PENN Entertainment (PENN) AI Stock Analysis

• Market Cap: $1.88B
• 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: 3,291,665
• 30 Day Avg. Volume: 3,784,895
• 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: 5.55
• Enterprise Value/Revenue: 1.53
• Enterprise Value/Gross Profit: 4.78
• Enterprise Value/Ebitda: -2.61K
• 1Y Price Target: $20.38
• Price Target Upside: 41.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): -4.48
• Revenue Forecast (FY): $6.91B

• Rating: 47 Neutral
• Price Target: $14.00 ▼(-2.57% Downside)

PENN Entertainment's overall stock score reflects significant financial challenges and valuation concerns, which are the most impactful factors. While there are promising signs in digital growth and strategic realignment, the company's high leverage and ongoing losses weigh heavily on its prospects. Technical indicators suggest weak momentum, and the lack of a dividend yield further detracts from its appeal.

Positive Factors

Digital Growth

Digital channels driving customer growth indicate a successful strategy in attracting a younger demographic, enhancing long-term revenue potential.

iCasino Revenue Increase

Strong iCasino revenue growth suggests robust demand and effective cross-selling, supporting sustained profitability in the digital segment.

Rebranding Strategy

Rebranding to theScore Bet reflects strategic focus on proprietary platforms, potentially improving brand identity and market positioning.

Negative Factors

High Leverage

High leverage can strain financial flexibility, increasing vulnerability to economic downturns and limiting growth opportunities.

Interactive Segment Losses

Losses in the interactive segment highlight operational challenges and competitive pressures, impacting overall profitability.

Operational Inefficiencies

Operational inefficiencies leading to negative margins suggest the need for improved cost management to achieve financial stability.

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	-204.50M	-123.40M	74.00M	605.80M	627.80M	197.00M
Operating Cash Flow	503.10M	359.30M	455.90M	878.20M	896.10M	338.80M
Investing Cash Flow	-531.80M	-541.20M	-742.60M	-258.60M	-1.22B	-233.70M
Financing Cash Flow	-139.70M	-186.50M	-262.60M	-853.00M	339.90M	1.31B

PENN Entertainment Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.37
• 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 14.37 is above the 20-day moving average (MA) of 14.17, below the 50-day MA of 15.44, and below the 200-day MA of 16.84, indicating a neutral trend. The MACD of -0.39 indicates Negative momentum. The RSI at 47.13 is Neutral, neither overbought nor oversold. The STOCH value of 59.89 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	$8.15B	21.30	37.56%	0.37%	7.97%	-0.14%
BYD	71 Outperform	$6.64B	3.72	87.17%	0.84%	5.91%	336.91%
RRR	71 Outperform	$6.63B	22.20	96.16%	3.27%	4.69%	15.18%
MGM	63 Neutral	$10.08B	227.24	2.25%	―	0.05%	-94.07%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CZR	51 Neutral	$4.88B	-20.67	-6.06%	―	0.87%	31.28%
PENN	47 Neutral	$1.88B	-2.26	-35.97%	―	8.24%	-77.54%

PENN Entertainment Corporate Events

PENN Entertainment Litigation Committee Report Filed

On November 26, 2025, PENN Entertainment, Inc. filed a report with the U.S. District Court for the Eastern District of Pennsylvania regarding a special litigation committee’s investigation into claims by HG Vora Capital Management. The committee, composed of independent individuals, determined that PENN’s Board acted in good faith and in the company’s best interests when it reduced the number of directors. The committee concluded that pursuing the derivative claims would not benefit PENN.

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.