(PENN) Penn National Gaming - Overview
Sector: Consumer Cyclical | Industry: Resorts & Casinos | Exchange: NASDAQ (USA) | Market Cap: 2.259m USD | Total Return: 24.6% in 12m
Avg Turnover: 47.8M
Qual. Beats: 0
Rev. Trend: 76.6%
Qual. Beats: 2
Warnings
Interest Coverage Ratio -1.5 is critical
Altman Z'' -0.88 < 1.0 - financial distress zone
Tailwinds
Idiosyncratic Leader
PENN Entertainment, Inc. is an omni-channel provider of casino gaming, sports content, and online betting services. The company operates a geographically diverse portfolio of physical properties across four U.S. regions-Northeast, South, West, and Midwest-complemented by an Interactive segment. Its physical assets include casinos and racetracks under brands such as Hollywood Casino and Ameristar, while its digital presence is driven by theScore Bet and PENN Game Studios.
The company operates within the broader Casinos & Gaming industry, which is characterized by high regulatory barriers to entry and a shift toward digital integration. PENN utilizes a hub-and-spoke business model, leveraging its physical locations to acquire customers for its digital platforms through the PENN Play loyalty program. This integration aims to maximize the lifetime value of users by bridging the gap between land-based slot machines and mobile sports wagering.
Further analysis of the companys valuation metrics on ValueRay can provide deeper insight into its market positioning. Formerly known as Penn National Gaming, the firm rebranded in 2022 to reflect its expanded focus on media and integrated digital entertainment.
- ESPN Bet user acquisition costs and market share growth impact interactive margins
- Regional casino gaming revenue remains sensitive to consumer discretionary spending trends
- Integration of theScore technology platform determines long-term digital profitability
- Regulatory shifts in state-level sports betting and iGaming legalization drive expansion
- Corporate leverage levels and capital expenditures for property renovations affect valuation
| Net Income: -957.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.00 > 0.02 and ΔFCF/TA 0.24 > 1.0 |
| NWC/Revenue: -3.62% < 20% (prev -5.36%; Δ 1.75% < -1%) |
| CFO/TA 0.04 > 3% & CFO 588.7m > Net Income -957.3m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 0.82 > 1.5 & < 3 |
| Outstanding Shares: last quarter (133.4m) vs 12m ago -20.12% < -2% |
| Gross Margin: 29.69% > 18% (prev 0.34%; Δ 2.94k% > 0.5%) |
| Asset Turnover: 48.39% > 50% (prev 44.03%; Δ 4.37% > 0%) |
| Interest Coverage Ratio: -1.48 > 6 (EBITDA TTM -131.7m / Interest Expense TTM 396.1m) |
| A: -0.02 (Total Current Assets 1.16b - Total Current Liabilities 1.42b) / Total Assets 14.1b |
| B: -0.11 (Retained Earnings -1.49b / Total Assets 14.1b) |
| C: -0.04 (EBIT TTM -587.6m / Avg Total Assets 14.6b) |
| D: -0.14 (Book Value of Equity -1.69b / Total Liabilities 12.3b) |
| Altman-Z'' = -0.88 = CCC |
| DSRI: 0.89 (Receivables 241.0m/253.3m, Revenue 7.07b/6.64b) |
| GMI: 1.14 (GM 29.69% / 33.73%) |
| AQI: 0.84 (AQ_t 0.25 / AQ_t-1 0.29) |
| SGI: 1.06 (Revenue 7.07b / 6.64b) |
| TATA: -0.11 (NI -957.3m - CFO 588.7m) / TA 14.1b) |
| Beneish M = -3.15 (Cap -4..+1) = AA |
As of May 31, 2026, the stock is trading at USD 18.83 with a total of 3,940,424 shares traded.
Over the past week, the price has changed by +12.75%,
over one month by +5.67%,
over three months by +20.40% and
over the past year by +24.62%.
Penn National Gaming has received a consensus analysts rating of 3.75. Therefore, it is recommended to hold PENN.
- StrongBuy: 6
- Buy: 3
- Hold: 11
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 20.3 | 8% |
P/E Forward = 10.2249
P/S = 0.3197
P/B = 1.2349
P/EG = 1.0084
Revenue TTM = 7.07b USD
EBIT TTM = -587.6m USD
EBITDA TTM = -131.7m USD
Long Term Debt = 2.89b USD (from longTermDebt, last quarter)
Short Term Debt = 475.0m USD (from shortTermDebt, last quarter)
Debt = 8.26b USD (from shortLongTermDebtTotal, last quarter) (leases 8.27b already included)
Net Debt = 7.55b USD (calculated: Debt 8.26b - CCE 708.0m)
Enterprise Value = 9.81b USD (2.26b + Debt 8.26b - CCE 708.0m)
Interest Coverage Ratio = -1.48 (Ebit TTM -587.6m / Interest Expense TTM 396.1m)
EV/FCF = -170.1x (Enterprise Value 9.81b / FCF TTM -57.7m)
FCF Yield = -0.59% (FCF TTM -57.7m / Enterprise Value 9.81b)
FCF Margin = -0.82% (FCF TTM -57.7m / Revenue TTM 7.07b)
Net Margin = -13.54% (Net Income TTM -957.3m / Revenue TTM 7.07b)
Gross Margin = 29.69% ((Revenue TTM 7.07b - Cost of Revenue TTM 4.97b) / Revenue TTM)
Gross Margin QoQ = 29.50% (prev 27.15%)
Tobins Q-Ratio = 0.70 (Enterprise Value 9.81b / Total Assets 14.1b)
Interest Expense / Debt = 4.79% (Interest Expense 396.1m / Debt 8.26b)
Taxrate = 21.0% (US default 21%)
NOPAT = -464.2m (EBIT -587.6m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 0.82 (Total Current Assets 1.16b / Total Current Liabilities 1.42b)
Debt / Equity = 4.52 (Debt 8.26b / totalStockholderEquity, last quarter 1.83b)
Debt / EBITDA = -57.35 (negative EBITDA) (Net Debt 7.55b / EBITDA -131.7m)
Debt / FCF = -130.9 (out of range, set to none) (Net Debt 7.55b / FCF TTM -57.7m)
Total Stockholder Equity = 2.15b (last 4 quarters mean from totalStockholderEquity)
RoA = -6.56% (Net Income -957.3m / Total Assets 14.1b)
RoE = -26.27% (Net Income TTM -957.3m / Total Stockholder Equity 3.64b)
RoCE = -9.00% (EBIT -587.6m / Capital Employed (Equity 3.64b + L.T.Debt 2.89b))
RoIC = -3.54% (negative operating profit) (NOPAT -464.2m / Invested Capital 13.1b)
WACC = 5.21% (E(2.26b)/V(10.5b) * Re(10.42%) + D(8.26b)/V(10.5b) * Rd(4.79%) * (1-Tc(0.21)))
Discount Rate = 10.42% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -40.45 | Cagr: -5.44%
[DCF] Fair Price = unknown (Cash Flow -57.7m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.36 | # QB: 0
Revenue Correlation: 76.59 | Revenue CAGR: 3.43% | SUE: 1.11 | # QB: 2
EPS current Quarter (2026-06-30): EPS=0.28 | Chg30d=-0.56% | Revisions=-14% | Analysts=5
EPS next Quarter (2026-09-30): EPS=0.12 | Chg30d=-35.06% | Revisions=+0% | Analysts=5
EPS current Year (2026-12-31): EPS=0.98 | Chg30d=+8.55% | Revisions=-20% | GrowthEPS=+427.1% | GrowthRev=+5.5%
EPS next Year (2027-12-31): EPS=1.65 | Chg30d=+13.58% | Revisions=-25% | GrowthEPS=+68.5% | GrowthRev=+4.2%
[Analyst] Revisions Ratio: -25%