Bally's Corporation (BALY) AI Stock Analysis

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Bally's Corporation

(NYSE:BALY)

54Neutral

Bally's Corporation's overall score reflects its financial challenges, notably negative profitability and high leverage, which weigh heavily on the stock. While there are positive signs in technical analysis and growth in specific segments, valuation concerns and operational headwinds in key areas temper the outlook. Improvement in financial performance and strategic execution are critical for enhancing the stock's attractiveness.

Positive Factors

Expansion

Bally's shareholders approved a merger with QC&E, expanding its footprint to 19 facilities across 11 states.

Financing

Bally's secured a financing commitment from Gaming and Leisure Properties for nearly all the $1.4 billion needed to complete its Chicago casino, enhancing financial stability.

Negative Factors

Investor Sentiment

Investors are not expected to give Bally's credit for long-term outlook due to the macroeconomic backdrop and execution risks.

Leverage

Lease-adjusted leverage will hover around 6.5x through the completion of the Chicago casino, making Bally's the most levered company in the gaming coverage.

Bally's Corporation (BALY) vs. S&P 500 (SPY)

Market Cap

$741.76M

Dividend YieldN/A

Average Volume (3M)52.94K

Price to Earnings (P/E)―

Beta (1Y)2.07

Revenue Growth2.80%

EPS Growth-108.61%

CountryUS

Employees10,500

SectorConsumer Cyclical

Sector Strength64

IndustryGambling, Resorts & Casinos

Share Statistics

EPS (TTM)-12.06

Shares Outstanding48,737,410

10 Day Avg. Volume30,237

30 Day Avg. Volume52,935

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.36

Price to Cash Flow (P/CF)6.10

P/FCF Ratio4.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$15.00

Price Target Upside23.76% Upside

Rating ConsensusHold

Number of Analyst Covering4

Bally's Corporation Business Overview & Revenue Model

Company DescriptionBally's Corporation (BALY) is a leading diversified gaming, betting, and interactive entertainment company. The company operates in various sectors, including casinos and resorts, online gaming, and sports betting. With a robust portfolio of properties and digital platforms, Bally's offers a wide range of gaming and entertainment experiences to its customers across multiple locations in the United States and internationally.

How the Company Makes MoneyBally's Corporation generates revenue through several key streams. Primarily, the company earns money from its portfolio of casino and resort properties, where it offers gaming activities, hospitality services, food and beverage sales, and entertainment amenities. Additionally, Bally's capitalizes on the growing market of online gaming and sports betting through its interactive platforms, which include digital casino games and online sports wagering. The company's earnings are further enhanced by strategic partnerships and acquisitions that expand its market reach and service offerings. These partnerships often involve collaborations with technology providers, gaming software developers, and media companies to enhance their digital and interactive segments. Together, these revenue streams and partnerships contribute significantly to Bally's financial performance.

Bally's Corporation Financial Statement Overview

Summary

Bally's Corporation is facing financial challenges with negative profitability and high leverage. The income statement shows declining profitability, while the balance sheet highlights high debt and low equity. Cash flow generation is strained, though operating cash flow remains positive.

Income Statement

Neutral

The income statement shows a declining trend in profitability, with negative net income and EBIT margins in the TTM. Gross profit margin is approximately 39.96%, indicating some control over direct costs. Revenue growth is modest at 1.33% year-over-year, but the significant negative net profit margin of -30.03% raises concerns about operational efficiency and cost management.

Balance Sheet

Negative

The balance sheet reflects a high debt burden with a debt-to-equity ratio of 21.58, suggesting potential financial risk. Return on equity is strongly negative at -319.42%, highlighting inefficiencies in generating returns from equity. The equity ratio stands at a low 3.64%, indicating high leverage and reduced financial flexibility.

Cash Flow

Neutral

Cash flow analysis reveals challenges in generating positive free cash flow, with a minor improvement in free cash flow growth. The operating cash flow to net income ratio is negative, suggesting cash flow struggles. However, operating cash flow remains positive, indicating some ability to meet operational needs.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
2.45B	2.45B	2.26B	1.32B	372.79M
	Gross Profit
1.33B	1.34B	1.25B	787.36M	234.12M
	EBIT
-258.33M	104.01M	217.66M	159.92M	-38.63M
	EBITDA
137.39M	442.23M	54.24M	143.64M	27.08M
	Net Income Common Stockholders
-567.75M	-187.50M	-425.55M	-71.80M	-5.49M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
171.23M	163.19M	212.51M	206.19M	123.44M
	Total Assets
5.86B	6.86B	6.30B	6.55B	1.93B
	Total Debt
1.55B	5.07B	4.52B	3.98B	1.16B
	Net Debt
1.38B	4.90B	4.31B	3.77B	1.04B
	Total Liabilities
5.83B	6.23B	5.49B	4.94B	1.60B
	Stockholders Equity
30.90M	635.43M	805.82M	1.61B	326.60M
Cash Flow		Free Cash Flow
-85.83M	-313.55M	-34.19M	-79.98M	3.72M
	Operating Cash Flow
114.00M	188.61M	270.97M	82.75M	19.50M
	Investing Cash Flow
97.83M	-207.79M	-302.92M	-2.30B	-444.85M
	Financing Cash Flow
-287.84M	65.75M	43.24M	2.40B	366.40M

Bally's Corporation Technical Analysis

Technical Analysis Sentiment

Positive

Last Price12.12

Price Trends

50DMA

15.34

Positive

100DMA

17.70

Positive

200DMA

15.94

Positive

Market Momentum

MACD

-0.94

Positive

RSI

38.85

Neutral

STOCH

7.26

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BALY, the sentiment is Positive. The current price of 12.12 is below the 20-day moving average (MA) of 14.43, below the 50-day MA of 15.34, and below the 200-day MA of 15.94, indicating a bullish trend. The MACD of -0.94 indicates Positive momentum. The RSI at 38.85 is Neutral, neither overbought nor oversold. The STOCH value of 7.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BALY.

Bally's Corporation Risk Analysis

Bally's Corporation disclosed 56 risk factors in its most recent earnings report. Bally's Corporation reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Bally's Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LVS	68 Neutral	$22.68B	16.36	41.30%	2.65%	8.93%	22.50%
MGM	66 Neutral	$8.13B	12.28	21.76%	―	6.66%	-24.59%
WYNN	63 Neutral	$7.77B	16.81	-51.73%	1.37%	9.13%	-30.00%
Sector *	59 Neutral	$11.48B	10.33	-0.84%	4.02%	1.25%	-16.06%
BALY	54 Neutral	$741.76M	―	-170.41%	―	2.80%	-108.61%
CZR	46 Neutral	$5.40B	―	-6.38%	―	-2.45%	-135.17%
PENN	44 Neutral	$2.19B	―	-10.27%	―	3.38%	38.18%

* Consumer Cyclical Sector Average

Performance Comparison

BALY

Bally's Corporation

15.46

-6.61

-29.95%

LVS

Las Vegas Sands

32.09

-17.20

-34.90%

MGM

MGM Resorts

29.35

-13.50

-31.51%

PENN

Penn National Gaming

14.33

-1.95

-11.98%

WYNN

Wynn Resorts

73.19

-25.13

-25.56%

CZR

Caesars Entertainment

25.33

-14.89

-37.02%

Bally's Corporation Earnings Call Summary

Earnings Call Date: Mar 5, 2025 | % Change Since: -6.70% | Next Earnings Date: May 13, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed performance for Bally's Corporation. While there were significant achievements such as strong growth in the North America Interactive segment and successful operations in the UK, there were notable challenges, including revenue declines in certain segments and specific regional difficulties in Rhode Island and Atlantic City. The company is focused on strategic developments and operational improvements to enhance future growth.

Highlights

North America Interactive Revenue Growth

The North America Interactive segment experienced a 55% increase in revenue, reaching $46 million. This growth was driven by strong performance in iGaming operations, particularly in Rhode Island, contributing $9.7 million in gross gaming revenue.

Successful UK Operations

The UK Interactive business saw a 12% increase in revenues, with adjusted EBITDA margins improving by approximately 400 basis points year-over-year. The segment benefited from all-time high active customer levels and robust average revenue per user metrics.

Chicago Temporary Casino Performance

In Chicago, operations at the temporary facility are stabilizing with a 6% growth in quarterly admissions and an increased market share. The player database now exceeds 113,000 customers, and the property celebrated its first-year anniversary with over 1.3 million visitors.

Capital Structure and Future Prospects

Bally's is actively working on several development projects, including a flagship casino in Chicago and a proposal for a resort in New York. The company ended the quarter with $191 million in cash and is preparing for the addition of Casino Queen assets.

Lowlights

Revenue Decline in International Interactive Segment

The International Interactive segment experienced a 5% decline in revenue, primarily due to underperformance outside the UK.

Challenges in Atlantic City and Rhode Island

In Atlantic City, the departure of a key relationship marketing team led to a challenging quarter. Rhode Island faced revenue headwinds due to disruptions on Interstate 195, affecting the Lincoln property.

Decreased EBITDA in Casino & Resorts Segment

The Casino & Resorts segment saw a 2% revenue decline to $353 million, with adjusted EBITDA decreasing by 15% from the previous year. Segment margins fell from 33% to 28%.

Company Guidance

During Bally’s Corporation's third-quarter 2024 earnings call, the company provided guidance on several key metrics and strategic developments. Overall, third-quarter revenue slightly decreased by less than 1% year-over-year to $630 million, with notable performance variations across segments. The North America Interactive segment experienced significant growth, with a 55% increase in revenue, while the Casinos & Resorts segment saw a 2% decline, primarily due to challenges in Rhode Island and Atlantic City. The International Interactive segment faced a 5% revenue decline, although the UK operations alone reported a 12% increase. Adjusted EBITDA margins improved by approximately 400 basis points for the International Interactive segment, reflecting operational efficiency. The company plans to continue expanding its North America Interactive business, aiming for positive EBITDA. Bally’s also shared updates on its development projects, including the flagship casino in Chicago, expected to open in September 2026, and its strategic efforts in Las Vegas and New York. The acquisition of Aspers Casino Newcastle aims to enhance Bally's UK presence, leveraging its online player database for increased engagement. Additionally, the company is restructuring its operations in Asia and other markets to focus on high-margin licensing revenue. The call emphasized Bally's commitment to improving efficiency and profitability while navigating market-specific challenges.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.