PENN Entertainment (PENN) AI Stock Analysis

• Market Cap: $2.95B
• Dividend Yield: N/A
• Average Volume (3M): 3.69M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: 7.34%
• EPS Growth: 93.83%
• Country: US
• Employees: 23,118
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): -0.12
• Shares Outstanding: 146,004,710
• 10 Day Avg. Volume: 3,400,486
• 30 Day Avg. Volume: 3,688,721
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.42
• Enterprise Value/Revenue: 1.96
• Enterprise Value/Gross Profit: 5.49
• Enterprise Value/Ebitda: 15.53
• 1Y Price Target: $22.22
• Price Target Upside: 9.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 57 Neutral
• Price Target: $18.50 ▼(-8.55% Downside)

PENN's overall score reflects financial challenges with high leverage and negative cash flow, offset by positive strategic initiatives and resilience in core segments. The valuation remains a concern, but strategic priorities and growth projects provide some optimism.

Positive Factors

Partnerships

ESPN Partnership Poised to Boost PENN Engagement.

Product Quality

PENN emphasizes improved product quality and location supporting return projections with greater traffic counts at new Joliet and Aurora locations.

Revenue Performance

PENN reported solid Q2 results, with total revenue ahead of expectations while consolidated profitability was slightly below consensus.

Negative Factors

Financial Concerns

PENN's balance sheet remains a key concern in the current macro environment.

Market Saturation

The gaming market is highly saturated with hyper-competitive promotions and pricing, which could constrain potential upside.

Operational Challenges

Higher operating expenses have resulted in lower margins despite better regional revenues.

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 both retail casinos and online gaming. The company's key revenue streams include gaming operations, which encompass earnings from slot machines, table games, sports betting, and other gaming-related activities. Additionally, PENN benefits from food and beverage sales, hotel accommodations, and entertainment events hosted at its venues. The company's partnership with Barstool Sports enhances its online sports betting and iGaming presence, contributing significantly to its revenue growth. PENN's strategic focus on expanding its digital footprint and enhancing customer loyalty programs also plays a critical role in driving profitability.

PENN Entertainment Financial Statement Overview

Summary

PENN National Gaming shows revenue growth but struggles with profitability due to recurring net losses. High leverage on the balance sheet indicates financial risk, and negative free cash flow suggests cash 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	11.01B	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: 20.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 20.23 is above the 20-day moving average (MA) of 18.52, above the 50-day MA of 18.31, and above the 200-day MA of 18.19, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 66.12 is Neutral, neither overbought nor oversold. The STOCH value of 90.88 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	80 Outperform	$6.88B	13.23	36.36%	0.82%	6.40%	26.09%
MGM	65 Neutral	$10.80B	21.87	17.34%	―	0.89%	-31.56%
LNW	62 Neutral	$7.76B	23.41	46.91%	―	3.93%	19.20%
Sector *	61 Neutral	$17.87B	13.25	-4.92%	3.05%	1.25%	-14.67%
WYNN	60 Neutral	$13.18B	37.39	-51.73%	0.79%	-1.94%	-53.90%
PENN	57 Neutral	$2.95B	―	-2.50%	―	7.34%	93.83%
CZR	52 Neutral	$5.57B	―	-4.76%	―	-0.15%	28.05%

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.

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.