Bally's Corporation (BALY) AI Stock Analysis

• Market Cap: $482.29M
• Dividend Yield: N/A
• Average Volume (3M): 140.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -1.93%
• EPS Growth: 15.16%
• Country: US
• Employees: 10,000
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): -0.27
• Shares Outstanding: 49,013,195
• 10 Day Avg. Volume: 115,020
• 30 Day Avg. Volume: 140,109
• PEG Ratio: N/A
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.19
• Enterprise Value/Market Cap: 4.45
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 1.72
• Enterprise Value/Ebitda: 11.04
• 1Y Price Target: $14.67
• Price Target Upside: 30.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 49 Neutral
• Price Target: ―

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 Business Overview & Revenue Model

Company Description

Bally’s Corporation is a global casino-entertainment company with a growing omni-channel presence, currently owning and managing 15 casinos across 10 states, a golf course in New York, a horse racetrack in Colorado, and having access to OSB licenses in 18 states. The recent acquisition of Aspers Casino in Newcastle, UK, further expands its international footprint and enhances its diverse entertainment offerings. It also owns Bally’s Interactive International, formerly Gamesys Group, a leading, global, interactive gaming operator, Bally Bet, a first-in-class sports betting platform, and Bally Casino, a growing iCasino platform. With 10,600 employees, the Company’s casino operations include approximately 15,300 slot machines, 580 table games, and 3,800 hotel rooms. Bally’s also has rights to developable land in Las Vegas post the closure of the Tropicana. Upon completion of the announced merger with The Queen Casino & Entertainment Inc. (“Queen”), the above portfolio is expected to be supplemented with four additional casinos across three states, one of which will be an additional state that expands Bally’s jurisdiction of operations to include the state of Iowa. Queen will also add over 900 employees, and operations that currently include approximately 2,400 slot machines, 50 table games, and 150 hotel rooms to the Bally’s portfolio. Bally’s will also become the successor of Queen’s significant economic stake in a global lottery management and services business through its investment in Intralot S.A. (ATSE: INLOT).

How the Company Makes Money

Bally'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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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
EBITDA	131.36M	442.23M	54.24M	143.64M	27.08M
Net Income	-567.75M	-187.50M	-425.55M	-71.80M	-5.49M
Balance Sheet
Total Assets	5.86B	6.86B	6.30B	6.55B	1.93B
Cash, Cash Equivalents and Short-Term Investments	171.23M	163.19M	212.51M	206.19M	123.44M
Total Debt	4.94B	5.07B	4.52B	3.98B	1.16B
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: Negative
• Last Price: 11.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BALY, the sentiment is Negative. The current price of 11.21 is above the 20-day moving average (MA) of 10.37, above the 50-day MA of 10.38, and below the 200-day MA of 15.94, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.85 is Neutral, neither overbought nor oversold. The STOCH value of 14.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BALY.

Bally's Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACEL	76 Outperform	$1.03B	24.30	18.42%	―	6.28%	-1.99%
ETD	71 Outperform	$725.26M	12.64	12.09%	5.47%	-6.32%	-18.35%
GAMB	69 Neutral	$410.86M	11.63	25.73%	―	24.67%	91.06%
AGS	68 Neutral	$518.40M	10.86	49.64%	―	6.60%	778.46%
Sector *	56 Neutral	HK$25.30B	3.94	-2.03%	6.16%	-0.31%	-67.70%
GDEN	56 Neutral	$839.85M	81.23	2.18%	3.15%	-31.14%	-95.88%
BALY	49 Neutral	$482.29M	―	-65.87%	―	-1.93%	15.16%