3.03%
Return on Equity (Normalized)
 −3.89%—31.53%
Return on Invested Capital (Normalized)
 1.52%13.75%4.74%
Return on Assets
PENN
WYNN
MGM
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Resorts & Casinos Industry Comparables

Screen in Investor
Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
LVS
Las Vegas Sands CorpNcpmfqgvXqwcjb$34.4 Bil
SCHYF
Sands China Ltd Shs Unitary 144A/Reg S—Slgtkc$21.2 Bil
SCHYY
Sands China Ltd ADR—Nyrggc$21.2 Bil
GXYEF
Galaxy Entertainment Group Ltd—Ryyqg$20.6 Bil
GXYYY
Galaxy Entertainment Group Ltd ADR—Jhbtqj$20.6 Bil
MGM
MGM Resorts InternationalGwjfvndySkjx$13.0 Bil
WYNN
Wynn Resorts LtdYfdjhlqvGfgsml$11.0 Bil
CZR
Caesars Entertainment IncTyvkpyptFdcx$7.9 Bil
MLCO
Melco Resorts and Entertainment Ltd ADRHykcflzBnyhk$3.6 Bil

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