Entain plc (GB:ENT)
LSE:ENT
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Entain plc
(LSE:ENT)
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Rating:55Neutral
Price Target:
604.00 p
▲(8.91% Upside)
Action:ReiteratedDate:03/24/26
The score is driven primarily by solid and improving cash flow plus improved leverage (financial performance), supported by generally positive earnings-call guidance and execution momentum (including BetMGM). These positives are tempered by inconsistent profitability and a weak technical setup (negative MACD and below key longer-term moving averages), while valuation support is mixed due to a negative P/E despite a ~3.6% dividend yield.
Positive Factors
Strong cash generation and FCF expansion
Entain’s operating cash flow and free cash flow improved notably in 2025, with FCF turning meaningfully positive and positive in each year shown. Durable cash conversion underpins investment, debt reduction and shareholder returns even when reported earnings are volatile.
Negative Factors
Sharp U.K. gambling tax increase
The U.K. tax hike is a structural profit headwind that depresses margins and delays deleveraging by at least a year. Even with mitigation plans, higher recurring tax rates reduce long‑term cash generation per unit of revenue and raise competitive pressure vs unregulated operators.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and FCF expansion
Entain’s operating cash flow and free cash flow improved notably in 2025, with FCF turning meaningfully positive and positive in each year shown. Durable cash conversion underpins investment, debt reduction and shareholder returns even when reported earnings are volatile.
Read all positive factors
Entain plc (ENT) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.55B
Dividend Yield2.24%
Average Volume (3M)1.47M
Price to Earnings (P/E)―
Beta (1Y)1.46
Revenue Growth5.14%
EPS Growth-7.80%
CountryUK
Employees19,272
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.31
Shares Outstanding639,603,760
10 Day Avg. Volume1,926,593
30 Day Avg. Volume1,471,241
Financial Highlights & Ratios
PEG Ratio-0.16
Price to Book (P/B)5.51
Price to Sales (P/S)0.93
P/FCF Ratio8.92
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£988.60Price Target Upside78.25% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)0.66
Revenue Forecast (FY)£5.56B
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 betti...
How the Company Makes Money
Entain primarily makes money by earning net gaming revenue (also referred to as net revenue) from betting and gaming activity across its online and retail channels. In sports betting, it generates revenue from the margin between what customers sta...
Entain plc Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presented a strong operational and financial performance in 2025 with broad-based organic growth, a clear BetMGM profitability inflection, meaningful margin and cash flow improvement, and a credible multi-year plan (including cost/AI initiatives) targeting at least GBP 500m adjusted cash flow by 2028. The principal near-term headwind is the sharp U.K. tax increase and related regulatory/black-market risks, which depress margins in 2026 and delay a year of deleveraging; management has detailed mitigation workstreams and expects to offset over 50% of the U.K. tax impact from 2027. Overall, the positive operational momentum, strong BetMGM contribution and improved cash generation outweigh the significant but manageable regulatory headwinds.Positive Updates
Strong Group EBITDA Performance
Entain reported ex-U.S. EBITDA up 8% year-on-year to GBP 1.16 billion and total group EBITDA (including 50% of BetMGM) up 28% year-on-year to GBP 1.244 billion, driven by organic growth and efficiency improvements.
Negative Updates
Significant U.K. Gambling Tax Increase
The U.K. government's dramatic tax increases (gaming duty rising materially, cited example from 21% to 40% on gaming) will materially increase costs, reduce online EBITDA margin in 2026 and delay deleveraging (look-through leverage broadly stable in 2026).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Group EBITDA Performance
Entain reported ex-U.S. EBITDA up 8% year-on-year to GBP 1.16 billion and total group EBITDA (including 50% of BetMGM) up 28% year-on-year to GBP 1.244 billion, driven by organic growth and efficiency improvements.
Read all positive updates
Company Guidance
Management guided 2026 online NGR growth of 5–7% (constant currency) with an online EBITDA margin of 23–24% (reflecting mitigation of ~25% of the U.K. gaming tax impact in 2026 and management’s upgraded expectation to mitigate >50% from 2027), which implies a small YoY decline in Entain EBITDA but total group EBITDA (including BetMGM) broadly stable year‑on‑year; BetMGM is on track for ~$500m adjusted EBITDA in 2027 (it returned $270m to parents in 2025), Entain targets at least GBP 500m of annual adjusted cash flow from 2028 (adjusted cash flow was GBP 151m in 2025), look‑through leverage was 3.6x at year‑end (reported 3.1x; net debt GBP 3.6bn; available cash >GBP 900m), the new blended ETR guidance is 30% (including the U.S.) with a deferred tax asset recognition expected in 2026 to boost EPS, and marketing is phased for 2026 with ~55% of spend in H1 for the World Cup.Entain plc Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
50
Neutral
Cash Flow
68
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.26B | 5.09B | 4.77B | 4.30B | 3.83B |
| Gross Profit | 2.59B | 3.12B | 2.35B | 2.36B | 2.07B |
| EBITDA | 537.00M | 554.70M | -1.80M | 741.00M | 837.60M |
| Net Income | -666.70M | -452.70M | -928.60M | 24.20M | 249.30M |
Balance Sheet | |||||
| Total Assets | 9.40B | 10.14B | 10.85B | 8.74B | 7.25B |
| Cash, Cash Equivalents and Short-Term Investments | 554.10M | 390.60M | 400.60M | 658.50M | 487.10M |
| Total Debt | 3.99B | 3.96B | 3.63B | 3.39B | 2.58B |
| Total Liabilities | 8.07B | 8.12B | 8.06B | 5.42B | 4.08B |
| Stockholders Equity | 889.90M | 1.55B | 2.27B | 3.13B | 3.17B |
Cash Flow | |||||
| Free Cash Flow | 549.90M | 281.00M | 187.50M | 431.80M | 455.60M |
| Operating Cash Flow | 656.80M | 579.30M | 448.10M | 643.80M | 631.80M |
| Investing Cash Flow | -338.50M | -316.50M | -1.52B | -921.50M | -849.30M |
| Financing Cash Flow | -375.50M | -58.70M | 829.30M | 442.30M | -30.40M |
Entain plc Technical Analysis
Negative
554.60
Price Trends
588.66
Negative
662.13
Negative
765.33
Negative
Market Momentum
-7.19
Negative
45.11
Neutral
64.38
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 554.6 is below the 20-day moving average (MA) of 561.19, below the 50-day MA of 588.66, and below the 200-day MA of 765.33, indicating a bearish trend. The MACD of -7.19 indicates Negative momentum. The RSI at 45.11 is Neutral, neither overbought nor oversold. The STOCH value of 64.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | £88.00M | 14.08 | 22.77% | ― | 21.27% | 21.93% | |
65 Neutral | £426.74M | 6.26 | 9.03% | 2.58% | 8.26% | 263.36% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | £918.01M | 0.21 | 92.10% | 163.36% | ― | ― | |
55 Neutral | £3.55B | -7.35 | -57.07% | 2.24% | 5.14% | -7.80% | |
41 Neutral | £162.34M | -1.51 | 74.03% | ― | 5.26% | 32.20% |
* Consumer Cyclical Sector Average
GB:ENT
Entain plc
554.60
-62.83
-10.18%
GB:GMR
Gaming Realms
31.60
-4.50
-12.47%
GB:RNK
Rank Group plc
91.10
8.83
10.73%
GB:PTEC
Playtech
314.50
28.71
10.05%
GB:EVOK
888 Holdings
36.20
-14.75
-28.95%
Entain plc Corporate Events
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Entain Releases 2025 Annual Report and Sets Date for 2026 AGM
Neutral
Mar 20, 2026
Entain plc has published its 2025 Annual Report and Accounts and the notice for its 2026 Annual General Meeting, making the documents available on its website and via the UK National Storage Mechanism, with hard copies to be mailed to shareholders...
Business Operations and StrategyExecutive/Board Changes
Entain links top executives more closely to shareholders with new share awards
Positive
Mar 6, 2026
Entain plc has granted new share-based awards to its top executives under its long-term incentive and deferred bonus schemes, further aligning leadership remuneration with shareholder interests. The awards form part of the FTSE 100 bookmaker’...
Business Operations and StrategyDividendsFinancial Disclosures
Entain beats 2025 profit targets as BetMGM turns profitable and cash generation outlook rises
Positive
Mar 5, 2026
Entain reported a strong 2025 performance, with total group net gaming revenue including its BetMGM stake up 7% and group underlying EBITDA rising 8% in constant currency, ahead of guidance. Online operations were the main growth driver, pushing o...
Business Operations and StrategyFinancial Disclosures
BetMGM Posts Record 2025 as Profitability Inflects and Cash Flows to Entain and MGM
Positive
Feb 4, 2026
BetMGM delivered a record 2025, with net revenue rising 33% year-on-year to $2.8 billion and EBITDA swinging to a $220 million profit, driven by strong growth in both iGaming and online sports, improved player economics, and a markedly enhanced pr...
Regulatory Filings and Compliance
Entain Confirms Total Voting Rights at Nearly 640 Million Shares
Neutral
Feb 2, 2026
Entain plc has notified the market that, as of 31 January 2026, it has 639,603,758 ordinary shares in issue, each carrying one voting right, establishing the current total voting rights figure for regulatory disclosure purposes. This confirmation ...
Regulatory Filings and Compliance
Entain Reports Internal Share Rebalancing by Eminence Capital With No Change in Overall Stake
Neutral
Jan 5, 2026
Entain plc disclosed that Eminence Capital, LP, a person closely associated with non-executive director Ricky Sandler, executed internal portfolio rebalancing transactions involving 621,384 Entain ordinary shares on 2 January 2026 at 766.60p per s...
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.