PENN Entertainment (PENN) AI Stock Analysis

• Market Cap: $1.96B
• Dividend Yield: N/A
• Average Volume (3M): 3.78M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• 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): -6.03
• Shares Outstanding: 132,870,030
• 10 Day Avg. Volume: 3,708,546
• 30 Day Avg. Volume: 3,776,541
• PEG Ratio: 0.27
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.46
• P/FCF Ratio: -24.43
• Enterprise Value/Market Cap: 6.76
• Enterprise Value/Revenue: 1.94
• Enterprise Value/Gross Profit: 6.06
• Enterprise Value/Ebitda: -3.31K
• 1Y Price Target: $21.00
• Price Target Upside: 42.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): -4.07
• Revenue Forecast (FY): $6.92B

• Rating: 45 Neutral
• Price Target: $18.00 ▲(22.20% Upside)

PENN Entertainment's overall stock score is primarily influenced by its financial performance and technical analysis. The company faces significant challenges with profitability and leverage, reflected in its financial performance score. Technical indicators suggest bearish momentum, further impacting the stock's attractiveness. Valuation concerns, including a negative P/E ratio, also weigh on the score. Despite some positive developments in the digital segment, the overall outlook remains cautious.

Positive Factors

Digital Growth

The significant growth in digital channels indicates a successful strategy in attracting a younger demographic, enhancing cross-sell opportunities, and potentially increasing long-term revenue streams.

iCasino Business Expansion

The robust growth in the iCasino segment suggests strong market demand and effective cross-selling strategies, which can drive sustained revenue growth and strengthen market position.

Successful Casino Launch

The successful launch of the Joliet casino reflects effective market entry strategies and can enhance local market share, contributing to long-term revenue stability and growth.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities or weather economic downturns.

Interactive Segment Losses

Losses in the interactive segment highlight challenges in achieving profitability, which may require strategic adjustments to improve financial performance and competitiveness.

Increased Competition

Rising competition and promotional costs can pressure margins and market share, necessitating strategic responses to maintain competitive positioning and profitability.

PENN Entertainment Business Overview & Revenue Model

Company Description

PENN Entertainment, Inc. is a leading provider of integrated entertainment and gaming experiences across the United States. The company operates a diverse portfolio of casinos and racetracks, along with online gaming and sports betting platforms. PENN focuses on delivering high-quality experiences through its properties, which include hotels, gaming facilities, and entertainment venues, while leveraging digital technologies to enhance customer engagement and expand its reach in the rapidly evolving gaming landscape.

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

PENN Entertainment shows moderate revenue growth but faces significant profitability and leverage challenges. High debt levels and negative profitability metrics suggest financial instability, while cash flow management remains a concern. The company needs to focus on improving profitability and reducing leverage to enhance financial health.

Income Statement

PENN Entertainment shows moderate revenue growth with a TTM increase of 1.54%. However, the company struggles with profitability, as indicated by a negative net profit margin of -1.12% and a declining gross profit margin. The EBIT and EBITDA margins have improved slightly in the TTM, but overall profitability remains a concern.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 3.71, indicating significant reliance on debt financing. Return on equity is negative, reflecting challenges in generating profits from shareholders' equity. The equity ratio is relatively low, suggesting potential financial instability.

Cash Flow

Cash flow analysis shows improvement in operating cash flow, but free cash flow remains negative, indicating potential liquidity issues. The operating cash flow to net income ratio is positive, but the free cash flow to net income ratio is negative, highlighting cash flow management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.82B	6.58B	6.36B	6.40B	5.91B	3.58B
Gross Profit	2.18B	2.16B	2.36B	2.77B	2.76B	1.71B
EBITDA	-4.00M	562.80M	400.20M	1.50B	1.45B	76.60M
Net Income	-903.50M	-311.50M	-490.00M	222.10M	420.80M	-669.50M
Balance Sheet
Total Assets	14.31B	15.26B	16.06B	17.50B	16.87B	14.67B
Cash, Cash Equivalents and Short-Term Investments	690.90M	706.60M	1.07B	1.62B	1.86B	1.85B
Total Debt	11.17B	11.25B	11.54B	12.91B	11.61B	11.16B
Total Liabilities	12.36B	12.40B	12.86B	13.91B	12.78B	12.01B
Stockholders Equity	1.96B	2.86B	3.20B	3.60B	4.10B	2.66B
Cash Flow
Free Cash Flow	-203.50M	-123.40M	74.00M	605.80M	627.80M	197.00M
Operating Cash Flow	322.20M	359.30M	455.90M	878.20M	896.10M	338.80M
Investing Cash Flow	-501.00M	-541.20M	-742.60M	-258.60M	-1.22B	-233.70M
Financing Cash Flow	17.60M	-186.50M	-262.60M	-853.00M	339.90M	1.31B

PENN Entertainment Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PENN, the sentiment is Neutral. The current price of 14.73 is below the 20-day moving average (MA) of 14.95, below the 50-day MA of 16.84, and below the 200-day MA of 17.33, indicating a bearish trend. The MACD of -0.81 indicates Negative momentum. The RSI at 43.47 is Neutral, neither overbought nor oversold. The STOCH value of 53.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PENN.

PENN Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHDN	73 Outperform	$7.51B	19.62	37.56%	0.39%	7.97%	-0.14%
BYD	71 Outperform	$6.51B	3.65	87.17%	0.85%	5.91%	336.91%
RRR	71 Outperform	$6.23B	20.84	96.16%	3.42%	4.69%	15.18%
MGM	63 Neutral	$9.34B	214.31	2.25%	―	0.05%	-94.07%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CZR	51 Neutral	$4.68B	―	-6.06%	―	0.87%	31.28%
PENN	45 Neutral	$1.96B	―	-35.97%	―	8.24%	-77.54%

PENN Entertainment Corporate Events

PENN Entertainment Shifts Digital Strategy Post-ESPN Termination

PENN Entertainment, Inc. operates a diverse portfolio of casinos, racetracks, and online sports betting and iCasino offerings across North America, leveraging its market-leading retail casinos and digital platforms to drive growth.

PENN Entertainment Ends ESPN Sportsbook Agreement

On November 6, 2025, PENN Entertainment and ESPN announced the early termination of their sportsbook agreement, effective December 1, 2025. This decision marks a strategic shift for PENN, which will rebrand its sportsbook to ‘theScore Bet’ and focus on leveraging its U.S. iCasino and Canadian operations. The termination involves a $38.1 million payment to ESPN and a $5 million post-termination media support payment. ESPN agreed not to license or operate the ‘ESPN BET’ brand in the U.S. for 15 months post-termination. Additionally, PENN announced a new $750 million share repurchase program starting January 1, 2026, reflecting its commitment to enhancing shareholder value.

The most recent analyst rating on (PENN) stock is a Buy with a $18.01 price target. To see the full list of analyst forecasts on PENN Entertainment stock, see the PENN Stock Forecast page.

PENN Entertainment Reports Strong Q2 2025 Results

PENN Entertainment, Inc. is a leading provider of integrated entertainment, sports content, and casino gaming experiences across North America, operating a diverse portfolio of casinos, racetracks, and online betting platforms under well-recognized brands.