PENN Entertainment (PENN) AI Stock Analysis

• Market Cap: $2.72B
• Dividend Yield: N/A
• Average Volume (3M): 4.57M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.58
• Revenue Growth: 5.51%
• EPS Growth: 92.46%
• Country: US
• Employees: 23,118
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.68
• Shares Outstanding: 150,621,490
• 10 Day Avg. Volume: 4,170,575
• 30 Day Avg. Volume: 4,567,219
• PEG Ratio: -0.45
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.90
• Enterprise Value/Market Cap: 5.91
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 6.76
• Enterprise Value/Ebitda: 13.70
• 1Y Price Target: $22.89
• Price Target Upside: 24.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 58 Neutral
• Price Target: $19.00 ▲(3.66%Upside)

PENN's stock score is primarily affected by its financial performance, marked by profitability challenges and high leverage. Technical analysis provides a moderately positive outlook, while valuation remains a concern due to negative earnings. Corporate strategies and earnings call insights offer potential for future improvement.

Positive Factors

Consumer Trends

Consumer trends were healthy, growing in markets with and without new competition.

Growth Projects

Four new projects such as Hollywood Aurora and M Resort hotel are expected to provide a positive impact on estimates and sentiment.

Product Improvements

Product improvements to OSB with ESPN Bet recently launching the Mint Club rewards program.

Negative Factors

Earnings Miss

1Q adj. EBITDAR results missed consensus estimates by -6% with lower than expected results for both property level and interactive EBITDAR.

Financial Outlook

The weaker trends in Regional revenues contribute to a softer financial outlook for the company.

Guidance

Lower than expected guidance for 2025 with deeper than expected losses at interactive.

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 National Gaming generates revenue through several key streams. The primary source is its network of land-based casinos and racetracks, where it collects income from gaming operations, including slot machines, table games, and sports betting. Additionally, the company has a significant online presence, earning money through its digital gaming and sports betting platforms. Penn National has leveraged strategic partnerships, such as its collaboration with Barstool Sports, to expand its brand and enhance its digital offerings. Revenue is also supplemented by food, beverage, and hospitality services provided at its various properties, contributing to a well-rounded income model.

PENN Entertainment Financial Statement Overview

Summary

Penn National Gaming shows revenue growth but struggles with profitability, evidenced by negative net profit margins and high leverage. Operational challenges are indicated by modest EBIT and EBITDA margins, while high debt levels and negative free cash flow suggest financial pressures.

Income Statement

The income statement shows a mixed performance with a notable revenue growth from 2020 to 2025, but profitability is a concern. While gross profit margins have been relatively stable, the net profit margin is negative in the TTM period due to a net loss. The EBIT and EBITDA margins are modest, indicating operational challenges.

Balance Sheet

The balance sheet indicates high leverage with a significant debt-to-equity ratio, reflecting potential financial risk. While the equity ratio remains relatively stable, the return on equity is currently negative due to recent net losses. This highlights pressure on the company's financial stability.

Cash Flow

Cash flow analysis reveals a concerning trend of negative free cash flow in the TTM period, although operating cash flow exceeds net income, indicating positive cash generation from operations. However, the free cash flow to net income ratio is negative, suggesting cash pressures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.64B	6.58B	6.36B	6.40B	5.91B	3.58B
Gross Profit	2.38B	2.16B	1.93B	2.77B	2.76B	1.71B
EBITDA	840.50M	562.80M	400.20M	1.63B	1.45B	196.90M
Net Income	-85.00M	-311.50M	-490.00M	222.10M	420.80M	-669.10M
Balance Sheet
Total Assets	15.09B	15.26B	16.06B	17.50B	16.87B	14.67B
Cash, Cash Equivalents and Short-Term Investments	591.60M	706.60M	1.07B	1.62B	1.86B	1.85B
Total Debt	8.38B	11.25B	11.54B	12.91B	11.61B	11.16B
Total Liabilities	12.12B	12.40B	12.86B	13.91B	12.78B	12.01B
Stockholders Equity	2.97B	2.86B	3.20B	3.60B	4.10B	2.66B
Cash Flow
Free Cash Flow	-137.30M	-123.40M	74.00M	605.80M	627.80M	197.00M
Operating Cash Flow	469.90M	359.30M	455.90M	878.20M	896.10M	338.80M
Investing Cash Flow	-629.80M	-541.20M	-742.60M	-258.60M	-1.22B	-233.70M
Financing Cash Flow	-151.80M	-183.10M	-262.60M	-853.00M	339.90M	1.31B

PENN Entertainment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 18.33 is above the 20-day moving average (MA) of 18.06, above the 50-day MA of 16.67, and above the 200-day MA of 18.29, indicating a bullish trend. The MACD of 0.38 indicates Positive momentum. The RSI at 57.16 is Neutral, neither overbought nor oversold. The STOCH value of 46.07 is Neutral, 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	80 Outperform	$6.69B	13.42	35.62%	0.85%	6.06%	10.05%
LNW	77 Outperform	$8.24B	26.12	46.19%	―	7.26%	54.83%
MGM	71 Outperform	$10.12B	16.65	21.38%	―	2.76%	-14.31%
WYNN	69 Neutral	$11.16B	29.14	-51.73%	0.94%	-0.08%	-48.66%
Sector *	65 Neutral	€20.27B	8.70	7.83%	3.73%	0.45%	-40.36%
CZR	64 Neutral	$6.22B	―	-5.56%	―	-1.25%	-130.83%
PENN	58 Neutral	$2.72B	―	-2.81%	―	5.51%	92.46%

PENN Entertainment Corporate Events

PENN National Gaming Elects New Board Directors

On June 17, 2025, PENN Entertainment held its Annual Meeting of Shareholders, where Johnny Hartnett and Carlos Ruisanchez were elected as directors to the Board. The company also ratified the appointment of PricewaterhouseCoopers LLP as its independent registered public accounting firm for the 2025 fiscal year. The Board emphasized its commitment to its omni-channel strategy and long-term value creation, focusing on profitability in its Interactive segment and growth across the business. The company aims to strengthen its balance sheet, enhance liquidity, and engage with shareholders to align strategic priorities.

The most recent analyst rating on (PENN) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Penn National Gaming stock, see the PENN Stock Forecast page.

PENN Entertainment to Repurchase Convertible Senior Notes

On June 13, 2025, PENN Entertainment, Inc. entered into agreements to repurchase approximately $223.8 million of its 2.75% Convertible Senior Notes due 2026. The transactions, expected to close on June 20, 2025, will result in a total purchase price of approximately $230.9 million, reducing the outstanding notes to about $106.7 million. HudsonWest LLC served as the exclusive financial advisor for these transactions.

The most recent analyst rating on (PENN) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Penn National Gaming stock, see the PENN Stock Forecast page.

PENN Entertainment Highlights Strategic Priorities in Shareholder Letter

On May 15, 2025, PENN Entertainment issued a letter to shareholders highlighting its strategic priorities and recent performance. The company is focused on enhancing shareholder value through its omni-channel strategy, which integrates digital and retail operations to capture market growth. PENN’s efforts include engaging with HG Vora Capital Management to resolve differences, expanding its customer base, and improving profitability in its Interactive segment. The company reported significant growth in its digital customer base and revenue, with expectations of profitability in the Interactive segment by the end of 2025. PENN also plans to reduce leverage and return capital to shareholders, demonstrating a commitment to financial stability and shareholder engagement.

The most recent analyst rating on (PENN) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Penn National Gaming stock, see the PENN Stock Forecast page.

PENN Entertainment Announces Board Changes and New Nominations

On April 25, 2025, PENN Entertainment announced significant changes to its Board of Directors, with Ronald J. Naples resigning and Barbara Shattuck Kohn and Saul Reibstein deciding not to seek reelection at the upcoming annual meeting. The Board, now reduced to eight members, plans to nominate Johnny Hartnett and Carlos Ruisanchez, who bring valuable industry expertise, to fill the vacancies. These changes are part of PENN’s strategy to enhance value creation, particularly in its Interactive segment, while avoiding a proxy fight. The company remains focused on growth opportunities and maintaining strong shareholder engagement.