PENN Entertainment (PENN) AI Stock Analysis

• Market Cap: $2.80B
• Dividend Yield: N/A
• Average Volume (3M): 3.46M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• Revenue Growth: 7.34%
• EPS Growth: 93.83%
• Country: US
• Employees: 23,118
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): -0.12
• Shares Outstanding: 146,004,710
• 10 Day Avg. Volume: 3,368,452
• 30 Day Avg. Volume: 3,458,647
• 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: 4.66
• Enterprise Value/Revenue: 1.96
• Enterprise Value/Gross Profit: 5.49
• Enterprise Value/Ebitda: 15.53
• 1Y Price Target: $22.22
• Price Target Upside: 12.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 61 Neutral
• Price Target: $21.50 ▲(8.92% Upside)

PENN Entertainment's overall score is driven by strong technical momentum, despite financial challenges and valuation concerns. The stock's upward trend and positive market sentiment are significant strengths, but profitability issues and high leverage pose risks.

Positive Factors

Revenue Growth

PENN's consistent revenue growth indicates strong market demand and effective expansion strategies, enhancing its market position.

Digital Expansion

The strategic focus on digital expansion through partnerships like Barstool Sports positions PENN to capture growing online gaming markets.

Strategic Expansion

The expansion of M Resort enhances PENN's capacity and service offerings, potentially increasing revenue and market share in Las Vegas.

Negative Factors

Profitability Challenges

Ongoing profitability issues and high leverage may strain financial resources, affecting long-term sustainability and investment capacity.

High Leverage

High leverage increases financial risk, potentially limiting PENN's ability to invest in growth opportunities and weather economic downturns.

Cash Flow Pressures

Negative free cash flow suggests cash management challenges, which could impact PENN's operational flexibility and strategic investments.

PENN Entertainment Business Overview & Revenue Model

Company Description

PENN Entertainment, Inc. is a leading provider of integrated entertainment and gaming experiences in the United States. The company operates a diverse portfolio of casinos, racetracks, and online gaming platforms, catering to a wide range of customers. PENN's core offerings include traditional gaming options such as slot machines and table games, as well as sports betting and online gaming through its digital platforms. The company is known for its commitment to providing high-quality entertainment and customer service across its various properties.

How the Company Makes Money

PENN Entertainment generates revenue primarily through its gaming operations, which include both retail casinos and online gaming. The company's key revenue streams include gaming operations, which encompass earnings from slot machines, table games, sports betting, and other gaming-related activities. Additionally, PENN benefits from food and beverage sales, hotel accommodations, and entertainment events hosted at its venues. The company's partnership with Barstool Sports enhances its online sports betting and iGaming presence, contributing significantly to its revenue growth. PENN's strategic focus on expanding its digital footprint and enhancing customer loyalty programs also plays a critical role in driving profitability.

PENN Entertainment Financial Statement Overview

Summary

PENN National Gaming shows revenue growth but struggles with profitability due to recurring net losses. High leverage on the balance sheet indicates financial risk, and negative free cash flow suggests cash pressures.

Income Statement

The income statement shows a mixed performance with a notable revenue growth from 2020 to 2025, but profitability is a concern. While gross profit margins have been relatively stable, the net profit margin is negative in the TTM period due to a net loss. The EBIT and EBITDA margins are modest, indicating operational challenges.

Balance Sheet

The balance sheet indicates high leverage with a significant debt-to-equity ratio, reflecting potential financial risk. While the equity ratio remains relatively stable, the return on equity is currently negative due to recent net losses. This highlights pressure on the company's financial stability.

Cash Flow

Cash flow analysis reveals a concerning trend of negative free cash flow in the TTM period, although operating cash flow exceeds net income, indicating positive cash generation from operations. However, the free cash flow to net income ratio is negative, suggesting cash pressures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.64B	6.58B	6.36B	6.40B	5.91B	3.58B
Gross Profit	2.38B	2.16B	1.93B	2.77B	2.76B	1.71B
EBITDA	840.50M	562.80M	400.20M	1.63B	1.45B	196.90M
Net Income	-85.00M	-311.50M	-490.00M	222.10M	420.80M	-669.10M
Balance Sheet
Total Assets	15.09B	15.26B	16.06B	17.50B	16.87B	14.67B
Cash, Cash Equivalents and Short-Term Investments	591.60M	706.60M	1.07B	1.62B	1.86B	1.85B
Total Debt	11.01B	11.25B	11.54B	12.91B	11.61B	11.16B
Total Liabilities	12.12B	12.40B	12.86B	13.91B	12.78B	12.01B
Stockholders Equity	2.97B	2.86B	3.20B	3.60B	4.10B	2.66B
Cash Flow
Free Cash Flow	-137.30M	-123.40M	74.00M	605.80M	627.80M	197.00M
Operating Cash Flow	469.90M	359.30M	455.90M	878.20M	896.10M	338.80M
Investing Cash Flow	-629.80M	-541.20M	-742.60M	-258.60M	-1.22B	-233.70M
Financing Cash Flow	-151.80M	-183.10M	-262.60M	-853.00M	339.90M	1.31B

PENN Entertainment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PENN, the sentiment is Positive. The current price of 19.74 is above the 20-day moving average (MA) of 19.67, above the 50-day MA of 18.74, and above the 200-day MA of 18.09, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 56.97 is Neutral, neither overbought nor oversold. The STOCH value of 40.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PENN.

PENN Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYD	76 Outperform	6.69B	12.86	40.43%	0.83%	6.40%	26.09%
WYNN	68 Neutral	13.11B	37.19	-86.94%	0.78%	-1.94%	-53.90%
LNW	63 Neutral	7.38B	22.10	49.72%	―	3.93%	19.20%
PENN	61 Neutral	$2.80B	―	-2.50%	―	7.34%	93.83%
MGM	61 Neutral	9.39B	19.16	18.14%	―	0.89%	-31.56%
CZR	55 Neutral	5.35B	-28.54	-5.01%	―	-0.15%	28.05%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

PENN Entertainment Corporate Events

PENN National Gaming Elects New Board Directors

On June 17, 2025, PENN Entertainment held its Annual Meeting of Shareholders, where Johnny Hartnett and Carlos Ruisanchez were elected as directors to the Board. The company also ratified the appointment of PricewaterhouseCoopers LLP as its independent registered public accounting firm for the 2025 fiscal year. The Board emphasized its commitment to its omni-channel strategy and long-term value creation, focusing on profitability in its Interactive segment and growth across the business. The company aims to strengthen its balance sheet, enhance liquidity, and engage with shareholders to align strategic priorities.

PENN Entertainment to Repurchase Convertible Senior Notes

On June 13, 2025, PENN Entertainment, Inc. entered into agreements to repurchase approximately $223.8 million of its 2.75% Convertible Senior Notes due 2026. The transactions, expected to close on June 20, 2025, will result in a total purchase price of approximately $230.9 million, reducing the outstanding notes to about $106.7 million. HudsonWest LLC served as the exclusive financial advisor for these transactions.