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Caesars Entertainment (CZR)
NASDAQ:CZR
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Caesars Entertainment
(NASDAQ:CZR)
Rating:64Neutral
Price Target:
$34.00
▲(13.52%Upside)
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.
Negative Factors
Digital Segment Skepticism
There is skepticism about the long-term growth of the digital segment, particularly in the sports betting area, which seems to be stalling.
Potential Recession Impact
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)
Market Cap
$6.23B
Dividend YieldN/A
Average Volume (3M)5.17M
Price to Earnings (P/E)―
Beta (1Y)1.68
Revenue Growth-1.25%
EPS Growth-130.83%
CountryUS
Employees50,000
SectorConsumer Cyclical
Sector Strength68
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)-0.54
Shares Outstanding207,968,120
10 Day Avg. Volume4,672,078
30 Day Avg. Volume5,166,773
Financial Highlights & Ratios
PEG Ratio-1.81
Price to Book (P/B)1.56
Price to Sales (P/S)0.00
P/FCF Ratio-108.93
Enterprise Value/Market Cap4.88
Enterprise Value/Revenue0.67
Enterprise Value/Gross Profit5.21
Enterprise Value/Ebitda2.14
Forecast
1Y Price Target
$42.09Price Target Upside40.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
Caesars Entertainment Business Overview & Revenue Model
Company DescriptionCaesars Entertainment, Inc. is a premier casino-entertainment and hospitality company with a diverse portfolio of gaming facilities, hotels, and resorts. Headquartered in the United States, Caesars operates under a number of well-known brand names, including Caesars Palace, Harrah's, Horseshoe, and Eldorado. The company offers a wide range of services and amenities, including gaming, hospitality, dining, and entertainment across its properties, catering to both domestic and international markets.
How the Company Makes MoneyCaesars Entertainment generates revenue primarily through its casino operations, which include slot machines, table games, and sports betting. This segment represents the largest portion of the company's income. Additionally, Caesars earns money from hotel and hospitality services, which encompass room bookings, food and beverage sales, and convention hosting. The company also benefits from its loyalty program, Caesars Rewards, which drives repeat customer visits and spending. Strategic partnerships, including those in sports betting and online gaming, further enhance revenue streams by expanding the company's reach in the digital market. Overall, Caesars' revenue model is bolstered by a mix of gaming and non-gaming operations, providing multiple avenues for profitability.
Caesars Entertainment Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 7.00%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a generally positive outlook with strong digital and regional performance, despite some challenges such as weather disruptions and competitive pressures in certain markets. Las Vegas faced difficulties but managed to maintain strong margins. The company's digital segment showed impressive growth, particularly in iGaming.Q1-2025 Updates
Positive Updates
Revenue Growth
Consolidated net revenues of $2.8 billion increased 2% year-over-year.
Adjusted EBITDA Increase
Total adjusted EBITDA of $884 million increased 4% year-over-year.
Digital Segment Performance
Net revenue of $335 million was up $53 million or 19% year-over-year, with adjusted EBITDA up $38 million year-over-year.
Las Vegas EBITDA Margins
EBITDA margins in Las Vegas were 43.2%, up 50 basis points year-over-year.
iGaming Growth
iCasino net revenue grew 53% year-over-year, driven by 28% volume growth.
Regional Segment Improvement
Regional segment delivered $440 million of adjusted EBITDA, up 2% versus last year.
Negative Updates
Las Vegas Challenges
Las Vegas occupancy and cash ADR were both down slightly, and the segment faced tough comparisons against the Super Bowl last year.
Weather Disruptions
Weather disruptions negatively affected performance across the portfolio.
March Madness Impact
Digital segment faced poor hold during March Madness, impacting results.
International Visitor Decline
Notable reduction in Canadian visitation to Las Vegas.
Competitive Pressures in Regional Markets
Some regional markets faced competitive pressures impacting revenue and margins.
Company Guidance
During the Caesars Entertainment First Quarter 2025 Earnings Conference Call, the company provided guidance highlighting a solid start to the year with consolidated net revenues of $2.8 billion, a 2% increase year-over-year, and total adjusted EBITDA of $884 million, marking a 4% rise. Despite challenges like a tough Super Bowl comparison in Las Vegas, weather disruptions, and one less operating day, Caesars noted stable trends in brick-and-mortar and robust growth in digital operations. Las Vegas experienced a same-store adjusted EBITDAR of $433 million, maintaining its third-best Q1 performance, with EBITDA margins improving by 50 basis points to 43.2%. The regional segment reported a $440 million adjusted EBITDA, up 2%, supported by contributions from New Orleans and Danville. Digital revenues grew by 19% to $335 million, driven by sports betting and iCasino growth, with a notable hold-adjusted revenue increase of 31%. For the fiscal year, Caesars anticipates approximately $600 million in CapEx and a significant focus on debt reduction, while share repurchases remain opportunistic, as evidenced by a recent $100 million stock buyback.Caesars Entertainment Financial Statement Overview
Summary
Caesars Entertainment shows signs of recovery with stable revenue growth and improving cash flows. However, profitability challenges and high leverage remain major concerns. The company's ability to improve financial health depends on sustaining revenue growth and reducing debt levels.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.65
Positive
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.55
Neutral
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.60
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.24B | 11.53B | 10.82B | 9.57B | 3.47B |
| Gross Profit | 5.83B | 6.13B | 5.42B | 4.92B | 1.71B |
| EBITDA | 3.58B | 3.56B | 2.92B | 2.17B | 179.00M |
| Net Income | -278.00M | 786.00M | -899.00M | -1.02B | -1.76B |
Balance Sheet | |||||
| Total Assets | 32.59B | 33.37B | 33.53B | 38.03B | 36.38B |
| Cash, Cash Equivalents and Short-Term Investments | 866.00M | 1.00B | 1.04B | 1.07B | 3.78B |
| Total Debt | 25.06B | 25.07B | 25.43B | 26.27B | 26.93B |
| Total Liabilities | 28.21B | 28.65B | 29.78B | 33.49B | 31.35B |
| Stockholders Equity | 4.38B | 4.55B | 3.71B | 4.48B | 5.02B |
Cash Flow | |||||
| Free Cash Flow | -221.00M | 515.00M | 12.00M | 340.00M | -769.00M |
| Operating Cash Flow | 1.07B | 1.81B | 975.00M | 1.17B | -571.00M |
| Investing Cash Flow | -704.00M | -1.26B | -382.00M | -2.92B | -6.18B |
| Financing Cash Flow | -498.00M | -713.00M | -1.28B | -550.00M | 10.64B |
Caesars Entertainment Technical Analysis
Neutral
29.95
Price Trends
28.59
Positive
27.90
Positive
32.90
Negative
Market Momentum
0.55
Positive
54.27
Neutral
30.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CZR, the sentiment is Neutral. The current price of 29.95 is above the 20-day moving average (MA) of 29.71, above the 50-day MA of 28.59, and below the 200-day MA of 32.90, indicating a neutral trend. The MACD of 0.55 indicates Positive momentum. The RSI at 54.27 is Neutral, neither overbought nor oversold. The STOCH value of 30.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $6.70B | 13.44 | 35.62% | 0.85% | 6.06% | 10.05% | |
71 Outperform | $10.38B | 17.08 | 21.38% | ― | 2.76% | -14.31% | |
70 Outperform | $2.93B | 10.04 | 1.33% | 5.54% | -33.50% | 35.81% | |
69 Neutral | $11.26B | 29.40 | -51.73% | 0.93% | -0.08% | -48.66% | |
66 Neutral | $5.76B | 23.87 | 81.59% | 3.69% | 9.48% | -11.92% | |
64 Neutral | $6.23B | ― | -5.56% | ― | -1.25% | -130.83% | |
63 Neutral | $17.14B | 11.11 | -7.24% | 3.14% | 1.68% | -25.43% |
* Consumer Cyclical Sector Average
Performance Comparison
CZR
Caesars Entertainment
29.95
-4.26
-12.45%
BYD
Boyd Gaming
82.26
25.08
43.86%
BRSL
Brightstar Lottery
14.45
-1.63
-10.14%
MGM
MGM Resorts
38.14
-4.30
-10.13%
WYNN
Wynn Resorts
107.71
27.65
34.54%
RRR
Red Rock Resorts
54.26
0.23
0.43%
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.
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.
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.
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.
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.