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PENN Entertainment, Inc. (PENN) Fundamental Analysis & AI Grade 2026

PENN Nasdaq Hotels & Motels PA CIK: 0000921738
Updated This Month • Analysis: May 6, 2026 • SEC Data: 2026-03-31
Combined AI Grade
D
88% Confidence
N/A
D
88% Conf
Pending
Analysis scheduled

📊 PENN Key Takeaways

Revenue: $1.8B
Net Margin: -0.1%
Free Cash Flow: $-85.4M
Current Ratio: 0.82x
Debt/Equity: 1.61x
EPS: $-0.02
AI Grade: D with 88% confidence
PENN Entertainment, Inc. (PENN) receives a D fundamental grade with 88% confidence from our AI analysis based on SEC 10-K filings. With revenue of $1.8B, net profit margin of -0.1%, and return on equity (ROE) of -0.1%, PENN Entertainment, Inc. demonstrates mixed fundamentals in the Real Estate sector. Below is our complete PENN stock analysis for 2026.

Is PENN Entertainment, Inc. (PENN) a Good Investment?

Claude

Penn Entertainment exhibits severe financial distress despite modest 5.8% revenue growth, marked by catastrophically low interest coverage of 0.2x that signals critical debt servicing risk. The company's net loss of -$2.3M, negative free cash flow of -$85.4M, and current ratio of 0.82x reveal structural profitability and liquidity deterioration that threaten long-term viability.

PENN Entertainment, Inc. Key Strengths (PENN)

Claude
  • + Positive operating cash flow of $122.4M demonstrates core business operations generate cash
  • + Revenue growth of 5.8% YoY indicates continued market demand for gaming and hospitality properties
  • + Operating income of $97.1M shows ability to produce profits at operating level

PENN Stock Risks: PENN Entertainment, Inc. Investment Risks

Claude
  • ! Interest coverage of 0.2x is critically low—operating income covers interest expense only one-fifth of requirements
  • ! Negative free cash flow of -$85.4M with capex of $207.8M indicates capital structure unsustainable without cash burn
  • ! Current ratio of 0.82x below 1.0x signals liquidity stress and potential working capital deficit
  • ! Company unprofitable with net loss of -$2.3M and negative net margin of -0.1% despite revenue growth

Key Metrics to Watch

Claude
  • * Interest coverage ratio—must improve above 1.5x to demonstrate debt sustainability
  • * Free cash flow—critical inflection point if turns positive to support debt reduction
  • * Current ratio and liquidity position—refinancing or asset sales risk if deteriorates further
  • * Debt maturity schedule and refinancing capability in tightening rates environment

PENN Entertainment, Inc. (PENN) Financial Metrics & Key Ratios

Revenue
$1.8B
Net Income
$-2.3M
EPS (Diluted)
$-0.02
Free Cash Flow
$-85.4M
Total Assets
$14.1B
Cash Position
$708.0M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

PENN Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin 5.5%
Net Margin -0.1%
ROE -0.1%
ROA 0.0%
FCF Margin -4.8%

PENN vs Real Estate Sector: How PENN Entertainment, Inc. Compares

How PENN Entertainment, Inc. compares to Real Estate sector averages

Net Margin
PENN -0.1%
vs
Sector Avg 20.0%
PENN Sector
ROE
PENN -0.1%
vs
Sector Avg 8.0%
PENN Sector
Current Ratio
PENN 0.8x
vs
Sector Avg 1.5x
PENN Sector
Debt/Equity
PENN 1.6x
vs
Sector Avg 1.5x
PENN Sector

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

Is PENN Entertainment, Inc. Stock Overvalued? PENN Valuation Analysis 2026

Based on fundamental analysis, PENN Entertainment, Inc. shows some fundamental concerns relative to the Real Estate sector in 2026.

Return on Equity
-0.1%
Sector avg: 8%
Net Profit Margin
-0.1%
Sector avg: 20%
Revenue Growth
N/A
Year-over-year
Debt/Equity
1.61x
Sector avg: 1.5x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

PENN Entertainment, Inc. Balance Sheet: PENN Debt, Cash & Liquidity

Current Ratio
0.82x
Quick Ratio
0.81x
Debt/Equity
1.61x
Debt/Assets
87.1%
Interest Coverage
0.20x
Long-term Debt
$2.9B

PENN Revenue & Earnings Growth: 5-Year Financial Trend

PENN 5-year financial data: Year 2019: Revenue $5.3B, Net Income N/A, EPS N/A. Year 2020: Revenue $5.3B, Net Income N/A, EPS N/A. Year 2021: Revenue $5.9B, Net Income $43.9M, EPS $0.37. Year 2022: Revenue $6.4B, Net Income -$669.5M, EPS $-5.00. Year 2023: Revenue $6.4B, Net Income $420.8M, EPS $2.48.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: PENN Entertainment, Inc.'s revenue has grown significantly by 21% over the 5-year period, indicating strong business expansion. The most recent EPS of $-3.22 indicates the company is currently unprofitable.

PENN Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-4.8%
Free cash flow / Revenue

PENN Quarterly Earnings & Performance

Quarterly financial performance data for PENN Entertainment, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $1.7B -$2.3M $-0.02
Q3 2025 $1.6B -$36.7M $-0.24
Q2 2025 $1.7B -$17.4M $-0.12
Q1 2025 $1.6B $111.8M $0.68
Q3 2024 $1.6B -$36.7M $-0.24
Q2 2024 $1.7B -$26.8M $-0.18
Q1 2024 $1.6B -$114.7M $-0.76
Q3 2023 $1.6B $123.5M $0.72

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

PENN Entertainment, Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$122.4M
Cash generated from operations
Capital Expenditures
$207.8M
Investment in assets
Dividends
None
No dividend program

PENN SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for PENN Entertainment, Inc. (CIK: 0000921738)

📋 Recent SEC Filings

Date Form Document Action
May 28, 2026 8-K tm2615773d1_8k.htm View →
Apr 29, 2026 10-Q penn-20260331.htm View →
Apr 27, 2026 DEF 14A ny20062568x1_def14a.htm View →
Apr 23, 2026 8-K penn-20260423.htm View →
Apr 16, 2026 8-K tm2611966d1_8k.htm View →

Frequently Asked Questions about PENN

What is the AI rating for PENN?

PENN Entertainment, Inc. (PENN) has an AI grade of D with 88% confidence, based on fundamental analysis of SEC EDGAR filings.

What are PENN's key strengths?

Claude: Positive operating cash flow of $122.4M demonstrates core business operations generate cash. Revenue growth of 5.8% YoY indicates continued market demand for gaming and hospitality properties.

What are the risks of investing in PENN?

Claude: Interest coverage of 0.2x is critically low—operating income covers interest expense only one-fifth of requirements. Negative free cash flow of -$85.4M with capex of $207.8M indicates capital structure unsustainable without cash burn.

What is PENN's revenue and growth?

PENN Entertainment, Inc. reported revenue of $1.8B.

Does PENN pay dividends?

PENN Entertainment, Inc. does not currently pay dividends.

Where can I find PENN SEC filings?

Official SEC filings for PENN Entertainment, Inc. (CIK: 0000921738) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is PENN's EPS?

PENN Entertainment, Inc. has a diluted EPS of $-0.02.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is PENN's fundamental grade?

Based on our AI fundamental analysis in May 2026, PENN Entertainment, Inc. has a D grade with 88% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is PENN stock overvalued or undervalued?

Valuation metrics for PENN: ROE of -0.1% (sector avg: 8%), net margin of -0.1% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.

What is PENN's AI grade for 2026?

Our dual AI analysis gives PENN Entertainment, Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is PENN's free cash flow?

PENN Entertainment, Inc.'s operating cash flow is $122.4M, with capital expenditures of $207.8M. FCF margin is -4.8%.

How does PENN compare to other Real Estate stocks?

Vs Real Estate sector averages: Net margin -0.1% (avg: 20%), ROE -0.1% (avg: 8%), current ratio 0.82 (avg: 1.5).

Is PENN Entertainment, Inc. carrying too much debt?

PENN has a debt-to-equity ratio of 1.61x, which is above the Real Estate sector average of 1.5x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) 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: May 6, 2026 | Data as of: 2026-03-31 | Powered by Claude AI