Caesars Entertainment (CZR) AI Stock Analysis

• Market Cap: $5.40B
• Dividend Yield: N/A
• Average Volume (3M): 8.20M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: -0.15%
• EPS Growth: 28.05%
• Country: US
• Employees: 50,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): -0.28
• Shares Outstanding: 207,991,530
• 10 Day Avg. Volume: 13,171,905
• 30 Day Avg. Volume: 8,201,353
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 5.60
• Enterprise Value/Revenue: 2.66
• Enterprise Value/Gross Profit: 5.20
• Enterprise Value/Ebitda: 8.17
• 1Y Price Target: $37.17
• Price Target Upside: 38.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 54 Neutral
• Price Target: $27.00 ▲(0.37% Upside)

Caesars Entertainment's stock score is primarily influenced by its financial performance, which shows strong revenue growth but significant profitability and leverage challenges. Technical analysis indicates a neutral trend, while valuation is negatively impacted by a negative P/E ratio and lack of dividend yield. The earnings call provided positive insights, particularly in the Digital segment, but was not included in the weighted score due to the methodology.

Positive Factors

Digital Segment Growth

The strong growth in the Digital segment, with a 100% increase in adjusted EBITDA, highlights successful expansion into online gaming and sports betting, which are crucial for future revenue streams.

Strategic Investments

Strategic investments in Las Vegas properties are yielding strong returns, indicating effective capital allocation and enhancing the company's competitive position in the hospitality sector.

Debt Reduction

The reduction of expensive debt improves financial health by increasing free cash flow, which can be reinvested into growth opportunities or used to further reduce leverage.

Negative Factors

High Leverage

High leverage poses a risk to financial stability, especially if interest rates rise or cash flows decrease, limiting the company's ability to invest in growth or weather economic downturns.

Profitability Challenges

Negative net profit margins indicate ongoing profitability issues, which could hinder the company's ability to generate sustainable earnings and limit reinvestment in business operations.

Declining Free Cash Flow

The significant decline in free cash flow generation limits the company's ability to fund new projects, pay down debt, or return capital to shareholders, impacting long-term financial flexibility.

Caesars Entertainment Business Overview & Revenue Model

Company Description

Caesars Entertainment, Inc. operates as a gaming and hospitality company in the United States. The company operates casinos comprising poker, keno, and race and online sportsbooks; dining venues, bars, nightclubs, and lounges; hotels; and entertainment venues. It also provides staffing and management services; accessories, souvenirs, and decorative items through retail stores; and online sports betting and iGaming services. As of December 31,2021, the company owned, leased, and managed 52 domestic properties in 16 states, consisting of approximately 55,700 slot machines, video lottery terminals, and e-tables; 2,900 table games; and 47,700 hotel rooms. Caesars Entertainment, Inc. was founded in 1937 and is based in Reno, Nevada.

How the Company Makes Money

Caesars Entertainment generates revenue through several key streams. The primary source of income is from its gaming operations, including slot machines, table games, and sports betting. Additionally, the company earns significant revenue from its hospitality services, such as hotel bookings, dining, and entertainment events at its properties. Caesars has also expanded into the online gaming and sports betting markets, leveraging its brand and customer base to capture a growing digital audience. Partnerships with sports leagues and teams enhance its sportsbook offerings, contributing to its revenue. The company's loyalty program, Caesars Rewards, plays a vital role in driving customer retention and increasing spending across its various services.

Caesars Entertainment Financial Statement Overview

Summary

Caesars Entertainment shows strong revenue growth and operational efficiency, but faces challenges with profitability and high leverage. The negative net income and declining free cash flow are concerning, especially given the high debt levels.

Income Statement

Caesars Entertainment shows a mixed performance in its income statement. The company has a strong Gross Profit Margin of 51.16% for TTM, indicating efficient cost management. However, the Net Profit Margin is negative at -1.71%, reflecting ongoing profitability challenges. Revenue growth is positive at 68.2% for TTM, suggesting a strong recovery or expansion. EBIT and EBITDA margins are healthy at 20.32% and 32.56% respectively, indicating good operational efficiency despite the net loss.

Balance Sheet

The balance sheet reveals significant leverage with a high Debt-to-Equity Ratio of 6.11, which poses a risk in terms of financial stability. The Return on Equity is negative at -4.73%, indicating that the company is not generating positive returns on shareholders' equity. The Equity Ratio is relatively low, suggesting a high reliance on debt financing, which could be a concern if interest rates rise or cash flows decrease.

Cash Flow

Cash flow analysis shows challenges with a negative Free Cash Flow Growth Rate of -187.72% for TTM, indicating a significant decline in free cash flow generation. The Operating Cash Flow to Net Income Ratio is 0.52, suggesting that operating cash flows are not fully covering net income. The Free Cash Flow to Net Income Ratio is low at 0.04, highlighting limited free cash flow relative to net income, which could impact future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.37B	11.24B	11.53B	10.82B	9.57B	3.63B
Gross Profit	5.82B	5.83B	6.13B	5.42B	4.92B	1.78B
EBITDA	3.70B	3.58B	3.56B	2.92B	2.17B	179.00M
Net Income	-195.00M	-278.00M	786.00M	-899.00M	-1.02B	-1.76B
Balance Sheet
Total Assets	32.48B	32.59B	33.37B	33.53B	38.03B	36.38B
Cash, Cash Equivalents and Short-Term Investments	982.00M	866.00M	1.00B	1.04B	1.07B	1.78B
Total Debt	25.16B	25.06B	25.07B	25.43B	26.27B	26.93B
Total Liabilities	28.36B	28.21B	28.65B	29.78B	33.49B	31.35B
Stockholders Equity	3.90B	4.16B	4.55B	3.71B	4.48B	5.02B
Cash Flow
Free Cash Flow	50.00M	-221.00M	515.00M	12.00M	340.00M	-769.00M
Operating Cash Flow	1.22B	1.07B	1.81B	975.00M	1.17B	-571.00M
Investing Cash Flow	-546.00M	-704.00M	-1.26B	-382.00M	-2.92B	-6.18B
Financing Cash Flow	-548.00M	-498.00M	-713.00M	-1.28B	-550.00M	10.64B

Caesars Entertainment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.90
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CZR, the sentiment is Positive. The current price of 26.9 is above the 20-day moving average (MA) of 26.14, above the 50-day MA of 26.13, and below the 200-day MA of 29.16, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 53.47 is Neutral, neither overbought nor oversold. The STOCH value of 48.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CZR.

Caesars Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYD	76 Outperform	$6.98B	13.41	40.43%	0.82%	6.40%	26.09%
RRR	72 Outperform	$6.41B	23.13	86.87%	3.26%	7.47%	2.58%
WYNN	68 Neutral	$13.86B	38.95	-86.94%	0.75%	-1.94%	-53.90%
MGM	64 Neutral	$9.44B	19.15	18.14%	―	0.89%	-31.56%
LVS	59 Neutral	$37.60B	27.66	70.92%	1.73%	1.62%	-7.14%
CZR	54 Neutral	$5.40B	―	-4.76%	―	-0.15%	28.05%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Caesars Entertainment Corporate Events

Caesars Entertainment Announces Redemption of Senior Notes

On June 27, 2025, Caesars Entertainment announced a conditional full redemption of its outstanding 8.125% Senior Notes due 2027, totaling $545,898,000, to be redeemed on July 8, 2025. The redemption is contingent upon receiving sufficient net proceeds, with potential delays or cancellation if conditions are not met, impacting the company’s financial obligations and market positioning.

Caesars Entertainment Concludes 2025 Annual Meeting Decisions

Caesars Entertainment held its 2025 Annual Meeting on June 10, 2025, where shareholders considered four proposals. The shareholders elected the company’s nominees to the board, approved executive compensation, ratified Deloitte & Touche LLP as the independent auditor, and rejected a proposal for a smokefree policy at Caesars properties.