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Gaming and Leisure (GLPI)
NASDAQ:GLPI
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Gaming and Leisure
(NASDAQ:GLPI)
Rating:75Outperform
Price Target:
$53.00
â–²(9.94%Upside)
Positive Factors
Financial Position
Gaming and Leisure Properties redeemed its $850 million senior unsecured note, which could strengthen its financial position.
Investment Strategy
GLPI remains a compelling investment, with a durable and compounding revenue stream, complemented by an accretive deployment strategy, while the balance sheet is positioned for growth despite continued financing market volatility.
Property Demand
The occupancy rate remains at 100%, indicating strong demand for the company's properties.
Negative Factors
Earnings Outlook
Deployment volumes were the biggest surprise to the outlook, with just $400M of spend considered, suggesting limited impact to 2025 earnings; volumes are about 45% lower than originally considered in the model.
Investment Challenges
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.
Gaming and Leisure (GLPI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.25B
Dividend Yield6.47%
Average Volume (3M)1.46M
Price to Earnings (P/E)17.1
Beta (1Y)0.35
Revenue Growth6.14%
EPS Growth4.09%
CountryUS
Employees19
SectorReal Estate
Sector Strength52
IndustryREIT - Specialty
Share Statistics
EPS (TTM)0.60
Shares Outstanding274,833,000
10 Day Avg. Volume1,560,072
30 Day Avg. Volume1,464,331
Financial Highlights & Ratios
PEG Ratio0.99
Price to Book (P/B)3.48
Price to Sales (P/S)0.00
P/FCF Ratio14.69
Enterprise Value/Market Cap1.46
Enterprise Value/Revenue3.19
Enterprise Value/Gross Profit13.40
Enterprise Value/Ebitda3.44
Forecast
1Y Price Target
$52.95Price Target Upside9.83% 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) specializing in the acquisition, financing, and ownership of real estate properties primarily leased to gaming operators. The company focuses on acquiring properties associated with gaming and leisure activities across the United States, providing operators with a stable platform to manage and grow their businesses. GLPI's properties include casino and racetrack facilities, which are leased to well-established operators in the gaming industry.
How the Company Makes MoneyGLPI makes money primarily by leasing its properties to gaming operators under long-term triple-net lease agreements. In these leases, the tenants are responsible for paying property taxes, insurance, and maintenance costs, in addition to rent. This model provides GLPI with a steady and predictable revenue stream. The company also benefits from the growth in the gaming industry as it allows them to potentially increase rents or expand their property portfolio. Significant partnerships with major gaming operators, such as Penn National Gaming, contribute to its earnings stability. Additionally, GLPI may engage in strategic acquisitions to expand its portfolio, further enhancing revenue potential.
Gaming and Leisure Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: -0.02%|
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.Gaming and Leisure Financial Statement Overview
Summary
Gaming and Leisure demonstrates robust financial health with high profitability and efficient operations. Strong profit margins and prudent financial strategy with low leverage enhance its financial standing, but a slight decline in revenue growth and free cash flow generation are areas to watch.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 |
| EBITDA | 1.42B | 1.40B | 1.34B | 1.22B | 1.07B | 1.01B |
| Net Income | 775.34M | 784.62M | 734.28M | 684.65M | 534.05M | 505.71M |
Balance Sheet | ||||||
| Total Assets | 12.13B | 13.08B | 11.81B | 10.93B | 10.69B | 9.03B |
| Cash, Cash Equivalents and Short-Term Investments | 168.88M | 1.02B | 683.98M | 239.08M | 724.60M | 486.45M |
| Total Debt | 7.19B | 8.04B | 6.88B | 6.36B | 6.79B | 5.91B |
| 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
Positive
48.21
Price Trends
46.36
Positive
47.35
Positive
47.51
Positive
Market Momentum
0.38
Negative
65.99
Neutral
90.72
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 48.21 is above the 20-day moving average (MA) of 46.66, above the 50-day MA of 46.36, and above the 200-day MA of 47.51, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 65.99 is Neutral, neither overbought nor oversold. The STOCH value of 90.72 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 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 3 New Risks
1.
Our charter restricts the ownership and transfer of our outstanding stock, which may have the effect of delaying, deferring or preventing a transaction or change of control of our company. Q4, 2024
2.
Pennsylvania law and provisions in our charter and bylaws may delay or prevent takeover attempts by third parties and therefore inhibit our shareholders from realizing a premium on their stock. Q4, 2024
3.
The market price of our common stock may be volatile, and holders of our common stock could lose a significant portion of their investment if the market price of our common stock declines. Q4, 2024
Gaming and Leisure Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $12.72B | 30.22 | 38.18% | 4.99% | 3.58% | -15.47% | |
77 Outperform | $4.53B | 36.25 | 6.25% | 6.00% | 0.69% | -19.22% | |
75 Outperform | $13.25B | 17.07 | 18.57% | 6.47% | 6.14% | 4.09% | |
64 Neutral | $19.36B | 53.27 | 3.71% | 3.15% | -6.56% | -54.29% | |
64 Neutral | $3.20B | 67.22 | 2.31% | 4.42% | 10.86% | 6.72% | |
63 Neutral | $6.99B | 18.83 | -1.16% | 6.86% | 4.65% | -25.28% | |
63 Neutral | $3.61B | 9.96 | 18.78% | 12.58% | 12.61% | 111.99% |
* Real Estate Sector Average
Performance Comparison
GLPI
Gaming and Leisure
48.21
5.87
13.86%
LAMR
Lamar Advertising
124.23
11.31
10.02%
PCH
PotlatchDeltic
39.91
3.53
9.70%
RYN
Rayonier
23.10
-2.05
-8.15%
WY
Weyerhaeuser
26.43
-0.40
-1.49%
EPR
EPR Properties
59.50
20.74
53.51%
Gaming and Leisure Corporate Events
Shareholder MeetingsBusiness Operations and Strategy
Gaming and Leisure Shareholders Approve Incentive Plan Amendments
Positive
Jun 16, 2025
On June 12, 2025, during its Annual Meeting of Shareholders, Gaming and Leisure Properties, Inc. received approval for amendments to its 2013 Long-Term Incentive Compensation Plan, including an increase in reserved shares and changes to share provisions. Additionally, all director nominees were re-elected, and Deloitte & Touche LLP was ratified as the independent registered public accounting firm for 2025. These approvals and re-elections strengthen the company’s governance framework and support its strategic objectives, potentially impacting shareholder value and operational efficiency.
The most recent analyst rating on (GLPI) stock is a Hold with a $54.00 price target. To see the full list of analyst forecasts on Gaming and Leisure stock, see the GLPI Stock Forecast page.
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.