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Entain plc (GB:ENT)
LSE:ENT

Entain plc (ENT) AI Stock Analysis

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Entain plc

(LSE:ENT)

Rating:57Neutral
Price Target:
818.00p
▲(9.42%Upside)
Entain plc's overall stock score is driven by robust revenue growth and cash flow management, offset by significant profitability challenges and high leverage. Positive corporate events provide strategic optimism, but weak technical indicators and valuation concerns temper the overall score.
Positive Factors
Financial Performance
Entain remains 'comfortable' with consensus EBITDA (£1,110m) and has reiterated the £0.5bn annual cash flow.
Leadership Change
Investors should be comforted that interim CEO (and former Chair) Stella David will now become CEO.
Negative Factors
CEO Resignation
CEO Gavin Isaacs has resigned, with no overt reasons given.
Market Reaction
The negative market reaction to yet more turmoil at Entain will be slightly offset by the comfort derived from Chair Stella David stepping back into the interim CEO role.

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 comprehensive portfolio of online and retail betting and gaming brands. The company earns income from sports betting, where customers place wagers on various sports events, and from its online gaming offerings, including casino games, poker, and bingo. A significant portion of its revenue comes from its digital platform, which provides a seamless and engaging user experience. Entain also benefits from strategic partnerships and licensing agreements, which allow it to expand its market reach and enhance its product offerings. Additionally, the company invests in technology and innovation to optimize its operations and customer engagement, further contributing to its financial performance.

Entain plc Financial Statement Overview

Summary
Entain plc demonstrates strong revenue growth and cash flow management but faces significant challenges with profitability and high leverage. The negative net margins and substantial debt levels are concerning, yet the company manages to maintain liquidity.
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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
5.09B4.77B4.30B3.83B3.56B
Gross Profit
3.12B2.35B2.36B2.07B1.76B
EBIT
-250.10M412.50M610.90M476.20M273.80M
EBITDA
554.70M-1.80M741.00M1.00B857.00M
Net Income Common Stockholders
-452.70M-928.60M24.20M249.30M57.80M
Balance SheetCash, Cash Equivalents and Short-Term Investments
390.60M400.60M658.50M487.10M706.70M
Total Assets
10.14B10.85B8.74B7.25B7.27B
Total Debt
3.96B3.63B3.39B2.58B2.44B
Net Debt
3.57B3.23B2.74B2.09B1.73B
Total Liabilities
8.12B8.06B5.42B4.08B4.19B
Stockholders Equity
1.55B2.27B3.13B3.17B3.03B
Cash FlowFree Cash Flow
281.00M187.50M431.80M455.60M546.10M
Operating Cash Flow
579.30M448.10M643.80M631.80M710.30M
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 Price747.60
Price Trends
50DMA
665.16
Positive
100DMA
677.60
Positive
200DMA
697.76
Positive
Market Momentum
MACD
17.17
Positive
RSI
59.15
Neutral
STOCH
55.94
Neutral
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 747.6 is below the 20-day moving average (MA) of 751.27, above the 50-day MA of 665.16, and above the 200-day MA of 697.76, indicating a neutral trend. The MACD of 17.17 indicates Positive momentum. The RSI at 59.15 is Neutral, neither overbought nor oversold. The STOCH value of 55.94 is Neutral, 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBGMR
79
Outperform
£133.81M15.4030.30%21.54%48.51%
GBRNK
72
Outperform
£588.35M18.289.21%1.03%9.68%126.73%
71
Outperform
£967.40M10.026.42%3.75%
63
Neutral
$6.94B11.342.80%4.26%2.68%-24.70%
GBENT
57
Neutral
£4.82B-23.74%2.48%6.70%53.23%
49
Neutral
£225.84M-379.34%2.55%-239.10%
GBCMX
45
Neutral
£10.52M29.63-2.84%8.00%-128.98%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ENT
Entain plc
747.60
110.89
17.42%
GB:CMX
Catalyst Media
50.00
-30.75
-38.08%
GB:GMR
Gaming Realms
46.50
6.85
17.28%
GB:RNK
Rank Group plc
125.00
53.70
75.32%
GB:PTEC
Playtech
318.00
140.12
78.77%
GB:EVOK
888 Holdings
53.20
-28.25
-34.68%

Entain plc Corporate Events

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.

Shareholder MeetingsBusiness Operations and Strategy
Entain plc Secures Shareholder Approval for AGM Resolutions
Positive
Apr 23, 2025

Entain plc announced that all resolutions proposed at its 2025 Annual General Meeting were approved. These resolutions included the re-election of directors, approval of the remuneration report, and authorization for share allotment and acquisitions, indicating strong shareholder support and strategic continuity. The approval of these resolutions is expected to reinforce Entain’s operational stability and strategic initiatives, potentially impacting its market position positively.

Executive/Board Changes
Entain’s Helen Ashton Joins ITV as Independent Non-Executive Director
Neutral
Apr 14, 2025

Entain plc announced that Helen Ashton, a Non-Executive Director of the company, has been appointed as an independent Non-Executive Director of ITV plc, effective from May 13, 2025. This appointment reflects Entain’s strategic positioning and influence within the industry, potentially enhancing its governance and stakeholder engagement.

Other
Entain PLC Announces Change in Major Shareholder Voting Rights
Neutral
Apr 4, 2025

Entain PLC has announced a change in the voting rights held by The Capital Group Companies, Inc., a major shareholder. The group’s voting rights in Entain have decreased slightly from 10.010471% to 9.942983%, as of April 2, 2025. This adjustment reflects a minor shift in the ownership structure, potentially impacting the company’s governance dynamics and shareholder influence.

Regulatory Filings and Compliance
Entain Announces Share Rebalancing by Eminence Capital
Neutral
Apr 3, 2025

Entain plc announced a portfolio rebalancing transaction involving the sale and purchase of 803,208 ordinary shares by Eminence Capital, LP, a person closely associated with a non-executive director of Entain. The transaction, which did not alter the aggregate holdings of Eminence Capital, was conducted as a simultaneous cross transaction between its funds and accounts, reflecting compliance with regulatory requirements.

Regulatory Filings and Compliance
Entain plc Announces Total Voting Rights for March 2025
Neutral
Apr 1, 2025

Entain plc announced its total voting rights as of 31 March 2025, with 639,538,206 ordinary shares issued and admitted to trading, each carrying one vote. This declaration is in accordance with the Financial Conduct Authority’s Disclosure and Transparency Rules, providing shareholders with the necessary information for calculating their interests in the company.

Executive/Board ChangesShareholder MeetingsFinancial Disclosures
Entain Releases 2024 Annual Report and Announces Board Change
Neutral
Mar 21, 2025

Entain plc has released its 2024 Annual Report and Accounts, along with the Notice of its 2025 Annual General Meeting (AGM), which will be held on April 23, 2025. The company announced that Ronald Kramer, a Non-Executive Director, will not seek re-election and will step down from the Board at the AGM. This change in the board may impact the company’s strategic direction and governance.

Executive/Board ChangesBusiness Operations and Strategy
Entain plc Announces Vesting of Bonus Plan Shares
Positive
Mar 19, 2025

Entain plc announced the vesting of an award under its Annual and Deferred Bonus Plan, resulting in CFO and Deputy CEO Robert Wood acquiring 28,482 ordinary shares, bringing his total to 255,519 shares. This transaction reflects Entain’s ongoing commitment to rewarding its leadership, potentially strengthening its executive retention and alignment with shareholder interests.

M&A Transactions
Principal Global Investors Acquires Significant Stake in Entain PLC
Neutral
Mar 17, 2025

Principal Global Investors, LLC, an investment adviser registered in the United States, has acquired a significant stake in Entain PLC, crossing the 5% threshold of voting rights. This acquisition, involving 32,007,629 ordinary shares, represents 5.007% of the voting rights in Entain, potentially impacting the company’s shareholder dynamics and market perception.

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.