Penn National Gaming, Inc. [NASDAQ:PENN]: Analyst Rating and Earnings
Equities traders frequently stay up to date regarding what leading market analysts think about a possible stock buy. As it relates to Penn National Gaming, Inc. [PENN], the latest mean analyst recommendation that’s publicly available is from the fiscal three-month period ending in December. On average, stock market experts give PENN an Outperform rating. Its stock price has been found in the range of 17.30 to 36.90. This is compared to its latest closing price of $21.40.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Penn National Gaming, Inc. [PENN] is sitting at 1.75. This is compared to 1 month ago, when its average rating was 2.00.
For the quarter ending in Mar-19 Penn National Gaming, Inc. [PENN] generated $1.28 billion in sales. That’s 0.84% lower than the average estimate of $1.29 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Thu 25 Jul (In 69 Days).
Fundamental Analysis of Penn National Gaming, Inc. [PENN]
Now let’s turn to look at profitability: with a current Operating Margin for Penn National Gaming, Inc. [PENN] sitting at +20.68 and its Gross Margin at +35.42, this company’s Net Margin is now 2.20%. 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 9.89, and its Return on Invested Capital has reached 6.00%. Its Return on Equity is 28.42, and its Return on Assets is 1.03. These metrics suggest that this Penn National Gaming, Inc. 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, Penn National Gaming, Inc. [PENN] has generated a Total Debt to Total Equity ratio of 1,307.48. Similarly, its Total Debt to Total Capital is 92.90, while its Total Debt to Total Assets stands at 74.14. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 1,289.71, and its Long-Term Debt to Total Capital is 91.63. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 11.34 and its Total Debt to EBITDA Value is 9.46. The Enterprise Value to Sales for this firm is now 2.83, and its Total Debt to Enterprise Value stands at 0.87. Penn National Gaming, Inc. [PENN] has a Price to Book Ratio of 3.00, a Price to Cash Flow Ratio of 5.36 and P/E Ratio of 23.16. 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, Penn National Gaming, Inc. [PENN] earns $139,337 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 42.30 and its Total Asset Turnover is 0.40. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.92 and its Current Ratio is 0.92. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Penn National Gaming, Inc. [PENN] has 116.88M shares outstanding, amounting to a total market cap of $2.50B. Its stock price has been found in the range of 17.30 to 36.90. At its current price, it has moved by -42.03% from its 52-week high, and it has moved 23.64% from its 52-week low.
This stock’s Beta value is currently 1.87, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 56.40. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Penn National Gaming, Inc. [PENN] a Reliable Buy?
Penn National Gaming, Inc. [PENN] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.