Caesars Entertainment Inc.
Find Ratings ReportsCAESARS ENTERTAINMENT INC's gross profit margin for the fourth quarter of its fiscal year 2023 has decreased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its subsector. CAESARS ENTERTAINMENT INC has weak liquidity. Currently, the Quick Ratio is 0.65 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 22.59% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 2825.0 | 2821.0 |
EBITDA ($mil) | 900.0 | 919.0 |
EBIT ($mil) | 582.0 | 624.0 |
Net Income ($mil) | -72.0 | -148.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 1127.0 | 1169.0 |
Total Assets ($mil) | 33366.0 | 33527.0 |
Total Debt ($mil) | 25799.0 | 26137.0 |
Equity ($mil) | 4552.0 | 3713.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 51.08 | 53.88 |
EBITDA Margin | 31.85 | 32.57 |
Operating Margin | 20.6 | 22.12 |
Sales Turnover | 0.35 | 0.32 |
Return on Assets | 2.35 | -2.68 |
Return on Equity | 17.27 | -13.82 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.76 | 0.79 |
Debt/Capital | 0.85 | 0.88 |
Interest Expense | 596.0 | 596.0 |
Interest Coverage | 0.98 | 1.05 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 215.8 | 214.67 |
Div / share | 0.0 | 0.0 |
EPS | -0.34 | -0.7 |
Book value / share | 21.09 | 17.3 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 3184440.0 | 3311841.0 |
HOLD. CAESARS ENTERTAINMENT INC's P/E ratio indicates a significant discount compared to an average of 36.42 for the Amusement, Gambling, and Recreation Industries subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 1.89 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 13.29. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, CAESARS ENTERTAINMENT INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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CZR 11.00 | Peers 36.42 | CZR 4.76 | Peers 9.66 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. CZR is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. CZR is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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CZR 17.13 | Peers 28.70 | CZR NM | Peers 2.56 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations. CZR is trading at a valuation on par with its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. CZR's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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CZR 1.89 | Peers 13.29 | CZR 250.62 | Peers 94.00 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. CZR is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. CZR is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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CZR 0.75 | Peers 3.05 | CZR 6.53 | Peers 26.45 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. CZR is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. CZR significantly trails its peers on the basis of sales growth. |
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