Caesars Entertainment Corp.

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CZR : NASDAQ : Consumer Services
$13.2 0.0 | 0.0%
Today's Range: 13.0 - 13.4
Avg. Daily Volume: 8198100.0
02/20/18 - 3:59 PM ET

Financial Analysis


CAESARS ENTERTAINMENT CORP's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales have remained unchanged, but net income increased. CAESARS ENTERTAINMENT CORP has very weak liquidity. Currently, the Quick Ratio is 0.46 which clearly 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 112.84% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q3 FY17 Q3 FY16
Net Sales ($mil)986.0986.0
EBITDA ($mil)272.0102.0
EBIT ($mil)122.0-9.0
Net Income ($mil)-468.0-643.0


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)4313.05083.0
Total Assets ($mil)14353.015351.0
Total Debt ($mil)6477.06806.0
Equity ($mil)-5617.0-2639.0


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin56.5955.17
EBITDA Margin27.5810.34
Operating Margin12.37-0.91
Sales Turnover0.270.25
Return on Assets-20.88-20.23
Return on Equity0.00.0
Debt Q3 FY17 Q3 FY16
Current Ratio0.480.7
Debt/Capital7.531.63
Interest Expense122.0148.0
Interest Coverage1.0-0.06


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)149.15146.96
Div / share0.00.0
EPS-3.14-26.8
Book value / share-37.66-17.96
Institutional Own % n/a n/a
Avg Daily Volume8465569.07648105.0

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 27.27   CZR 13.45 Peers 15.85

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 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 21.92 Peers 24.18   CZR NA Peers 0.85

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 17.07   CZR 54.08 Peers 258.59

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 0.50 Peers 3.55   CZR 1.32 Peers 10.44

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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