Caesars Entertainment (CZR) AI Stock Analysis

• Market Cap: $4.99B
• Dividend Yield: N/A
• Average Volume (3M): 5.91M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• Revenue Growth: -0.15%
• EPS Growth: 28.05%
• Country: US
• Employees: 50,000
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): -0.28
• Shares Outstanding: 207,991,530
• 10 Day Avg. Volume: 8,114,268
• 30 Day Avg. Volume: 5,907,650
• PEG Ratio: 0.19
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 0.64
• P/FCF Ratio: -32.51
• Enterprise Value/Market Cap: 6.06
• Enterprise Value/Revenue: 2.66
• Enterprise Value/Gross Profit: 5.20
• Enterprise Value/Ebitda: 8.17
• 1Y Price Target: $35.75
• Price Target Upside: 45.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 50 Neutral
• Price Target: $24.00 ▼(-2.60% Downside)

Caesars Entertainment's overall stock score reflects strong revenue growth and operational efficiency, but is weighed down by profitability challenges and high leverage. Technical indicators suggest bearish momentum, and valuation metrics are unattractive due to negative earnings. The earnings call provided some optimism with digital segment growth and debt management, but market softness in key segments remains a concern.

Positive Factors

Digital Business

Caesars Digital continues to impress with EBITDA ahead of the Street's expectations.

Earnings

Caesars Entertainment reported Q1 earnings with Vegas and Regionals coming in ahead of expectations.

Strategic Initiatives

Management is assessing all options to unlock shareholder value, including potentially monetizing the Digital business and some non-core asset sales.

Negative Factors

Digital Segment Challenges

There is skepticism about the long-term growth of the digital segment, particularly in the sports betting area, which seems to be stalling.

Earnings Challenges

Fourth quarter results showed revenue and EBITDA below expectations, primarily due to weaker performance in the Vegas and Digital segments.

Market Concerns

A potential recession scenario could lead to net revenues being down 3-4% in Vegas/Regions, with more severe impacts in Vegas due to a higher-end mix and greater gambling options elsewhere.

Caesars Entertainment Business Overview & Revenue Model

Company Description

Caesars 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 Money

Caesars 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 Financial Statement Overview

Summary

Caesars Entertainment shows signs of recovery with stable revenue growth and improving cash flows. However, challenges remain in achieving profitability and managing high debt levels. The company's financial health depends on sustaining revenue growth and reducing leverage.

Income Statement

The income statement reflects a moderate recovery in revenue with a TTM revenue of $11.3 billion, slightly up from the prior year. However, net income remains negative, indicating profitability challenges. The gross profit margin has improved to 61.1% TTM, but the net profit margin is still negative due to operational and financial expenses. The EBIT and EBITDA margins are stable, suggesting operational efficiency is gradually improving.

Balance Sheet

The balance sheet shows high leverage with a debt-to-equity ratio of approximately 5.86, indicating significant reliance on debt financing. The equity ratio is relatively low at around 13.2%, reflecting limited equity cushion. However, the company's return on equity is improving, albeit still negative, suggesting potential for financial improvement if debt levels are managed carefully.

Cash Flow

The cash flow statement shows a mixed picture. Operating cash flow is positive and growing, which is a good sign of core business strength. However, free cash flow is negative due to high capital expenditures, indicating ongoing investment needs. The operating cash flow to net income ratio is strong, showing good cash conversion, but the free cash flow to net income ratio remains negative, reflecting the impact of high capex.

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	4.12B	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

• Technical Analysis Sentiment: Negative
• Last Price: 24.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CZR, the sentiment is Negative. The current price of 24.64 is below the 20-day moving average (MA) of 27.43, below the 50-day MA of 27.91, and below the 200-day MA of 31.57, indicating a bearish trend. The MACD of -1.31 indicates Positive momentum. The RSI at 32.75 is Neutral, neither overbought nor oversold. The STOCH value of 11.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CZR.

Caesars Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYD	80 Outperform	$6.69B	12.85	36.36%	0.84%	6.40%	26.09%
RRR	72 Outperform	$6.06B	21.76	97.52%	3.32%	7.47%	2.58%
BRSL	69 Neutral	$3.06B	15.93	-7.71%	22.52%	-43.11%	-8.68%
WYNN	67 Neutral	$11.70B	33.18	-51.73%	0.89%	-1.94%	-53.90%
MGM	63 Neutral	$9.64B	19.51	17.34%	―	0.89%	-31.56%
Sector *	56 Neutral	HK$25.48B	5.05	-2.69%	5.69%	-0.45%	-52.99%
CZR	50 Neutral	$4.99B	―	-4.76%	―	-0.15%	28.05%

Caesars Entertainment Corporate Events

Caesars Entertainment Announces Redemption of Senior Notes

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.

The most recent analyst rating on (CZR) stock is a Buy with a $51.00 price target. To see the full list of analyst forecasts on Caesars Entertainment stock, see the CZR Stock Forecast page.

Caesars Entertainment Concludes 2025 Annual Meeting Decisions

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.

The most recent analyst rating on (CZR) stock is a Buy with a $51.00 price target. To see the full list of analyst forecasts on Caesars Entertainment stock, see the CZR Stock Forecast page.