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Entain plc (GB:ENT)
:ENT
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Entain plc (ENT) AI Stock Analysis

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GB:ENT

Entain plc

(LSE:ENT)

Rating:66Neutral
Price Target:
1,071.00p
▲(8.03%Upside)
Entain plc's overall score is driven by strong technical momentum and positive corporate developments, despite financial and valuation challenges. The company's ability to leverage strategic partnerships and legislative changes positions it well for future growth, though profitability and financial leverage remain key areas for improvement.
Positive Factors
BetMGM profitability
The strategic pivot at BetMGM and recent trading momentum have increased confidence in the transformation of BetMGM's profitability.
Operational performance
Improved operational performance throughout FY24, particularly in the key Online division, and the accelerating Q4 exit rate stands out as further evidence of this.
Negative Factors
CEO changes
CEO changes undermine the story, but comfort is derived from Chair Stella David stepping back into the interim CEO role.
Valuation concerns
Current valuation sees zero value for BetMGM priced into Entain's overall valuation.

Entain plc (ENT) vs. iShares MSCI United Kingdom ETF (EWC)

Entain plc Business Overview & Revenue Model

Company DescriptionEntain 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 MoneyEntain plc generates revenue primarily through its online and retail operations in the sports betting and gaming sectors. The company's key revenue streams include sports betting, where customers place wagers on various sporting events, and online gaming, which encompasses casino games, poker, and bingo. Entain leverages its well-recognized brands to attract a broad customer base and utilizes advanced technology platforms to enhance user experiences and operational efficiency. Additionally, the company benefits from strategic partnerships and joint ventures, such as its collaboration with MGM Resorts International for the BetMGM brand in the United States, which expands its market reach and strengthens its competitive position. Entain's focus on responsible gambling and regulatory compliance further supports its sustainable revenue generation.

Entain plc Financial Statement Overview

Summary
Entain plc shows robust revenue growth and strong cash flow management, but faces significant profitability and leverage challenges. A negative net profit margin and high debt-to-equity ratio undermine financial health, necessitating improvements in profitability and debt management.
Income Statement
60
Neutral
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
55
Neutral
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
70
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.09B4.77B4.30B3.83B3.56B
Gross Profit3.12B2.35B2.36B2.07B1.76B
EBITDA554.70M-1.80M741.00M1.00B857.00M
Net Income-452.70M-928.60M24.20M249.30M57.80M
Balance Sheet
Total Assets10.14B10.85B8.74B7.25B7.27B
Cash, Cash Equivalents and Short-Term Investments390.60M400.60M658.50M487.10M706.70M
Total Debt3.96B3.63B3.39B2.58B2.44B
Total Liabilities8.12B8.06B5.42B4.08B4.19B
Stockholders Equity1.55B2.27B3.13B3.17B3.03B
Cash Flow
Free Cash Flow281.00M187.50M431.80M455.60M546.10M
Operating Cash Flow579.30M448.10M643.80M631.80M710.30M
Investing Cash Flow-316.50M-1.52B-921.50M-849.30M-243.90M
Financing Cash Flow-58.70M829.30M442.30M-30.40M-119.70M

Entain plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price991.40
Price Trends
50DMA
841.32
Positive
100DMA
735.45
Positive
200DMA
727.21
Positive
Market Momentum
MACD
40.16
Positive
RSI
81.35
Negative
STOCH
87.98
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ENT, the sentiment is Positive. The current price of 991.4 is above the 20-day moving average (MA) of 935.60, above the 50-day MA of 841.32, and above the 200-day MA of 727.21, indicating a bullish trend. The MACD of 40.16 indicates Positive momentum. The RSI at 81.35 is Negative, neither overbought nor oversold. The STOCH value of 87.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ENT.

Entain plc Risk Analysis

Entain plc disclosed 12 risk factors in its most recent earnings report. Entain plc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Entain plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
£1.19B12.356.42%
72
Outperform
£156.20M17.6730.30%21.54%48.51%
72
Outperform
£730.75M22.719.21%94.94%9.68%126.73%
66
Neutral
£6.34B-23.74%138.37%6.70%53.23%
59
Neutral
£311.43M-379.34%2.55%-239.10%
57
Neutral
HK$26.32B4.03-2.03%5.52%-0.23%-68.02%
49
Neutral
£12.09M29.63-2.84%695.65%-128.98%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ENT
Entain plc
991.40
365.18
58.31%
GB:CMX
Catalyst Media
57.50
-23.25
-28.79%
GB:GMR
Gaming Realms
53.80
17.25
47.20%
GB:RNK
Rank Group plc
158.00
88.67
127.90%
GB:PTEC
Playtech
391.50
177.65
83.07%
GB:EVOK
888 Holdings
70.50
9.25
15.10%

Entain plc Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
Entain Announces Portfolio Rebalancing by Eminence Capital
Neutral
Jul 3, 2025

Entain plc announced that Eminence Capital, LP conducted a portfolio rebalancing transaction involving the simultaneous sale and purchase of 1,606,144 ordinary shares of Entain at 917.80 pence per share. This transaction did not alter the aggregate holding of the funds managed by Eminence Capital, LP, indicating a strategic adjustment rather than a change in investment stance. The announcement is part of regulatory compliance and does not impact Entain’s market position or operations.

The most recent analyst rating on (GB:ENT) stock is a Buy with a £8.00 price target. To see the full list of analyst forecasts on Entain plc stock, see the GB:ENT Stock Forecast page.

Regulatory Filings and Compliance
Entain plc Announces Total Voting Rights for June 2025
Neutral
Jul 1, 2025

Entain plc announced its total voting rights as of June 30, 2025, with 639,542,214 ordinary shares issued, each carrying one vote. This figure is crucial for shareholders to determine their voting interests in compliance with the Financial Conduct Authority’s rules. This announcement is significant for stakeholders as it ensures transparency and compliance with regulatory requirements, reinforcing Entain’s commitment to maintaining robust governance practices.

The most recent analyst rating on (GB:ENT) stock is a Buy with a £8.00 price target. To see the full list of analyst forecasts on Entain plc stock, see the GB:ENT Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Entain Supports New Zealand’s Legislative Changes in Racing and Sports Betting
Positive
Jun 30, 2025

Entain plc has welcomed the New Zealand Government’s amendments to the Racing Industry Act 2020, which extend TAB New Zealand’s exclusivity to include online gambling, effective from June 28, 2025. This legislative change aims to prevent unlicensed offshore operators from offering wagering services to New Zealanders, ensuring that funds remain onshore to support the financial sustainability of the local racing and sports industry. As part of a 25-year strategic partnership with TAB New Zealand, Entain will make an additional NZ$100 million payment to support the implementation of these changes, further strengthening its commitment to the industry and enhancing the betting experience for New Zealand customers.

The most recent analyst rating on (GB:ENT) stock is a Hold with a £6.80 price target. To see the full list of analyst forecasts on Entain plc stock, see the GB:ENT Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Entain Upgrades BetMGM’s FY 2025 Financial Guidance Amid Strong Growth
Positive
Jun 16, 2025

Entain plc has upgraded its financial guidance for BetMGM, its joint venture with MGM Resorts, for the fiscal year 2025 due to continued strong momentum and net revenue growth in both iGaming and online sports betting. The revised guidance anticipates at least $2.6 billion in net revenue and a minimum of $100 million in EBITDA, reflecting increased confidence in BetMGM’s performance and future growth prospects, which are expected to contribute significantly to the company’s strategic goals.

The most recent analyst rating on (GB:ENT) stock is a Buy with a £8.00 price target. To see the full list of analyst forecasts on Entain plc stock, see the GB:ENT Stock Forecast page.

Regulatory Filings and Compliance
Entain Announces Share Rebalancing by Eminence Capital
Neutral
Jun 4, 2025

Entain plc announced a portfolio rebalancing transaction involving its ordinary shares by Eminence Capital, LP. The transaction, which involved simultaneous buying and selling of 3,242,667 shares at 750.60p per share, resulted in no change to the aggregate holding of Eminence Capital’s managed funds. This move, conducted as separate cross transactions, aligns with regulatory requirements under the Market Abuse Regulation.

The most recent analyst rating on (GB:ENT) stock is a Buy with a £9.58 price target. To see the full list of analyst forecasts on Entain plc stock, see the GB:ENT Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Entain Strengthens Board with Strategic Appointments
Positive
May 15, 2025

Entain plc has announced the appointment of Michael Goldberg and Edmond Mesrobian as Independent Non-Executive Directors to its board. Goldberg, with expertise in sports and gaming investment, and Mesrobian, with extensive technology experience, are expected to enhance the board’s strategic capabilities and drive growth and innovation, strengthening Entain’s position in the industry.

The most recent analyst rating on (GB:ENT) stock is a Hold with a £6.80 price target. To see the full list of analyst forecasts on Entain plc stock, see the GB:ENT Stock Forecast page.

Business Operations and Strategy
Entain Announces Share Transactions by Eminence Capital
Neutral
May 6, 2025

Entain plc announced a series of share transactions involving Eminence Capital, LP, which is closely associated with Ricky Sandler, a Non-Executive Director of Entain. The transactions included a rebalancing of shares between funds managed by Eminence Capital, resulting in no change to the aggregate holdings, and an additional purchase of 226,080 shares. These transactions reflect strategic portfolio management by Eminence Capital without altering its overall stake in Entain, indicating stability in its investment approach.

Regulatory Filings and Compliance
Entain plc Declares Total Voting Rights for April 2025
Neutral
May 1, 2025

Entain plc announced its total voting rights as of April 30, 2025, with 639,541,342 ordinary shares issued, each granting one vote. This figure is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s rules. This announcement underscores Entain’s commitment to transparency and regulatory compliance, reinforcing its position in the global sports betting and gaming industry.

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Entain Reports Strong Q1 Performance, Exceeds Revenue Expectations
Positive
Apr 29, 2025

Entain plc reported a strong start to FY25, with Q1 Group Net Gaming Revenue (NGR) exceeding expectations. The company’s online performance, particularly in the UK and through its joint venture BetMGM, showed significant growth. The appointment of Stella David as CEO is expected to provide continuity in strategic execution. Entain remains optimistic about its mid-single-digit growth in Online NGR for FY25 and anticipates generating over £0.5 billion in annual cash flow in the medium term. The company’s robust performance underscores its strategic positioning in regulated growth markets, enhancing its potential for sustainable earnings and cash generation.

Executive/Board ChangesBusiness Operations and Strategy
Entain Appoints Stella David as Permanent CEO
Positive
Apr 29, 2025

Entain plc has announced the appointment of Stella David as its permanent Chief Executive Officer, effective immediately. Stella David, who has been serving as Interim CEO since February 2025, brings extensive leadership experience from various industries and is expected to provide consistency and stability as Entain pursues growth opportunities. Her appointment is seen as a strategic move to enhance the company’s operational capabilities and drive further success, reflecting positively on Entain’s market positioning and stakeholder confidence.

Business Operations and StrategyFinancial Disclosures
BetMGM Reports Strong Start to 2025 with Positive EBITDA
Positive
Apr 28, 2025

BetMGM, jointly owned by Entain plc and MGM Resorts, reported a strong start to 2025 with a 34% year-over-year increase in net revenue for the first quarter, driven by significant growth in both iGaming and online sports betting. The company achieved positive EBITDA, reinforcing its strategic approach and confidence in achieving a full-year positive EBITDA for 2025, while maintaining a strong market position in active markets.

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: Jul 24, 2025