Caesars Entertainment Corporation [NASDAQ:CZR]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For Caesars Entertainment Corporation [CZR], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in December. On average, stock market experts give CZR an Outperform rating. Its stock price has been found in the range of 5.84 to 13.54. This is compared to its latest closing price of $9.38.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Caesars Entertainment Corporation [CZR] is sitting at 2.09. This is compared to 1 month ago, when its average rating was 2.08.
For the quarter ending in Dec-18 Caesars Entertainment Corporation [CZR] generated $2.12 billion in sales. That’s 0.16% higher than the average estimate of $2.11 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Wed 1 May (In 15 Days).
Fundamental Analysis of Caesars Entertainment Corporation [CZR]
Now let’s turn to look at profitability: with a current Operating Margin for Caesars Entertainment Corporation [CZR] sitting at +9.74 and its Gross Margin at +36.53, this company’s Net Margin is now 3.60%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 3.71, and its Return on Invested Capital has reached 3.50%. Its Return on Equity is 9.36, and its Return on Assets is 1.18. These metrics suggest that this Caesars Entertainment Corporation does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Caesars Entertainment Corporation [CZR] has generated a Total Debt to Total Equity ratio of 585.91. Similarly, its Total Debt to Total Capital is 85.42, while its Total Debt to Total Assets stands at 73.88. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 580.25, and its Long-Term Debt to Total Capital is 84.60. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 12.03 and its Total Debt to EBITDA Value is 9.71. The Enterprise Value to Sales for this firm is now 2.81, and its Total Debt to Enterprise Value stands at 0.82. Caesars Entertainment Corporation [CZR] has a Price to Book Ratio of 1.30, a Price to Cash Flow Ratio of 7.27 and P/E Ratio of 24.63. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Caesars Entertainment Corporation [CZR] earns $127,136 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 17.30 and its Total Asset Turnover is 0.33. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.11 and its Current Ratio is 1.13. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Caesars Entertainment Corporation [CZR] has 662.11M shares outstanding, amounting to a total market cap of $6.21B. Its stock price has been found in the range of 5.84 to 13.54. At its current price, it has moved by -30.43% from its 52-week high, and it has moved 61.44% from its 52-week low.
This stock’s Beta value is currently 1.19, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 60.50. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Caesars Entertainment Corporation [CZR] a Reliable Buy?
Shares of Caesars Entertainment Corporation [CZR], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.