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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Caesars Entertainment, Inc. (XNAS:CZR) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
CZR
Name:
CAESARS ENTERTAINMENT, INC. (XNAS:CZR)
Sector:
- 469000.00K
Industry:
Resorts & Casinos
CEO:
Mr. Anthony Rodio
Total Employees:
23,000
Our Technological Advancement Rating
Our Rating:
B
Technological advancement compared to industry is -17.16% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF CAESARS ENTERTAINMENT, INC.(CZR) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND RESORTS & CASINOS INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
42.6
One Month Price Target:
$43.26
Six Month Price Target :
$46.55
Likely Price in One Year's Time:
Ticker:
$50.51
Likely Trading Range Today Under (Normal Volatility)
$42.24
Price Upper limit ($) :
$43.07
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$37.67
This week:
$31.57
This month :
$20.54
Other Primary facts
Market Cap:
9.35B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
214.42M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
44.16%
-37.51%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$65.48
$54.95
$19.72
$30.25
Medium risk (<10%) entry points
Buy Call
Sell Call
$51.52
Buy Put:
Sell Put:
$49.28
$33.65
$35.92
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
CZR
Sharpe Ratio:
2.18%
Comparison:
CZR, is amongst the top 40% stocks with highest risk-adjusted returns
Sharpe ratio is -21.94% lower than the industry
& is -4.31% lower than the market/S&P 500 average
Average Returns/Yield of
CZR
Daily returns:
0.13%
Weekly returns:
0.67%
Monthly returns:
2.66%
Yearly returns:
33.63%
Comparison of returns:
Average annual returns/yield (last 3 years) is -4.93% below industry average
Classification:
CZR, is amongst the top 20% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.52
Statistical test of Returns:
CZR has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
5.70%
Weekly Volatility:
12.75%
Monthly Volatility:
25.50%
Yearly Volatility:
88.34%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.08%
Volatility in last five trading days has been -81.03% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-11.58%
Weekly VaR:
-25.89%
Monthly VaR:
-51.78%
How Much Can the price of
CZR
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-44%
Worst case (decline):
>85%
This translates to price declining to:
$23.75
This translates to price declining to:
$6.39
Severe Crash Probability
Risk of crash in next 6/12 months: High (50-70%)
What is Value at Risk (VaR)?
Risk Fundamentals
CZR is a 265.43% riskier investment compared to the market/S&P 500 & is 213.06% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is 27.95% above industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
CZR
Beta in relation to market/S&P 500--2.76
Expected beta in 1 year's time:
1.362
Expected beta in 3 year's time:
1.926
Unlevered (debt free) Beta:
0.439
Beta in relation to Nasdaq (XNAS):
1.781
Beta in relation to all global stocks::
1.577
Beta Comparison & Analysis
Beta of competitors/peers::
1.248
Beta is 121.29% higher than peers
Average Industry Beta:
2.078
Beta is 32.96% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
-
-
Alpha provided | Alpha Analysis
Alpha provided:
0.099
Alpha is -39.07% below industry average alpha yield
Alpha is 630% higher than market/& is unsustainably high
Analysis of Cost of Capital of
CZR
Equity cost of capital:
0.221
Equity cost of capital is 26.99% above industry mean WACC
Unlevered (without debt) cost of capital:
3.51%
Before-tax cost of debt:
8.63%
After-tax cost of debt:
6.81%
Overall debt rating:
Non-investment grade (junk/speculative grade
Weighted average cost of capital (WACC):
6.81%
WACC is 26.63% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$46.96
Revenue growth rate per share of (3Y):
2.37
Annual revenue growth rate is 261.98% above the industry average
EPS:
-$5.98
Expected Annual growth rate of EPS (3Y):
0.00%
-
Free cash flow (FCF) per share:
-
-
-
Debt per share
$122.30
EBITDA per share
$8.58
Valuation Analysis Today of
CZR
P/E Ratio:
20.49
P/E Ratio of Competitors/Peers:
844.16
P/E ratio is -97.57% lower than main peers & is -51.09% lower than the industry
-
CZR is -117.00% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
0.91
Price to sales ratio is -63.76% below the industry mean
P/B (Price to book value ratio):
2.37
-
-
Net income growth rate (3Y):
-487.29%
Net income growth rate is 640.22% higher than the average industry net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
692.84%
Net debt to equity ratio:
673.18%
Debt to assets ratio:
70.74%
Net debt to assets ratio:
68.73%
Debt-to-asset ratio is -3.26% below industry average
Ability to repay debt:
Interest coverage ratio:
0.81
Interest coverage ratio is -84.62% less than industry average
Looking forward:
Debt growth rate:
14020.97%
Annual debt growth is 607% higher than industry average debt growth rate
Debt repayment rate in last quarter: 1.84%
Analysis of Key Statistics
Correlation of price movement with the market:
0.601
Statistical significance of correlation:
CZR has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.569
Stock price is 5.55% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.569
Correlation of price movement with Nasdaq (^IXIC):
-0.026
Covariance of price movement with the market:
-0.085
Kurtosis
13.198
Returns have severe fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are considerably more likely, compared to assets with normally distributed returns
Skewness of returns:
0.264
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
CZR
Gross Profit Margin Ratio:
189%
Operating Profit Margin Ratio:
12.25%
Operating profit margin is 67.17% higher than the industry
Net Profit Margin Ratio:
189%
Effective Tax Rate:
23.59%
Effective tax rate is -42.90% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
-33.69%
Return on equity (ROE) is -259.98% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
-3.44%
Return on assets (ROA) is -189.34% lower than the industry
Financial Leverage:
3.4x
Current Ratio:
1
Current ratio is -55.11% below industry average
Cash Conversion Cycle (days):
-60
Cash conversion cycle is -245.01% below industry average
-
Stock based compensation to net income ratio:
-
In-depth Efficiency Analysis
Revenue generated per employee:
437.8K
Each employee generates 67% more revenue than industry average revenue per employee
EBITDA generated per employee:
80.0K
Each employee generates 13% more EBITDA than industry average revenue per employee
Profit generated per employee:
- 55.4K
Each employee generates -355% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 20.4K
Each employee generates -304% less free cash flow than industry average revenue per employee
Assets/Capital per employee
1.4M
Each employee generates -304% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
CZR
POOL CORPORATION (XNAS:POOL)
LKQ CORPORATION (XNAS:LKQ)
ULTA BEAUTY, INC. (XNAS:ULTA)
OLAPLEX HOLDINGS, INC. (XNAS:OLPX)
ETSY, INC. (XNAS:ETSY)
LIBERTY MEDIA CORPORATION (XNAS:FWONK)
LIBERTY MEDIA CORPORATION (XNAS:FWONA)
Hasbro, Inc. (XNAS:HAS)
TRACTOR SUPPLY COMPANY (XNAS:TSCO)
Current Analyst Ratings
Strong buy�8%
Buy�8%
Hold�4%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Strong buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
10.07B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
5.27B
4.80B
-
2.21B
2.21B
-
1.16B
3.37B
-
2.27B
1.16B
1.84B
1.23B
- 1275000.00K
- 1331000.00K
- 314000.00K
- 1275000.00K
Statement of Cash Flow
Date:
Period:
-
Differed Income Tax :
-
Stock Based Compensation :
-
Change in Working Capital :
-
Accounts Receivables:
-
Other Working Capital:
-
Other Non-Cash Items:
- 259000.00K
Net Cash Provided by Operating Activities:
- 259000.00K
Investments in PP&E:
- 210000.00K
Net Acquisitions:
3.00M
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
814.00M
-
814.00M
450.00M
44.00M
3.81B
5.12B
14.64B
11.08B
4.86B
97.00M
-
1.27B
31.95B
-
37.07B
528.00M
70.00M
-
-
4.55B
5.15B
26.22B
929.00M
28.08B
-
33.23B
-
- 3090000.00K
16.0M
-
March 31, 2022 at 6:00:00 AM
8.65B
3.79B
37.01B
-
26.29B
25.5B
27.00M
- 18000.00K
- 198000.00K
- 492000.00K
-
-
-
455.00M
- 37000.00K
- 9000.00K
- 503000.00K
1.52B
2.02B
- 259000.00K
- 210000.00K
- 469000.00K
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
CZR
2023
2024
2025
2026
2027
$50.67
$60.08
$71.23
$84.45
$100.13