Caesars Entertainment Corp

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CZR : NASDAQ : Services
$10.5 up 0.5 | 5.0%
Today's Range: 10.05 - 10.55
Avg. Daily Volume: 922900.0
04/26/17 - 4:00 PM ET

Financial Analysis


CAESARS ENTERTAINMENT CORP's gross profit margin for the fourth quarter of its fiscal year 2016 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. CAESARS ENTERTAINMENT CORP has weak liquidity. Currently, the Quick Ratio is 0.63 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.

At the same time, stockholders' equity ("net worth") has significantly decreased by 421.88% 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 FY16 Q4 FY15
Net Sales ($mil)949.0921.0
EBITDA ($mil)228.0187.0
EBIT ($mil)114.087.0
Net Income ($mil)-541.0-78.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)4626.01397.0
Total Assets ($mil)14894.012195.0
Total Debt ($mil)6838.06964.0
Equity ($mil)-3177.0987.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin53.7452.88
EBITDA Margin24.0220.3
Operating Margin12.019.45
Sales Turnover0.260.32
Return on Assets-23.9648.54
Return on Equity0.0584.09
Debt Q4 FY16 Q4 FY15
Current Ratio0.640.88
Debt/Capital1.870.88
Interest Expense151.0152.0
Interest Coverage0.760.57


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)147.0145.0
Div / share0.00.0
EPS-3.88-0.87
Book value / share-21.616.81
Institutional Own % n/a n/a
Avg Daily Volume840774.0906131.0

Valuation


SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. 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 42.59   CZR 2.96 Peers 18.48

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.

 

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CZR 39.18 Peers 24.79   CZR NA Peers 1.74

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

CZR is trading at a significant premium to 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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CZR NM Peers 9.29   CZR -221.18 Peers 80.05

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 0.36 Peers 3.33   CZR -1.33 Peers 2.67

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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