PENN Entertainment, Inc.
$19.65
-2.9%PENN Entertainment, Inc., together with its subsidiaries, provides integrated entertainment, sports content, and casino gaming experiences in North America. The company operates through five segments: Northeast, South, West, Midwest, and Interactive. It operates 44 properties in 20 states; online sports betting in 13 jurisdictions; and iCasino in five under a portfolio of brands, including Hollywood Casino, L'Auberge, Barstool Sportsbook, and theScore Bet. The company was formerly known as Penn National Gaming, Inc. and changed its name to PENN Entertainment, Inc. in August 2022. PENN Entertainment, Inc. was founded in 1972 and is based in Wyomissing, Pennsylvania.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -3.4).
Valuation inputs: P/E -3.4, earnings yield N/A, momentum -2.9%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -46.0%, ROIC +2.1%).
Profitability stack: net margin -12.1%, ROE -46.0%, ROIC +2.1%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +87.2%, momentum -2.9%, net margin -12.1%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
PENN Entertainment, Inc. Market vs Earnings Trajectory
Loading price and EPS data...
PENN Entertainment, Inc. Fair Value Envelope
PENN Entertainment, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.
Operating Margin
Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Non-operating losses: Core business is profitable but other expenses (interest, taxes, one-time items) are driving net losses. Review capital structure and non-operating items.
PENN Entertainment, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Weak cash conversion. Significant portion of earnings not converting to cash—review working capital trends and capital intensity.
CapEx Intensity
Very high capital intensity consumes most operating cash flow. Limited flexibility for dividends or debt reduction.
FCF Growth Trend
Declining FCF warrants attention. Investigate whether due to temporary factors or fundamental deterioration.
Working Capital Impact
Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extension—monitor closely.
Cash Flow Quality Insight
Working capital strain: Significant cash tied up in operations. Monitor receivables collection, inventory turns, and payment terms to optimize cash conversion cycle.
PENN Entertainment, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Warning: Liquidity concerns. Current assets may not be sufficient to cover short-term obligations.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Financial Health Insight
Financial stress indicators: Both liquidity and leverage metrics raise concerns. The company may face challenges meeting obligations and should focus on strengthening its balance sheet.
PENN Entertainment, Inc. Street Expectations Map
Wall Street analysts project that PENN stock may experience modest gains over the coming 12 months. The consensus 1-year price target stands at 20.29, with estimates ranging from a low of 17.00 to a high of 24.00.
The consensus 1-year price target stands at 20.29, with estimates ranging from a low of 17.00 to a high of 24.00.
Analyst Consensus Analysis
Upside Potential
Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.
Analyst Agreement
Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.
Risk-Reward Profile
Balanced risk-reward. Upside and downside potential relatively symmetric. Suitable for moderate risk tolerance with conviction in thesis.
Analyst Conviction
Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
PENN Entertainment, Inc. Insider Positioning
During the last 12 months, insiders have purchased $1.34M and sold $116K worth of PENN shares, resulting in $1.23M of net buying activity.
3 Months
0
0.00
0
0.00
+0
+$0
3-6 Months
8.0K
120.72K
0
0.00
+121K
+$121K
6-9 Months
62.0K
882.81K
8.0K
115.89K
+767K
+$767K
9-12 Months
20.0K
339.30K
0
0.00
+339K
+$339K
Top Buyers
Handler David A
Director
$624K
Snowden Jay A
Director, Officer: Ceo And President
$497K
Scaccetti Jane
Director
$121K
Hendrix Felicia
Officer: Evp And Cfo
$101K
Top Sellers
Black Gupta Vimla
Director
$116K
Insider Activity Analysis
Net Insider Sentiment
Strong bullish signal with $1.23M net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.
Buy/Sell Ratio
Exceptional buy/sell ratio. Buying dramatically outweighs selling—one of the strongest possible insider signals.
Insider Participation
4 insider buyers vs. 1 sellers. Broad-based buying across management team suggests widespread confidence.
Insider Activity Insight
Compelling insider conviction: The combination of strong buy/sell ratio and multiple buyers suggests insiders see attractive risk/reward. Consider this alongside fundamental analysis for confirmation.
penn Dividend History
Learning Layer
Related Guides
Build conviction on PENN by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.