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We are a geographically diversified gaming and hospitality company that was founded in 1973 by the Carano family with the opening of the Eldorado Hotel Casino in Reno, Nevada. Beginning in 2005, we grew through a series of acquisitions, including the acquisition of MTR Gaming Group, Inc. in 2014, Isle of Capri Casinos, Inc. in 2017, Tropicana Entertainment, Inc. in 2018, Caesars Entert…
16.18% operating margin is respectable but not wide. ROIC at 8.82%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue growth slowed to 2.1%, essentially flat. Margins also contracted 4.3pp. This is a business that needs a catalyst.
ROIC dropped from 12.75% to 8.82%, capital efficiency is deteriorating. Net debt of $11.79B represents 23.7x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$11.49B
▲ +2.1% YoY
Net Income (TTM)
-$502M
▼ -80.6% YoY
Op. Margin
16.18%
▼ -4.3pp YoY
ROIC
8.82%
▼ -3.9pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$497M
▲ +324.9% YoY
Op. Cash Flow (TTM)
$1.30B
▲ +21.1% YoY
Net Debt
$11.79B
Cash & Equiv.
$887M
5Y CAGR: +25.9%
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