PENN Entertainment, Inc. (PENN) Fundamental Analysis: Bull vs. Bear Case

PENN

PENN Entertainment, Inc.

Fundamental data last updated:May 27, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Gambling, Resorts & Casinos

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

08/06/2026

Business Summary

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.

VALUATION

P/E

-2.35

Market Cap ($M USD)

$2.26B

Forward P/E

4.12 PEG

0.03 PRICE TO SALES

0.32 PRICE TO BOOK

1.23 EV / EBITDA

-74.49

5-Year Average P/E

Free Cash Flow Yield

-2.56%

DCF Value

$6.78

Graham Number

N/A

Price to FCF

-39.13

EV to FCF

-170.03

Earnings Yield

-42.51%

FCF Yield

-2.56%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$7.18

Next Year EPS Growth Estimate

$4.10

Next Year Revenue Growth Estimate

$763.00B

Return on Equity (ROE)

-44.48%

FREE CASH FLOW

Operating Margin

-7.04%

Debt-to-Equity

4.57 Piotroski F-Score

5 Altman Z-Score

0.30 Return on Invested Capital (ROIC)

-3.92%

Current Ratio

0.82 Quick Ratio

0.82 Net Debt to EBITDA

-57.35

Interest Coverage

-1.26

Gross Profit margin

29.69%

FCF PER SHARE

$-0.43

REVENUE PER SHARE

$52.98

Gainseekers Quantitative Analysis

Summary

PENN Entertainment, Inc. presents a perplexing valuation scenario. Recent pricing indicated the stock traded significantly above its DCF value, suggesting market optimism or mispricing. The Forward P/E of 4.08 implies expectations of a turnaround, yet the negative Earnings Yield and Altman Z-score of 0.30 raise red flags about financial distress. The company’s negative ROIC and operating margins further underscore operational inefficiencies. Investors should tread cautiously, as the financial health appears precarious despite a consensus “Buy” rating.

AI Exposure / Tech Reliance

Operating within the Gambling, Resorts & Casinos industry, PENN is positioned to leverage AI for personalized customer experiences and operational efficiencies. The integration of AI could enhance predictive analytics for customer behavior, a critical advantage in a competitive market. However, the industry's inherent reliance on physical locations may limit rapid tech adaptation.

The Bull Case

For the value-driven investor, PENN offers intriguing potential. The Forward PEG ratio of 0.03 suggests undervaluation relative to growth prospects, while a Piotroski F-Score of 5 indicates moderate financial health. Despite negative FCF Yield, the company's ability to potentially rebound with an estimated EPS of $4.10 next year could signal a turnaround. Investors might see this as a chance to capitalize on future earnings growth.

The Bear Case

PENN's structural weaknesses are glaring. The negative EV to EBITDA and Price to FCF ratios highlight severe cash flow issues, compounded by a staggering Debt/Equity ratio of 4.57. The stock's proximity to its 52-week high, coupled with a negative operating margin, suggests overextension without solid financial backing. These factors paint a picture of a company struggling to maintain financial stability.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$20.29

Institutional Ownership %

1-Year Beta

1.44 Insider Buying % (6 Mo)

Distance to 52-Week High

22.10%

Distance to 52-Week Low

30.98%

EARNINGS SURPRISE %

120.00%

50-DAY SMA

$15.69

200-DAY SMA

$15.87

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.