PENN Entertainment, Inc. (PENN) AI Stock Analysis

PENN Entertainment, Inc. operates integrated entertainment, sports content, and casino gaming experiences across North America. Organized into Northeast, South, West, Midwest, and Interactive segments, the company manages 44 properties across 20 states. Venues offer casino gaming, live events, and dining. In digital gaming, PENN engages in online sports betting across 13 jurisdictions and iCasino operations in five states under brands such as Hollywood Casino, L'Auberge, Barstool Sportsbook, and theScore Bet. Founded in 1972 and headquartered in Wyomissing, Pennsylvania, the company rebranded from Penn National Gaming, Inc. in August 2022 to reflect its technology and entertainment focus.

Revenue expanded at a 5-year compound annual growth rate of 14.2% from FY2020 to FY2025. Annual revenue grew from $5.91B in FY2021 to $6.40B in FY2022, dipped to $6.36B in FY2023, and rose to $6.58B in FY2024 and $6.96B in FY2025. Gross margin contracted from 46.7% in FY2021 to 27.4% in FY2025. Net income fell from $420.8M in FY2021 to -$843.1M in FY2025, yielding a net margin of -12.1%. For the latest quarter ended June 30, 2026, quarterly revenue grew 5.2% year-over-year, and quarterly earnings grew 208.9% year-over-year, bringing trailing twelve-month revenue to $7.16B.

As of June 30, 2026, PENN held $887.2M in cash and short-term investments against total debt of $6.81B, leaving net debt at $5.93B and total assets of $14.07B. Shareholders' equity stood at $1.86B, resulting in a debt-to-equity ratio of 3.66 and a current ratio of 0.89. In FY2025, operating cash flow was $508.2M, but free cash flow was -$139.5M after capital expenditures of $647.7M. The company spent $354.4M on share buybacks in FY2025, reducing its share count by 19.0% over five years.

PENN carries a market capitalization of $2.00B and an enterprise value of $12.26B. The stock trades at a forward price-to-earnings multiple of 8.2x, below the 14.1x median of its US-listed Consumer Cyclical peers. Its price-to-sales ratio is 0.3x compared to the peer median of 0.7x, while its enterprise value-to-EBITDA ratio of 392.4x sits well above the peer median of 11.1x. Over the past year, the stock returned -11.7% and has declined 80.8% over five years, lagging the S&P 500 returns of 16.8% and 83.0% over those respective periods.

Wall Street coverage includes 10 Strong Buy, 3 Buy, and 7 Hold ratings, with zero Sell or Strong Sell recommendations. The mean price target is $24.13, representing 61.5% upside from the last close of $14.94 on October 16, 2026. For the current fiscal year ending December 31, 2026, analysts expect earnings per share of $0.95 on revenue of $7.42B. For the next fiscal year, 5 analysts project revenue of $7.74B and earnings per share of $1.20. PENN has beaten earnings estimates in 3 of the last 4 quarters, with the next earnings release scheduled for November 5, 2026.

This page is an AI-written research summary of PENN Entertainment, Inc. (PENN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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