DB:2ER

Stock Analysis Report

Executive Summary

Eldorado Resorts, Inc. operates as a gaming and hospitality company in the United States.

Snowflake

Fundamentals

Moderate growth potential with questionable track record.


Similar Companies

Share Price & News

How has Eldorado Resorts's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

9.0%

2ER

14.2%

DE Hospitality

3.9%

DE Market


1 Year Return

-6.3%

2ER

-16.8%

DE Hospitality

3.4%

DE Market

Return vs Industry: 2ER exceeded the German Hospitality industry which returned -16.8% over the past year.

Return vs Market: 2ER underperformed the German Market which returned 3.4% over the past year.


Shareholder returns

2ERIndustryMarket
7 Day9.0%14.2%3.9%
30 Day-1.3%22.3%2.1%
90 Day-4.6%26.9%3.7%
1 Year-6.3%-6.3%-11.1%-16.8%6.7%3.4%
3 Year234.7%234.7%16.3%0.7%18.9%8.6%
5 Yearn/a36.2%9.2%41.8%22.5%

Price Volatility Vs. Market

How volatile is Eldorado Resorts's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Eldorado Resorts undervalued compared to its fair value and its price relative to the market?

39.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 2ER (€38.6) is trading below our estimate of fair value (€63.32)

Significantly Undervalued: 2ER is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 2ER is poor value based on its PE Ratio (35.1x) compared to the Hospitality industry average (32.3x).

PE vs Market: 2ER is poor value based on its PE Ratio (35.1x) compared to the German market (19.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: 2ER is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: 2ER is overvalued based on its PB Ratio (3.1x) compared to the DE Hospitality industry average (2.6x).


Next Steps

Future Growth

How is Eldorado Resorts forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

21.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2ER's forecast earnings growth (21.6% per year) is above the savings rate (0.2%).

Earnings vs Market: 2ER's earnings (21.6% per year) are forecast to grow faster than the German market (12.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 2ER's revenue is expected to decline over the next 3 years (-0.5% per year).

High Growth Revenue: 2ER's revenue is forecast to decline over the next 3 years (-0.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 2ER's Return on Equity is forecast to be low in 3 years time (13.6%).


Next Steps

Past Performance

How has Eldorado Resorts performed over the past 5 years?

34.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 2ER's earnings have grown significantly by 34.6% per year over the past 5 years.

Accelerating Growth: 2ER's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2ER had negative earnings growth (-46.3%) over the past year, making it difficult to compare to the Hospitality industry average (-28.4%).


Return on Equity

High ROE: 2ER's Return on Equity (8.7%) is considered low.


Return on Assets

ROA vs Industry: 2ER has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: 2ER's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Eldorado Resorts's financial position?


Financial Position Analysis

Short Term Liabilities: 2ER's short term assets ($702.6M) exceeds its short term liabilities ($383.2M)

Long Term Liabilities: 2ER's short term assets (702.6M) do not cover its long term liabilities (4.6B)


Debt to Equity History and Analysis

Debt Level: 2ER's debt to equity ratio (278.1%) is considered high

Reducing Debt: 2ER's debt to equity ratio has increased from 228.7% to 278.1% over the past 5 years.

Debt Coverage: 2ER's debt is not well covered by operating cash flow (10%).

Interest Coverage: 2ER's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet

Inventory Level: 2ER has a high level of physical assets or inventory.

Debt Coverage by Assets: 2ER's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Eldorado Resorts's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage6.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 2ER's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2ER's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 2ER's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2ER's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2ER's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Eldorado Resorts's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Tom Reeg (47yo)

0.8yrs

Tenure

US$6,917,535

Compensation

Mr. Thomas Robert Reeg, also known as Tom, CFA, has been the Chief Executive Officer of Eldorado Resorts, Inc. since January 1, 2019 and served as its its Chief Financial Officer since March 15, 2016. He s ...


CEO Compensation Analysis

Compensation vs. Market: Tom has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the German market.

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.4yrs

Average Tenure

48yo

Average Age

Experienced Management: 2ER's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

67yo

Average Age

Experienced Board: 2ER's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

Insider Buying: 2ER insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$336,52804 Sep 19
Michael Pegram
EntityIndividual
Role
Member of the Board of Directors
Officer & Director
Shares10,000
Max PriceUS$33.65
BuyUS$65,11703 Sep 19
James Hawkins
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$32.56
BuyUS$359,97112 Aug 19
Michael Pegram
EntityIndividual
Role
Member of the Board of Directors
Officer & Director
Shares10,000
Max PriceUS$36.00
BuyUS$215,90212 Aug 19
James Hawkins
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,000
Max PriceUS$35.98
BuyUS$27,09704 Dec 18
David Tomick
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares700
Max PriceUS$38.71
BuyUS$300,47714 Nov 18
Michael Pegram
EntityIndividual
Role
Member of the Board of Directors
Officer & Director
Shares10,000
Max PriceUS$30.05
BuyUS$89,58513 Nov 18
Thomas Reeg
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares3,000
Max PriceUS$29.86

Ownership Breakdown


Management Team

  • Gary Carano (67yo)

    Executive Chairman of the Board

    • Tenure: 5.1yrs
    • Compensation: US$5.57m
  • Ed Quatmann (48yo)

    Executive VP

    • Tenure: 2.4yrs
    • Compensation: US$1.45m
  • Stephanie Lepori (48yo)

    Chief Administrative Officer & Chief Accounting Officer

    • Tenure: 3.8yrs
  • Phil Fortino

    Senior Vice President of Human Resources

    • Tenure: 2.9yrs
  • Tom Reeg (47yo)

    CEO & Director

    • Tenure: 0.8yrs
    • Compensation: US$6.92m
  • Anthony Carano (37yo)

    President & COO

    • Tenure: 0.8yrs
    • Compensation: US$4.55m
  • Peter Broughton

    Senior Vice President of Information Technology

    • Tenure: 0yrs
  • Matt Miele

    Senior Vice President of Procurement

    • Tenure: 4.3yrs
  • Jeffrey Hendricks

    Compliance Officer

    • Tenure: 0yrs
  • Bret Yunker

    Chief Financial Officer

    • Tenure: 0.4yrs

Board Members

  • David Tomick (67yo)

    Lead Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$267.50k
  • Jim Hawkins (63yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$235.00k
  • Bonnie Biumi (57yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$225.00k
  • Frank Fahrenkopf (80yo)

    Officer & Direcor

    • Tenure: 5.1yrs
    • Compensation: US$232.50k
  • Roger Wagner (71yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$237.50k
  • Gary Carano (67yo)

    Executive Chairman of the Board

    • Tenure: 5.1yrs
    • Compensation: US$5.57m
  • Greg Kozicz (58yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$220.00k
  • Michael Pegram (67yo)

    Officer & Director

    • Tenure: 0yrs
    • Compensation: US$242.50k
  • Tom Reeg (47yo)

    CEO & Director

    • Tenure: 0.8yrs
    • Compensation: US$6.92m

Company Information

Eldorado Resorts, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eldorado Resorts, Inc.
  • Ticker: 2ER
  • Exchange: DB
  • Founded: 1973
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: US$3.320b
  • Listing Market Cap: US$2.985b
  • Shares outstanding: 77.54m
  • Website: https://www.eldoradoresorts.com

Number of Employees


Location

  • Eldorado Resorts, Inc.
  • 100 West Liberty Street
  • Suite 1150
  • Reno
  • Nevada
  • 89501
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ERINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 2014
2ERDB (Deutsche Boerse AG)YesCommon StockDEEURSep 2014

Biography

Eldorado Resorts, Inc. operates as a gaming and hospitality company in the United States. It owns and operates Eldorado Resort Casino Reno, a hotel, casino, and entertainment facility; Silver Legacy Resort ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 21:47
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.