PENN Entertainment (PENN) AI Stock Analysis

• Market Cap: $1.86B
• Dividend Yield: N/A
• Average Volume (3M): 4.90M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.51
• Revenue Growth: 8.24%
• EPS Growth: -77.54%
• Country: US
• Employees: 23,118
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): -0.55
• Shares Outstanding: 133,447,360
• 10 Day Avg. Volume: 4,547,634
• 30 Day Avg. Volume: 4,903,245
• PEG Ratio: -0.01
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.31
• P/FCF Ratio: -15.29
• Enterprise Value/Market Cap: 5.12
• Enterprise Value/Revenue: 1.37
• Enterprise Value/Gross Profit: 4.48
• Enterprise Value/Ebitda: 296.25
• 1Y Price Target: $19.00
• Price Target Upside: 36.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 1.26
• Revenue Forecast (FY): $7.25B

• Rating: 50 Neutral
• Price Target: $14.00 ▲(0.21% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is held down primarily by weak recent financial performance (losses, high leverage, and a TTM cash-flow shortfall). Offsetting this, the latest earnings call provided comparatively strong improvement/FCF and deleveraging guidance, while technicals are mixed and valuation is constrained by negative earnings and no stated dividend yield.

Positive Factors

Retail profitability and stable cash generation

Retail operations deliver high-margin, repeatable cash flow: Q4 adjusted EBITDAR of $456.4M and a 32.3% segment margin show durable on-property profit pools. Large regional properties and destination assets provide predictable gaming and non-gaming revenue that underpins corporate free cash flow over multi-quarter horizons.

Interactive growth and path to profitability

Interactive shows scalable unit economics: strong top-line growth (iCasino >40% and OSB ~73% in Q4 ex gross-up) with $70M EBITDA improvement and ~95% flow-through indicates revenue largely converts to EBITDA as marketing normalizes. Management's explicit path to 2026 breakeven suggests lasting margin leverage as acquisition costs decline.

Credible deleveraging and liquidity targets

Management projects material FCF generation and tangible leverage reduction, supported by $1.1B liquidity and cost saves. That combination creates durable financial flexibility to repay or refinance obligations, fund targeted projects, and reduce risk from cyclical gaming revenue swings over the next several quarters.

Negative Factors

Elevated leverage and weakened equity returns

High debt multiple relative to equity and negative ROE reflect sustained leverage strain. Persistent leverage limits strategic optionality, increases sensitivity to interest costs and cyclical revenue shocks, and constrains capital allocation choices until profitability and equity base recover on a sustained basis.

TTM cash-flow weakness and uneven conversion

Operating cash flow collapsing to TTM zero undermines resilience: inconsistent historical FCF and recent negative periods reduce capacity to self-fund capex, marketing or debt service. This raises refinancing and funding risk over multiple quarters if improved EBITDA and cash conversion fail to materialize as guided.

'Other' EBITDA drag and large fixed lease obligations

A $119M 'other' drag plus ~$1B of recurring triple-net lease cash payments are structural cash burdens. These fixed outflows reduce free cash available for deleveraging or reinvestment, amplify earnings volatility from retail/interactive swings, and lengthen the time needed to restore balance-sheet strength.

PENN Entertainment Business Overview & Revenue Model

Company Description

PENN Entertainment, Inc., together with its subsidiaries, provides integrated entertainment, sports content, and casino gaming experiences in North America. The company operates through five segments: Northeast, South, West, Midwest, and Interactive. It operates 44 properties in 20 states; online sports betting in 13 jurisdictions; and iCasino in five under a portfolio of brands, including Hollywood Casino, L'Auberge, Barstool Sportsbook, and theScore Bet. The company was formerly known as Penn National Gaming, Inc. and changed its name to PENN Entertainment, Inc. in August 2022. PENN Entertainment, Inc. was founded in 1972 and is based in Wyomissing, Pennsylvania.

How the Company Makes Money

PENN makes money through a mix of land-based (retail) gaming and digital (interactive) gaming, plus ancillary non-gaming revenue streams. 1) Retail (land-based) gaming revenue: The largest driver is casino gaming at PENN’s properties, including slot machines, table games, and (where permitted) retail sportsbook wagering. Gaming revenue is earned from the statistical “hold” on slot machines (the portion of wagers not paid back as winnings) and from table game/sportsbook hold (the net win after paying winning bets). PENN also benefits from gaming-related fees and programs tied to patron loyalty and reinvestment (e.g., promotional allowances reduce net gaming revenue but are designed to drive visitation and play). 2) Interactive (online) revenue: PENN earns revenue from online sports betting and online casino (iCasino) in jurisdictions where it operates. For online sports betting, revenue is primarily the net win (handle multiplied by hold, net of payouts), adjusted for promotions, incentives, and player bonuses. For iCasino, revenue is similarly driven by net gaming win from online slots and table games. Interactive revenue is influenced by customer acquisition costs (marketing and promotions), product mix (sports betting vs iCasino), seasonality in sports calendars, and state-by-state tax and regulatory structures. 3) Non-gaming revenue at properties: PENN also earns money from hotel room sales, food and beverage outlets, entertainment venues, and other amenities (e.g., retail/parking where applicable). These revenues are typically smaller than gaming but can be meaningful for destination properties and help diversify cash flow. 4) Media/brand partnership factor (ESPN BET): PENN’s sports-betting business operates under the ESPN BET brand pursuant to a long-term strategic partnership with ESPN (Disney). This arrangement is intended to support user acquisition and engagement via brand association and media integration. The partnership includes financial obligations and/or consideration to ESPN that affect PENN’s economics; the exact structure and amounts are not provided here. 5) Other contributors and economic factors: PENN’s earnings are affected by state and local gaming taxes, licensing and compliance costs, labor and operating expenses at properties, and competitive dynamics in both regional casinos and online betting. The company also operates a customer loyalty program (PENN Play), which supports cross-selling between retail and online channels and can influence visitation, spend, and retention.

PENN Entertainment Financial Statement Overview

Summary

Financial statements point to elevated risk: TTM profitability deteriorated into sizable losses and margin compression (Income Statement score 34), leverage remains high with negative ROE (Balance Sheet score 27), and TTM operating cash flow/free cash flow are at zero (Cash Flow score 18), reducing flexibility despite revenue growth.

Income Statement

TTM (Trailing-Twelve-Months) results deteriorated sharply, with the company swinging to a sizable operating loss and a deeply negative net margin despite revenue growth. Profitability has been volatile: strong margins and profits in 2021–2022 gave way to losses in 2023–2024 and a much weaker TTM (Trailing-Twelve-Months), alongside significant gross margin compression over the last few years. The top-line is holding up, but current earnings quality and margin stability are clear weaknesses.

Balance Sheet

Leverage remains elevated, with debt running several times equity across the period and still high in TTM (Trailing-Twelve-Months). Equity has trended down versus 2021–2022 levels, and returns on equity are negative in the most recent periods, reflecting loss-making performance while carrying a heavy debt load. The balance sheet is serviceable in asset size, but the combination of high leverage and negative profitability increases financial risk.

Cash Flow

Cash generation weakened materially: TTM (Trailing-Twelve-Months) shows operating cash flow and free cash flow at zero, a major red flag versus positive operating cash flow in prior years. Even before TTM (Trailing-Twelve-Months), free cash flow was inconsistent (negative in 2024, modestly positive in 2023), indicating uneven conversion of earnings into cash. The recent collapse in cash flow reduces financial flexibility and raises funding risk if sustained.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.96B	6.58B	6.36B	6.40B	5.91B
Gross Profit	1.91B	2.16B	2.36B	2.77B	2.76B
EBITDA	32.00M	562.80M	400.20M	1.50B	1.45B
Net Income	-843.10M	-311.50M	-490.00M	222.10M	420.80M
Balance Sheet
Total Assets	14.27B	15.26B	16.06B	17.50B	16.87B
Cash, Cash Equivalents and Short-Term Investments	686.60M	706.60M	1.07B	1.62B	1.86B
Total Debt	8.38B	11.25B	11.54B	12.91B	11.61B
Total Liabilities	12.44B	12.40B	12.86B	13.91B	12.78B
Stockholders Equity	1.83B	2.86B	3.20B	3.60B	4.10B
Cash Flow
Free Cash Flow	-139.50M	-123.40M	74.00M	605.80M	627.80M
Operating Cash Flow	508.20M	359.30M	455.90M	878.20M	896.10M
Investing Cash Flow	-351.10M	-541.20M	-742.60M	-258.60M	-1.22B
Financing Cash Flow	-165.60M	-186.50M	-262.60M	-853.00M	339.90M

PENN Entertainment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.97
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PENN, the sentiment is Negative. The current price of 13.97 is below the 20-day moving average (MA) of 14.15, above the 50-day MA of 13.82, and below the 200-day MA of 16.26, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 48.90 is Neutral, neither overbought nor oversold. The STOCH value of 19.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PENN.

PENN Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYD	77 Outperform	$6.18B	3.78	91.87%	0.84%	5.91%	336.91%
RRR	70 Outperform	$6.20B	19.42	85.64%	3.22%	4.69%	15.18%
MGM	62 Neutral	$9.43B	46.86	7.55%	―	0.05%	-94.07%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CHDN	59 Neutral	$5.99B	21.23	36.68%	0.38%	7.97%	-0.14%
CZR	57 Neutral	$5.56B	-9.69	-13.18%	―	0.87%	31.28%
PENN	50 Neutral	$1.86B	-2.53	-34.58%	―	8.24%	-77.54%

PENN Entertainment Corporate Events

PENN Entertainment Completes $600 Million Senior Notes Offering

On March 16, 2026, PENN Entertainment closed a $600 million private offering of 6.750% senior notes due 2031, issued at par, with interest payable semi-annually and maturity on April 1, 2031. The company plans to use the proceeds primarily to repay borrowings under its revolving credit facility and for general corporate purposes, effectively terming out a portion of its existing debt.

The new notes are unsecured, unsubordinated obligations ranking pari passu with PENN’s other unsubordinated debt and effectively subordinated to its secured indebtedness and all liabilities of its subsidiaries. Detailed redemption options, change‑of‑control repurchase rights, and gaming law‑driven mandatory redemption, along with restrictive covenants on additional debt, dividends, liens and certain transactions, frame a capital structure that balances financing flexibility with creditor protections.

The most recent analyst rating on (PENN) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on PENN Entertainment stock, see the PENN Stock Forecast page.

PENN Entertainment Reaches Cooperation Deal, Adds New Directors

On February 22 and 23, 2026, PENN Entertainment entered into a cooperation agreement with investment firm HG Vora Capital Management and appointed three new independent directors, Heather Ace, Jeffrey Fox and Fabio Schiavolin, to its board. The move expands the board from eight to eleven members, increases the number of Class II and Class III directors, and brings extensive experience in global gaming, technology, digital infrastructure, finance and human resources onto the board, while the agreement establishes voting and standstill provisions that signal a truce with an activist shareholder and a more collaborative governance framework ahead of upcoming shareholder meetings.

The most recent analyst rating on (PENN) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on PENN Entertainment stock, see the PENN Stock Forecast page.

PENN Entertainment Restructures Leadership and Digital Operations

On January 5, 2026, PENN Entertainment announced a new corporate organizational structure aimed at better aligning its strategy around digital assets in Canada and its Hollywood iCasino product in the U.S., integrating these with its core retail casino operations and omnichannel business model. The restructuring, effective immediately and backed by the board, eliminates the roles of Executive Vice President of Operations and Chief Information Officer, leading to the departures of long-serving executives Todd George and Rich Primus, while consolidating technology functions under Chief Technology Officer and Head of Interactive Aaron LaBerge and shifting reporting lines for key regional and marketing leaders. PENN is also launching a search for a digital Chief Operating Officer to oversee day-to-day interactive operations and expects to detail anticipated annualized cost savings and improved free cash flow from these changes when it reports fourth-quarter 2025 results in February 2026; additionally, George will advise the company through February 28, 2026 under a separation agreement that preserves eligibility for his 2023 performance units, signaling a managed transition for stakeholders amid the operational streamlining.

The most recent analyst rating on (PENN) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on PENN Entertainment stock, see the PENN Stock Forecast page.