Yahoo Finance We Might See A Profit From Caesars Entertainment, Inc. (NASDAQ:CZR) Soon
We feel now is a pretty good time to analyse Caesars Entertainment, Inc.'s (NASDAQ:CZR) business as it appears the company may be on the cusp of a considerable accomplishment. Caesars Entertainment, Inc. operates as a gaming and hospitality company in the United States. The US$9.1b market-cap company’s loss lessened since it announced a US$513m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$198m, as it approaches breakeven. Many investors are wondering about the rate at which Caesars Entertainment will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Check out our latest analysis for Caesars Entertainment
According to the 14 industry analysts covering Caesars Entertainment, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$106m in 2023. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 88% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Caesars Entertainment's growth isn’t the focus of this broad overview, however, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we would like to bring into light with Caesars Entertainment is its debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of Caesars Entertainment to cover in one brief article, but the key fundamentals for the company can all be found in one place – Caesars Entertainment's company page on Simply Wall St. We've also compiled a list of essential factors you should further research:
Valuation: What is Caesars Entertainment worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Caesars Entertainment is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Caesars Entertainment’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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