PENN Entertainment (PENN) AI Stock Analysis

• Market Cap: $2.08B
• Dividend Yield: N/A
• Average Volume (3M): 4.15M
• 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: 132,870,030
• 10 Day Avg. Volume: 3,850,799
• 30 Day Avg. Volume: 4,151,186
• PEG Ratio: -0.01
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 4.80
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 6.09
• Enterprise Value/Ebitda: 309.76
• 1Y Price Target: $18.82
• Price Target Upside: 20.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 1.27
• Revenue Forecast (FY): $7.21B

• Rating: 50 Neutral
• Price Target: $14.50 ▼(-7.29% Downside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is held down primarily by weak financial performance (TTM losses, high leverage, and a sharp deterioration in cash generation). Offsetting this, management’s 2026 guidance and operating initiatives from the earnings call are notably positive, while technical signals are mixed and valuation support is limited due to the negative P/E and lack of dividend data.

Positive Factors

Scale & retail profitability

PENN’s large retail estate produces high-margin, repeatable cash flow: Q4 retail delivered $456M adjusted EBITDAR (32.3% margin) and management guides to nearly $1.9B retail EBITDA in 2026. This scale and margin stability underpin durable FCF generation and resilience against digital volatility.

Interactive growth with breakeven path

The interactive business shows structural traction: double‑digit revenue growth (iCasino >40%, OSB up ~73% in Q4 ex gross‑up), large EBITDA improvement and high flow‑through. Management’s explicit 2026 breakeven path and reduced marketing spend create a credible durable route to positive digital cash contribution.

Organizational realignment & efficiency

PENN reorganized to align Interactive, retail and tech under unified leadership, eliminating duplicate roles and targeting more efficient product development. That structural change should lower operating redundancy, accelerate omnichannel product rollout and sustainably improve margins and capital allocation.

Negative Factors

High leverage and weakened equity

Elevated debt several times equity and negative ROE materially constrain financial flexibility. With heavy fixed obligations and reduced equity cushions, the company faces less ability to absorb shocks, limiting strategic optionality for M&A, buybacks or incremental investment without refinancing risk.

Collapsed cash generation

Operating and free cash flow falling to TTM zero is a durable concern: without consistent cash conversion, PENN’s ability to service debt, fund new market launches, or absorb retail seasonality is impaired. Recovery hinges on achieving management’s 2026 FCF targets, otherwise funding strain persists.

Structural drags & volatility (other losses, leases)

A persistent 'other' EBITDA drag and ~ $1.0B of triple‑net lease cash obligations create sizable fixed outflows that reduce margin and FCF upside. Combined with profit volatility from hold rates, new supply, and regulatory uncertainty, these structural drags make sustained, predictable profitability harder to secure.

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 Entertainment generates revenue primarily through its gaming operations, which include traditional casino gaming, online gaming, and sports betting. The company earns money from slot machines, table games, and sports wagering, where it takes a percentage of bets placed. In addition to gaming revenue, PENN also profits from ancillary services such as hotel accommodations, food and beverage sales, and entertainment events hosted at its venues. A significant revenue stream comes from its digital segment, particularly following partnerships with online gaming platforms and its acquisition of Barstool Sports, which enhances its brand presence and audience reach in the sports betting market. PENN's strategic focus on expanding its online and mobile gaming offerings, alongside its physical properties, positions it for sustained growth in the competitive gaming industry.

PENN Entertainment Financial Statement Overview

Summary

Financial statements show a materially weakened profile: TTM profitability deteriorated into sizable operating and net losses with gross margin compression, leverage remains elevated with negative returns on equity, and TTM operating/free cash flow at zero signals reduced financial flexibility despite revenue holding up.

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	0.00	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	0.00	-123.40M	74.00M	605.80M	627.80M
Operating Cash Flow	0.00	359.30M	455.90M	878.20M	896.10M
Investing Cash Flow	0.00	-541.20M	-742.60M	-258.60M	-1.22B
Financing Cash Flow	0.00	-186.50M	-262.60M	-853.00M	339.90M

PENN Entertainment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 15.64 is above the 20-day moving average (MA) of 13.05, above the 50-day MA of 13.83, and below the 200-day MA of 16.30, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 64.15 is Neutral, neither overbought nor oversold. The STOCH value of 82.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$6.28B	3.69	87.98%	0.84%	5.91%	336.91%
RRR	70 Outperform	$6.36B	19.38	88.84%	3.22%	4.69%	15.18%
MGM	62 Neutral	$9.43B	48.80	7.74%	―	0.05%	-94.07%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CHDN	59 Neutral	$6.41B	17.38	36.28%	0.38%	7.97%	-0.14%
PENN	50 Neutral	$2.08B	-2.60	-35.97%	―	8.24%	-77.54%
CZR	50 Neutral	$5.10B	-10.30	-13.11%	―	0.87%	31.28%

PENN Entertainment Corporate Events

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.