DB:PN1

Stock Analysis Report

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Executive Summary

Penn National Gaming, Inc., together with its subsidiaries, owns and manages gaming and racing properties, and operates video gaming terminals with a focus on slot machine entertainment.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Penn National Gaming's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PN1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

PN1

-1.6%

DE Hospitality

0.7%

DE Market


1 Year Return

60.5%

PN1

-35.2%

DE Hospitality

3.9%

DE Market

Return vs Industry: PN1 exceeded the German Hospitality industry which returned -35.2% over the past year.

Return vs Market: PN1 exceeded the German Market which returned 3.9% over the past year.


Shareholder returns

PN1IndustryMarket
7 Day0%-1.6%0.7%
30 Day-0.8%-9.0%5.3%
90 Day92.6%3.8%17.3%
1 Year60.5%60.5%-32.4%-35.2%6.2%3.9%
3 Year44.8%44.8%-49.4%-56.3%1.8%-6.2%
5 Year48.2%48.2%-50.8%-61.2%9.3%-5.4%

Price Volatility Vs. Market

How volatile is Penn National Gaming's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Penn National Gaming undervalued compared to its fair value and its price relative to the market?

2.72x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: PN1 (€26) is trading above our estimate of fair value (€18.57)

Significantly Below Fair Value: PN1 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PN1 is unprofitable, so we can't compare its PE Ratio to the DE Hospitality industry average.

PE vs Market: PN1 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PN1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PN1 is overvalued based on its PB Ratio (2.7x) compared to the DE Hospitality industry average (2x).


Next Steps

Future Growth

How is Penn National Gaming forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

125.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PN1 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: PN1 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PN1's is expected to become profitable in the next 3 years.

Revenue vs Market: PN1's revenue (17.8% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: PN1's revenue (17.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PN1's Return on Equity is forecast to be low in 3 years time (5.2%).


Next Steps

Past Performance

How has Penn National Gaming performed over the past 5 years?

5.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PN1 is currently unprofitable.

Growing Profit Margin: PN1 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PN1 is unprofitable, but has reduced losses over the past 5 years at a rate of 5.4% per year.

Accelerating Growth: Unable to compare PN1's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PN1 is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-15.6%).


Return on Equity

High ROE: PN1 has a negative Return on Equity (-47.47%), as it is currently unprofitable.


Next Steps

Financial Health

How is Penn National Gaming's financial position?


Financial Position Analysis

Short Term Liabilities: PN1's short term assets ($1.3B) exceed its short term liabilities ($813.9M).

Long Term Liabilities: PN1's short term assets ($1.3B) do not cover its long term liabilities ($11.8B).


Debt to Equity History and Analysis

Debt Level: PN1's debt to equity ratio (226.8%) is considered high.

Reducing Debt: PN1 had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable PN1 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PN1 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 23.2% per year.


Next Steps

Dividend

What is Penn National Gaming current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PN1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PN1's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PN1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PN1'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 PN1's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Jay Snowden (44yo)

0.50

Tenure

US$10,977,968

Compensation

Mr. Jay A. Snowden has been Chief Executive Officer of Penn National Gaming, Inc., since January 1, 2020. He has been President at Penn National Gaming, Inc., since March 29, 2017 and was its Chief Operati ...


CEO Compensation Analysis

Compensation vs Market: Jay's total compensation ($USD10.98M) is above average for companies of similar size in the German market ($USD2.40M).

Compensation vs Earnings: Jay's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Jay Snowden
CEO, President & Director0.50yrUS$10.98m0.12% $4.2m
Carl Sottosanti
Executive VP6.42yrsUS$2.68m0.064% $2.3m
David Williams
Executive VP & CFO0.33yrno data0.011% $376.5k
Todd George
Executive Vice President of Operationsno datano datano data
Christine LaBombard
Senior VP & Chief Accounting Officer1.5yrsno data0.024% $844.2k
Richard Primus
Senior VP & Chief Information Officerno datano datano data
Jennifer Weissman
Senior VP & Chief Marketing Officer4.67yrsno datano data
Eugene Clark
Senior Vice President of Human Resources14.92yrsno datano data
D. Schippers
Senior Vice President of Public Affairsno datano datano data
Albert Britton
Senior Vice President of Regional Operations4.17yrsno datano data
Rafael Verde
Senior Vice President of Regional Operationsno datano datano data
Jon Kaplowitz
Senior VP of Interactive Gaming & Head of Penn Interactive Ventures1.42yrsno datano data

2.8yrs

Average Tenure

50yo

Average Age

Experienced Management: PN1's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jay Snowden
CEO, President & Director0.50yrUS$10.98m0.12% $4.2m
Ronald Naples
Independent Director7.08yrsUS$319.99k0.0093% $326.9k
Peter Carlino
Chairman Emeritus1.08yrsUS$425.00k3.92% $138.1m
John Jacquemin
Independent Director25.5yrsUS$319.99k0.12% $4.1m
Barbara Shattuck Kohn
Independent Lead Directorno dataUS$319.99k0.047% $1.7m
Jane Scaccetti
Independent Director5.25yrsUS$309.99k0.027% $966.3k
David Handler
Independent Chairman1.08yrsUS$388.12k0.17% $5.8m
Saul Reibstein
Director2.33yrsUS$309.99k0.030% $1.0m

2.3yrs

Average Tenure

70.5yo

Average Age

Experienced Board: PN1's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PN1 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16%.


Top Shareholders

Company Information

Penn National Gaming, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Penn National Gaming, Inc.
  • Ticker: PN1
  • Exchange: DB
  • Founded: 1972
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: US$3.981b
  • Listing Market Cap: US$3.519b
  • Shares outstanding: 135.27m
  • Website: https://www.pngaming.com

Number of Employees


Location

  • Penn National Gaming, Inc.
  • 825 Berkshire Boulevard
  • Suite 200
  • Wyomissing
  • Pennsylvania
  • 19610
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PENNNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDMay 1994
PN1DB (Deutsche Boerse AG)YesCommon SharesDEEURMay 1994

Biography

Penn National Gaming, Inc., together with its subsidiaries, owns and manages gaming and racing properties, and operates video gaming terminals with a focus on slot machine entertainment. The company operates through four segments: Northeast, South, West, and Midwest. It also offers live sports betting at its properties in Indiana, Iowa, Mississippi, Nevada, Pennsylvania, and West Virginia; and operates online casino under the name of iCasino in Pennsylvania. As of March 16, 2020, the company owned, managed, or had ownership interests in 41 gaming and racing properties in 19 jurisdictions. It owns various trademarks and service marks, including, Ameristar, Argosy, Boomtown, Greektown, Hollywood Casino, Hollywood Gaming, Hollywood Poker, L’Auberge, M Resort, and MYCHOICE. The company was formerly known as PNRC Corp. and changed its name to Penn National Gaming, Inc. in 1994. Penn National Gaming, Inc. was founded in 1972 and is based in Wyomissing, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 05:31
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.