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Caesars Entertainment Corporation (CZR) Stock

Caesars Entertainment Corporation Stock Details, Movements and Public Alerts

Caesars Entertainment (CZR): The $2.9B Casino Giant Navigating Vegas Weakness and Digital Growth

When Tom Reeg took over as Caesars Entertainment CEO in 2019, he inherited a post-merger casino empire combining legacy Caesars with Eldorado Resorts. Six years later, Reeg manages a $2.9 billion quarterly revenue business spanning the Las Vegas Strip (Caesars Palace, Harrah's, Paris), 50+ regional casinos from Atlantic City to Lake Tahoe, and Caesars Sportsbook competing against DraftKings and FanDuel. Q3 2025 results revealed a mixed picture: Las Vegas revenues declined from $1.062 billion to $952 million as summer visitation softened, while regional properties grew 6.2% to $1.54 billion and digital sports betting delivered $311 million in revenue. Despite $884 million in adjusted EBITDA, Caesars posted a $55 million net loss, missing analyst expectations. Reeg insists Las Vegas is "on track for a record EBITDA year" in 2025 thanks to strong Q4 convention bookings, but the stock reflects investor skepticism about Vegas recovery timing and profitability of the hyper-competitive sports betting market.

52-Week Range

$41.20 - $18.25

-51.46% from high · +9.59% from low

Avg Daily Volume

6,563,939

Latest volume

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

N/A

Forward P/E

15.36

PEG Ratio

3.26

Potentially overvalued

Price to Book

1.44

EV/EBITDA

8.04

EPS (TTM)

-$1.15

Price to Sales

0.34

Beta

2.38

More volatile than market

How is CZR valued relative to its earnings and growth?
Valuation data is not available for this stock.
What is CZR's risk profile compared to the market?
With a beta of 2.38, Caesars Entertainment Corporation is significantly more volatile than the market. For every 10% market move, this stock tends to move 24% in the same direction. Higher beta stocks offer greater potential returns but with increased risk. The price-to-book ratio of 1.44 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

-2.12%

Operating Margin

17.90%

EBITDA

$3.47B

Return on Equity

-4.26%

Return on Assets

3.95%

Revenue Growth (YoY)

-0.20%

Earnings Growth (YoY)

41.70%

How profitable and efficient is CZR's business model?
Caesars Entertainment Corporation achieves a profit margin of -2.12%, meaning it retains $-2.12 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 17.90% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at -4.26% and ROA at 3.95%, the company achieves moderate returns on invested capital.
What are CZR's recent growth trends?
Caesars Entertainment Corporation's revenue declined by 0.20% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings increased by 41.70% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against RESORTS & CASINOS industry averages for proper context.

Company Size & Market

Market Cap

$3.8B

Revenue (TTM)

$11.37B

Revenue/Share (TTM)

$54.20

Shares Outstanding

204.11M

Book Value/Share

$18.45

Asset Type

Common Stock

What is CZR's market capitalization and position?
Caesars Entertainment Corporation has a market capitalization of $3.8B, classifying it as a mid-cap stock ($2B-$10B). Mid-caps often represent companies in their growth phase, offering higher growth potential than large-caps but with more stability than small-caps. They can be attractive takeover targets and may become tomorrow's large-caps. With 204.11M shares outstanding, the company's ownership is relatively concentrated. As a participant in the RESORTS & CASINOS industry, it competes with other firms in this sector.
How does CZR's price compare to its book value?
Caesars Entertainment Corporation's book value per share is $18.45, while the current stock price is $20.00, resulting in a price-to-book (P/B) ratio of 1.08. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$35.88

79.40% upside potential

Analyst Recommendations

Strong Buy

3

Buy

11

Hold

3

Sell

0

Strong Sell

0

How reliable are analyst predictions for CZR?
17 analysts cover CZR with 82% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $35.88 implies 79.4% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on CZR?
Current analyst recommendations:3 Strong Buy, 11 Buy, 3 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Nov 1, 2025, 02:24 AM

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Caesars Entertainment (CZR) Stock Analysis 2025: Complete Investment Guide

The Q3 2025 numbers tell a tale of geographic divergence. Total net revenue hit $2.9 billion with $884 million in adjusted EBITDA, but Caesars recorded a $55 million net loss (-$0.27 EPS). Las Vegas dragged performance—revenues fell to $952 million from $1.062 billion in Q3 2024 as "soft summer" visitation hit the Strip. Regional casinos delivered $1.54 billion (up 6.2%), proving resilient as locals gamble close to home. The digital segment (Caesars Sportsbook, iGaming) generated $311 million in Q3 revenue and $28 million EBITDA, with Q1 2025 showing stronger 19% year-over-year growth. Tom Reeg projects Q4 strength in Vegas based on convention bookings, but investors question whether promotional spending and debt servicing will prevent consistent profitability.

Business Model & Competitive Moat

Caesars operates three segments: Las Vegas (iconic Strip properties like Caesars Palace, Flamingo, Paris Las Vegas), Regional (50+ casinos in markets from Atlantic City to Iowa to California), and Digital (Caesars Sportsbook and iGaming). The Las Vegas model generates revenue from gaming (slots, table games), hotel rooms, food/beverage, entertainment, and conventions. Regional properties target local and drive-in customers. Digital competes in online sports betting and casino games where legal.

The competitive moat is asset-based and brand-driven. Caesars Palace ranks among the world's most recognizable casino brands, commanding premium pricing during peak periods. Las Vegas Strip real estate cannot be replicated—Caesars controls multiple prime locations. Regional properties benefit from oligopoly markets (limited gaming licenses). However, the moat erodes in digital: Caesars Sportsbook competes against DraftKings and FanDuel with no structural advantage, burning cash on customer acquisition. Tom Reeg's challenge: monetize irreplaceable Vegas assets while avoiding ruinous sports betting losses.

Financial Performance

  • •Q3 Revenue Mix: $2.9B total—Vegas $952M (down 10.4%), Regional $1.54B (+6.2%), Digital $311M
  • •Profitability Challenge: $884M adjusted EBITDA but $55M net loss (-$0.27 EPS), missed estimates
  • •Vegas Weakness: Q3 2024 $1.062B to Q3 2025 $952M—soft summer visitation hit Strip properties
  • •Digital Growth: Q1 2025 digital revenue $335M (+19% YoY), EBITDA $43M (improving but still low-margin)
  • •Regional Strength: $1.54B revenue (+6.2%), proving defensive as locals gambling remains resilient

Growth Catalysts

  • •Vegas Recovery: Reeg projects "record EBITDA year" for Vegas in 2025 on strong Q4 convention bookings
  • •Sports Betting Maturation: As marketing spend declines, digital segment approaches sustainable profitability
  • •Regional Expansion: New York downstate casino licenses could add major market presence
  • •Formula 1 Vegas: Annual F1 race drives November premium pricing and international visitation
  • •Debt Reduction: Asset sales (Strip property divestitures) could fund deleveraging and shareholder returns

Risks & Challenges

  • •Vegas Demand Volatility: Consumer confidence, economic slowdowns, and competition for discretionary spending hit visitation
  • •Sports Betting Cash Burn: Digital segment growing but requires heavy promotional spending; path to meaningful profit unclear
  • •Debt Burden: Post-merger leverage remains high; interest expense pressures profitability
  • •Strip Competition: MGM Resorts, Wynn, and The Venetian fight for same high-end customer base
  • •Regulatory Risks: State gaming regulations, sports betting taxation changes could compress margins
  • •Macro Sensitivity: Recessions hit discretionary travel/gambling spending hardest

Competitive Landscape

Caesars competes with MGM Resorts International (dominant Strip operator with Bellagio, MGM Grand, Aria), Wynn Resorts (ultra-premium positioning), Las Vegas Sands (divested Vegas, now Asia-focused), and Red Rock Resorts (locals market leader). In sports betting, Caesars Sportsbook ranks third behind DraftKings and FanDuel, struggling to close the gap despite Caesars Rewards loyalty program integration.

Tom Reeg's strategic positioning emphasizes regional casino stability and digital growth to offset Vegas cyclicality. MGM executes similar diversification but with stronger Vegas market share and more profitable digital sports betting partnerships (BetMGM joint venture with Entain). Caesars trades at a discount to MGM, reflecting investor skepticism about Tom Reeg's ability to match MGM's operational execution and digital profitability. The competitive question: can Caesars leverage Caesars Palace brand equity and Caesars Rewards (60+ million members) to drive sustainable digital profitability, or will sports betting remain a cash-burning distraction?

Who Is This Stock Suitable For?

Perfect For

  • ✓Gaming/hospitality sector specialists understanding casino economics
  • ✓Value investors betting on Vegas recovery at depressed multiples
  • ✓Cyclical play investors timing economic upturns
  • ✓Sports betting growth believers willing to accept near-term losses

Less Suitable For

  • ✗Conservative income investors (no dividend, debt-heavy balance sheet)
  • ✗Growth investors seeking consistent revenue acceleration
  • ✗ESG-focused investors (gaming industry, debt concerns)
  • ✗Short-term traders during Vegas soft cycles

Investment Thesis

Caesars Entertainment is a classic cyclical recovery play trading at distressed valuations. Tom Reeg's assertion that 2025 will deliver "record Vegas EBITDA" despite Q3 weakness suggests Q4 convention season and Formula 1 will drive strong performance. Regional casinos provide defensive cash flow (+6.2% growth), while digital sports betting offers optionality if Caesars achieves sustainable profitability. The stock has underperformed MGM Resorts, creating a value opportunity for investors believing Reeg can execute a Vegas turnaround.

The bear case is straightforward: Vegas demand remains weak longer than expected, digital sports betting never achieves acceptable returns on investment, and debt service prevents earnings growth. The bull case: Q4 2025 and 2026 deliver Vegas EBITDA records, sports betting marketing spend declines while revenue grows, and Caesars refinances debt at favorable rates. For patient value investors with 2-3 year horizons, Caesars offers asymmetric upside if the Vegas cycle turns. For conservative investors, avoid—the debt, sports betting losses, and cyclical volatility create unacceptable risk.

Conclusion

CZR is a HOLD for existing investors, cautious BUY for value specialists. The Q3 net loss and Vegas revenue decline create near-term headwinds, but Tom Reeg's Q4 optimism and regional strength provide downside support. The stock requires belief in Vegas recovery timing—if you think 2026 convention calendars will drive occupancy and pricing, accumulate shares gradually. If you fear prolonged consumer weakness, avoid. This is a cyclical timing bet, not a long-term compounder.
Bull Case
$55 (30% upside) - Vegas recovers strongly, digital approaches profitability
Base Case
$45 (7% upside) - Modest Vegas recovery, regional stability
Bear Case
$25 (40% downside) - Prolonged Vegas weakness, sports betting cash burn continues

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