Penn National Gaming (PENN) AI Stock Analysis

• Market Cap: $2.48B
• Dividend Yield: N/A
• Average Volume (3M): 3.58M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.55
• Revenue Growth: 5.51%
• EPS Growth: 92.46%
• Country: US
• Employees: 23,118
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.68
• Shares Outstanding: 150,621,490
• 10 Day Avg. Volume: 4,062,959
• 30 Day Avg. Volume: 3,584,011
• PEG Ratio: -0.45
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.90
• Enterprise Value/Market Cap: 6.48
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 6.76
• Enterprise Value/Ebitda: 13.70
• 1Y Price Target: $22.00
• Price Target Upside: 40.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 61 Neutral
• Price Target: $16.50 ▲(5.70%Upside)

Penn National Gaming's overall score reflects financial challenges due to profitability issues and high leverage. However, positive market momentum, strategic investments, and resilience in core segments provide an optimistic outlook. The company's proactive approach to deleveraging and engaging with stakeholders adds to its potential for improvement.

Positive Factors

New Projects and Developments

Four new projects such as Hollywood Aurora and M Resort hotel are expected to provide a positive impact on estimates and sentiment.

Product Development

Product improvements to OSB with ESPN Bet recently launching the Mint Club rewards program.

Strategic Initiatives

An activist campaign by HG Vora could highlight underappreciated value and result in significant upside to the stock.

Negative Factors

Financial Performance

1Q adj. EBITDAR results missed consensus estimates by -6% with lower than expected results for both property level and interactive EBITDAR.

Future Guidance

Lower than expected guidance for 2025 with deeper than expected losses at interactive.

Market Share Challenges

The line of sight to market share gains required to generate positive EBITDA for ESPN Bet remains unclear.

Penn National Gaming Business Overview & Revenue Model

Company Description

PENN Entertainment, Inc., together with its subsidiaries, provides integrated entertainment, sports content, and casino gaming experiences in North America. The company operates through five segments: Northeast, South, West, Midwest, and Interactive. It operates 44 properties in 20 states; online sports betting in 13 jurisdictions; and iCasino in five under a portfolio of brands, including Hollywood Casino, L'Auberge, Barstool Sportsbook, and theScore Bet. The company was formerly known as Penn National Gaming, Inc. and changed its name to PENN Entertainment, Inc. in August 2022. PENN Entertainment, Inc. was founded in 1972 and is based in Wyomissing, Pennsylvania.

How the Company Makes Money

Penn National Gaming generates revenue through several key streams. The primary source is its network of land-based casinos and racetracks, where it collects income from gaming operations, including slot machines, table games, and sports betting. Additionally, the company has a significant online presence, earning money through its digital gaming and sports betting platforms. Penn National has leveraged strategic partnerships, such as its collaboration with Barstool Sports, to expand its brand and enhance its digital offerings. Revenue is also supplemented by food, beverage, and hospitality services provided at its various properties, contributing to a well-rounded income model.

Penn National Gaming Financial Statement Overview

Summary

Penn National Gaming shows revenue growth but struggles with profitability, evidenced by negative net profit margins and high leverage. Operational challenges are indicated by modest EBIT and EBITDA margins, while high debt levels and negative free cash flow suggest financial 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
	EBIT
145.80M	72.50M	363.60M	974.00M	1.06B	333.60M
	EBITDA
840.50M	562.80M	400.20M	1.63B	1.45B	196.90M
	Net Income Common Stockholders
-85.00M	-311.50M	-490.00M	222.10M	420.80M	-669.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
591.60M	706.60M	1.07B	1.62B	1.86B	1.85B
	Total Assets
15.09B	15.26B	16.06B	17.50B	16.87B	14.67B
	Total Debt
8.38B	11.25B	11.54B	12.91B	11.61B	11.16B
	Net Debt
7.79B	10.54B	10.47B	11.28B	9.74B	9.30B
	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 National Gaming Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.61
• 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 PENN, the sentiment is Negative. The current price of 15.61 is above the 20-day moving average (MA) of 15.51, above the 50-day MA of 15.32, and below the 200-day MA of 18.42, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 48.91 is Neutral, neither overbought nor oversold. The STOCH value of 73.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PENN.

Penn National Gaming Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYD	78 Outperform	$6.13B	11.97	35.62%	0.98%	6.06%	10.05%
LNW	77 Outperform	$6.93B	21.98	46.19%	―	7.26%	54.83%
MGM	70 Outperform	$8.64B	14.21	21.38%	―	2.76%	-14.31%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
WYNN	62 Neutral	$8.80B	22.98	-51.73%	1.19%	-0.08%	-48.66%
PENN	61 Neutral	$2.48B	―	-2.81%	―	5.51%	92.46%
CZR	57 Neutral	$5.32B	―	-5.56%	―	-1.25%	-130.83%

Penn National Gaming Corporate Events

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.

The most recent analyst rating on (PENN) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Penn National Gaming stock, see the PENN Stock Forecast page.

PENN Entertainment Highlights Strategic Priorities in Shareholder Letter

On May 15, 2025, PENN Entertainment issued a letter to shareholders highlighting its strategic priorities and recent performance. The company is focused on enhancing shareholder value through its omni-channel strategy, which integrates digital and retail operations to capture market growth. PENN’s efforts include engaging with HG Vora Capital Management to resolve differences, expanding its customer base, and improving profitability in its Interactive segment. The company reported significant growth in its digital customer base and revenue, with expectations of profitability in the Interactive segment by the end of 2025. PENN also plans to reduce leverage and return capital to shareholders, demonstrating a commitment to financial stability and shareholder engagement.

The most recent analyst rating on (PENN) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Penn National Gaming stock, see the PENN Stock Forecast page.

PENN Entertainment Announces Board Changes and New Nominations

On April 25, 2025, PENN Entertainment announced significant changes to its Board of Directors, with Ronald J. Naples resigning and Barbara Shattuck Kohn and Saul Reibstein deciding not to seek reelection at the upcoming annual meeting. The Board, now reduced to eight members, plans to nominate Johnny Hartnett and Carlos Ruisanchez, who bring valuable industry expertise, to fill the vacancies. These changes are part of PENN’s strategy to enhance value creation, particularly in its Interactive segment, while avoiding a proxy fight. The company remains focused on growth opportunities and maintaining strong shareholder engagement.