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Caesars Entertainment NasdaqGS:CZR Stock Report

Last Price


Market Cap







25 Sep, 2022


Company Financials +
CZR fundamental analysis
Snowflake Score
Future Growth3/6
Past Performance0/6
Financial Health2/6

CZR Stock Overview

Caesars Entertainment, Inc. operates as a gaming and hospitality company in the United States.

Caesars Entertainment Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Caesars Entertainment
Historical stock prices
Current Share PriceUS$35.37
52 Week HighUS$119.81
52 Week LowUS$34.18
1 Month Change-20.18%
3 Month Change-19.71%
1 Year Change-68.52%
3 Year Change-8.27%
5 Year Change37.90%
Change since IPO713.10%

Recent News & Updates

Aug 01
Caesars Entertainment (NASDAQ:CZR) Will Want To Turn Around Its Return Trends

Caesars Entertainment (NASDAQ:CZR) Will Want To Turn Around Its Return Trends

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Jul 22

Caesars: Bearish Outlooks Flawed, Secret Sauce Is What Icahn Saw

Caesars bears point to narrowing margins due to excessive debt and digital promotion. The larger take here is the sheer scale of the company's database and smarts. Management remains tightly focused on debt reduction. The imminent sale this year of a strip property will put proceeds to debt reduction. Bigger problem is labor shortages, which could impact customer service. That will be headed for improvement by 4Q22. Stipulation: I am a c-suite alumnus of Caesars from back in the day and have what I believe is a perspective on how the company's culture has evolved from then to now. I am a bit bemused by the recent stream of bearish outlooks on the stock of Caesars Entertainment, Inc. (CZR) that tend to belong to the "Captain Obvious" school of analysis. It's not that I don't accept the basic facts presented. They can appear daunting if you are a holder for certain, or off-putting if you are a possible buyer. And they clearly spark happy talk if you are among the 7.22% of CZR holders sitting in the short interest seats of the stock as of this writing. But, above all, what is missing in the bear calls is, with all due respect, a real world, time-tested knowledge of the machine parts that make the casino business hum, sputter, or rev up. It is from that perspective that I present a strong bull case for the stock against the formidable headwinds noted. We have digested all the bear case assumptions here and across many financial sites. We have refined them if you will down to the base elements, avoiding the complexities and, if I may, some of the metric babble that sometimes accompanies such outlooks. It's understandable, without question. Investor have come to rely on long-established metrics. It's a language everyone speaks. I get it. But in a time like this, where the worst possible mixture of macro conditions overlays the entire market, taking no prisoners, it seems kind of foolhardy to me to use long-established metrics, i.e., ones that forecast performance against unknowns. Data by YCharts Above: What's wrong with this picture? Mr. Market is clueless as to the value of CZR's gold mine database and reality. Icahn was not. Let's use a sports analogy for context here. Look at the metrics a professional team in the four major sports uses to form an offer for a superstar free agent. It begins with a perceived need-that's clear. In baseball, for example, a team is always going to be lacking in one or more fundamental positions: it needs pitching, position players. It needs power hitters who can be inserted into the middle of the lineup and hit monster home runs. General managers then look at the back of the trading card. There, a massive jumble of stats will stand as the past record of the player's brilliance on the court or field. And today, further, they dive into analysis of analysis in their own metric mass of numbers and percentages, fold in the age, the current performance, health, etc., fan appeal, "brand value." Then this mass of numbers plus inside-the-sport gossip among former teammates, managers, coaches, etc. come into the mix. And finally, the numbers and opinions are set before the billionaire owner. Then, measuring the level of desperation, out comes the borderline insane offer of centi-millions over many years. After far too many of such deals, we later find, that the team has paid for a Porsche and gotten a serviceably nice Toyota in terms of the performance of the player. What has happened here is a simple lesson applicable to the stock market as well: You pay for past performance, hoping that future performance will be a good, if not better, because you are probably paying a premium price for old news. There are clearly free agents, as it were, that do perform to expectations. But then, you look at a sports season, analogous to market trends over time, and the so-called game changer changes very little. He may be a nice addition, a contributor, but in truth what happens in the critical endgame, or the playoffs, if you will, is ultimately a matter of odds in an always random world of outcomes. So let's look at what in general, seems to be the bear case we most frequently hear now about the shares of CZR. The company has over-taxed its balance sheet with debt related to its merger with El Dorado. Its debt load may be bearable in a strong consumer cycle, but facing inflationary pressures and a certain recession, margins will be squeezed, ability to comfortably meet debt obligations begin to look dicey. The company overpaid for its William Hill online betting business. CZR sports book has already lost $1b and will likely continue to lose another $500m before the marketing warfare in sports betting platform abates. A softening of consumer demand, just ahead, will simultaneously hit its Las Vegas flagship properties and its regional casinos. The result: mounting losses. The announced coming sale of one of its major strip properties with the proceeds going to reduce debt seems to be in limbo. Labor shortages have hit customer service standards badly, and there is no help in sight. Given the above run-through of all kinds of metrics to measure multiples of earnings, risk ratios, relative values to peers, etc., the stock is overvalued even at its current trade. PT's we have seen look like $33 to $37.50. Okay. That's the back of the sports trading card, if you will. Now, let's do our own, inside-the-business perspective of why we believe the stock is actually undervalued here. We don't presume to offer a forest of our own data metrics as a response to bear numbers. For those investors who buy or sell speaking only the standard language of metrics, we caution you that we are presenting a case as we would, as we have, from inside the board room to our peers and board members. The only departure we make from standard metrics is in the calculation of discounted cash flow ("DCF"). We present it not as gospel, but to lend some context with which investors are comfortable. We arrived at our estimate based primarily on what we believe the CZR massive customer data base can produce against recessionary decline percentage experienced on the Vegas strip in the 2007-2009 recession. To that, we added what we believed were the competitive pressures from new properties like Resorts World, which did not exist, and other expansion. Our result; The DCF value of CZR shares now is $69.50 by our formula-take it for what it's worth. 1.Heavy debt: CZR total debt (mrq) is $26.3b bearing an interest cost of an estimated $2.26b, yielding a current ratio of 1.0. There is no disputing that this is a pile and a half, and, if management was asleep at the switch, an area of concern. The opposite is true. Firstly, a good portion of the debt is related to acquisitions past with little or none in sight ahead. Another part is huge updating programs at many of the company's 50-plus properties. Again, most of this capex is in the rear-view mirror. CZR's has $814m in cash and an operating cash flow sufficient to meet its obligations. That should be a concern, but not a major one because management has been focused on reducing its debt regardless of the overwhelming challenges during the worst of the pandemic. One of the initiatives is selling one of its strip properties and deploying the proceeds to reduce debt. That process is underway and, according to our sources at the moment, should be completed by the end of this year. For those interested, CZR's current ratio stands at 1.0. 2. The William Hill acquisition. CZR paid $4b and sold its UK operations to 888 Holdings for ~$3b. By current performance in the total U.S. sports betting sector, all major platforms are losing money. To date, CZR has posted losses of $1b and estimated another $500m to go before the unit turns to at least a break-even if not profitable level. Sunk cost and losses will top $2.5b for CZR. What counts now is the avowed policy already in place, to dramatically cut promotional costs, in distinction from some of its competitors. If you compare the options open to CZR when sports betting broke out of the gate in 2018, you will see that buying Hill was instinctively a smart choice. You have an existing U.S. business base throughout the live sports book locations already operative in the U.S. You have a legacy brand name U.S. customers already know. Starting from scratch by either building your own tech stack or buying services can be a long hard trek. Take Wynn, for example, who opted to start from scratch with a SPAC that never happened. And after it went ahead on its own, it has thrown up its hands and put its WynnBet platform up for sale. But the secret sauce here is the CZR rewards program which now includes sports book customers. They can use points accumulated on their sports bets toward comps at CZR properties. The company reports the results of this and other crossover customer migrations to the casino floor have been very strong. CZR archives Above: Rewards systems work best when customers enter a trip cycle: Points earned at regional casinos used for special trips to strip flagships and back. Pareto's Law holds the key to CZR's bright, post-pandemic future prospects and more fully valued stock. Here, in brief, is the "law" or theory propounded by Vilfredo Pareto, an Italian mathematician after examining masses of data in several fields. In plain English, under any given universe of activity, 80% of the output is contributed by 20% of the input. Pareto tested this principal over time and in many universes: real estate, commerce, etc. And the ratio most always held. During my tenure at CZR, I directed my casino analysis department on three occasions to go through our database. (Back then, it was nothing near what it is today in terms of geographic diversity, sheer numbers, and accumulated spend). After long and arduous applications of variables including weather, demographics, locations, economics of specific customer origin points, guess what? Pareto's Law was the unavailing conclusion. More or less, depending on the property, 80% of our win came from 20% of our customers. There were understandable breaks from the norm. For example, Caesars Palace, which had massive international VIP baccarat play, showed the single largest segment of win, while our AC property, heavy in slot play, indicated that 25c slots provided the immense core play. Yet in diving a bit deeper, there was old Pareto waiting for us: We found that within the slot subset, 80% of our slot win came from high denomination slot players: 50c and $1. Now to bring this logic forward. Today's CZR has ~55m customers in its database. Among the points made by CEO Tom Reeg at the last earnings call in May was a broad-based effort to assess the database having examined it and found-yes, that a disproportionate share of casino win came from a far smaller universe of players. The project embarked on then was to literally re-orient the point system employed for comp to stress better rewards for better proven players and at the same time narrow the criteria for mass, less profitable, play in order to put the most comp firepower behind the customer segment with the biggest win potential. As I learned from my day, and I'm certain the thinking prevails today, you don't fight Pareto's Law. And one of the best measures of management skill sets is managing that database to its maximum productivity by applying that principal. If and when the recession comes, what is most crucial to the performance of any casino operator is how effective is the rewards machine in detecting, reaching, and rewarding the most valuable customers. From what I learned over three recessions during which I ran marketing, I found that there was a resiliency factor among the higher-level play.

Shareholder Returns

CZRUS HospitalityUS Market

Return vs Industry: CZR underperformed the US Hospitality industry which returned -33.9% over the past year.

Return vs Market: CZR underperformed the US Market which returned -23% over the past year.

Price Volatility

Is CZR's price volatile compared to industry and market?
CZR volatility
CZR Average Weekly Movement9.8%
Hospitality Industry Average Movement7.3%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: CZR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: CZR's weekly volatility (10%) has been stable over the past year.

About the Company

193749,000Tom Reeg

Caesars Entertainment, Inc. operates as a gaming and hospitality company in the United States. The company operates casinos comprising poker, keno, and race and online sportsbooks; dining venues, bars, nightclubs, and lounges; hotels; and entertainment venues. It also provides staffing and management services; accessories, souvenirs, and decorative items through retail stores; and online sports betting and iGaming services.

Caesars Entertainment Fundamentals Summary

How do Caesars Entertainment's earnings and revenue compare to its market cap?
CZR fundamental statistics
Market CapUS$7.58b
Earnings (TTM)-US$1.09b
Revenue (TTM)US$10.39b


P/S Ratio


P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CZR income statement (TTM)
Cost of RevenueUS$5.53b
Gross ProfitUS$4.86b
Other ExpensesUS$5.95b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date


Earnings per share (EPS)-5.07
Gross Margin46.76%
Net Profit Margin-10.47%
Debt/Equity Ratio370.2%

How did CZR perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.


Is CZR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score


Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CZR?

Other financial metrics that can be useful for relative valuation.

CZR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.2x
Enterprise Value/EBITDA12.9x
PEG Ration/a

Price to Sales Ratio vs Peers

How does CZR's PS Ratio compare to its peers?

CZR PS Ratio vs Peers
The above table shows the PS ratio for CZR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average2.6x
DKNG DraftKings
CHDN Churchill Downs
BYD Boyd Gaming
PENN PENN Entertainment
CZR Caesars Entertainment

Price-To-Sales vs Peers: CZR is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (2.6x).

Price to Earnings Ratio vs Industry

How does CZR's PE Ratio compare vs other companies in the US Hospitality Industry?

Price-To-Sales vs Industry: CZR is good value based on its Price-To-Sales Ratio (0.7x) compared to the US Hospitality industry average (1.4x)

Price to Sales Ratio vs Fair Ratio

What is CZR's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CZR PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.7x
Fair PS Ratio2.9x

Price-To-Sales vs Fair Ratio: CZR is good value based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (2.9x).

Share Price vs Fair Value

What is the Fair Price of CZR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CZR ($35.37) is trading below our estimate of fair value ($176.34)

Significantly Below Fair Value: CZR is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Future Growth

How is Caesars Entertainment forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score


Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CZR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

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

High Growth Earnings: CZR is expected to become profitable in the next 3 years.

Revenue vs Market: CZR's revenue (5.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: CZR's revenue (5.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CZR's Return on Equity is forecast to be low in 3 years time (15.9%).

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Past Performance

How has Caesars Entertainment performed over the past 5 years?

Past Performance Score


Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


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 62.9% 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 (36.2%).

Return on Equity

High ROE: CZR has a negative Return on Equity (-29.18%), as it is currently unprofitable.

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Financial Health

How is Caesars Entertainment's financial position?

Financial Health Score


Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: CZR's short term assets ($4.9B) exceed its short term liabilities ($4.9B).

Long Term Liabilities: CZR's short term assets ($4.9B) do not cover its long term liabilities ($28.1B).

Debt to Equity History and Analysis

Debt Level: CZR's net debt to equity ratio (343.4%) is considered high.

Reducing Debt: CZR's debt to equity ratio has increased from 269.8% to 370.2% 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: CZR has sufficient cash runway for more than 3 years 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.

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

Dividend Score


Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


Forecast Dividend Yield

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CZR has not reported any payouts.

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


Average management tenure


Tom Reeg (50 yo)





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

CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD22.58M) is above average for companies of similar size in the US market ($USD8.53M).

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

Leadership Team

Experienced Management: CZR's management team is seasoned and experienced (5.3 years average tenure).

Board Members

Experienced Board: CZR's board of directors are considered experienced (8 years average tenure).


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

NasdaqGS:CZR Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
17 Jun 22BuyUS$42,229David TomickIndividual1,100US$38.39
16 Jun 22BuyUS$95,250Donald KornsteinIndividual2,500US$38.10
14 Jun 22BuyUS$197,419Donald KornsteinIndividual5,000US$39.60
08 Jun 22SellUS$140,140Frank FahrenkopfIndividual2,695US$52.00
06 May 22BuyUS$961,920Courtney MatherIndividual16,000US$60.12
17 Mar 22SellUS$59,936Sandra MorganIndividual756US$79.28
08 Mar 22BuyUS$713,755Thomas ReegIndividual10,000US$71.38

Ownership Breakdown

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

Top Shareholders

Top 25 shareholders own 78.11% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
Capital Research and Management Company
The Vanguard Group, Inc.
BlackRock, Inc.
Janus Henderson Group plc
Point Break Capital Management LLC
Recreational Enterprises, Inc.
8,604,325$304.3m0%no data
State Street Global Advisors, Inc.
HG Vora Capital Management, LLC
Geode Capital Management, LLC
Morgan Stanley, Investment Banking and Brokerage Investments
Samlyn Capital, LLC
Frontier Capital Management Co LLC
Invesco Ltd.
Atreides Management, LP
Lord, Abbett & Co. LLC
Norges Bank Investment Management
Northern Trust Global Investments
Invesco Capital Management LLC
Charles Schwab Investment Management, Inc.
Davenport Asset Management
Cohen & Steers Capital Management, Inc.
Teachers Insurance and Annuity Association-College Retirement Equities Fund
Legal & General Investment Management Limited

Company Information

Caesars Entertainment, Inc.'s employee growth, exchange listings and data sources

Key Information

  • Name: Caesars Entertainment, Inc.
  • Ticker: CZR
  • Exchange: NasdaqGS
  • Founded: 1937
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Implied Market Cap: US$7.584b
  • Shares outstanding: 214.42m
  • Website:

Number of Employees


  • Caesars Entertainment, Inc.
  • 100 West Liberty Street
  • 12th Floor
  • Reno
  • Nevada
  • 89501
  • United States


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
0A78LSE (London Stock Exchange)YesNew Common StockGBUSDSep 2014
CZRNasdaqGS (Nasdaq Global Select)YesNew Common StockUSUSDSep 2014
2EREDB (Deutsche Boerse AG)YesNew Common StockDEEURSep 2014
CZR1 *BMV (Bolsa Mexicana de Valores)YesNew Common StockMXMXNSep 2014
C2ZR34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 10 REPR 1 COMBRBRLApr 2021

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/25 00:00
End of Day Share Price2022/09/23 00:00
Annual Earnings2021/12/31

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.