PENN Entertainment (PENN)
NASDAQ:PENN
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PENN Entertainment
(NASDAQ:PENN)
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Rating:51Neutral
Price Target:
$22.00
▲(38.80% Upside)
Action:Reiterated
Date:05/29/26
The score is held back primarily by weak profitability, negative free cash flow in the TTM period, and high leverage despite strong revenue growth. Guidance and management commentary were constructive (raised Retail outlook, clearer FCF/deleveraging trajectory), and the technical trend is positive, but momentum appears overbought and valuation is constrained by ongoing losses and no provided dividend yield.
Positive Factors
Retail segment strength
PENN's core brick-and-mortar business is producing durable cash profits and operating leverage: a 33.2% Q1 Retail adjusted EBITDAR margin and a raised Retail revenue/EBITDAR guide point to sustained margin capture from properties, supporting long-term cash generation and funding of expansion or deleveraging.
Negative Factors
High leverage
PENN's capital structure is highly leveraged, which constrains strategic optionality and increases sensitivity to revenue volatility or rate moves. Even with recent refinancings, elevated gross debt relative to equity and targeted mid‑single digit leverage reductions leave the company exposed to macro or operational shocks over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Retail segment strength
PENN's core brick-and-mortar business is producing durable cash profits and operating leverage: a 33.2% Q1 Retail adjusted EBITDAR margin and a raised Retail revenue/EBITDAR guide point to sustained margin capture from properties, supporting long-term cash generation and funding of expansion or deleveraging.
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
$2.90B
Dividend YieldN/A
Average Volume (3M)3.43M
Price to Earnings (P/E)―
Beta (1Y)1.51
Revenue Growth6.38%
EPS Growth-1099.20%
CountryUS
Employees23,118
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)-6.72
Shares Outstanding133,843,370
10 Day Avg. Volume3,668,686
30 Day Avg. Volume3,431,124
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 Cap3.47
Enterprise Value/Revenue1.43
Enterprise Value/Gross Profit4.80
Enterprise Value/Ebitda-82.62
Forecast
1Y Price Target
$20.11Price Target Upside26.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)0.75
Revenue Forecast (FY)$7.36B
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:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call highlights a clear operational rebound in Retail, meaningful margin and cost improvements in Interactive, tightened capital allocation and a credible deleveraging/liquidity plan. Key near‑term negatives are an expected $20 million Interactive drag from the Alberta launch, softness in OSB volumes/MAUs and some one‑time items and regulatory uncertainties. Overall the positives — stronger Retail results, Interactive momentum (outside Alberta), material marketing efficiencies, reduced CapEx and a pathway to stronger free cash flow and lower leverage — outweigh the manageable near‑term headwinds.Positive Updates
Retail Segment Strong Quarter and Raised Guidance
Retail revenue of $1.4 billion in Q1 with adjusted EBITDAR of $471.4 million and segment adjusted EBITDAR margin of 33.2%. Company raised 2026 Retail guidance midpoint by $20 million (revenue) and $12 million (adjusted EBITDAR); new full-year Retail revenue range $5.73–$5.86 billion and adjusted EBITDAR range $1.88–$1.98 billion.
Negative Updates
Interactive Segment Still Loss-Making in 2026 (Alberta Impact)
Interactive reported an adjusted EBITDA loss of $10.8 million in Q1 and company now guides to an adjusted EBITDA loss of $20 million for full‑year 2026, entirely attributable to the planned Alberta launch (expected ~$20 million loss in 2026). Q3 will be the largest quarterly loss due to launch-related promotional spending.
Read all updates
Q1-2026 Updates
Positive
Negative
Retail Segment Strong Quarter and Raised Guidance
Retail revenue of $1.4 billion in Q1 with adjusted EBITDAR of $471.4 million and segment adjusted EBITDAR margin of 33.2%. Company raised 2026 Retail guidance midpoint by $20 million (revenue) and $12 million (adjusted EBITDAR); new full-year Retail revenue range $5.73–$5.86 billion and adjusted EBITDAR range $1.88–$1.98 billion.
Read all positive updates
Company Guidance
PENN raised the midpoint of its 2026 Retail guide after a strong Q1 — Retail revenue now guided to $5.73–$5.86 billion (midpoint up $20M) with adjusted EBITDAR $1.88–$1.98 billion (midpoint up $12M); Q1 Retail was $1.4 billion of revenue, $471.4 million of adjusted EBITDAR and a 33.2% segment adjusted EBITDAR margin (including a ~$5M one‑time benefit). Interactive 2026 revenue is now expected to be about $1.6 billion (including an estimated $820M tax gross‑up) with an adjusted EBITDA loss of $20M (entirely attributable to the Alberta launch); Q1 Interactive was $358.3M of revenue (including a $185.8M tax gross‑up) and a $10.8M adjusted EBITDA loss, with Q2/Q3 expected to show small losses (Q3 largest due to Alberta) and Q4 profitable, and 2027 expected to be profitable. Companywide 2026 CapEx is now $420M (project CapEx $200M, maintenance $220M), Q1 CapEx was $95M ($65M project), the four development projects have aggregate project cost of $800M net of Aurora’s 50% contribution and target 15%+ cash‑on‑cash returns, total cash payments under triple‑net leases are expected to be $1.0B, net cash interest is guided to ~$150M, PENN does not expect to be a cash taxpayer in 2026, it ended Q1 with ~$1.7B of liquidity and issued $600M of 6.75% notes, expects to delever lease‑adjusted net leverage into a ~5.3x–5.7x range (at least one full turn down) and cut traditional net leverage by ~2 turns by year‑end, and forecasts $3+ of free cash flow per share in 2026 (implying roughly a 20% FCF yield at current ~$15 share price).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
Positive
15.85
Price Trends
17.23
Positive
15.53
Positive
15.98
Positive
Market Momentum
1.21
Negative
73.08
Negative
87.98
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 15.85 is below the 20-day moving average (MA) of 18.78, below the 50-day MA of 17.23, and below the 200-day MA of 15.98, indicating a bullish trend. The MACD of 1.21 indicates Negative momentum. The RSI at 73.08 is Negative, neither overbought nor oversold. The STOCH value of 87.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $6.59B | 19.73 | 96.22% | 3.22% | 3.75% | 20.20% | |
68 Neutral | $6.50B | 3.65 | 79.86% | 0.84% | 3.45% | 272.47% | |
66 Neutral | $6.06B | 15.78 | 36.88% | 0.38% | 5.75% | -4.30% | |
63 Neutral | $6.01B | -12.40 | -13.29% | ― | 2.35% | -116.00% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $12.53B | 68.66 | 6.96% | ― | 3.39% | -67.21% | |
51 Neutral | $2.90B | -3.02 | -44.48% | ― | 6.38% | -1099.20% |
* Consumer Cyclical Sector Average
PENN
PENN Entertainment
21.68
5.19
31.47%
BYD
Boyd Gaming
87.46
13.21
17.79%
CHDN
Churchill Downs
86.94
-10.08
-10.39%
MGM
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48.97
14.67
42.77%
CZR
Caesars Entertainment
29.49
3.24
12.34%
RRR
Red Rock Resorts
63.11
14.56
30.00%
PENN Entertainment Corporate Events
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...
Business Operations and StrategyPrivate Placements and Financing
PENN Entertainment Refinances Credit Facilities, Extends Debt Maturities
Positive
Apr 16, 2026
On April 16, 2026, PENN Entertainment, Inc. amended its existing credit agreement to refinance and extend the maturities of its $1.0 billion revolving credit facility and $446.9 million term loan A, now collectively referred to as the 2026 Facilit...
Business Operations and StrategyPrivate Placements and Financing
PENN Entertainment Completes $600 Million Senior Notes Offering
Positive
Mar 16, 2026
On March 16, 2026, PENN Entertainment closed a $600 million private offering of 6.750% senior notes due 2031, issued at par, with interest payable semi-annually and maturity on April 1, 2031. The company plans to use the proceeds primarily to repa...
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.