Caesars Entertainment Inc (CZR) Stock Analysis
Verdict: WATCH (do not buy)
CZR is a high-leverage bet on a Las Vegas recovery, but serial earnings misses and a 7.3x D/E ratio make the current breakout fragile.
Investment score: 42/100
Analysis as of
Is Caesars Entertainment Inc stock worth reviewing? The TradeMates thesis
The TradeMates model flags CZR as a high-risk entity due to its deteriorating balance sheet and consistent inability to meet earnings expectations. While technical indicators suggest a short-term breakout, the long-term fundamentals are undermined by high leverage and negative net margins.
7-factor investment score
- Valuation: 45/100 (weight 20%)
- Financial Health: 30/100 (weight 15%)
- Technical Momentum: 68/100 (weight 15%)
- Earnings Quality: 15/100 (weight 15%)
- Insider Sentiment: 50/100 (weight 10%)
- Analyst Consensus: 60/100 (weight 10%)
- Risk-Adjusted Return: 40/100 (weight 15%)
Caesars Entertainment Inc opportunities and risks
What speaks for CZR
- Technical Breakout Setup
What speaks against CZR
- Excessive Financial Leverage
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| CZR | n/a | 0.5x | 8.6x | 43.9% | -4.2% | 8.4% |
| RSI | 73.6x | 5.1x | 37.8x | 34.9% | 3.0% | 2.3% |
| CHDN | 16.3x | 2.1x | 10.5x | 33.8% | 13.1% | 10.8% |
| BYD | 3.5x | 1.5x | 3.1x | 39.5% | 44.8% | 4.5% |
| RRR | 17.7x | 1.6x | 4.1x | 57.1% | 9.2% | 17.9% |
| PENN | n/a | 0.4x | n/a | 29.7% | -13.5% | -2.2% |
| Peer median | 16.3x | 1.6x | 4.1x | 34.9% | 9.2% | 4.5% |
Frequently asked questions about Caesars Entertainment Inc (CZR)
Is CZR stock a good investment?
The TradeMates model rates Caesars Entertainment Inc as WATCH (do not buy) with an investment score of 42/100. The TradeMates model flags CZR as a high-risk entity due to its deteriorating balance sheet and consistent inability to meet earnings expectations. While technical indicators suggest a short-term breakout, the long-term fundamentals are undermined by high leverage and negative net margins. This is algorithmic model output, not personal investment advice.
Is CZR stock a buy?
The TradeMates model verdict for CZR is WATCH (do not buy) with an investment score of 42/100. Treat this as a model signal to review, not a personal buy recommendation.