Caesars Entertainment Corp

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CZR : NASDAQ : Services
$12.45 | %
Today's Range: 12.35 - 12.65
Avg. Daily Volume: 2097600.0
06/23/17 - 4:00 PM ET

Financial Analysis


CAESARS ENTERTAINMENT CORP's gross profit margin for the first quarter of its fiscal year 2017 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 0.58 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 653.04% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)963.0950.0
EBITDA ($mil)257.0222.0
EBIT ($mil)155.0110.0
Net Income ($mil)-546.0-308.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)4495.01501.0
Total Assets ($mil)14812.012140.0
Total Debt ($mil)6789.06920.0
Equity ($mil)-3722.0673.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin54.4154.0
EBITDA Margin26.6823.36
Operating Margin16.111.58
Sales Turnover0.260.3
Return on Assets-25.7-9.55
Return on Equity0.0-201.33
Debt Q1 FY17 Q1 FY16
Current Ratio0.60.85
Debt/Capital2.210.91
Interest Expense148.0151.0
Interest Coverage1.050.73


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)148.72145.66
Div / share0.00.0
EPS-3.71-2.35
Book value / share-25.034.62
Institutional Own % n/a n/a
Avg Daily Volume2086226.0902544.0

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 38.52   CZR 3.83 Peers 19.75

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 17.19 Peers 25.90   CZR NA Peers 1.73

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 10.91   CZR -422.37 Peers 109.06

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 0.48 Peers 3.49   CZR 7.28 Peers 3.97

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

CZR has a sales growth rate that significantly exceeds its peers.

 

 

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