Bally's Corporation (BALY) AI Stock Analysis

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Bally's Corporation

(NYSE:BALY)

Rating:49Neutral

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 (BALY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$741.76M

Dividend YieldN/A

Average Volume (3M)78.42K

Price to Earnings (P/E)―

Beta (1Y)0.73

Revenue Growth-1.93%

EPS Growth15.16%

CountryUS

Employees10,000

SectorConsumer Cyclical

Sector Strength73

IndustryGambling, Resorts & Casinos

Share Statistics

EPS (TTM)-0.27

Shares Outstanding49,013,195

10 Day Avg. Volume109,880

30 Day Avg. Volume78,423

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.64

Price to Sales (P/S)0.00

P/FCF Ratio-5.25

Enterprise Value/Market Cap3.01

Enterprise Value/Revenue0.23

Enterprise Value/Gross Profit1.79

Enterprise Value/Ebitda11.48

Forecast

1Y Price Target

$14.67

Price Target Upside30.87% Upside

Rating ConsensusHold

Number of Analyst Covering5

Bally's Corporation Business Overview & Revenue Model

Company DescriptionBally’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 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 Earnings Call Summary

Earnings Call Date:May 12, 2025

(Q3-2024)

% Change Since: 0.00%|

Next Earnings Date:Jul 31, 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.

Q3-2024 Updates

Positive Updates

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.

Negative Updates

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.

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
2.45B	2.45B	2.45B	2.26B	1.32B	372.79M
	Gross Profit
1.25B	1.33B	1.34B	1.25B	787.36M	234.12M
	EBIT
-239.35M	-258.33M	104.01M	217.66M	159.92M	-38.63M
	EBITDA
142.95M	131.36M	442.23M	54.24M	143.64M	27.08M
	Net Income Common Stockholders
-567.75M	-567.75M	-187.50M	-425.55M	-71.80M	-5.49M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
77.58M	171.23M	163.19M	212.51M	206.19M	123.44M
	Total Assets
782.35M	5.86B	6.86B	6.30B	6.55B	1.93B
	Total Debt
394.17M	4.94B	5.07B	4.52B	3.98B	1.16B
	Net Debt
316.59M	4.77B	4.90B	4.31B	3.77B	1.04B
	Total Liabilities
483.69M	5.83B	6.23B	5.49B	4.94B	1.60B
	Stockholders Equity
298.66M	30.90M	635.43M	805.82M	1.61B	326.60M
Cash Flow		Free Cash Flow
-81.54M	-85.83M	-313.55M	-34.19M	-79.98M	3.72M
	Operating Cash Flow
114.00M	114.00M	188.61M	270.97M	82.75M	19.50M
	Investing Cash Flow
97.83M	97.83M	-207.79M	-302.92M	-2.30B	-444.85M
	Financing Cash Flow
-287.84M	-287.84M	65.75M	43.24M	2.40B	366.40M

Bally's Corporation Technical Analysis

Technical Analysis Sentiment

Negative

Last Price11.21

Price Trends

50DMA

12.49

Negative

100DMA

14.64

Negative

200DMA

15.94

Positive

Market Momentum

MACD

-0.99

Positive

RSI

34.23

Neutral

STOCH

13.39

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 10.57, below the 50-day MA of 12.49, and below the 200-day MA of 15.94, indicating a neutral trend. The MACD of -0.99 indicates Positive momentum. The RSI at 34.23 is Neutral, neither overbought nor oversold. The STOCH value of 13.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BALY.

Bally's Corporation Risk Analysis

Bally's Corporation disclosed 57 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 3 New Risks

Our management identified a material weakness in our internal control over financial reporting which could, if not remediated, result in material misstatements in our consolidated financial statements. Q4, 2024

Following the merger with Queen, there can be no assurance that Bally's will be able to successfully integrate Queen or otherwise realize any expected benefits of the merger transactions. Q4, 2024

We entered into a lease with GLPI and could experience risks associated with the leased property, including risks relating to lease termination, inability to obtain a satisfactory lease extension, consents and approvals, charges and our relationship with the landlord, which could have a material adverse effect on our business, financial position or results of operations. Q4, 2024

Bally's Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GAMB	79 Outperform	$412.28M	12.23	25.73%	―	24.67%	91.06%
ACEL	76 Outperform	$951.37M	22.77	18.42%	―	6.28%	-1.99%
AGS	73 Outperform	$510.10M	10.72	49.64%	―	6.60%	778.46%
ETD	70 Outperform	$674.15M	11.75	12.09%	5.88%	-6.32%	-18.35%
Sector *	62 Neutral	$6.90B	11.24	2.93%	3.89%	2.68%	-24.71%
GDEN	60 Neutral	$734.90M	71.08	2.18%	3.52%	-31.14%	-95.88%
BALY	49 Neutral	$741.76M	―	-65.87%	―	-1.93%	15.16%

* Consumer Cyclical Sector Average

Performance Comparison

BALY

Bally's Corporation

9.08

-12.99

-58.86%

ETD

Ethan Allen

26.36

0.14

0.53%

GDEN

Golden Entertainment

27.18

-1.85

-6.37%

ACEL

Accel Entertainment

11.23

1.12

11.08%

AGS

Playags

12.32

0.74

6.39%

GAMB

Gambling.com

11.89

4.29

56.45%

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.