Entain plc (ENT) AI Stock Analysis

• Market Cap: £4.83B
• Dividend Yield: 2.21%
• Average Volume (3M): 1.47M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.88
• Revenue Growth: 5.14%
• EPS Growth: -7.80%
• Country: UK
• Employees: 19,272
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.31
• Shares Outstanding: 639,602,600
• 10 Day Avg. Volume: 1,926,593
• 30 Day Avg. Volume: 1,471,241
• PEG Ratio: 0.18
• Price to Book (P/B): 2.84
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 15.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £1,077.91
• Price Target Upside: 42.73% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: 792.00p ▲(4.87% Upside)

Entain plc's overall score is driven by robust revenue growth and strategic corporate actions, but is hindered by profitability issues and a challenging valuation. The technical indicators suggest bearish momentum, and regulatory risks from tax hikes add uncertainty.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and market presence.

Cash Flow Management

Strong cash flow management enhances liquidity and provides financial flexibility, enabling the company to invest in growth opportunities and weather economic fluctuations.

Gross Profit Margin

A strong gross profit margin reflects operational efficiency and pricing power, which are crucial for sustaining profitability and competitive advantage.

Negative Factors

Profitability Challenges

Negative profitability indicates challenges in cost management or pricing, which could hinder long-term financial health and shareholder value.

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth and manage downturns.

Negative Return on Equity

Negative ROE suggests inefficiencies in generating returns from equity, which could deter investment and affect long-term growth prospects.

Entain plc Business Overview & Revenue Model

Company Description

Entain PLC operates as a sports-betting and gaming company. The company provides online betting, casino, poker, and bingo services through mobile and web under the bwin; online and multi-channel betting under the Ladbrokes; street and online betting under the Coral; sports betting, casino, game, and poker under the Sportingbet; online bingo, sportsbook, casino, and poker access under the Betboo; and sports betting, poker, and casino games under the Crystalbet brands, as well as Gamebookers, a full-service sportsbook. It also offers software and technology for race book and sportsbook under the Stadium; online sports betting, casino, and gaming under the Eurobet; sports action and horse racing under the Neds; online bingo under the Gala Bingo; casino and live casino under the Gala Casino; virtual sports under the AGT brands, as well as partypoker, which provides online poker; PartyCasino that provides online casino; and Gala Spins, a gaming application. In addition, the company provides Foxy Bingo that provides online bingo; Foxy Games, which offers slot games, jackpots, and various table games; casino and live casino games under the Casino Las Vegas brand; playtech casino under the Casino King brand; Ladbrokes.be, a shop and newsagent outlet; Ladbrokes.com.au, an online betting site; online betting and gaming under the Optibet; online casino and betting under the NinjaCasino brand; gender-neutral mobile-first casino and bingo under the Laimz brand; online sports, casino, and poker under the BetMGM brand; online sports and gaming under the Borgata brand; and Danske Spil that provides online gaming. Further, it operates an online casino website for German-speaking markets under the CasinoClub brand; Gioco Digitale, a gaming site; and Cheeky Bingo, a bingo platform. Additionally, the company offers PMU that offers online poker; betting in the shop estates; and telephone betting services. Entain PLC was founded in 2004 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Entain generates revenue primarily through its online gaming operations, which include sports betting, casino games, and other gaming products. The company's revenue model is driven by a combination of customer wagers, gaming commissions, and subscription fees for certain products. Key revenue streams include sportsbook revenue from bets placed by customers, gaming revenue from online casino games, and poker tournaments. Additionally, Entain benefits from strategic partnerships and joint ventures, which expand its market presence and enhance its product offerings. The company's focus on technology and data analytics also enables it to optimize customer retention and acquisition strategies, further contributing to its earnings.

Entain plc Financial Statement Overview

Summary

Entain plc exhibits robust revenue growth and cash flow generation, but its profitability and leverage present significant challenges. The high revenue growth is offset by negative net margins and substantial debt levels, which could impact long-term sustainability. The company needs to address its profitability issues and manage its leverage to improve financial health.

Income Statement

Entain plc has shown a consistent increase in revenue over the years, with a notable Revenue Growth Rate of 6.70% in 2024. However, the company is currently facing profitability challenges with a negative Net Profit Margin of -8.90% in 2024, largely due to a negative EBIT of -250.1 million, resulting in a negative EBIT Margin of -4.91%. The Gross Profit Margin remains strong at 61.26%, indicating efficient core operations despite the bottom-line struggles.

Balance Sheet

The balance sheet highlights a high Debt-to-Equity Ratio of 2.56 in 2024, suggesting significant leverage which could pose a risk in a volatile industry. The Return on Equity is negative at -29.29%, reflecting net losses. Despite these challenges, the Equity Ratio is 15.24%, showing that a portion of the assets is financed through equity.

Cash Flow

Entain plc has demonstrated strong cash flow management with a positive Free Cash Flow Growth Rate of 49.87% in 2024. The Operating Cash Flow to Net Income Ratio is healthy at 1.28, indicating good cash generation relative to net losses. The Free Cash Flow to Net Income Ratio of -0.62 highlights the company's ability to maintain liquidity despite negative earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.16B	5.09B	4.77B	4.30B	3.83B	3.56B
Gross Profit	2.55B	3.12B	2.35B	2.36B	2.07B	1.76B
EBITDA	437.00M	554.70M	-1.80M	741.00M	837.60M	857.00M
Net Income	-507.80M	-452.70M	-928.60M	24.20M	249.30M	57.80M
Balance Sheet
Total Assets	9.95B	10.14B	10.85B	8.74B	7.25B	7.27B
Cash, Cash Equivalents and Short-Term Investments	447.30M	390.60M	400.60M	658.50M	487.10M	706.70M
Total Debt	3.76B	3.96B	3.63B	3.39B	2.58B	2.44B
Total Liabilities	8.04B	8.12B	8.06B	5.42B	4.08B	4.19B
Stockholders Equity	1.45B	1.55B	2.27B	3.13B	3.17B	3.03B
Cash Flow
Free Cash Flow	472.10M	281.00M	187.50M	431.80M	455.60M	546.10M
Operating Cash Flow	579.20M	579.30M	448.10M	643.80M	631.80M	710.30M
Investing Cash Flow	-338.50M	-316.50M	-1.52B	-921.50M	-849.30M	-243.90M
Financing Cash Flow	-500.70M	-58.70M	829.30M	442.30M	-30.40M	-119.70M

Entain plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 755.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ENT, the sentiment is Negative. The current price of 755.2 is below the 20-day moving average (MA) of 756.73, below the 50-day MA of 767.39, and below the 200-day MA of 784.58, indicating a bearish trend. The MACD of -4.85 indicates Negative momentum. The RSI at 49.86 is Neutral, neither overbought nor oversold. The STOCH value of 63.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ENT.

Entain plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMR	74 Outperform	£113.75M	14.10	24.79%	―	21.27%	21.93%
PTEC	74 Outperform	£855.51M	8.90	―	164.23%	―	―
RNK	65 Neutral	£493.72M	11.07	12.43%	2.47%	8.26%	263.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ENT	59 Neutral	£4.83B	-9.51	-28.60%	2.21%	5.14%	-7.80%
CMX	49 Neutral	£10.43M	-11.79	―	8.00%	―	-128.98%
EVOK	41 Neutral	£95.52M	-0.84	―	―	5.26%	32.20%

Entain plc Corporate Events

Entain Announces Share Rebalancing by Eminence Capital

Entain plc announced a rebalancing transaction involving the sale and purchase of 485,188 ordinary shares by Eminence Capital, LP, a closely associated entity with Non-Executive Director Ricky Sandler. This transaction did not alter the aggregate holdings of Eminence Capital, indicating a strategic portfolio adjustment rather than a change in investment stance. The transaction reflects Entain’s ongoing commitment to transparent financial practices and may reassure stakeholders of its stable market position.

Entain Announces Total Voting Rights Update

Entain plc announced its total voting rights as of 30 November 2025, with 639,602,618 ordinary shares issued and admitted to trading, each carrying one vote. This information is crucial for shareholders to calculate their interests in the company under the Financial Conduct Authority’s Disclosure and Transparency Rules.

Entain Criticizes UK Gambling Tax Hikes

Entain plc has expressed disappointment regarding the UK Government’s decision to increase gambling taxes, which the company believes will negatively impact the industry by making regulated operators less competitive compared to the black market. The tax changes are expected to cost Entain’s UK&I Online business approximately £200 million annually, with a mitigated EBITDA impact of £100 million in 2026. Despite these challenges, Entain remains focused on its strategic priorities and is well-positioned to absorb regulatory changes due to its diverse geographic footprint and strong market positions.

Entain plc Prices €500 Million Senior Secured Notes

Entain plc has announced the successful pricing of €500 million in senior secured notes due 2031, with an interest rate of 4.875%. The proceeds from this offering are intended to repay part of the company’s existing euro-denominated Term Loan B credit facilities, potentially strengthening its financial position and operational flexibility.

Entain plc Launches €800 Million Bond Offering to Enhance Financial Strategy

Entain plc has announced a bond offering of at least €800 million-equivalent in fixed rate senior secured notes due 2031. This refinancing transaction aims to extend the company’s debt profile, reduce annual interest costs, and diversify financing sources, potentially impacting its financial stability and market competitiveness.

Entain Announces Share Rebalancing by Eminence Capital

Entain plc announced that Eminence Capital, LP, a person closely associated with a non-executive director, conducted a portfolio rebalancing transaction involving the sale and purchase of 245,579 ordinary shares of Entain. This transaction did not alter the aggregate holding of Eminence Capital’s funds and accounts, indicating a strategic adjustment rather than a change in investment stance. The transaction is compliant with the Market Abuse Regulation as part of English law, ensuring transparency and regulatory adherence.

Entain plc Declares Total Voting Rights for Shareholders

Entain plc announced that as of 31 October 2025, it has a total of 639,601,931 ordinary shares, each carrying one vote, which shareholders can use to calculate their interest in the company under the Financial Conduct Authority’s rules. This announcement is significant for shareholders as it provides the necessary information for regulatory compliance and reflects Entain’s transparency in its operations.

Entain Reports Strong Q3 Performance and Raises FY25 Guidance

Entain plc reported a strong Q3 2025 performance, with a 6% increase in total group net gaming revenue, driven by a 23% rise in BetMGM’s net revenue. The company has raised its FY25 guidance, expecting net revenue of at least $2.75 billion and EBITDA of approximately $200 million, while planning to distribute at least $200 million to its parent companies. This performance underscores Entain’s strategic execution and growth momentum, positioning it for continued success and cash generation in the coming years.

BetMGM Surpasses Q3 Expectations, Raises FY25 Guidance

BetMGM, jointly owned by Entain plc and MGM Resorts, reported a strong Q3 2025 performance, surpassing expectations with a 23% year-over-year increase in net revenue, driven by significant growth in both iGaming and online sports betting. The company has raised its full-year guidance, expecting net revenue of at least $2.75 billion and an EBITDA of approximately $200 million, indicating robust operational execution and strategic positioning in the market.

Entain plc Announces Total Voting Rights Update

Entain plc has announced its total voting rights as of September 30, 2025, with 639,601,695 ordinary shares issued, each carrying one vote. This information is crucial for shareholders to determine their interest in the company under the Financial Conduct Authority’s Disclosure and Transparency Rules, potentially impacting shareholder decisions and market perceptions.