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PENN Entertainment
(NASDAQ:PENN)
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Rating:58Neutral
Price Target:
$22.00
▲(7.42% Upside)
Action:Reiterated
Date:06/19/26
The score is held back primarily by weak financial performance (ongoing net losses, leverage, and negative TTM free cash flow) despite strong revenue growth and positive operating cash flow. Technical momentum is supportive with the stock trading above major moving averages, and the earnings call provided a constructive outlook via raised Retail guidance and a clearer path to stronger free cash flow and deleveraging. Valuation remains constrained by losses (negative P/E) and the lack of a dividend.
Positive Factors
Retail segment strength
Sustained Retail profitability and upgraded guidance indicate durable cash generation from brick-and-mortar operations. High adjusted EBITDAR margins (33% in Q1) and upward guidance support long-term free cash flow, funding operations and debt reduction even as digital efforts scale.
Negative Factors
High leverage
Very elevated leverage materially limits financial flexibility and raises refinancing and interest-rate sensitivity. Large interest and principal obligations constrain free cash flow deployment, increasing vulnerability to revenue shocks or prolonged soft results in core retail or interactive segments.
Read all positive and negative factors
Positive Factors
Negative Factors
Retail segment strength
Sustained Retail profitability and upgraded guidance indicate durable cash generation from brick-and-mortar operations. High adjusted EBITDAR margins (33% in Q1) and upward guidance support long-term free cash flow, funding operations and debt reduction even as digital efforts scale.
Read all positive factors
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 (PENN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.75B
Dividend YieldN/A
Average Volume (3M)3.45M
Price to Earnings (P/E)―
Beta (1Y)1.42
Revenue Growth6.38%
EPS Growth-1099.20%
CountryUS
Employees23,441
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)-6.72
Shares Outstanding133,843,370
10 Day Avg. Volume2,715,739
30 Day Avg. Volume3,450,205
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$24.21Price Target Upside18.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)0.9
Revenue Forecast (FY)$7.40B
PENN Entertainment Business Overview & Revenue Model
Company Description
PENN Entertainment, Inc., along with its various subsidiaries, offers a comprehensive range of entertainment, sports media, and casino gaming services across North America. Its operations are segmented into five distinct divisions: Northeast, Sout...
How the Company Makes Money
PENN primarily makes money from (1) its brick-and-mortar gaming and hospitality operations and (2) its interactive (online) gaming operations. In its physical properties, the core revenue driver is casino gaming—slot machines and table games—where...
PENN Entertainment Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed clear operational momentum: record retail results, raised retail guidance, strong liquidity and balance sheet improvements, meaningful progress toward Interactive profitability, and successful ramp of multiple development projects. Short-term Interactive headwinds (modest revenue guide trim, Q3 Alberta investment-driven loss, occasional sportsbook hold volatility) and an aggressive upcoming marketing environment are risks but are being actively managed. On balance, the positive operational execution, guidance raise in retail, and strengthened balance sheet outweigh the interactive and market-competition challenges.Positive Updates
Record Retail Performance
Retail segment generated record Q2 net revenues of $1.5 billion and adjusted EBITDAR of $517.2 million, representing ~4% revenue growth and ~6% adjusted EBITDAR growth year-over-year. Adjusted EBITDA margins were 34.4%; same-store revenues and adjusted EBITDAR grew ~2% and ~4%, respectively. Nine properties set Q2 records for both revenues and adjusted EBITDAR.
Negative Updates
Interactive Revenue Guidance Trim
Interactive revenue guidance was reduced to $1.57 billion from $1.6 billion (~$30 million or ~1.9% reduction). Management cited customer‑friendly sportsbook outcomes and lower volumes (partly due to reduced marketing to lower‑value segments) as drivers of the shortfall; skin tax gross-up was also revised up slightly to roughly $830 million (from $820 million).
Read all updates
Q2-2026 Updates
Positive
Negative
Record Retail Performance
Retail segment generated record Q2 net revenues of $1.5 billion and adjusted EBITDAR of $517.2 million, representing ~4% revenue growth and ~6% adjusted EBITDAR growth year-over-year. Adjusted EBITDA margins were 34.4%; same-store revenues and adjusted EBITDAR grew ~2% and ~4%, respectively. Nine properties set Q2 records for both revenues and adjusted EBITDAR.
Read all positive updates
Company Guidance
PENN reiterated and refined full‑year 2026 targets: Retail posted Q2 net revenue of $1.5B and adjusted EBITDAR of $517.2M (adjusted EBITDA margin 34.4%), with same‑store revenue and EBITDAR up ~2% and ~4%; management raised 2026 retail guidance to a midpoint revenue of $5.87B and midpoint adjusted EBITDAR of $1.963B (implying ~50 bps margin improvement in H2 and mid‑single‑digit retail EBITDAR growth roughly in line with the 5.6% Q2 pace), and said a $31M uplift at the retail midpoint flows fully to cash to accelerate deleveraging; Interactive revenue guidance was trimmed to $1.57B (including a skin‑tax gross‑up of ~ $830M vs. $820M prior; Q2 interactive revenue was $349.4M including a $185.5M gross‑up) while Interactive adjusted EBITDA guidance remains a $20M loss for 2026 (inclusive of a ~$20M Alberta investment; Q2 adjusted EBITDA loss was $9.5M, Q3 flagged as the largest loss, Q4 expected positive), Other adjusted EBITDA is guided to negative $119M; CapEx: Q2 total CapEx $98M (project CapEx $58M), 2026 maintenance CapEx $220M and project CapEx refined to $180M (total 2026 CapEx guidance $400M, down from $420M); liquidity and financing: total liquidity $1.9B (cash $887M), revolver undrawn and refinanced, Term A and revolver now maturing 2031, Term B repriced to 2033, $106.7M convertible notes repaid (removing 4.5M potential shares), ~$225M GLPI funding for Aurora, nearest maturity $400M 5‑5/8% notes due Jan‑2027; other cash outlook items include triple‑net lease payments ~$1B, cash interest (net) ~$150M, and PENN does not expect to be a cash taxpayer in 2026 (Q2 OSB hold negatively impacted results by roughly $3M; World Cup drove engagement with ~70% of sportsbook users wagering and ~45% of those betting soccer for the first time).PENN Entertainment Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
24
Negative
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.07B | 6.96B | 6.58B | 6.36B | 6.40B | 5.91B |
| Gross Profit | 2.10B | 1.91B | 2.16B | 2.36B | 2.77B | 2.76B |
| EBITDA | -121.90M | 32.00M | 562.80M | 400.20M | 1.50B | 1.45B |
| Net Income | -957.30M | -843.10M | -311.50M | -490.00M | 222.10M | 420.80M |
Balance Sheet | ||||||
| Total Assets | 14.12B | 14.27B | 15.26B | 16.06B | 17.50B | 16.87B |
| Cash, Cash Equivalents and Short-Term Investments | 708.00M | 686.60M | 706.60M | 1.07B | 1.62B | 1.86B |
| Total Debt | 8.26B | 8.38B | 11.25B | 11.54B | 12.91B | 11.61B |
| Total Liabilities | 12.30B | 12.44B | 12.40B | 12.86B | 13.91B | 12.78B |
| Stockholders Equity | 1.83B | 1.83B | 2.86B | 3.20B | 3.60B | 4.10B |
Cash Flow | ||||||
| Free Cash Flow | -57.70M | -139.50M | -123.40M | 74.00M | 605.80M | 627.80M |
| Operating Cash Flow | 588.70M | 508.20M | 359.30M | 455.90M | 878.20M | 896.10M |
| Investing Cash Flow | -299.90M | -351.10M | -541.20M | -742.60M | -258.60M | -1.22B |
| Financing Cash Flow | -156.40M | -165.60M | -186.50M | -262.60M | -853.00M | 339.90M |
PENN Entertainment Technical Analysis
Neutral
20.48
Price Trends
20.60
Negative
18.14
Positive
16.32
Positive
Market Momentum
-0.11
Positive
40.86
Neutral
8.56
Positive
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 20.48 is below the 20-day moving average (MA) of 20.65, below the 50-day MA of 20.60, and above the 200-day MA of 16.32, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 40.86 is Neutral, neither overbought nor oversold. The STOCH value of 8.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $6.18B | 3.74 | 70.49% | 0.87% | 1.75% | 249.96% | |
70 Outperform | $5.88B | 14.41 | 36.57% | 0.51% | 5.73% | -0.56% | |
70 Outperform | $6.72B | 15.42 | 96.22% | 3.18% | 3.75% | 20.20% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $2.75B | -3.06 | -44.48% | ― | 6.38% | -1099.20% | |
58 Neutral | $11.21B | 26.69 | 16.96% | ― | 3.19% | -8.14% | |
55 Neutral | $6.06B | -13.05 | -12.62% | ― | 2.41% | -146.70% |
* Consumer Cyclical Sector Average
PENN
PENN Entertainment
19.62
2.70
15.96%
BYD
Boyd Gaming
84.32
2.92
3.59%
CHDN
Churchill Downs
86.41
-15.36
-15.10%
MGM
MGM Resorts
44.51
9.80
28.23%
CZR
Caesars Entertainment
30.10
5.96
24.69%
RRR
Red Rock Resorts
60.97
6.18
11.27%
PENN Entertainment Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
PENN Shareholders Approve Directors and Governance Changes
Positive
Jun 18, 2026
PENN Entertainment, Inc. held its 2026 Annual Meeting of Shareholders on June 16, 2026, with 116,378,236 common shares represented in person or by proxy. Shareholders elected Class III directors Marla Kaplowitz, Jane Scaccetti, Fabio Schiavolin an...
Business Operations and StrategyPrivate Placements and Financing
PENN Entertainment Extends and Lowers Cost of Term Loan
Positive
May 28, 2026
On May 28, 2026, PENN Entertainment amended its existing credit agreement to reprice and extend its $962.5 million term loan B facility, now maturing in May 2033. The amendment lowers interest rate margins on the term loan B from 2.50% to 2.00% fo...
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.