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Caesars Entertainment (CZR)
NASDAQ:CZR
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Caesars Entertainment (CZR) AI Stock Analysis

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CZR

Caesars Entertainment

(NASDAQ:CZR)

Rating:52Neutral
Price Target:
$26.00
▲(0.42% Upside)
Caesars Entertainment's overall stock score is primarily influenced by its financial performance challenges, including high leverage and negative net income. While the earnings call provided some optimism with strong digital growth and strategic investments, the technical analysis and valuation metrics indicate caution. The stock's bearish trend and negative P/E ratio further weigh on its attractiveness.
Positive Factors
Bookings
Forward bookings in Las Vegas for Caesars look 'quite strong' and solid regional trends have continued.
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.
Negative Factors
Digital Monetization
While digital monetization is on the table, it requires time to establish a stand-alone structure and assess potential disynergies.
Potential Recession
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 (CZR) vs. SPDR S&P 500 ETF (SPY)

Caesars Entertainment Business Overview & Revenue Model

Company DescriptionCaesars 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 entertainment venues. It also provides staffing and management services; accessories, souvenirs, and decorative items through retail stores; and online sports betting and iGaming services. As of December 31,2021, the company owned, leased, and managed 52 domestic properties in 16 states, consisting of approximately 55,700 slot machines, video lottery terminals, and e-tables; 2,900 table games; and 47,700 hotel rooms. Caesars Entertainment, Inc. was founded in 1937 and is based in Reno, Nevada.
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
65
Positive
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.
Balance Sheet
50
Neutral
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.
Cash Flow
45
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue11.37B11.24B11.53B10.82B9.57B3.63B
Gross Profit5.82B5.83B6.13B5.42B4.92B1.78B
EBITDA3.70B3.58B3.56B2.92B2.17B179.00M
Net Income-195.00M-278.00M786.00M-899.00M-1.02B-1.76B
Balance Sheet
Total Assets32.48B32.59B33.37B33.53B38.03B36.38B
Cash, Cash Equivalents and Short-Term Investments982.00M866.00M1.00B1.04B1.07B1.78B
Total Debt25.16B25.06B25.07B25.43B26.27B26.93B
Total Liabilities28.36B28.21B28.65B29.78B33.49B31.35B
Stockholders Equity3.90B4.16B4.55B3.71B4.48B5.02B
Cash Flow
Free Cash Flow50.00M-221.00M515.00M12.00M340.00M-769.00M
Operating Cash Flow1.22B1.07B1.81B975.00M1.17B-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-550.00M10.64B

Caesars Entertainment Technical Analysis

Technical Analysis Sentiment
Negative
Last Price25.89
Price Trends
50DMA
27.71
Negative
100DMA
27.53
Negative
200DMA
30.47
Negative
Market Momentum
MACD
-0.21
Negative
RSI
45.87
Neutral
STOCH
70.56
Neutral
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 25.89 is above the 20-day moving average (MA) of 25.56, below the 50-day MA of 27.71, and below the 200-day MA of 30.47, indicating a neutral trend. The MACD of -0.21 indicates Negative momentum. The RSI at 45.87 is Neutral, neither overbought nor oversold. The STOCH value of 70.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
80
Outperform
$6.88B13.2336.36%0.82%6.40%26.09%
74
Outperform
$3.15B17.58-7.71%22.84%-43.11%-8.68%
72
Outperform
$6.53B23.5697.52%3.23%7.47%2.58%
65
Neutral
$10.80B21.8717.34%0.89%-31.56%
61
Neutral
$17.87B13.25-4.92%3.05%1.25%-14.67%
60
Neutral
$13.18B37.39-51.73%0.79%-1.94%-53.90%
52
Neutral
$5.57B-4.76%-0.15%28.05%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CZR
Caesars Entertainment
25.89
-10.41
-28.68%
BYD
Boyd Gaming
85.63
26.85
45.68%
BRSL
Brightstar Lottery
16.41
-0.89
-5.14%
MGM
MGM Resorts
38.91
2.62
7.22%
WYNN
Wynn Resorts
125.47
50.44
67.23%
RRR
Red Rock Resorts
62.43
7.96
14.61%

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.Date of analysis: Aug 19, 2025