NasdaqGS:PENN

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. More Details


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: PENN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.1%

PENN

-3.8%

US Hospitality

-2.4%

US Market


1 Year Return

282.7%

PENN

-18.3%

US Hospitality

12.0%

US Market

Return vs Industry: PENN exceeded the US Hospitality industry which returned -18.3% over the past year.

Return vs Market: PENN exceeded the US Market which returned 12% over the past year.


Shareholder returns

PENNIndustryMarket
7 Day-1.1%-3.8%-2.4%
30 Day26.7%-1.1%-6.5%
90 Day127.9%17.4%8.4%
1 Year282.7%282.7%-16.9%-18.3%14.5%12.0%
3 Year198.6%198.6%-13.0%-18.5%34.8%25.8%
5 Year299.4%299.4%17.5%5.5%82.1%61.6%

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

Valuation

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

6.44x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: PENN ($69.85) is trading above our estimate of fair value ($22.56)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: PENN is overvalued based on its PB Ratio (6.4x) compared to the US Hospitality industry average (2.1x).


Next Steps

Future Growth

How is Penn National Gaming forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

82.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PENN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

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

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

Revenue vs Market: PENN's revenue (14.6% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: PENN's revenue (14.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PENN's Return on Equity is forecast to be low in 3 years time (14.4%).


Next Steps

Past Performance

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

-22.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PENN is currently unprofitable.

Growing Profit Margin: PENN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PENN is unprofitable, and losses have increased over the past 5 years at a rate of 22% per year.

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

Earnings vs Industry: PENN is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-46.9%).


Return on Equity

High ROE: PENN has a negative Return on Equity (-57.96%), as it is currently unprofitable.


Next Steps

Financial Health

How is Penn National Gaming's financial position?


Financial Position Analysis

Short Term Liabilities: PENN's short term assets ($1.6B) exceed its short term liabilities ($827.8M).

Long Term Liabilities: PENN's short term assets ($1.6B) do not cover its long term liabilities ($12.0B).


Debt to Equity History and Analysis

Debt Level: PENN's debt to equity ratio (207.1%) is considered high.

Reducing Debt: PENN 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 PENN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PENN is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 19.8% 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 PENN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

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

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

3.0yrs

Average management tenure


CEO

Jay Snowden (44 yo)

0.67

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 ($USD10.98M) is about average for companies of similar size in the US market ($USD11.36M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jay Snowden
CEO, President & Director0.67yrUS$10.98m0.12%
$ 12.4m
Carl Sottosanti
Executive VP6.58yrsUS$2.68m0.063%
$ 6.7m
David Williams
Executive VP & CFO0.50yrno data0.011%
$ 1.1m
Todd George
Executive Vice President of Operationsno datano datano data
Christine LaBombard
Senior VP & Chief Accounting Officer1.67yrsno data0.024%
$ 2.5m
Richard Primus
Senior VP & Chief Information Officerno datano datano data
Jennifer Weissman
Senior VP & Chief Marketing Officer4.83yrsno datano data
Eugene Clark
Senior Vice President of Human Resources15.08yrsno datano data
D. Schippers
Senior Vice President of Public Affairsno datano datano data
Albert Britton
Senior Vice President of Regional Operations4.33yrsno datano data
Rafael Verde
Senior Vice President of Regional Operationsno datano datano data
Jon Kaplowitz
Senior VP of Interactive Gaming & Head of Penn Interactive Ventures1.58yrsno datano data

3.0yrs

Average Tenure

50yo

Average Age

Experienced Management: PENN's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jay Snowden
CEO, President & Director0.67yrUS$10.98m0.12%
$ 12.4m
Ronald Naples
Independent Director7.25yrsUS$319.99k0.0092%
$ 967.8k
Peter Carlino
Chairman Emeritus1.25yrsUS$425.00k3.88%
$ 408.6m
John Jacquemin
Independent Director25.67yrsUS$319.99k0.12%
$ 12.2m
Barbara Shattuck Kohn
Independent Lead Directorno dataUS$319.99k0.035%
$ 3.7m
Jane Scaccetti
Independent Director5.42yrsUS$309.99k0.027%
$ 2.9m
David Handler
Independent Chairman1.25yrsUS$388.12k0.16%
$ 17.2m
Saul Reibstein
Director2.5yrsUS$309.99k0.025%
$ 2.6m

2.5yrs

Average Tenure

70.5yo

Average Age

Experienced Board: PENN's board of directors are not considered experienced ( 2.5 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: PENN insiders have only sold shares 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 30.9%.


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: PENN
  • Exchange: NasdaqGS
  • Founded: 1972
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: US$10.543b
  • Shares outstanding: 150.94m
  • 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 operat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/26 06:06
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
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.