PENN Entertainment Inc. Common Stock (PENN)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-style investor, I start with the business. PENN Entertainment operates casinos, racetracks, and online gaming under brands like Hollywood Casino and theScore Bet; it employs 23,441 people and booked $7.0B of revenue in FY2025, up from $6.6B in FY2024. But reported profits are ugly: FY2025 net loss was $843.1M, after losses of $311.5M in FY2024 and $490.0M in FY2023. That is not the steady owner earnings Graham prized. The latest quarter offers a flicker: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.9B and net income was $33.1M, or $0.24 per diluted share. Still, one quarter does not make a turnaround, and fiscal Q1 2026, the quarter ended 2026-03-31, showed a $2.3M net loss. The moat is questionable. Regional casinos can have local advantages and licenses are hard to replicate, but online sports betting and iCasino are fiercely competitive and capital intensive. Financial health is the main worry: FairStock calculations show debt-to-equity of 5.97, ROE of -37.58%, ROCE of 1.75%, and an Altman Z-Score of 0.10, which screams distress risk. Free cash flow is positive at $58.0M TTM, a 2.8% FCF yield, but that is thin against debt. The Piotroski F-Score of 8/9 suggests recent accounting improvements, but I would not confuse a high F-Score with safety. Valuation at the 2026-10-13 close of $15.37 is mixed: P/B is 1.05 and P/E is negative at -2.47. The market cap is $2.1B. FairStock Score 49/100 and Lynch TURNAROUND classification fit: this is a leveraged, loss-making company with a recent profitable quarter. I would want evidence of durable cash generation and debt reduction before calling it a bargain.

In plain English: PENN Entertainment runs casinos, racetracks, and online betting apps, mostly in the United States. The business has lost money in recent full years and carries a lot of debt, but the most recent quarter showed a small profit. At $15.37 on 2026-10-13, the price looks more like a turnaround bet than a clear bargain, with sales growing but profits and the balance sheet still shaky.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer