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CZR Stock Analysis - Caesars Entertainment, Inc. AI Rating

CZR Nasdaq Hotels & Motels DE CIK: 0001590895
Recently Updated • Analysis: Mar 23, 2026 • SEC Data: 2025-12-31
AI Rating
SELL
78% Confidence

📊 CZR Key Takeaways

Revenue: $11.5B
Net Margin: -4.4%
Free Cash Flow: $497.0M
Current Ratio: 0.80x
Debt/Equity: 3.40x
EPS: $-2.42
AI Rating: SELL with 78% confidence

Investment Thesis

Caesars Entertainment faces significant profitability headwinds with negative net income of -$502M and a concerning net margin of -4.4% despite modest 2.1% revenue growth. The company's highly leveraged balance sheet (3.4x debt-to-equity) combined with deteriorating interest coverage (0.8x) and poor liquidity ratios presents acute financial distress risk, particularly if operating conditions weaken further.

CZR Strengths

  • + Positive operating cash flow of $1.3B demonstrates ability to generate cash from core operations
  • + Operating margin of 16.2% shows underlying business units generate reasonable operating returns
  • + Revenue base of $11.5B provides scale in the hospitality and casino industry

CZR Risks

  • ! Negative net income of -$502M with deteriorating EPS (-87.6% YoY) indicates serious profitability deterioration
  • ! Dangerous leverage metrics: 3.4x debt-to-equity ratio with 0.8x interest coverage suggests inability to service $11.9B long-term debt at current profitability levels
  • ! Weak liquidity position with 0.80x current ratio and only $887M cash against significant debt obligations creates refinancing and operational flexibility concerns
  • ! Negative ROE (-14.3%) and ROA (-1.6%) indicate equity holders are experiencing value destruction

Key Metrics to Watch

CZR Financial Metrics

Revenue
$11.5B
Net Income
$-502.0M
EPS (Diluted)
$-2.42
Free Cash Flow
$497.0M
Total Assets
$31.6B
Cash Position
$887.0M

💡 AI Analyst Insight

The relatively thin 4.3% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.

CZR Profitability Ratios

Gross Margin N/A
Operating Margin 16.2%
Net Margin -4.4%
ROE -14.3%
ROA -1.6%
FCF Margin 4.3%

CZR vs Default Sector

How Caesars Entertainment, Inc. compares to Default sector averages

Net Margin
CZR -4.4%
vs
Sector Avg 12.0%
CZR Sector
ROE
CZR -14.3%
vs
Sector Avg 15.0%
CZR Sector
Current Ratio
CZR 0.8x
vs
Sector Avg 1.8x
CZR Sector
Debt/Equity
CZR 3.4x
vs
Sector Avg 0.7x
CZR Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

CZR Balance Sheet & Liquidity

Current Ratio
0.80x
Quick Ratio
0.78x
Debt/Equity
3.40x
Debt/Assets
88.3%
Interest Coverage
0.80x
Long-term Debt
$11.9B

CZR 5-Year Financial Trend

CZR 5-year financial data: Year 2021: Revenue $9.6B, Net Income $81.0M, EPS $1.03. Year 2022: Revenue $10.8B, Net Income -$1.8B, EPS $-13.50. Year 2023: Revenue $11.5B, Net Income -$1.0B, EPS $-4.83. Year 2024: Revenue $11.5B, Net Income -$899.0M, EPS $-4.19. Year 2025: Revenue $11.5B, Net Income $786.0M, EPS $3.64.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Caesars Entertainment, Inc.'s revenue has grown significantly by 20% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.64 reflects profitable operations.

CZR Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
4.3%
Free cash flow / Revenue

CZR Quarterly Performance

Quarterly financial performance data for Caesars Entertainment, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $2.9B -$9.0M $-0.04
Q2 2025 $2.8B -$82.0M $-0.39
Q1 2025 $2.7B -$115.0M $-0.54
Q3 2024 $2.9B -$9.0M $-0.04
Q2 2024 $2.8B -$122.0M $-0.56
Q1 2024 $2.7B -$136.0M $-0.63
Q3 2023 $2.9B $52.0M $0.24
Q2 2023 $2.8B -$123.0M $-0.57

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

CZR Capital Allocation

Operating Cash Flow
$1.3B
Cash generated from operations
Stock Buybacks
$229.0M
Shares repurchased (TTM)
Capital Expenditures
$805.0M
Investment in assets
Dividends
None
No dividend program

CZR SEC Filings

Access official SEC EDGAR filings for Caesars Entertainment, Inc. (CIK: 0001590895)

📋 Recent SEC Filings

Date Form Document Action
Feb 19, 2026 4 xslF345X05/wk-form4_1771536073.xml View →
Feb 19, 2026 4 xslF345X05/wk-form4_1771536067.xml View →
Feb 19, 2026 4 xslF345X05/wk-form4_1771536061.xml View →
Feb 19, 2026 4 xslF345X05/wk-form4_1771536054.xml View →
Feb 19, 2026 4 xslF345X05/wk-form4_1771536048.xml View →

Frequently Asked Questions about CZR

What is the AI rating for CZR?

Caesars Entertainment, Inc. (CZR) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CZR's key strengths?

Positive operating cash flow of $1.3B demonstrates ability to generate cash from core operations. Operating margin of 16.2% shows underlying business units generate reasonable operating returns.

What are the risks of investing in CZR?

Negative net income of -$502M with deteriorating EPS (-87.6% YoY) indicates serious profitability deterioration. Dangerous leverage metrics: 3.4x debt-to-equity ratio with 0.8x interest coverage suggests inability to service $11.9B long-term debt at current profitability levels.

What is CZR's revenue and growth?

Caesars Entertainment, Inc. reported revenue of $11.5B.

Does CZR pay dividends?

Caesars Entertainment, Inc. does not currently pay dividends.

Where can I find CZR SEC filings?

Official SEC filings for Caesars Entertainment, Inc. (CIK: 0001590895) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is CZR's EPS?

Caesars Entertainment, Inc. has a diluted EPS of $-2.42.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 23, 2026 | Data as of: 2025-12-31 | Powered by Claude AI