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Gaming and Leisure (GLPI)
NASDAQ:GLPI
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Gaming and Leisure
(NASDAQ:GLPI)
70Outperform
Positive Factors
Dividend Yield
The dividend yield of about 6% is attractive, and earnings growth is expected to be at or above net lease peer group averages.
Financial Position
Gaming and Leisure Properties redeemed its $850 million senior unsecured note, which could strengthen its financial position.
Occupancy Rate
The occupancy rate remains at 100%, indicating strong demand for the company's properties.
Negative Factors
Investment Expectations
The new investment guide of $375m is lower, likely due to delays on Bally's Chicago, reflecting potential challenges in meeting investment expectations.
Market Headwinds
GLPI's heavy regional gaming exposure is likely to face headwinds in certain markets due to mixed trends and supply concerns.
Valuation Concerns
The current valuation of 12.7x 2025E AFFO/share, half a turn below the net-lease REIT average, is seen as unwarranted, and combined with an above-average dividend yield of 6.2%, the rating remains positive.
Gaming and Leisure (GLPI) vs. S&P 500 (SPY)
Market Cap
$12.78B
Dividend Yield6.54%
Average Volume (3M)1.68M
Price to Earnings (P/E)16.5
Beta (1Y)0.39
Revenue Growth6.14%
EPS Growth4.09%
CountryUS
Employees19
SectorReal Estate
Sector Strength66
IndustryREIT - Specialty
Share Statistics
EPS (TTM)0.60
Shares Outstanding274,833,000
10 Day Avg. Volume1,802,482
30 Day Avg. Volume1,684,374
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)3.03
Price to Sales (P/S)0.00
P/FCF Ratio12.70
Enterprise Value/Market Cap1.56
Enterprise Value/Revenue3.30
Enterprise Value/Gross Profit13.83
Enterprise Value/Ebitda3.55
Forecast
1Y Price Target
$53.95Price Target Upside17.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
Gaming and Leisure Business Overview & Revenue Model
Company DescriptionGLPI is engaged in the business of acquiring, financing, and owning real estate property to be leased to gaming operators in triple-net lease arrangements, pursuant to which the tenant is responsible for all facility maintenance, insurance required in connection with the leased properties and the business conducted on the leased properties, taxes levied on or with respect to the leased properties and all utilities and other services necessary or appropriate for the leased properties and the business conducted on the leased properties.
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
Gaming and Leisure shows strong profitability with high margins and efficient operations. Despite a slight dip in revenue growth, the company maintains robust financial health with low leverage and solid cash management, though there's room for improvement in free cash flow generation.Income Statement
Gaming and Leisure has shown robust financial growth with a strong gross profit margin of 93.4% for TTM (Trailing-Twelve-Months) and a net profit margin of 51.8%, indicating high profitability. The revenue growth rate over the past year was slightly negative at -2.3%, but the company maintains a solid EBIT margin of 75.9% and an EBITDA margin of 90.0%, signaling effective cost management and operational efficiency.85
Very Positive
Balance Sheet
The company exhibits a moderate debt-to-equity ratio of 0.07 and a return on equity (ROE) of 18.4% for TTM, reflecting a healthy balance between debt and equity financing and decent returns to shareholders. The equity ratio stands at 34.7%, indicating a stable financial structure. However, attention should be given to leverage ratios to ensure long-term financial health.72
Positive
Cash Flow
Gaming and Leisure demonstrates strong cash flow management with a free cash flow to net income ratio of 1.00 and an operating cash flow to net income ratio of 1.05 for TTM, highlighting excellent cash conversion capabilities. The free cash flow growth rate was -24.9% year-over-year, suggesting room for improvement in generating cash from operations.80
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.55B | 1.53B | 1.44B | 1.31B | 1.22B | 1.15B |
| Gross Profit | |||||
| 1.44B | 1.48B | 1.39B | 1.26B | 1.13B | 1.07B |
| EBIT | |||||
| 1.14B | 1.13B | 1.07B | 1.03B | 841.77M | 809.27M |
| EBITDA | |||||
| 1.42B | 1.40B | 1.34B | 1.22B | 1.07B | 1.01B |
| Net Income Common Stockholders | |||||
| 775.34M | 784.62M | 734.28M | 684.65M | 534.05M | 505.71M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 168.88M | 1.02B | 683.98M | 239.08M | 724.60M | 486.45M |
| Total Assets | |||||
| 12.13B | 13.08B | 11.81B | 10.93B | 10.69B | 9.03B |
| Total Debt | |||||
| 7.19B | 8.04B | 6.88B | 6.36B | 6.79B | 5.91B |
| Net Debt | |||||
| 7.03B | 7.58B | 6.19B | 6.13B | 6.07B | 5.42B |
| Total Liabilities | |||||
| 7.54B | 8.69B | 7.30B | 6.81B | 7.30B | 6.36B |
| Stockholders Equity | |||||
| 4.22B | 4.27B | 4.16B | 3.78B | 3.19B | 2.68B |
| Cash Flow | Free Cash Flow | ||||
| 1.01B | 1.03B | 961.93M | 896.10M | 787.58M | 424.47M |
| Operating Cash Flow | |||||
| 1.07B | 1.07B | 1.01B | 920.13M | 803.78M | 428.08M |
| Investing Cash Flow | |||||
| -623.54M | -1.61B | -650.83M | -354.49M | -1.03B | -9.49M |
| Financing Cash Flow | |||||
| -486.51M | 311.82M | 86.35M | -1.05B | 443.07M | 63.17M |
Gaming and Leisure Technical Analysis
Negative
45.98
Price Trends
48.80
Negative
48.18
Negative
48.50
Negative
Market Momentum
-0.70
Positive
36.36
Neutral
20.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLPI, the sentiment is Negative. The current price of 45.98 is below the 20-day moving average (MA) of 47.77, below the 50-day MA of 48.80, and below the 200-day MA of 48.50, indicating a bearish trend. The MACD of -0.70 indicates Positive momentum. The RSI at 36.36 is Neutral, neither overbought nor oversold. The STOCH value of 20.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GLPI.
Gaming and Leisure Risk Analysis
Gaming and Leisure disclosed 21 risk factors in its most recent earnings report. Gaming and Leisure 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
Gaming and Leisure Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.05B | 32.40 | 6.25% | 6.45% | 0.69% | -19.22% | |
72 Outperform | $12.16B | 28.85 | 38.18% | 4.76% | 3.58% | -15.47% | |
70 Outperform | $12.78B | 16.47 | 18.57% | 6.54% | 6.14% | 4.09% | |
64 Neutral | $3.76B | 10.36 | 18.78% | 4.67% | 12.61% | 111.99% | |
62 Neutral | $3.17B | 66.66 | 2.31% | 4.46% | 10.86% | 6.72% | |
61 Neutral | $19.56B | 53.81 | 3.71% | 3.00% | -6.56% | -54.29% | |
60 Neutral | $2.83B | 10.92 | 0.21% | 8543.15% | 5.98% | -17.76% |
* Real Estate Sector Average
Performance Comparison
GLPI
Gaming and Leisure
45.98
3.80
9.01%
LAMR
Lamar Advertising
118.89
5.11
4.49%
PCH
PotlatchDeltic
40.10
-2.34
-5.51%
RYN
Rayonier
23.90
-3.40
-12.45%
WY
Weyerhaeuser
26.69
-3.68
-12.12%
EPR
EPR Properties
52.36
12.20
30.38%
Gaming and Leisure Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: -6.22%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of strong financial performance and strategic growth initiatives, alongside challenges such as project delays and increased expenses. While the company showed resilience and a strategic approach to growth, uncertainties in guidance and future developments were noted.Q1-2025 Updates
Positive Updates
Significant Increase in Real Estate Income
Total income from real estate exceeded the first quarter of 2024 by over $19 million, driven by increases in cash rent of over $26 million.
Strong Rent Coverage Ratios
Rent coverage ratios remain strong, ranging from 1.73 to 2.51 times on master leases as of the end of the prior quarter.
Healthy Leverage and Prefunding Strategy
Leverage is healthy at 4.7 times annualized net debt to EBITDA, with maturities well laddered and a prefunding capital strategy reducing risk and maximizing flexibility.
Progress on Chicago Project
Significant progress on Chicago project with 272 out of 331 caissons completed and steel ordered for July.
Resilient Cash Flows Amid Market Conditions
Despite macro uncertainty, cash flows remain steady and resilient, supported by a strategic approach focusing on long-term value.
Negative Updates
Delays in Chicago Project
The Chicago project experienced delays due to environmental issues and the complexity of the site, resulting in a delay in the project's progression.
Increase in Operating Expenses
Operating expenses increased by $18 million, mainly due to a non-adjustment in the provision for credit losses amid a pessimistic economic forecast.
Guidance Reduction
Updated full-year 2025 guidance is slightly reduced at the high end due to the assumption that the escalation on the Pinnacle lease will not be achieved.
Uncertainty in New Developments
Potential deals and developments face uncertainty, with timing and finalization being unpredictable.
Company Guidance
During the first quarter of 2025, Gaming and Leisure Properties reported a notable increase in total income from real estate, exceeding the first quarter of 2024 by over $19 million. This growth was primarily driven by an increase in cash rent of over $26 million, stemming from acquisitions and escalations. Notable contributions included $5 million from the acquisition of Valley Chicago Land, $1 million from Tropicana funding, and $8 million from Kansas City and Shreveport. Additionally, strategic acquisitions increased cash income by $2.3 million, while escalators and percentage rent adjustments added approximately $6.7 million. Operating expenses rose by $18 million due to a non-adjustment in the provision for credit losses. The company's updated full-year 2025 guidance forecasts a range of $3.84 to $3.87 per diluted share in OP units, with a reduction at the high end due to the assumption that the escalation on the Pinnacle lease will not be achieved. Rent coverage ratios remained strong, ranging from 1.73 to 2.51 times on master leases.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.