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Caesars Entertainment Corp
CZR : NASDAQ : Services
$17.13 0.82 | 5.03%
Today's Range: 16.25 - 17.39
Avg. Daily Volume: 1,659,400
11/26/14 - 4:00 PM ET

Financial Analysis


CAESARS ENTERTAINMENT CORP's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line.

At the same time, stockholders' equity ("net worth") has significantly decreased by 154.14% from the same quarter last year.

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Income Statement Q3 FY14 Q3 FY13
Net Sales ($mil)2212.42180.1
EBITDA ($mil)0.0466.4
EBIT ($mil)947.5294.3
Net Income ($mil)-908.1-761.2


Balance Sheet Q3 FY14 Q3 FY13
Cash & Equiv. ($mil)3243.91831.3
Total Assets ($mil)24491.526096.4
Total Debt ($mil)23029.521340.2
Equity ($mil)-4012.2-1578.7


Profitability Q3 FY14 Q3 FY13
Gross Profit Margin50.3251.89
EBITDA Margin0.021.39
Operating Margin0.013.5
Sales Turnover0.350.32
Return on Assets-14.36-6.4
Return on Equity0.00.0
Debt Q3 FY14 Q3 FY13
Current Ratio1.491.3
Debt/Capital1.211.08
Interest Expense708.3562.9
Interest Coverage1.340.52


Share Data Q3 FY14 Q3 FY13
Shares outstanding (mil)142.0126.5
Div / share0.00.0
EPS-5.96-6.12
Book value / share-28.25-12.48
Institutional Own % n/a n/a
Avg Daily Volume1579176.01123205.0

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Along with this, the price-to-book ratio is also meaningless due to a negative book value for the company, making any comparisons useless. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CZR NM Peers 29.96   CZR NA Peers 24.69

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

CZR's P/E is negative making this valuation measure meaningless.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CZR NM Peers 27.77   CZR NA Peers 1.19

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

CZR's ratio is negative making this valuation measure meaningless.

 

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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CZR NM Peers 14.30   CZR -89.81 Peers 2784.20

Neutral. 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's P/B is negative making this valuation measure meaningless.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, CZR is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CZR 0.25 Peers 2.94   CZR 1.45 Peers 20.74

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 industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

CZR significantly trails its peers on the basis of sales growth

 

 

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