Caesars Entertainment (CZR) AI Stock Analysis

• Market Cap: $3.91B
• Dividend Yield: N/A
• Average Volume (3M): 9.01M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.63
• Revenue Growth: 0.87%
• EPS Growth: 31.28%
• Country: US
• Employees: 50,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): -0.27
• Shares Outstanding: 204,107,940
• 10 Day Avg. Volume: 12,327,560
• 30 Day Avg. Volume: 9,013,816
• PEG Ratio: 0.19
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 0.64
• P/FCF Ratio: -39.48
• Enterprise Value/Market Cap: 7.60
• Enterprise Value/Revenue: 2.61
• Enterprise Value/Gross Profit: 5.54
• Enterprise Value/Ebitda: 8.27
• 1Y Price Target: $33.50
• Price Target Upside: 69.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): -1.19
• Revenue Forecast (FY): $11.49B

• Rating: 44 Neutral
• Price Target: $19.50 ▼(-1.61% Downside)

Caesars Entertainment's overall score is primarily impacted by its financial performance, which shows profitability challenges and high leverage. Technical analysis indicates bearish momentum, further weighing on the score. Valuation metrics are weak due to ongoing losses. The earnings call provided some positive insights, particularly in regional and digital growth, but challenges in key segments remain.

Positive Factors

Operational Efficiency

High EBIT and EBITDA margins demonstrate effective cost management and operational efficiency, which supports long-term profitability despite current net losses.

Debt Reduction

Significant debt reduction and stock repurchases enhance financial stability and shareholder value, reducing financial risk and improving balance sheet health.

Regional Growth

Growth in regional markets indicates successful strategic investments and customer engagement, providing a stable revenue base and offsetting challenges in other segments.

Negative Factors

High Leverage

High leverage limits financial flexibility and increases vulnerability to economic downturns, potentially impacting long-term financial health and investment capacity.

Las Vegas Segment Challenges

Challenges in the Las Vegas segment, a key revenue driver, could impact overall performance if market conditions do not improve, affecting profitability and growth.

Profitability Challenges

Persistent profitability issues, as reflected by negative net margins, can hinder reinvestment and growth opportunities, impacting long-term financial sustainability.

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 faces profitability challenges with a negative net profit margin and high leverage. However, strong EBIT and EBITDA margins indicate operational efficiency, and cash flow generation is improving.

Income Statement

Caesars Entertainment's income statement shows mixed performance. The TTM data reveals a negative net profit margin of -2.12%, indicating ongoing profitability challenges. Revenue has declined by 4.4% compared to the previous period, suggesting potential issues in maintaining growth. However, the company maintains a healthy EBIT margin of 19.11% and an EBITDA margin of 31.59%, which are strong indicators of operational efficiency despite the net losses.

Balance Sheet

The balance sheet reflects high leverage with a debt-to-equity ratio of 6.25, which poses a significant risk. The return on equity is negative at -5.99%, highlighting profitability issues. The equity ratio stands at 11.85%, indicating a relatively low proportion of equity financing compared to total assets. These factors suggest financial instability and potential vulnerability to economic fluctuations.

Cash Flow

Cash flow analysis shows a positive trend with a substantial free cash flow growth rate of 217.32% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 0.59 suggests that the company is generating cash from operations, although the free cash flow to net income ratio of 0.29 indicates that cash generation is not yet sufficient to cover net losses fully.

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	5.36B	5.83B	6.13B	5.42B	4.92B	1.78B
EBITDA	3.60B	3.58B	3.56B	2.92B	2.17B	179.00M
Net Income	-241.00M	-278.00M	786.00M	-899.00M	-1.02B	-1.76B
Balance Sheet
Total Assets	31.90B	32.59B	33.37B	33.53B	38.03B	36.38B
Cash, Cash Equivalents and Short-Term Investments	836.00M	866.00M	1.00B	1.04B	1.07B	1.78B
Total Debt	24.86B	25.06B	25.07B	25.43B	26.27B	26.93B
Total Liabilities	27.93B	28.21B	28.65B	29.78B	33.49B	31.35B
Stockholders Equity	3.78B	4.16B	4.55B	3.71B	4.48B	5.02B
Cash Flow
Free Cash Flow	403.00M	-182.00M	545.00M	23.00M	652.00M	-746.00M
Operating Cash Flow	1.33B	1.11B	1.81B	975.00M	1.17B	-582.00M
Investing Cash Flow	-164.00M	-743.00M	-1.14B	-382.00M	-2.92B	-6.11B
Financing Cash Flow	-1.15B	-498.00M	-829.00M	-1.28B	-550.00M	10.64B

Caesars Entertainment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 19.82 is below the 20-day moving average (MA) of 21.21, below the 50-day MA of 23.94, and below the 200-day MA of 27.65, indicating a bearish trend. The MACD of -1.31 indicates Positive momentum. The RSI at 38.61 is Neutral, neither overbought nor oversold. The STOCH value of 30.90 is Neutral, 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
LVS	74 Outperform	$42.29B	28.22	62.28%	1.53%	8.37%	10.20%
BYD	71 Outperform	$6.27B	3.51	87.17%	0.87%	5.91%	336.91%
RRR	71 Outperform	$5.82B	19.56	96.16%	3.42%	4.69%	15.18%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WYNN	61 Neutral	$13.02B	36.93	―	0.82%	-0.26%	-44.45%
MGM	59 Neutral	$8.75B	199.12	2.25%	―	0.05%	-94.07%
CZR	44 Neutral	$3.91B	―	-6.06%	―	0.87%	31.28%

Caesars Entertainment Corporate Events

Caesars Entertainment’s Earnings Call: Mixed Results and Optimistic Outlook

Caesars Entertainment’s recent earnings call painted a mixed picture of the company’s performance across its various segments. While the regional and digital sectors showed robust growth and strategic advancements, the Las Vegas segment faced notable challenges. Overall, the sentiment was cautiously optimistic, with significant achievements in debt reduction and stock repurchase efforts, despite the hurdles in certain areas.

Caesars Entertainment Reports Mixed Q3 2025 Results

Caesars Entertainment, Inc., a leading casino-entertainment company in the United States, offers a diverse range of gaming, entertainment, and hospitality services, with operations under renowned brand names such as Caesars, Harrah’s, and Horseshoe. The company is also a significant player in the mobile and online gaming and sports betting sectors.