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Bally's Corporation (BALY)
NYSE:BALY

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)

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
45
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
40
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
50
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
2.45B2.45B2.45B2.26B1.32B372.79M
Gross Profit
1.25B1.33B1.34B1.25B787.36M234.12M
EBIT
-239.35M-258.33M104.01M217.66M159.92M-38.63M
EBITDA
142.95M131.36M442.23M54.24M143.64M27.08M
Net Income Common Stockholders
-567.75M-567.75M-187.50M-425.55M-71.80M-5.49M
Balance SheetCash, Cash Equivalents and Short-Term Investments
77.58M171.23M163.19M212.51M206.19M123.44M
Total Assets
782.35M5.86B6.86B6.30B6.55B1.93B
Total Debt
394.17M4.94B5.07B4.52B3.98B1.16B
Net Debt
316.59M4.77B4.90B4.31B3.77B1.04B
Total Liabilities
483.69M5.83B6.23B5.49B4.94B1.60B
Stockholders Equity
298.66M30.90M635.43M805.82M1.61B326.60M
Cash FlowFree Cash Flow
-81.54M-85.83M-313.55M-34.19M-79.98M3.72M
Operating Cash Flow
114.00M114.00M188.61M270.97M82.75M19.50M
Investing Cash Flow
97.83M97.83M-207.79M-302.92M-2.30B-444.85M
Financing Cash Flow
-287.84M-287.84M65.75M43.24M2.40B366.40M

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
1.
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
2.
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
3.
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
79
Outperform
$412.28M12.2325.73%24.67%91.06%
76
Outperform
$951.37M22.7718.42%6.28%-1.99%
AGAGS
73
Outperform
$510.10M10.7249.64%6.60%778.46%
ETETD
70
Outperform
$674.15M11.7512.09%5.88%-6.32%-18.35%
62
Neutral
$6.90B11.242.93%3.89%2.68%-24.71%
60
Neutral
$734.90M71.082.18%3.52%-31.14%-95.88%
49
Neutral
$741.76M-65.87%-1.93%15.16%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
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.