NasdaqGS:ERI

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Executive Summary

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


Snowflake Analysis

Slightly overvalued with limited growth.


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

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


Market Performance


7 Day Return

-0.7%

ERI

-0.2%

US Hospitality

1.9%

US Market


1 Year Return

-16.6%

ERI

-28.7%

US Hospitality

4.3%

US Market

Return vs Industry: ERI exceeded the US Hospitality industry which returned -28.7% over the past year.

Return vs Market: ERI underperformed the US Market which returned 4.3% over the past year.


Shareholder returns

ERIIndustryMarket
7 Day-0.7%-0.2%1.9%
30 Day13.2%-4.5%2.7%
90 Day282.9%46.5%26.4%
1 Year-16.6%-16.6%-27.1%-28.7%6.5%4.3%
3 Year111.2%111.2%-19.1%-24.4%35.1%26.2%
5 Year410.1%410.1%3.3%-8.0%67.0%48.4%

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

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ERI ($40.86) is trading below our estimate of fair value ($156.46)

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


Price To Earnings Ratio

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

PE vs Market: ERI 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 ERI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ERI is overvalued based on its PB Ratio (3.4x) compared to the US Hospitality industry average (1.7x).


Next Steps

Future Growth

How is Eldorado Resorts forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

113.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: ERI's revenue (43.9% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: ERI's revenue (43.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ERI's Return on Equity is forecast to be low in 3 years time (0.5%).


Next Steps

Past Performance

How has Eldorado Resorts performed over the past 5 years?

6.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ERI is currently unprofitable.

Growing Profit Margin: ERI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ERI is unprofitable, but has reduced losses over the past 5 years at a rate of 6.6% per year.

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

Earnings vs Industry: ERI is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-30.8%).


Return on Equity

High ROE: ERI has a negative Return on Equity (-14.13%), as it is currently unprofitable.


Next Steps

Financial Health

How is Eldorado Resorts's financial position?


Financial Position Analysis

Short Term Liabilities: ERI's short term assets ($1.2B) exceed its short term liabilities ($771.0M).

Long Term Liabilities: ERI's short term assets ($1.2B) do not cover its long term liabilities ($4.2B).


Debt to Equity History and Analysis

Debt Level: ERI's debt to equity ratio (425.4%) is considered high.

Reducing Debt: ERI's debt to equity ratio has reduced from 530.9% to 425.4% over the past 5 years.

Debt Coverage: ERI's debt is not well covered by operating cash flow (6.9%).

Interest Coverage: ERI is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if ERI'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 ERI'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?

3.2yrs

Average management tenure


CEO

Tom Reeg (48yo)

1.5yrs

Tenure

US$8,889,694

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's total compensation ($USD8.89M) is above average for companies of similar size in the US market ($USD5.86M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gary Carano
Executive Chairman of the Board5.83yrsUS$5.05m0.47% $19.0m
Thomas Reeg
CEO & Director1.5yrsUS$8.89m0.25% $10.2m
Anthony Carano
President & COO1.5yrsUS$4.25m0.080% $3.2m
Bret Yunker
Chief Financial Officer1.17yrsUS$5.58m0.037% $1.5m
Edmund Quatmann
Executive VP3.17yrsUS$1.83m0.095% $3.8m
Stephanie Lepori
Chief Administrative Officer & Chief Accounting Officer4.5yrsno data0.030% $1.2m
Jeffrey Hendricks
Compliance Officerno datano datano data
Peter Broughton
Senior Vice President of Information Technologyno datano datano data
Matthew Miele
Senior Vice President of Procurement5.08yrsno datano data
Richard Weber
Senior Vice President of Strategy3.17yrsno datano data

3.2yrs

Average Tenure

48.5yo

Average Age

Experienced Management: ERI's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gary Carano
Executive Chairman of the Board5.83yrsUS$5.05m0.47% $19.0m
Thomas Reeg
CEO & Director1.5yrsUS$8.89m0.25% $10.2m
David Tomick
Lead Independent Director5.17yrsUS$307.50k0.018% $711.6k
James Hawkins
Independent Director5.83yrsUS$275.00k0.083% $3.4m
Bonnie Biumi
Independent Director3.17yrsUS$265.00k0.018% $704.8k
Frank Fahrenkopf
Independent Director5.83yrsUS$272.50kno data
Roger Wagner
Independent Director5.83yrsUS$277.50k0.11% $4.6m
Gregory Kozicz
Independent Director3.17yrsUS$260.00k0.0036% $144.2k
Michael Pegram
Independent Directorno dataUS$275.00k0.088% $3.5m

5.8yrs

Average Tenure

68yo

Average Age

Experienced Board: ERI's board of directors are considered experienced (5.8 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 26.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Eldorado Resorts, Inc.
  • Ticker: ERI
  • Exchange: NasdaqGS
  • Founded: 1973
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: US$4.027b
  • Shares outstanding: 98.56m
  • 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 Casino, a casino, race, sportsbook, restaurant, an outdoor swimming pool, sundeck, and retail shop; Circus Circus Reno, a circus-themed hotel-casino and entertainment complex; Eldorado Resort Casino Shreveport, a hotel and tri-level riverboat casino; and Eldorado Gaming Scioto Downs, a modern racino. The company also operates Isle Casino Hotel—Black Hawk and Lady Luck Casino—Black Hawk; Isle Casino Racing Pompano Park, a casino and harness racing track; Isle Casino Bettendorf, a land-based casino; Isle Casino Waterloo, a single-level land-based casino; Isle of Capri Casino Hotel Lake Charles, a dockside casino, dining venue, and entertainment center; Isle of Capri Casino Lula, a two dockside casino; Lady Luck Casino Vicksburg and Isle of Capri Casino Kansas City, a dockside casinos; and Isle of Capri Casino Boonville, a single-level dockside casino. In addition, it operates Tropicana Casino and Resort, Atlantic City; Tropicana Evansville, a casino hotel and entertainment complex; Lumière Place Casino, Tropicana Laughlin Hotel and Casino, MontBleu Casino Resort & Spa, and Grand Victoria Casino; Trop Casino Greenville, a land-based gaming facility; and Belle of Baton Rouge Casino & Hotel, a dockside riverboat. As of March 17, 2020, the company owned 23 gaming facilities with approximately 23,900 slot machines, video lottery terminals, and e-tables; 660 table games; and 11,300 hotel rooms. Eldorado Resorts, Inc. was founded in 1973 and is based in Reno, Nevada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/01 23:54
End of Day Share Price2020/07/01 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.