Caesars Entertainment (CZR)
NASDAQ:CZR
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Caesars Entertainment
(NASDAQ:CZR)
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Rating:57Neutral
Price Target:
$26.00
▼(-2.00% Downside)
Action:ReiteratedDate:03/12/26
The score is driven primarily by financial risk from high leverage and inconsistent net profitability despite improved cash flow, partially offset by constructive earnings-call guidance (digital-led growth and margin tailwinds). Technically, momentum is strong but overbought signals temper the outlook, while valuation is constrained by negative earnings and no stated dividend support.
Positive Factors
Digital Growth & Margins
Caesars’ digital business has scaled materially — double-digit revenue growth and a 100% EBITDA increase in FY indicate durable unit economics. Management targets ~20% digital top-line growth with ~50% flow‑through, so digital scale, wallets and recurring payers should sustainably lift margins and diversify earnings over the medium term.
Negative Factors
High Leverage
Very high absolute debt and an elevated debt-to-equity ratio materially constrain balance-sheet flexibility. Heavy leverage increases interest expense sensitivity and reduces capacity to absorb operating shocks; with near-term facility maturities (~24 months), refinancing and cash-allocation decisions are structurally constrained until leverage meaningfully declines.
Read all positive and negative factors
Positive Factors
Negative Factors
Digital Growth & Margins
Caesars’ digital business has scaled materially — double-digit revenue growth and a 100% EBITDA increase in FY indicate durable unit economics. Management targets ~20% digital top-line growth with ~50% flow‑through, so digital scale, wallets and recurring payers should sustainably lift margins and diversify earnings over the medium term.
Read all positive factors
Caesars Entertainment (CZR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.40B
Dividend YieldN/A
Average Volume (3M)6.26M
Price to Earnings (P/E)―
Beta (1Y)1.49
Revenue Growth0.87%
EPS Growth31.28%
CountryUS
Employees50,000
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)-1.23
Shares Outstanding203,521,030
10 Day Avg. Volume4,880,310
30 Day Avg. Volume6,264,349
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)1.39
Price to Sales (P/S)0.42
P/FCF Ratio9.36
Enterprise Value/Market Cap5.72
Enterprise Value/Revenue2.69
Enterprise Value/Gross Profit6.12
Enterprise Value/Ebitda8.87
Forecast
1Y Price Target
$31.55Price Target Upside18.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)-0.12
Revenue Forecast (FY)$11.77B
Caesars Entertainment Business Overview & Revenue Model
Company Description
Caesars Entertainment, Inc. operates as a gaming and hospitality company in the United States. The company operates casinos comprising poker, keno, and race and online sportsbooks; dining venues, bars, nightclubs, and lounges; hotels; and entertai...
How the Company Makes Money
Caesars makes money primarily by operating casino resorts and offering digital gaming products. On the resort side, its core revenue stream is casino gaming, where it earns money from the statistical advantage embedded in table games and other gam...
Caesars Entertainment Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
Overall the call was constructive — Caesars reported modest enterprise revenue growth and consolidated Q4 revenue and EBITDAR increases, highlighted by standout performance from Caesars Digital (strong top-line and EBITDA growth, record quarterly digital EBITDA, and meaningful user growth). Management emphasized ongoing asset reinvestment in Las Vegas, strategic initiatives in Regionals, balance sheet progress and strong free cash flow outlook. Headwinds were acknowledged: leisure demand softness in Vegas (lower occupancy and ADR leading to a ~6% Las Vegas EBITDAR decline), weather-related Regional EBITDA impacts (~$10M), and some digital hold volatility. However, the scale and pace of digital growth, recurring revenue initiatives (Caesars Rewards), ongoing capital deployment plans, debt reduction and expected margin tailwinds from marketing roll-offs outweigh the near-term operational headwinds.Positive Updates
Full-Year Same-Store Revenue Growth
Full year same-store enterprise net revenues increased $266 million, or 2% year-over-year, driven by portfolio diversity, omnichannel focus and guest experience enhancements.
Negative Updates
Las Vegas Occupancy and ADR Pressure
Las Vegas same-store adjusted EBITDAR declined to $447 million from $477 million last year (approx. 6% decline). Occupancy was reported at ~92% versus 96.5% a year ago, and ADR declined ~5%, reflecting continued softness in the leisure traveler and pressure in shoulder periods.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Same-Store Revenue Growth
Full year same-store enterprise net revenues increased $266 million, or 2% year-over-year, driven by portfolio diversity, omnichannel focus and guest experience enhancements.
Read all positive updates
Company Guidance
Caesars guided to continued digital-led growth and improving travel trends for 2026: Digital is expected to sustain roughly 20% top-line growth with ~50% flow‑through to EBITDA (Q4 digital net revenue $419M, adjusted EBITDA $85M, hold‑normalized EBITDA $90M, Q4 flow‑through 56%; FY digital net revenue $1.4B, +21% YoY, FY digital EBITDA $236M, +100% YoY), mobile sports handle +4% and parlay mix +210 bps, total monthly unique payers +19% to 585,000 and iCasino net revenue +28%; enterprise results showed FY same‑store net revenues up $266M (+2%), Q4 consolidated net revenues $2.9B (+4%) and adjusted EBITDAR $901M (+2%); Las Vegas Q4 same‑store adj. EBITDAR $447M (vs $477M prior), occupancy 92% (96.5% prior) and ADR down 5% (Las Vegas EBITDA down 6% Q/Q), Regionals Q4 revenues +4% with adj. EBITDAR $407M but a roughly $10M weather headwind, and Caesars expects sequential improvement in Vegas and Regional strength later in the year (Windsor transition to owned in March, Tahoe $200M renovation complete this summer, Harrah’s Oklahoma opening April 9); balance‑sheet tailwinds include decreasing CapEx and interest expense, cash taxes well below $100M, a nearest bank facility maturity in ~24 months, and plans to deploy 2026 free cash flow to debt paydown and opportunistic buybacks, while tech rollouts (universal digital wallet live in 26 jurisdictions, to be live in all by quarter end) and marketing roll‑offs ($~35M in ’26, $20M+ in ’27) should flow predominantly to EBITDA.Caesars Entertainment Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
34
Negative
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.49B | 11.24B | 11.53B | 10.82B | 9.57B |
| Gross Profit | 4.33B | 5.83B | 6.13B | 5.42B | 4.92B |
| EBITDA | 3.50B | 3.58B | 3.56B | 2.92B | 2.17B |
| Net Income | -502.00M | -278.00M | 786.00M | -899.00M | -1.02B |
Balance Sheet | |||||
| Total Assets | 31.64B | 32.59B | 33.37B | 33.53B | 38.03B |
| Cash, Cash Equivalents and Short-Term Investments | 887.00M | 866.00M | 1.00B | 1.04B | 1.07B |
| Total Debt | 26.34B | 25.06B | 25.07B | 25.43B | 26.27B |
| Total Liabilities | 27.95B | 28.21B | 28.65B | 29.78B | 33.49B |
| Stockholders Equity | 3.50B | 4.16B | 4.55B | 3.71B | 4.48B |
Cash Flow | |||||
| Free Cash Flow | 520.00M | -182.00M | 545.00M | 23.00M | 652.00M |
| Operating Cash Flow | 1.32B | 1.11B | 1.81B | 975.00M | 1.17B |
| Investing Cash Flow | -594.00M | -743.00M | -1.14B | -382.00M | -2.92B |
| Financing Cash Flow | -763.00M | -498.00M | -829.00M | -1.28B | -550.00M |
Caesars Entertainment Technical Analysis
Positive
26.53
Price Trends
23.80
Positive
23.39
Positive
24.65
Positive
Market Momentum
0.60
Positive
55.28
Neutral
58.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CZR, the sentiment is Positive. The current price of 26.53 is below the 20-day moving average (MA) of 26.86, above the 50-day MA of 23.80, and above the 200-day MA of 24.65, indicating a neutral trend. The MACD of 0.60 indicates Positive momentum. The RSI at 55.28 is Neutral, neither overbought nor oversold. The STOCH value of 58.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CZR.
Caesars Entertainment Risk Analysis
Caesars Entertainment disclosed 30 risk factors in its most recent earnings report. Caesars Entertainment reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Caesars Entertainment Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $6.32B | 3.78 | 91.87% | 0.84% | 5.91% | 336.91% | |
70 Outperform | $5.78B | 19.42 | 85.64% | 3.22% | 4.69% | 15.18% | |
62 Neutral | $9.38B | 46.86 | 7.55% | ― | 0.05% | -94.07% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $5.40B | -9.69 | -13.18% | ― | 0.87% | 31.28% | |
57 Neutral | $36.51B | 27.64 | 82.89% | 1.51% | 8.37% | 10.20% | |
54 Neutral | $10.64B | 38.12 | -90.44% | 0.80% | -0.26% | -44.45% |
* Consumer Cyclical Sector Average
CZR
Caesars Entertainment
26.53
2.78
11.71%
BYD
Boyd Gaming
83.74
23.06
38.00%
LVS
Las Vegas Sands
54.34
22.90
72.81%
MGM
MGM Resorts
36.68
10.38
39.47%
WYNN
Wynn Resorts
102.03
34.72
51.57%
RRR
Red Rock Resorts
55.04
18.61
51.08%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.