PENN Entertainment (PENN)
NASDAQ:PENN
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PENN Entertainment
(NASDAQ:PENN)
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Rating:50Neutral
Price Target:
$14.00
▼(-3.05% Downside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
PENN Entertainment (PENN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.93B
Dividend YieldN/A
Average Volume (3M)4.68M
Price to Earnings (P/E)―
Beta (1Y)1.51
Revenue Growth8.24%
EPS Growth-77.54%
CountryUS
Employees23,118
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)-0.55
Shares Outstanding133,447,360
10 Day Avg. Volume4,069,635
30 Day Avg. Volume4,683,170
Financial Highlights & Ratios
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 Cap4.99
Enterprise Value/Revenue1.38
Enterprise Value/Gross Profit4.52
Enterprise Value/Ebitda298.86
Forecast
1Y Price Target
$19.17Price Target Upside32.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)1.26
Revenue Forecast (FY)$7.25B
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 Interacti...
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 s...
PENN Entertainment Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where PENN Entertainment is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where PENN Entertainment is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyPENN Entertainment Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call communicated substantial operational and financial progress: retail delivered solid profitability and new retail projects are ramping well, the interactive business showed strong top-line growth and early post-rebrand momentum (including a positive EBITDA month) and the company provided a credible path to full-year interactive breakeven in 2026. Management also outlined meaningful cost savings, lower maintenance CapEx, significant free cash flow and concrete deleveraging and capital return plans. Offsetting these positives are near-term headwinds — Q4 interactive losses, the 2026 'other' category drag, weather and new-supply impacts in certain retail markets, regulatory uncertainty around prediction markets and the timing/cost of new market launches. On balance, the highlights — clear growth drivers, strong cash flow guidance and disciplined cost and capital allocation actions — outweigh the lowlights, which are largely short-term, modelable, or linked to external/regulatory factors.Positive Updates
Retail Revenue and Profitability
Retail segment generated revenues of $1.4 billion, adjusted EBITDAR of $456.4 million and segment adjusted EBITDA margin of 32.3% in Q4; company forecasts full-year retail net revenue of $5.7B–$5.85B and retail adjusted EBITDA of $1.86B–$1.98B for 2026.
Negative Updates
Interactive Quarterly Loss and Full-Year Cadence
Interactive reported an adjusted EBITDA loss of $39.9 million in Q4; 2026 guidance expects small adjusted EBITDA losses in the first three quarters with profitability in Q4 only (i.e., breakeven for the full year).
Read all updates
Q4-2025 Updates
Positive
Negative
Retail Revenue and Profitability
Retail segment generated revenues of $1.4 billion, adjusted EBITDAR of $456.4 million and segment adjusted EBITDA margin of 32.3% in Q4; company forecasts full-year retail net revenue of $5.7B–$5.85B and retail adjusted EBITDA of $1.86B–$1.98B for 2026.
Read all positive updates
Company Guidance
PENN’s 2026 guidance targets meaningful improvement across businesses: company-wide segment adjusted EBITDAR growth of 20% and Interactive breakeven adjusted EBITDA for the full year (a $268M YoY improvement), with Interactive revenues ~ $1.6B (incl. ~$760M tax gross‑up; ~20% ex‑gross‑up) and retail net revenues of $5.7–$5.85B with retail adjusted EBITDA $1.86–$1.98B (Q4 retail was $1.4B revenue, $456.4M adjusted EBITDAR, 32.3% margin; Q4 Interactive was $398.7M revenue incl. $182.7M gross‑up and a $39.9M adjusted EBITDA loss), expected iCasino growth >40% and OSB growth ~73% in the quarter (52% combined ex‑gross‑up), Q4 Interactive adjusted EBITDA improved $70M YoY with 95% flow‑through, OSB/iCasino hold ~9%/3.7%, quarterly cadence of small losses in Q1–Q3 and profitability in Q4, “other” adjusted EBITDA loss of $119M for 2026, marketing spend roughly $150M lower than 2025, corporate cost savings >$10M run‑rate phasing in H1, maintenance CapEx down ~$20M to near pre‑COVID levels, total 2026 CapEx $445M (project $225M; maintenance $220M), total liquidity $1.1B (cash $687M), expected free cash flow >$3.00/share in 2026, lease‑adjusted net leverage down >1 turn, 2026 cash interest ~$145M, triple‑net lease cash payments ~$1B, expected GLPI funding $225M at Aurora opening (+$21M city funding), and estimated Alberta launch marketing of ~$15–$20M; noted headwinds include a ~$7M Q4 weather hit to retail adjusted EBITDAR and an expected $5–$10M Q1 weather impact.PENN Entertainment Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
27
Negative
Cash Flow
18
Very Negative
| 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
Positive
14.44
Price Trends
13.78
Positive
14.27
Positive
16.24
Negative
Market Momentum
0.10
Positive
53.15
Neutral
34.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PENN, the sentiment is Positive. The current price of 14.44 is above the 20-day moving average (MA) of 14.38, above the 50-day MA of 13.78, and below the 200-day MA of 16.24, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 53.15 is Neutral, neither overbought nor oversold. The STOCH value of 34.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PENN.
PENN Entertainment Risk Analysis
PENN Entertainment disclosed 40 risk factors in its most recent earnings report. PENN Entertainment 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
PENN Entertainment Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $6.19B | 3.78 | 91.87% | 0.84% | 5.91% | 336.91% | |
70 Outperform | $6.10B | 19.42 | 85.64% | 3.22% | 4.69% | 15.18% | |
62 Neutral | $9.45B | 46.86 | 7.55% | ― | 0.05% | -94.07% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $5.90B | 21.23 | 36.68% | 0.38% | 7.97% | -0.14% | |
57 Neutral | $5.38B | -9.69 | -13.18% | ― | 0.87% | 31.28% | |
50 Neutral | $1.93B | -2.53 | -34.58% | ― | 8.24% | -77.54% |
* Consumer Cyclical Sector Average
PENN
PENN Entertainment
14.44
-2.89
-16.68%
BYD
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81.94
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21.08%
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84.62
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36.95
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15.32%
CZR
Caesars Entertainment
26.44
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RRR
Red Rock Resorts
58.08
15.81
37.39%
PENN Entertainment Corporate Events
Business Operations and StrategyPrivate Placements and Financing
PENN Entertainment Completes $600 Million Senior Notes Offering
Positive
Mar 16, 2026
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 repa...
Business Operations and StrategyExecutive/Board Changes
PENN Entertainment Reaches Cooperation Deal, Adds New Directors
Positive
Feb 23, 2026
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 mo...
Business Operations and StrategyExecutive/Board Changes
PENN Entertainment Restructures Leadership and Digital Operations
Neutral
Jan 9, 2026
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 c...
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.