任意の製品分析
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Successful closing of the pending cash buyout by Fertitta Entertainment, delivering the transaction cash consideration, or faster-than-modeled scaling in Caesars Digital profitability.
FTC antitrust enforcement action or financing disruption blocking the proposed acquisition by Fertitta Entertainment.
Caesars Entertainment is rated Sell with Fair value of $9.29, representing -67.7% return from the $28.80 (as of 2026-10-16) share price. The equity valuation is supported by a pending cash acquisition by Fertitta Entertainment, yet the transaction faces substantial regulatory antitrust uncertainty following an FTC Second Request. On a standalone basis, CZR's debt burden consumes operating profits through interest expense, maintaining negative GAAP net income and exposing equity holders to severe downside if the transaction collapses.34
Caesars Entertainment is rated Sell. For an ordinary investor, this recommendation indicates that the common shares carry unacceptable capital risk and should be sold or avoided.
The primary risk to this stance is the successful closing of the Fertitta acquisition or faster debt reduction. If antitrust clearance is granted without substantial asset remedies, equity holders would receive the cash transaction consideration rather than re-rating toward standalone fundamentals.
Standalone business value remains anchored by Regional casino operations, which delivered revenue of $5,756M in FY2025, along with Caesars Digital revenue of $1,408M. If digital wagering achieves operating leverage while regional drive-to gaming demand remains steady, operating cash flows could improve toward supporting Potential value of $10.14, though standalone intrinsic worth remains centered at Fair value of $9.29.5
The definitive agreement to be acquired by Fertitta Entertainment in cash provides an apparent transaction ceiling, offering specialized merger-arbitrage investors a potential gross spread if regulatory clearance is granted.3
The Regional gaming segment delivered $5,756M in FY2025 revenue, providing recurring non-Strip cash flow from local drive-to gaming patrons.5
Caesars Digital revenue expanded to $1,408M in FY2025 with positive EBITDA trajectory, creating structural margin expansion potential if promotional wagering subsidies decline.5
Sell: Shares trade at $28.80 (as of 2026-10-16), well above Fair value of $9.29 with -67.7% implied return due to severe debt encumbrance.3
Caesars Entertainment, Inc. is one of the largest diversified casino-entertainment providers in the United States, operating destination resorts primarily under the Caesars, Harrah's, Horseshoe, and Eldorado brand names. The company's operations encompass gaming floors, hotel lodging, food and beverage amenities, and live entertainment offerings across regional gaming jurisdictions and the Las Vegas Strip.
The business operates through four primary segments: Regional Gaming, Las Vegas, Caesars Digital, and Managed and Branded properties. In FY2025, Regional operations generated $5,756M in revenue, Las Vegas generated $4,049M, Caesars Digital delivered $1,408M, and Managed and Branded properties contributed $279M. These operations are connected by the Caesars Rewards customer loyalty program, which incentivizes cross-visitation across geographic markets.
Our stress testing models a joint shock where regulatory antitrust scrutiny derails the proposed buyout by Fertitta Entertainment while regional casino visitation softens and high credit spreads persist. Under this scenario, the transaction floor of $31.00 is immediately removed, leaving CZR's equity exposed to its standalone capital structure of $25.92B in total debt and an 81.54% debt weight. With pre-tax debt financing costs of 15.73%, annual debt service continues to consume more than $2.28B annually. If operating margins decline by 300 basis points from 16.18% toward 13.50%, operating income drops below $1.55B, creating an acute structural deficit against interest obligations. Under these conditions, free cash flow turns negative, balance-sheet leverage creates acute refinancing distress, and equity valuation collapses toward standalone stress levels below $5.00 per share.
In the Bear case, macroeconomic softening and discretionary spending cutbacks reduce regional gaming visitation, while promotional competition from peers compresses operating margins below 13.5%. With total debt of $25.92B and pre-tax borrowing costs at 15.73%, interest expense continues to absorb virtually all operating income, depressing equity intrinsic value toward the lower boundary.
Caesars and Fertitta received an FTC Second Request on September 14, 2026 under the HSR Act. Standalone valuation models indicate midpoints of $7.28 in forward earnings and $8.30 in moat fade, compared to the $28.80 trading price supported by the $31.00 cash merger agreement.3
投資判断を弱める5つの変化です。
Caesars Entertainment possesses a Narrow economic moat grounded in structural switching costs through its Caesars Rewards loyalty ecosystem and intangible assets consisting of state gaming licenses and prime Strip real estate footprints. The loyalty database connects tens of millions of regional casino patrons to destination resorts in Las Vegas, lowering guest acquisition costs and encouraging repeated gaming spend.
However, the economic durability of this moat is severely constrained by capital structure distortions. Despite generating $1,858M in operating income in FY2025, over $2.28B in annual debt service and financing obligations wiped out operating earnings, resulting in negative GAAP net income of -$502M. As a result, return on invested capital trails CZR's WACC of 14.78%, precluding a Wide moat rating.
Competitive dynamics remain intense across all major verticals. In Las Vegas, CZR operates with lower operating margins (FY2025 operating income margin of 16.18%) than peers such as Wynn Resorts (16.54%) and Las Vegas Sands (19.66%). In digital betting, promotional acquisition battles pressure margins, although Caesars Digital showed progress by reaching $1,408M in FY2025 revenue. The moat preserves volume share, but cannot insulate equity holders from financial leverage distress.
Caesars fails to generate economic profits: its return on invested capital remains negative and substantially below its WACC of 14.78%, encumbered by $25.92B in total debt obligations and reported FY2025 GAAP net losses of -$502M.234
Each lens answers a different valuation question. Only included lenses set Fair value; floors and diagnostics provide context.
The highlighted cell is Fair value when every assumption sits at its base level ($9.29). Each row and column shows what Fair value becomes when one assumption moves.
A free-cash-flow drop test is not available in this run; use the discount-rate and terminal-growth grid as the primary valuation pressure test.
In the Bull case, Caesars Digital achieves accelerated EBITDA expansion exceeding 20% margins, while Las Vegas convention demand and stable Regional casino revenues drive consolidated operating margin toward 18.5%. Disciplined capital expenditures enable annual debt reduction of $800M-$1.0B, lowering annual interest burden and expanding equity intrinsic value toward the upper boundary of $10.14.2
Even if operational results exceed expectations, the heavy debt load keeps standalone intrinsic fair value at $9.29, well below $28.80.
Results in line with forecasts confirm the standalone fair value of $9.29, representing an implied return of -67.7% from $28.80.
An operational miss deepens net losses and confirms Sell as standalone fundamentals deteriorate.
Caesars exhibits low accounting earnings quality characterized by recurring GAAP net losses contrasted against heavily adjusted non-GAAP measures. Operating earnings are largely consumed by interest payments and lease financing obligations. Furthermore, recurring transaction, restructuring, and non-cash charges create a persistent gap between non-GAAP disclosures and bottom-line GAAP equity results.
Consensus earnings estimate momentum has been negative following downward revisions to near-term earnings expectations. Revisions reflect persistent interest expense drag and localized margin pressure across regional gaming jurisdictions.
Determines whether the cash acquisition proceeds or if equity re-rates down to standalone fundamentals.
Caesars generated $1,298M in operating cash flow in FY2025, an improvement supported by regional casino stability and expanding Caesars Digital operations ($1,408M revenue). By reducing capital spending to $805M, reported free cash flow reached $493M, significantly higher than the $23M recorded in FY2022. However, normalized owner earnings are estimated at $391.75M after deducting $523M in maintenance capex (65% policy). This cash flow is almost entirely dedicated to mandatory principal amortization and debt service, leaving zero discretionary cash for dividends or share repurchases.456
Capital allocation is constrained by balance-sheet . Caesars does not pay a common dividend and has paused discretionary share repurchases. Management has curtailed major growth projects, focusing reinvestment on essential property maintenance ($805M in FY2025). While prioritizing debt reduction is the correct operational course, paydown totaled less than $100M in the first half of 2026, demonstrating that organic cash generation is too slow to rapidly de-risk the $25.92B total debt load.
The company's capital structure is 81.54% debt. Despite generating $1,858M in operating income in FY2025, debt service and lease financing completely eliminate residual returns, eroding equity book value.
Caesars' return on invested capital trails its WACC of 14.78%, reflecting negative GAAP earnings (-$502M in FY2025) against $25.92B in total debt obligations.
Operating income of $1,858M in FY2025 was eclipsed by total interest expense exceeding $2.28B, generating a GAAP net loss of -$502M.
Equity value cannot compound until debt principal of $25.92B is materially retired.
| 売上高 | $11,486,000,000 |
|---|---|
| 売上原価 | $5,743,000,000 |
| 売上総利益 | $5,743,000,000 |
| 営業費用 | $3,885,000,000 |
| 営業利益 | $1,858,000,000 |
| 営業外項目および税金 | -$2,360,000,000 |
| 純利益 | -$502,000,000 |
| 総資産 | $31,639,000,000 |
|---|---|
| 現金 | $887,000,000 |
| 流動資産 | $1,803,000,000 |
| 負債合計 | $27,953,000,000 |
| 流動負債 | $2,253,000,000 |
| 株主資本 | $3,686,000,000 |
| 純利益 | $81,000,000 |
|---|---|
| 営業キャッシュ流入 | $322,719,000 |
| 減価償却費 | $222,000,000 |
| 株式報酬 | $19,719,000 |
| 営業キャッシュフロー | $312,526,000 |
| 営業キャッシュ流出 | $10,193,000 |
| 利用可能現金 | $913,066,000 |
| 期首現金 | $231,000,000 |
| 投資キャッシュ流入 | $369,540,000 |
| 財務キャッシュ流出 | $712,000,000 |
| その他の財務活動 | $712,000,000 |
| 期末現金 | $206,000,000 |
| 投資キャッシュフロー | $369,540,000 |
| 財務キャッシュフロー | -$712,000,000 |
出典: SEC EDGAR · 提出日 2026-02-17 · SEC EDGAR
| 事業セグメント別売上高 | 売上高 | 構成比 | 前年比 |
|---|---|---|---|
| Regional | $57.6億 | 50.1% | 3.9% |
| Las Vegas | $40.5億 | 35.3% | -5.3% |
| Caesars Digital | $14.1億 | 12.3% | 21.1% |
| Managed And Branded | $2.8億 | 2.4% | 1.8% |
2026-10-17の分析で使用した時点財務データ。
| 期間 | 売上高 | EBITDA | 純利益 | 営業キャッシュフロー | フリーキャッシュフロー | 設備投資 | 減価償却費 | 株式報酬 | 自社株買い | 支払配当金 | 純有利子負債調達 | 投資キャッシュフロー | 財務キャッシュフロー | 期首現金 | 期末現金 | 現金および投資 | 総負債 | 営業利益率 | ROIC | WACC | ROIC−WACCスプレッド |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2016-12-31 | $3.8億 | $1.5億 | -$4619万 | $9537.2万 | $5219.9万 | $4317.3万 | $6344.9万 | $334.1万 | — | $0 | — | -$4180.7万 | -$7367.1万 | — | $6102.9万 | $31.7億 | $8.2億 | -8.1% | — | — | — |
| 2017-12-31 | $14.8億 | $1.6億 | $7338万 | $1.3億 | $4672.5万 | $8316.1万 | $1.1億 | $632.2万 | — | $0 | — | -$14億 | $13.5億 | $6102.9万 | $1.3億 | $1.5億 | $22.1億 | 6.4% | — | 8.9% | — |
| 2018-12-31 | $20.6億 | $4.6億 | $9500万 | $3.2億 | $1.8億 | $1.5億 | $1.6億 | $1308.4万 | $900万 | — | — | -$12.7億 | $10.4億 | $1.3億 | $2.3億 | $2.5億 | $33億 | 15.1% | — | 6.6% | — |
| 2019-12-31 | $25.3億 | $6.3億 | $8100万 | $3.1億 | $1.4億 | $1.7億 | $2.2億 | $1971.9万 | $0 | — | — | $3.7億 | -$7.1億 | $2.3億 | $2.1億 | $2.4億 | $26億 | 16.2% | — | 6.8% | — |
| 2020-12-31 | $36.3億 | $1.8億 | -$17.6億 | -$5.8億 | -$7.5億 | $1.6億 | $5.8億 | $7900万 | $0 | $1600万 | — | -$61.1億 | $106.4億 | $2.1億 | $17.8億 | $38億 | $150.2億 | -10.6% | — | — | — |
| 2021-12-31 | $95.7億 | $21.7億 | -$10.2億 | $11.7億 | $6.5億 | $5.2億 | $11.3億 | $8200万 | — | $4500万 | — | -$29.2億 | -$5.5億 | $17.8億 | $10.7億 | $13.9億 | $143.2億 | 15.3% | — | 15.6% | — |
| 2022-12-31 | $108.2億 | $29.2億 | -$9億 | $9.8億 | $2300万 | $9.5億 | $12.1億 | $1億 | $0 | $2700万 | -$12.4億 | -$3.8億 | -$12.8億 | $20.2億 | $10.4億 | $10.4億 | $130.9億 | 16.1% | — | 16.0% | — |
| 2023-12-31 | $115.3億 | $35.6億 | $7.9億 | $18.1億 | $5.5億 | $12.6億 | $12.6億 | $1億 | $0 | — | -$6.5億 | -$12.6億 | -$7.1億 | $13億 | $10.1億 | $10.1億 | $124.4億 | 21.4% | — | 15.7% | — |
| 2024-12-31 | $112.5億 | $35.8億 | -$2.8億 | $10.8億 | -$2.2億 | $13億 | $13.2億 | $9400万 | $1.9億 | — | -$1.5億 | -$7億 | -$5億 | $11.4億 | $8.7億 | $8.7億 | $122.9億 | 20.5% | — | 15.9% | — |
| 2025-12-31 | $114.9億 | $32.9億 | -$5億 | $13億 | $4.9億 | $8.1億 | $14.2億 | $9500万 | $2.3億 | — | -$4.2億 | -$5.7億 | -$7.6億 | $10.2億 | $8.9億 | $8.9億 | $119.1億 | 16.2% | — | 13.8% | — |
Caesars Entertainment Inc. (CZR) trades at 51.0x forward earnings against a peer median of 13.0x. Its EV/EBITDA of 9.0x compares with a peer median of 8.7x. The comparison uses 4 peers: MGM Resorts International, Wynn Resorts Limited, Las Vegas Sands Corp. and LKQ Corporation, as of 2026-10-17.
Caesars moderated capital spending from $1,296M in FY2024 to $805M in FY2025, in line with an industry-wide contraction in greenfield resort expansion across regional and domestic gaming jurisdictions.4
In a cyclical upswing, sustained employment and resilient consumer discretionary income support consistent regional casino visitation, while strong Las Vegas convention calendars drive room pricing power. Under these conditions, Caesars Digital achieves operating leverage, lifting consolidated operating margin toward 18.5% and accelerating balance-sheet debt paydown.
In a cyclical downturn, consumer discretionary spending retrenchment curbs regional drive-to trips and reduces gaming drop per customer, while Strip room rates experience heavy discounting. With fixed interest obligations exceeding $2.28B annually, margin compression below 13.50% wipes out cash flow, forcing debt restructuring or distress refinancing.
Caesars is positioned as a dominant mass-market and regional gaming operator with prime center-Strip Las Vegas assets. Because external capacity and supply lead-time benchmarks are unavailable, this cyclical evaluation is demand-led and evidence-limited. CZR's geographic diversification across regional jurisdictions provides baseline stability, but high financial leverage leaves it highly sensitive to macroeconomic cyclical swings.
Under our Sell rating, no capital allocation to CZR equity is warranted. Investors face severe downside risk if regulatory review halts the transaction.3
CZR common equity behaves fundamentally as an asymmetric binary merger arbitrage exposure rather than an ongoing operating investment. At $28.80, the market implies an 88% probability of deal consummation at $31.00, offering less than 8% gross upside against a -67.74% downside re-rating to standalone intrinsic value ($9.29) if the FTC blocks the transaction. Risk management mandates complete avoidance or liquidation of common equity holdings, as fundamental debt distress ($25.92B debt) leaves no margin of safety for fundamental investors.
Standalone intrinsic fair value is $9.29 based on forward earnings ($7.28 midpoint), multi-stage moat fade ($8.30 midpoint), and discounted earnings ($7.68 midpoint), heavily burdened by $25.92B in total debt.13
For specialized merger-arbitrage mandates only, the $31.00 cash consideration provides a modest gross spread of approximately 7.6% over the $28.80 price, but downside if blocked is catastrophic.3
If antitrust regulators block the acquisition, CZR will re-rate sharply down to standalone fundamentals where negative GAAP earnings (-$502M in FY2025) and high interest rates choke equity value.4
We recommend a Sell on Caesars Entertainment Inc. Shares trade at $28.80, closely tracking the pending cash acquisition offer from Fertitta Entertainment. However, on a standalone fundamental basis, Fair value is $9.29, implying -67.7% return.3
Caesars is encumbered by substantial total debt obligations, generating heavy annual debt service that resulted in a FY2025 GAAP net loss. With the FTC issuing a Second Request, regulatory risk is elevated. Existing shareholders should capitalize on transaction-supported pricing to exit.
Capture your own thesis, position size, and follow-up questions. Stays on this device, only you can see it.
The records this analysis drew on, as they stood when it was run.
Not every cited input appears here: internal calculations and intermediate model outputs have no external record, and some citations could not be matched to one.
FY2025 operating income fell to $1,858M on $11,486M revenue. Operating margins compressing below 13.5% would produce under $1.55B in EBIT, insufficient to service annual interest expense exceeding $2.28B.4
CZR has an 81.54% debt weight with $25.92B in total debt. Current WACC is 14.78% and moderate cost of equity is 12.31%.23
Operating profit falls below $1.55B, creating an acute debt service shortfall against >$2.28B annual interest.
現在:16.18% (FY2025)
警戒条件<13.50%
Halts balance-sheet debt paydown, forcing debt refinancing at elevated rates and exhausting liquidity.
現在:$493M (FY2025)
警戒条件<=$200M
Credit spread widening increases cost of capital on $25.92B debt structure, further compressing equity residual value.
現在:14.78% (as of 2026-10-17)
警戒条件>16.78%
Indicates loss of Las Vegas destination market share and pricing power to Strip peers like MGM, requiring immediate reduction in terminal growth and margin assumptions.
現在:$4,049M (FY2025)
警戒条件<$3,800M (FY2026)
| medium |
| 12-36 months |
| Targeting mid-tier resort offerings and contracted convention business to sustain room occupancy against luxury peers MGM and WYNN. |
| Debt interest burden crowding out hotel and gaming floor reinvestment | high | Immediate to 24 months | Capping capital expenditures at maintenance levels ($805M in FY2025) to preserve liquidity for debt service.4 |
Under the moderate discount rate, $2.42 comes from forecast-period earnings and $5.58 from the long-term value, totaling $8.00.
Project EPS through the explicit advantage period, fade growth as competition catches up, and discount the full stream at cost of equity.
Apply a terminal P/E to the dated forward EPS path, then discount that future share value back to the analysis date.
Add depreciation to net income, subtract maintenance capex, divide by diluted shares, and apply a normalized valuation multiple.
Solve for the growth rate that makes the model value equal the report-date share price.
Project revenue, apply a terminal EV/revenue multiple, discount enterprise value, subtract net debt, and divide by diluted shares.
In the Base case, regional casino demand remains steady at $5.76B run-rate while Las Vegas room pricing stabilizes and Caesars Digital contributes modest incremental profit. Capital expenditures remain capped around $800M annually, generating approximately $400M-$500M in annual free cash flow for gradual debt reduction. High interest expenses from $25.92B in total debt obligations keep GAAP net income constrained, supporting a standalone fair value midpoint of $9.29.23
Regional revenue funds the majority of operating cash flow; a slowdown directly impairs debt service capabilities.
Heavy debt service consumes operating profits and prevents recovery in GAAP equity earnings.
Restricting capex generates discretionary free cash flow required for balance-sheet debt retirement.
| $12.40B |
| $12.62B |
| $12.81B |
| Operating income | $1.96B | $2.09B | $2.21B | $2.30B | $2.37B |
| NOPAT | $1.55B | $1.65B | $1.74B | $1.81B | $1.87B |
| Residual cash after reinvestment policy | $1.16B | $1.24B | $1.31B | $1.36B | $1.40B |
| Revenue growth | 3.2% | 2.5% | 2.0% | 1.8% | 1.5% |
| Operating margin | 16.5% | 17.2% | 17.8% | 18.2% | 18.5% |
| Tax rate | 21.0% | 21.0% | 21.0% | 21.0% | 21.0% |
| Reinvestment rate | 25.0% | 25.0% | 25.0% | 25.0% | 25.0% |
| Terminal growth | 2.0% | 2.0% | 2.0% | 2.0% | 2.0% |
Capital expenditures were reduced from $1,296M in FY2024 to $805M in FY2025, expanding reported free cash flow to $493M compared to $23M in FY2022.
Cash flow conversion is positive, but annual free cash flow covers only a tiny percentage of debt principal, prolonging the deleveraging timeline.
Regional operations generated $5,756M in FY2025 revenue, accounting for 50.1% of consolidated net revenue of $11,486M.
Consolidated financial performance is critically dependent on regional drive-to gaming stability; any localized demand shock directly threatens debt solvency.
| マージン |
|---|
| CZR | Caesars Entertainment Inc. | $5.9B | 51.0x | 0.5x | 9.0x | -10.4% | — |
| MGM | MGM Resorts International | $7.2B | 15.0x | 0.4x | 15.8x | 18.9% | 6.8% |
| WYNN | Wynn Resorts Limited | $7.8B | 15.2x | 1.1x | 9.5x | — | 16.5% |
| LVS | Las Vegas Sands Corp. | $24.6B | 11.0x | 1.8x | 7.9x | 122.9% | 19.7% |
| LKQ | LKQ Corporation | $5.6B | 7.2x | 0.4x | 7.6x | 7.1% | 7.0% |
| Elevated Cost of Debt Refinancing | negative | A sustained higher-rate environment penalizes debt-heavy operators, with CZR's pre-tax debt yield at 15.73% and WACC at 14.78% on $25.92B in total debt obligations. |
| Reduce model forward earnings and lower valuation estimates below Fair value of $9.29. |
| Annual Free Cash Flow | Annual free cash flow failing to cover required debt principal reduction | Demote debt paydown expectations and increase distress discount in valuation synthesis. |
| Regional Segment Revenue | Regional segment revenue contracting for two consecutive quarters | Downgrade base-case revenue CAGR assumptions toward negative growth. |
