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Caesars Entertainment (CZR)
NASDAQ:CZR
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Caesars Entertainment
(NASDAQ:CZR)
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Rating:55Neutral
Price Target:
$27.00
▲(2.51% Upside)
Caesars Entertainment's overall stock score reflects strong digital growth and strategic investments, but is weighed down by high leverage, negative profitability, and valuation concerns. The positive earnings call sentiment and digital segment performance are significant strengths, yet the financial challenges and technical indicators suggest caution.
Positive Factors
Digital Segment Growth
The significant growth in the Digital segment indicates strong market demand and effective strategic positioning, enhancing long-term revenue potential.
Strategic Investments
Successful strategic investments in key properties enhance competitive positioning and are likely to drive sustained revenue growth.
Debt Reduction
Reducing high-cost debt improves financial health and increases cash flow, providing more flexibility for future investments and growth.
Negative Factors
High Leverage
High leverage poses a risk to financial stability, limiting the company's ability to invest and grow, especially if interest rates rise.
Negative Free Cash Flow
Declining free cash flow limits the company's ability to reinvest in growth opportunities and manage debt, impacting long-term sustainability.
Las Vegas Segment Challenges
Challenges in the Las Vegas segment could hinder overall performance, as this market is a significant revenue driver for the company.
Caesars Entertainment (CZR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.35B
Dividend YieldN/A
Average Volume (3M)7.85M
Price to Earnings (P/E)―
Beta (1Y)1.65
Revenue Growth-0.15%
EPS Growth28.05%
CountryUS
Employees50,000
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)-0.28
Shares Outstanding207,991,530
10 Day Avg. Volume11,745,110
30 Day Avg. Volume7,849,097
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap5.65
Enterprise Value/Revenue2.66
Enterprise Value/Gross Profit5.20
Enterprise Value/Ebitda8.17
Forecast
1Y Price Target
$37.17Price Target Upside41.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
Caesars Entertainment Business Overview & Revenue Model
Company DescriptionCaesars Entertainment, Inc. is a leading global gaming and hospitality company, known for its diverse portfolio of resorts and casinos. Headquartered in Las Vegas, Nevada, the company operates multiple properties across the United States and internationally, offering a wide range of entertainment options, including gaming, hotels, restaurants, and live events. Caesars Entertainment's core products and services encompass both traditional casino gaming and online gaming platforms, catering to a broad spectrum of customers seeking leisure and entertainment experiences.
How the Company Makes MoneyCaesars Entertainment generates revenue through several key streams. The primary source of income is from its gaming operations, including slot machines, table games, and sports betting. Additionally, the company earns significant revenue from its hospitality services, such as hotel bookings, dining, and entertainment events at its properties. Caesars has also expanded into the online gaming and sports betting markets, leveraging its brand and customer base to capture a growing digital audience. Partnerships with sports leagues and teams enhance its sportsbook offerings, contributing to its revenue. The company's loyalty program, Caesars Rewards, plays a vital role in driving customer retention and increasing spending across its various services.
Caesars Entertainment Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Positive
The earnings call presented a mix of positive and negative aspects. The highlights included record performance in the Digital segment, successful strategic investments, and financial optimizations including debt reduction. However, challenges in the Las Vegas segment and one-time impacts in the regional markets were notable lowlights. Overall, the positive aspects, particularly the strong performance and growth in the Digital segment, outweigh the negatives.Q2-2025 Updates
Positive Updates
Record Digital Segment Performance
The Digital segment delivered its best quarter ever with $80 million of adjusted EBITDA, a 100% increase from the previous year. Net revenues for Caesars Digital were $343 million, up 24% from the prior year.
Successful Strategic Investments
New investments at Flamingo in Las Vegas, including new attractions, are generating strong returns. The rebranding of Harvey Lake Tahoe to Caesars Republic Lake Tahoe received positive feedback.
Debt Reduction and Financial Optimization
Caesars fully redeemed its most expensive debt, leading to annual free cash flow savings exceeding $40 million. The effective tax rate was reduced, aligning with the BBB's increased interest and depreciation expense deductions.
Strong Regional Performance
Regional revenues were up year-over-year due to the addition of two new properties and strong rated play trends. Early results from strategic customer reinvestments are promising.
Negative Updates
Las Vegas Segment Challenges
Las Vegas faced softer market demand with a 97% occupancy rate, down from 99% last year, and essentially flat rates. A decline in high-end gaming trips was noted.
One-time Impacts on Regional Segment
The regional segment was negatively affected by $30 million in one-time impacts, including construction disruptions at Lake Tahoe and flooding in Metropolis.
Summer Softness in Las Vegas
The Las Vegas market experienced a softer summer, with expectations of continued softness into the third quarter.
Company Guidance
During the Caesars Entertainment, Inc. 2025 Second Quarter Earnings Call, the company reported consolidated net revenues of $2.9 billion and an adjusted EBITDA of $955 million. The Digital segment achieved a record adjusted EBITDA of $80 million, marking a significant 100% increase from the previous year. Las Vegas' same-store adjusted EBITDA was $469 million, with occupancy at 97%, slightly down from 99% the previous year. Regional adjusted EBITDA was reported at $439 million, negatively impacted by $30 million due to onetime events, but promising trends in gaming revenues were noted. Caesars Digital posted net revenues of $343 million, a 24% year-over-year increase, with sports and casino revenues up 28% and 51%, respectively. The company is optimistic about achieving the $0.5 billion EBITDA target for the Digital segment by 2026. Furthermore, Caesars has undertaken strategic reinvestments, including new slot capital and upgrades in Las Vegas, and plans to continue refining its marketing strategies to drive profitable growth.Caesars Entertainment Financial Statement Overview
Summary
Caesars Entertainment shows strong revenue growth and operational efficiency, but faces challenges with profitability and high leverage. The negative net income and declining free cash flow are concerning, especially given the high debt levels.Income Statement
Caesars Entertainment shows a mixed performance in its income statement. The company has a strong Gross Profit Margin of 51.16% for TTM, indicating efficient cost management. However, the Net Profit Margin is negative at -1.71%, reflecting ongoing profitability challenges. Revenue growth is positive at 68.2% for TTM, suggesting a strong recovery or expansion. EBIT and EBITDA margins are healthy at 20.32% and 32.56% respectively, indicating good operational efficiency despite the net loss.65
Positive
Balance Sheet
The balance sheet reveals significant leverage with a high Debt-to-Equity Ratio of 6.11, which poses a risk in terms of financial stability. The Return on Equity is negative at -4.73%, indicating that the company is not generating positive returns on shareholders' equity. The Equity Ratio is relatively low, suggesting a high reliance on debt financing, which could be a concern if interest rates rise or cash flows decrease.50
Neutral
Cash Flow
Cash flow analysis shows challenges with a negative Free Cash Flow Growth Rate of -187.72% for TTM, indicating a significant decline in free cash flow generation. The Operating Cash Flow to Net Income Ratio is 0.52, suggesting that operating cash flows are not fully covering net income. The Free Cash Flow to Net Income Ratio is low at 0.04, highlighting limited free cash flow relative to net income, which could impact future investments and debt servicing.45
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.37B | 11.24B | 11.53B | 10.82B | 9.57B | 3.63B |
| Gross Profit | 5.82B | 5.83B | 6.13B | 5.42B | 4.92B | 1.78B |
| EBITDA | 3.70B | 3.58B | 3.56B | 2.92B | 2.17B | 179.00M |
| Net Income | -195.00M | -278.00M | 786.00M | -899.00M | -1.02B | -1.76B |
Balance Sheet | ||||||
| Total Assets | 32.48B | 32.59B | 33.37B | 33.53B | 38.03B | 36.38B |
| Cash, Cash Equivalents and Short-Term Investments | 982.00M | 866.00M | 1.00B | 1.04B | 1.07B | 1.78B |
| Total Debt | 25.16B | 25.06B | 25.07B | 25.43B | 26.27B | 26.93B |
| Total Liabilities | 28.36B | 28.21B | 28.65B | 29.78B | 33.49B | 31.35B |
| Stockholders Equity | 3.90B | 4.16B | 4.55B | 3.71B | 4.48B | 5.02B |
Cash Flow | ||||||
| Free Cash Flow | 50.00M | -221.00M | 515.00M | 12.00M | 340.00M | -769.00M |
| Operating Cash Flow | 1.22B | 1.07B | 1.81B | 975.00M | 1.17B | -571.00M |
| Investing Cash Flow | -546.00M | -704.00M | -1.26B | -382.00M | -2.92B | -6.18B |
| Financing Cash Flow | -548.00M | -498.00M | -713.00M | -1.28B | -550.00M | 10.64B |
Caesars Entertainment Technical Analysis
Positive
26.34
Price Trends
26.51
Negative
27.42
Negative
29.47
Negative
Market Momentum
-0.08
Negative
52.19
Neutral
68.48
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 26.34 is above the 20-day moving average (MA) of 25.98, below the 50-day MA of 26.51, and below the 200-day MA of 29.47, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 52.19 is Neutral, neither overbought nor oversold. The STOCH value of 68.48 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 31 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | 6.77B | 13.11 | 40.43% | 0.84% | 6.40% | 26.09% | |
72 Outperform | 6.43B | 23.45 | 71.63% | 3.28% | 7.47% | 2.58% | |
68 Neutral | 13.09B | 37.62 | -86.94% | 0.79% | -1.94% | -53.90% | |
61 Neutral | 9.40B | 19.04 | 18.14% | ― | 0.89% | -31.56% | |
59 Neutral | 36.38B | 26.80 | 70.92% | 1.79% | 1.62% | -7.14% | |
55 Neutral | $5.35B | ― | -4.76% | ― | -0.15% | 28.05% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
CZR
Caesars Entertainment
26.34
-14.74
-35.88%
BYD
Boyd Gaming
84.41
20.13
31.32%
LVS
Las Vegas Sands
52.99
5.60
11.82%
MGM
MGM Resorts
34.55
-3.76
-9.81%
WYNN
Wynn Resorts
125.92
35.82
39.76%
RRR
Red Rock Resorts
61.00
8.84
16.95%
Caesars Entertainment Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Caesars Entertainment Announces Redemption of Senior Notes
Neutral
Jun 27, 2025
On June 27, 2025, Caesars Entertainment announced a conditional full redemption of its outstanding 8.125% Senior Notes due 2027, totaling $545,898,000, to be redeemed on July 8, 2025. The redemption is contingent upon receiving sufficient net proceeds, with potential delays or cancellation if conditions are not met, impacting the company’s financial obligations and market positioning.
Executive/Board ChangesShareholder Meetings
Caesars Entertainment Concludes 2025 Annual Meeting Decisions
Neutral
Jun 13, 2025
Caesars Entertainment held its 2025 Annual Meeting on June 10, 2025, where shareholders considered four proposals. The shareholders elected the company’s nominees to the board, approved executive compensation, ratified Deloitte & Touche LLP as the independent auditor, and rejected a proposal for a smokefree policy at Caesars properties.
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.