CZR

Caesars Entertainment Corp

Consumer


Presented:04/18/2018
Price:$11.75
Cap:$8.04B
Current Price:$45.01
Cap:$9.74B

Presented

Date04/18/2018
Price$11.75
Market Cap$8.04B
Ent Value$24.40B
P/E RatioN/A
Book Value$4.72
Div Yield0%
Shares O/S684.00M
Ave Daily Vol10,662,642
Short Int47.21%

Current

Price$45.01
Market Cap$9.74B
Caesars Entertainment Corp. is a holding company, which engages in the provision of casino-entertainment and hospitality services. It operates through the following segments: Las Vegas, Other U.S., and All Other. The All Other segment includes managed and international properties as well as other business, such as Caesars Interactive Entertainment. The company was founded by William Fisk Harrah in 1937 and is headquartered in Las Vegas, NV.

Publicly traded companies mentioned herein: Caesars Entertainment Corp (CZR), VICI Properties Inc (VICI)

Highlights

The presenter is long shares of Caesars Entertainment (CZR), predicated on: 1) a healthy Las Vegas hotel market, as there is no new supply until 2021; 2) margin improvements driven by room renovations, which were deferred while in bankruptcy; 3) reductions in promotional spending as renovated rooms are delivered; 4) a move to an asset-light business model, as many owned properties were spun off into VICI Properties and more will be sold over time; 5) potential upside optionality as the Supreme Court reviews legalizing sports betting; and 6) a compelling valuation at just 8x 2019 FCF and EBITDA. The presenter believes CZR shares could double over the next 12 - 18 months.

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Idea Discussion

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