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Gaming and Leisure (GLPI)
NASDAQ:GLPI
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Gaming and Leisure
(NASDAQ:GLPI)71Outperform
Positive Factors
Financial Performance
Gaming and Leisure Properties sits in an envious position, with roughly $2B in deal commitments in place at a highly attractive yield, while leverage screens low in a historical context.
Strategic Investments
GLPI has $1.8B of additional commitments expected to be funded across several transactions, including a brand-new casino development in Chicago, which are believed to positively impact bottom-line earnings.
Negative Factors
Market Sensitivity
GLPI shares have been underperformers due to heightened sensitivity around interest rates.
Gaming and Leisure (GLPI) vs. S&P 500 (SPY)
Market Cap
$13.91B
Dividend Yield6.01%
Average Volume (3M)1.14M
Price to Earnings (P/E)17.7
Beta (1Y)0.62
Revenue Growth6.33%
EPS Growth3.44%
CountryUS
Employees19
SectorReal Estate
Sector Strength72
IndustryREITs
Share Statistics
EPS (TTM)2.87
Shares Outstanding274,832,520
10 Day Avg. Volume1,459,405
30 Day Avg. Volume1,140,770
Financial Highlights & Ratios
PEG Ratio5.14
Price to Book (P/B)N/A
Price to Sales (P/S)9.08
Price to Cash Flow (P/CF)11.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$54.44Price Target Upside7.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
Gaming and Leisure Business Overview & Revenue Model
Company DescriptionGaming and Leisure Properties, Inc. (GLPI) is a real estate investment trust (REIT) that focuses on acquiring, financing, and owning real estate properties leased to gaming operators in the United States. The company primarily operates in the casino and gaming sectors, providing real estate solutions for casino operators. GLPI's core business involves owning a portfolio of gaming and related facilities, which are leased to industry-leading gaming operators under long-term, triple-net lease agreements.
How the Company Makes MoneyGLPI makes money primarily through rental income generated from leasing its properties to gaming operators. The company owns a diverse portfolio of properties, which are leased under triple-net lease agreements, meaning the tenants are responsible for paying property taxes, insurance, and maintenance expenses in addition to rent. This structure provides GLPI with stable, predictable cash flows and minimizes its exposure to property-related expenses. Additionally, GLPI may engage in strategic acquisitions and partnerships to expand its portfolio and increase revenue. The company also benefits from the growth and success of its tenants, as it can lead to lease renewals and potential rent escalations.
Gaming and Leisure Financial Statement Overview
Summary
Overall, Gaming and Leisure displays a solid financial position with strong profitability and revenue growth. The balance sheet is stable, though the high level of debt warrants attention. Cash flow management appears robust, but variability in free cash flow should be monitored. The company seems well-poised for continued stability in the REIT sector.Income Statement
The income statement shows strong gross and net profit margins, with a consistent upward trend in total revenue over the years. The company demonstrated revenue growth from 2020 to 2023, indicating effective operational performance, although revenue growth slowed in recent years.78
Positive
Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio, reflecting manageable leverage. The equity ratio is stable, indicating a good proportion of equity financing. However, the total debt remains significant, which could pose risks if not managed effectively.70
Positive
Cash Flow
Cash flow statements highlight strong operating cash flow, which consistently exceeds net income, indicating good cash generation from operations. However, free cash flow growth has been inconsistent, largely due to fluctuations in capital expenditures and financing activities.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.53B | 1.44B | 1.31B | 1.22B | 1.15B | Gross Profit |
| 1.48B | 1.39B | 1.26B | 1.13B | 1.07B | EBIT |
| 1.13B | 1.07B | 1.03B | 841.77M | 809.27M | EBITDA |
| 1.45B | 1.34B | 1.22B | 1.07B | 1.01B | Net Income Common Stockholders |
| 784.62M | 734.28M | 684.65M | 534.05M | 505.71M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.02B | 683.98M | 239.08M | 724.60M | 486.45M | Total Assets |
| 13.08B | 11.81B | 10.93B | 10.69B | 9.03B | Total Debt |
| 305.76M | 6.88B | 6.36B | 6.79B | 5.91B | Net Debt |
| -156.87M | 6.19B | 6.13B | 6.07B | 5.42B | Total Liabilities |
| 8.43B | 7.30B | 6.81B | 7.30B | 6.36B | Stockholders Equity |
| 4.27B | 4.16B | 3.78B | 3.19B | 2.68B |
| Cash Flow | Free Cash Flow | |||
| 1.03B | 961.93M | 896.10M | 787.58M | 424.47M | Operating Cash Flow |
| 1.07B | 1.01B | 920.13M | 803.78M | 428.08M | Investing Cash Flow |
| -1.61B | -650.83M | -354.49M | -1.03B | -9.49M | Financing Cash Flow |
| 311.82M | 86.35M | -1.05B | 443.07M | 63.17M |
Gaming and Leisure Technical Analysis
Positive
50.61
Price Trends
48.54
Positive
49.06
Positive
47.97
Positive
Market Momentum
0.46
Negative
62.41
Neutral
87.49
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLPI, the sentiment is Positive. The current price of 50.61 is above the 20-day moving average (MA) of 49.44, above the 50-day MA of 48.54, and above the 200-day MA of 47.97, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 62.41 is Neutral, neither overbought nor oversold. The STOCH value of 87.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GLPI.
Gaming and Leisure Risk Analysis
Gaming and Leisure disclosed 17 risk factors in its most recent earnings report. Gaming and Leisure reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gaming and Leisure Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $33.77B | 12.50 | 10.34% | 5.19% | 6.57% | 3.45% | |
73 Outperform | $32.97B | 23.47 | 41.30% | 1.87% | 8.93% | 22.50% | |
71 Outperform | $13.91B | 17.65 | 18.61% | 6.01% | 6.33% | 3.44% | |
71 Outperform | $9.38B | 20.26 | -51.73% | 1.13% | 9.13% | -30.00% | |
61 Neutral | $4.91B | 18.99 | -3.12% | 7.77% | 6.71% | -19.69% | |
49 Neutral | $6.04B | ― | -6.38% | ― | -2.45% | -135.17% | |
44 Neutral | $2.95B | ― | -10.27% | ― | 3.38% | 38.18% |
* Real Estate Sector Average
Performance Comparison
GLPI
Gaming and Leisure
50.61
7.13
16.40%
LVS
Las Vegas Sands
45.06
-6.54
-12.67%
PENN
Penn National Gaming
18.28
-0.46
-2.45%
WYNN
Wynn Resorts
88.72
-13.35
-13.08%
CZR
Caesars Entertainment
28.48
-14.15
-33.19%
VICI
VICI Properties
32.65
4.62
16.48%
Gaming and Leisure Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: 2.47% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive performance with significant growth in real estate income and strategic acquisitions, alongside strong tenant relationships. However, challenges include increased operating expenses, slightly below consensus guidance, and project timing uncertainties.Highlights
Growth in Real Estate Income
Total income from real estate exceeded the fourth quarter of 2023 by over $20 million, driven by increases in cash rent from acquisitions and escalations.
Strategic Acquisitions Boost
Notable contributions from acquisitions include Tioga ($3.6 million), Rockford loan ($2.8 million), Valley Chicagoland ($5 million), and others.
Strong Tenant Relationships
Maintained competitive advantage through strong tenant relationships, enabling new opportunities in gaming real estate transactions.
Lowlights
Increased Operating Expenses
Operating expenses increased by $7.7 million, mainly due to non-cash adjustments in credit loss provisions.
Slightly Below Consensus Guidance
2025 AFFO guidance is slightly below consensus due to various factors like timing of share settlement and interest expense assumptions.
Challenges in Project Timing
Difficulty in projecting exact timing for funding draws from tenants, impacting estimates for 2024-2025.
Company Guidance
During the fourth quarter 2024 earnings call, Gaming and Leisure Properties, Inc. provided detailed guidance for the upcoming year. The company projected full-year guidance for 2025 ranging from $3.83 to $3.88 per diluted share in OP units. They also outlined anticipated development project funding of approximately $400 million, primarily weighted towards the end of the year, with the expectation to settle forward sale agreements by June 2025. The guidance does not account for potential future transactions. The company mentioned a decrease in total income from real estate due to a combination of non-cash revenue gross-ups and investment and lease adjustments, resulting in a collective year-over-year decrease of $2.3 million. Operating expenses increased by $7.7 million, largely due to non-cash adjustments in the provision for credit losses. Rent coverage ratios remained strong, ranging from 1.79 to 2.55 for their master leases. Interest expense considerations were also included, factoring in bond issuances, repayments, and a new revolving loan.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.