(CZR) Caesars Entertainment - Overview
Sector: Consumer Cyclical | Industry: Resorts & Casinos | Exchange: NASDAQ (USA) | Market Cap: 5.862m USD | Total Return: 6.5% in 12m
Avg Turnover: 104M
Qual. Beats: 0
Rev. Trend: -6.1%
Qual. Beats: 0
Warnings
High Debt/EBITDA (10.7) with thin interest coverage (0.9)
Interest Coverage Ratio 0.9 is critical
Altman Z'' -0.10 < 1.0 - financial distress zone
Tailwinds
Idiosyncratic Leader
Caesars Entertainment, Inc. (CZR) is a Reno-based gaming and hospitality operator with a diversified portfolio spanning 18 U.S. states. The company’s core business model integrates physical casino operations-featuring slots, table games, and hotel accommodations-with a digital division focused on online sports wagering and iGaming across North America. This dual-channel approach allows the company to leverage its established brand loyalty programs to transition traditional casino patrons into digital users.
The gaming sector is characterized by high capital intensity and rigorous regulatory oversight, often creating significant barriers to entry for new competitors. As a major player in the Casinos & Gaming sub-industry, Caesars relies on a mix of owned, leased, and managed properties to drive revenue through gaming, hospitality, and entertainment services. For a deeper look into the companys fundamental performance, consult ValueRay for detailed financial metrics.
- Digital sports betting and iGaming expansion drives high-margin revenue growth
- Las Vegas strip occupancy and room rates dictate core cash flow
- High debt leverage increases sensitivity to interest rate and refinancing costs
- Regional gaming demand fluctuates with consumer discretionary spending and inflation
- New property developments and renovations impact long-term capital expenditure efficiency
| Net Income: -485.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA 1.50 > 1.0 |
| NWC/Revenue: -2.75% < 20% (prev -3.12%; Δ 0.37% < -1%) |
| CFO/TA 0.04 > 3% & CFO 1.29b > Net Income -485.0m |
| Net Debt (37.2b) to EBITDA (3.48b): 10.68 < 3 |
| Current Ratio: 0.85 > 1.5 & < 3 |
| Outstanding Shares: last quarter (204.0m) vs 12m ago -3.77% < -2% |
| Gross Margin: 43.92% > 18% (prev 0.52%; Δ 4.34k% > 0.5%) |
| Asset Turnover: 36.10% > 50% (prev 34.87%; Δ 1.23% > 0%) |
| Interest Coverage Ratio: 0.90 > 6 (EBITDA TTM 3.48b / Interest Expense TTM 2.31b) |
| A: -0.01 (Total Current Assets 1.80b - Total Current Liabilities 2.12b) / Total Assets 31.7b |
| B: -0.11 (Retained Earnings -3.40b / Total Assets 31.7b) |
| C: 0.06 (EBIT TTM 2.08b / Avg Total Assets 32.0b) |
| D: -0.12 (Book Value of Equity -3.31b / Total Liabilities 28.1b) |
| Altman-Z'' = -0.10 = B |
| DSRI: 0.98 (Receivables 441.0m/440.0m, Revenue 11.6b/11.3b) |
| GMI: 1.18 (GM 43.92% / 51.71%) |
| AQI: 1.00 (AQ_t 0.49 / AQ_t-1 0.49) |
| SGI: 1.02 (Revenue 11.6b / 11.3b) |
| TATA: -0.06 (NI -485.0m - CFO 1.29b) / TA 31.7b) |
| Beneish M = -2.92 (Cap -4..+1) = A |
As of May 31, 2026, the stock is trading at USD 29.05 with a total of 17,091,850 shares traded.
Over the past week, the price has changed by +4.12%,
over one month by +6.10%,
over three months by +15.97% and
over the past year by +6.53%.
Caesars Entertainment has received a consensus analysts rating of 4.47. Therefore, it is recommended to buy CZR.
- StrongBuy: 10
- Buy: 2
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 33.3 | 14.7% |
P/E Forward = 39.3701
P/S = 0.507
P/B = 1.716
P/EG = 3.2616
Revenue TTM = 11.6b USD
EBIT TTM = 2.08b USD
EBITDA TTM = 3.48b USD
Long Term Debt = 11.7b USD (from longTermDebt, last quarter)
Short Term Debt = 114.0m USD (from shortTermDebt, last quarter)
Debt = 38.1b USD (from shortLongTermDebtTotal, last quarter) + Leases 13.1b
Net Debt = 37.2b USD (calculated: Debt 38.1b - CCE 867.0m)
Enterprise Value = 43.0b USD (5.86b + Debt 38.1b - CCE 867.0m)
Interest Coverage Ratio = 0.90 (Ebit TTM 2.08b / Interest Expense TTM 2.31b)
EV/FCF = 86.79x (Enterprise Value 43.0b / FCF TTM 496.0m)
FCF Yield = 1.15% (FCF TTM 496.0m / Enterprise Value 43.0b)
FCF Margin = 4.29% (FCF TTM 496.0m / Revenue TTM 11.6b)
Net Margin = -4.19% (Net Income TTM -485.0m / Revenue TTM 11.6b)
Gross Margin = 43.92% ((Revenue TTM 11.6b - Cost of Revenue TTM 6.48b) / Revenue TTM)
Gross Margin QoQ = 50.28% (prev 37.35%)
Tobins Q-Ratio = 1.36 (Enterprise Value 43.0b / Total Assets 31.7b)
Interest Expense / Debt = 6.08% (Interest Expense 2.31b / Debt 38.1b)
Taxrate = 21.0% (US default 21%)
NOPAT = 1.64b (EBIT 2.08b * (1 - 21.00%))
Current Ratio = 0.85 (Total Current Assets 1.80b / Total Current Liabilities 2.12b)
Debt / Equity = 11.14 (Debt 38.1b / totalStockholderEquity, last quarter 3.42b)
Debt / EBITDA = 10.68 (Net Debt 37.2b / EBITDA 3.48b)
Debt / FCF = 74.97 (Net Debt 37.2b / FCF TTM 496.0m)
Total Stockholder Equity = 3.65b (last 4 quarters mean from totalStockholderEquity)
RoA = -1.51% (Net Income -485.0m / Total Assets 31.7b)
RoE = -6.88% (Net Income TTM -485.0m / Total Stockholder Equity 7.05b)
RoCE = 11.08% (EBIT 2.08b / Capital Employed (Equity 7.05b + L.T.Debt 11.7b))
RoIC = 5.53% (NOPAT 1.64b / Invested Capital 29.7b)
WACC = 5.47% (E(5.86b)/V(43.9b) * Re(9.83%) + D(38.1b)/V(43.9b) * Rd(6.08%) * (1-Tc(0.21)))
Discount Rate = 9.83% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -90.80 | Cagr: -2.51%
[DCF] Terminal Value 77.97% ; FCFF base≈305.6m ; Y1≈350.3m ; Y5≈515.6m
[DCF] Fair Price = N/A (negative equity: EV 7.76b - Net Debt 37.2b = -29.4b; debt exceeds intrinsic value)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.73 | # QB: 0
Revenue Correlation: -6.10 | Revenue CAGR: -0.06% | SUE: 0.44 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.13 | Chg30d=-44.79% | Revisions=-43% | Analysts=4
EPS next Quarter (2026-09-30): EPS=0.07 | Chg30d=-34.78% | Revisions=+0% | Analysts=4
EPS current Year (2026-12-31): EPS=0.37 | Chg30d=+180.30% | Revisions=-43% | GrowthEPS=+130.7% | GrowthRev=+3.0%
EPS next Year (2027-12-31): EPS=0.84 | Chg30d=-28.19% | Revisions=+0% | GrowthEPS=+127.6% | GrowthRev=+2.5%
[Analyst] Revisions Ratio: -43%