NasdaqGS:CZR

Stock Analysis Report

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Executive Summary

Caesars Entertainment Corporation, through its subsidiaries, provides casino-entertainment and hospitality services in the United States and internationally.


Snowflake Analysis

Concerning outlook with worrying balance sheet.


Similar Companies

Share Price & News

How has Caesars Entertainment's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

2.5%

CZR

4.9%

US Hospitality

2.7%

US Market


1 Year Return

29.6%

CZR

-23.6%

US Hospitality

9.1%

US Market

Return vs Industry: CZR exceeded the US Hospitality industry which returned -23.6% over the past year.

Return vs Market: CZR exceeded the US Market which returned 9.1% over the past year.


Shareholder returns

CZRIndustryMarket
7 Day2.5%4.9%2.7%
30 Day17.9%6.1%4.5%
90 Day-10.4%-18.5%2.3%
1 Year29.6%29.6%-21.8%-23.6%11.5%9.1%
3 Year-8.5%-8.5%-19.7%-25.0%30.6%22.0%
5 Year77.7%77.7%2.4%-8.8%57.2%39.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Caesars Entertainment undervalued compared to its fair value and its price relative to the market?

3.45x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: CZR ($11.39) is trading above our estimate of fair value ($9.07)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CZR is overvalued based on its PB Ratio (3.5x) compared to the US Hospitality industry average (1.6x).


Next Steps

Future Growth

How is Caesars Entertainment forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

72.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CZR is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CZR is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CZR is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CZR's revenue (14.8% per year) is forecast to grow faster than the US market (8.8% per year).

High Growth Revenue: CZR's revenue (14.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CZR is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Caesars Entertainment performed over the past 5 years?

-16.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CZR is currently unprofitable.

Growing Profit Margin: CZR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CZR is unprofitable, and losses have increased over the past 5 years at a rate of -16.3% per year.

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

Earnings vs Industry: CZR is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-13.9%).


Return on Equity

High ROE: CZR has a negative Return on Equity (-33.98%), as it is currently unprofitable.


Next Steps

Financial Health

How is Caesars Entertainment's financial position?


Financial Position Analysis

Short Term Liabilities: CZR's short term assets ($3.5B) exceed its short term liabilities ($2.8B).

Long Term Liabilities: CZR's short term assets ($3.5B) do not cover its long term liabilities ($20.9B).


Debt to Equity History and Analysis

Debt Level: CZR's debt to equity ratio (433.8%) is considered high.

Reducing Debt: CZR's debt to equity ratio has increased from 240.8% to 433.8% over the past 5 years.


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: Insufficient data to determine if CZR has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CZR has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Caesars Entertainment's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate CZR'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 CZR's dividends per share have been stable in the past.

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


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Tony Rodio (61yo)

1

Tenure

US$3,201,232

Compensation

Mr. Anthony P. Rodio, also known as Tony, is Chief Executive Officer and Director at Caesars Entertainment Corp. since May 06, 2019. He served as Chief Executive Officer of Affinity Gaming since October 20 ...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD3.20M) is below average for companies of similar size in the US market ($USD7.36M).

Compensation vs Earnings: Insufficient data to compare Tony's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Anthony Rodio
CEO & Director1yrUS$3.20mno data
Eric Hession
Executive VP & CFO5.33yrsUS$3.93m0.061% $4.8m
Chris Holdren
Executive VP & Chief Marketing Officer2.5yrsUS$2.58m0.017% $1.4m
Monica Digilio
Executive VP & Chief Human Resources Officer1.67yrsUS$1.97m0.0039% $307.0k
Thomas Jenkin
Global President of Destination Markets17.5yrsUS$5.79m0.085% $6.7m
Keith Causey
Senior VP & Chief Accounting Officer5.58yrsno data0.035% $2.7m
Salil Kulkarni
Interim Executive VP & Chief Information Officer0.50yrno datano data
Steven Rubis
Vice President of Investor Relations1.33yrsno datano data
Michelle Bushore
Executive VP1.33yrsno data0.0035% $271.9k
Richard Broome
Executive Vice President of Communications & Government Relations4.33yrsno data0.020% $1.6m

2.1yrs

Average Tenure

56yo

Average Age

Experienced Management: CZR's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anthony Rodio
CEO & Director1yrUS$3.20mno data
Janis Blackhurst
Director0.67yrUS$67.63k0.040% $3.1m
Donald Kornstein
Independent Director2.58yrsUS$415.29k0.017% $1.3m
Juliana Chugg
Independent Director1.42yrsUS$248.46k0.0047% $367.7k
John Dionne
Independent Director2.58yrsUS$310.25k0.0042% $329.6k
Thomas Benninger
Independent Director2.58yrsUS$370.44k0.0089% $694.2k
James Hunt
Independent Chairman of the Board2.58yrsUS$422.08k0.0038% $295.3k
Keith Cozza
Independent Director1.17yrsUS$311.62kno data
Denise Clark
Independent Director1.58yrsUS$269.29k0.0012% $94.3k
Courtney Mather
Independent Director1.17yrsUS$312.79kno data

1.5yrs

Average Tenure

61yo

Average Age

Experienced Board: CZR's board of directors are not considered experienced ( 1.5 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Caesars Entertainment Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Caesars Entertainment Corporation
  • Ticker: CZR
  • Exchange: NasdaqGS
  • Founded: 1937
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: US$7.791b
  • Shares outstanding: 684.00m
  • Website: https://www.caesars.com

Number of Employees


Location

  • Caesars Entertainment Corporation
  • One Caesars Palace Drive
  • Las Vegas
  • Nevada
  • 89109
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CZRNasdaqGS (Nasdaq Global Select)YesVoting Common StockUSUSDFeb 2012
C08DB (Deutsche Boerse AG)YesVoting Common StockDEEURFeb 2012

Biography

Caesars Entertainment Corporation, through its subsidiaries, provides casino-entertainment and hospitality services in the United States and internationally. The company operates 38,000 slot machines and 2,700 table games, as well as other games comprising keno, poker, and race and sports books; and approximately 220 buffets, restaurants, bars, nightclubs, and lounges located throughout its casinos, as well as banquets and room service. As of December 31, 2019, it had 49 casinos, including 36 casinos in the United States and 13 casinos internationally with approximately 3 million square feet of gaming space, and 40,000 hotel rooms. The company also provides various retail and entertainment offerings in its casinos; and operates various entertainment venues, including the Colosseum at Caesars Palace and Zappos Theater at Planet Hollywood, as well as The LINQ promenade, an open-air dining, entertainment, and retail development. In addition, it operates an online gaming business that provides real money games; and owns the World Series of Poker tournaments and brand. The company was formerly known as Harrah's Entertainment Inc. and changed its name to Caesars Entertainment Corporation in November 2010. Caesars Entertainment Corporation was founded in 1937 and is headquartered in Las Vegas, Nevada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 05:05
End of Day Share Price2020/05/29 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.