Penn National Gaming, Inc. owns and manages gaming and racing facilities, and operates video gaming terminals with a focus on slot machine entertainment.
+ 1 more risk
Moderate growth potential and slightly overvalued.
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.
7 Day Return
1 Year Return
Return vs Industry: PENN exceeded the US Hospitality industry which returned 6% over the past year.
Return vs Market: PENN exceeded the US Market which returned 19.4% over the past year.
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
1 week ago | Simply Wall StPenn National Gaming, Inc. Just Missed Earnings And Its EPS Looked Sad - But Analysts Have Updated Their Models
2 weeks ago | Simply Wall StWe Think Penn National Gaming (NASDAQ:PENN) Is Taking Some Risk With Its Debt
4 weeks ago | Simply Wall StPenn National Gaming, Inc. (NASDAQ:PENN) Might Not Be A Great Investment
Is Penn National Gaming undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PENN ($36.92) is trading below our estimate of fair value ($45.48)
Significantly Below Fair Value: PENN is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: PENN is poor value based on its PE Ratio (97.3x) compared to the Hospitality industry average (24x).
PE vs Market: PENN is poor value based on its PE Ratio (97.3x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: PENN is poor value based on its PEG Ratio (2.1x)
Price to Book Ratio
PB vs Industry: PENN is good value based on its PB Ratio (2.2x) compared to the US Hospitality industry average (2.2x).
How is Penn National Gaming forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PENN's forecast earnings growth (45.8% per year) is above the savings rate (1.7%).
Earnings vs Market: PENN's earnings (45.8% per year) are forecast to grow faster than the US market (14.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: PENN's revenue (2.7% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: PENN's revenue (2.7% 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 (7.8%).
How has Penn National Gaming performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PENN has a large one-off loss of $173.1M impacting its December 31 2019 financial results.
Growing Profit Margin: PENN's current net profit margins (0.8%) are lower than last year (2.6%).
Past Earnings Growth Analysis
Earnings Trend: PENN has become profitable over the past 5 years, growing earnings by 33.9% per year.
Accelerating Growth: PENN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: PENN had negative earnings growth (-53.1%) over the past year, making it difficult to compare to the Hospitality industry average (-9.8%).
Return on Equity
High ROE: PENN's Return on Equity (2.2%) is considered low.
Return on Assets
Return on Capital Employed
How is Penn National Gaming's financial position?
Financial Position Analysis
Short Term Liabilities: PENN's short term assets ($628.2M) do not cover its short term liabilities ($877.3M).
Long Term Liabilities: PENN's short term assets ($628.2M) do not cover its long term liabilities ($11.5B).
Debt to Equity History and Analysis
Debt Level: PENN's debt to equity ratio (126.6%) is considered high.
Reducing Debt: PENN had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Debt Coverage: PENN's debt is well covered by operating cash flow (23.3%).
Interest Coverage: PENN's interest payments on its debt are not well covered by EBIT (1.4x coverage).
Inventory Level: PENN has a high level of physical assets or inventory.
Debt Coverage by Assets: PENN's debt is not covered by short term assets (assets are 0.3x debt).
What is Penn National Gaming's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate PENN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate PENN's dividend yield against the top 25% of dividend payers, as the company has not reported any 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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jay Snowden (43yo)
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 ($USD4.50M) is about average for companies of similar size in the US market ($USD4.89M).
Compensation vs Earnings: Jay's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|CEO, President & Director||0.08yrs||US$4.50m||0.091% $3.9m|
|Executive VP of Finance & CFO||3.1yrs||US$2.74m||0.041% $1.7m|
|Executive VP||6yrs||US$2.23m||0.049% $2.1m|
|Executive Vice President of Operations||0yrs||no data||no data|
|Senior VP & Chief Accounting Officer||1.1yrs||no data||0.020% $867.2k|
|Senior VP & Chief Information Officer||0yrs||no data||no data|
|Chief Compliance Officer & VP of Regulatory Affairs||8.6yrs||no data||no data|
|Senior VP & Chief Marketing Officer||4.3yrs||no data||no data|
|Senior Vice President of Human Resources||14.5yrs||no data||no data|
|Senior Vice President of Public Affairs & Government Relations||0yrs||no data||no data|
Experienced Management: PENN's management team is considered experienced (4.3 years average tenure).
|CEO, President & Director||0.08yrs||US$4.50m||0.091% $3.9m|
|Independent Director||6.7yrs||US$310.01k||0.011% $463.2k|
|Chairman Emeritus||0.7yrs||US$425.00k||4.76% $202.5m|
|Independent Director||25.1yrs||US$320.01k||0.14% $5.9m|
|Lead Director||0yrs||US$320.01k||0.055% $2.3m|
|Independent Director||4.8yrs||US$310.01k||0.029% $1.2m|
Experienced Board: PENN's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.1%.
Penn National Gaming, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Penn National Gaming, Inc.
- Ticker: PENN
- Exchange: NasdaqGS
- Founded: 1972
- Industry: Casinos and Gaming
- Sector: Consumer Services
- Market Cap: US$4.253b
- Shares outstanding: 115.35m
- Website: https://www.pngaming.com
Number of Employees
- Penn National Gaming, Inc.
- 825 Berkshire Boulevard
- Suite 200
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|PENN||NasdaqGS (Nasdaq Global Select)||Yes||Common Shares||US||USD||May 1994|
|PN1||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||May 1994|
Penn National Gaming, Inc. owns and manages gaming and racing facilities, and operates video gaming terminals with a focus on slot machine entertainment. The company operates through four segments: Northeast, South, West, and Midwest. As of December 18, 2019, it operated 41 facilities in 19 jurisdictions. 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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/19 00:17|
|End of Day Share Price||2020/02/18 00:00|
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.