📊 AI Stock Rating — Summary

PENN's Q3 2025 results highlight the challenges the company is facing, with revenue at $1.72 billion but a significant net loss of $864.6 million resulting in an EPS of -$6.03. The company has notably high liabilities of $12.36 billion against $1.95 billion in equity, reflecting a heavy reliance on debt financing with net debt reaching $7.67 billion. Operating cash flow, capex, and free cash flow all reported at zero, indicating liquidity challenges. Despite no recent dividend distributions or buybacks, analyst price targets suggest a potential for upside with a consensus around $19.5. The absence of free cash flow and the current earnings loss suggest a difficult period for PENN's financial health, potentially impacting future valuation and investor sentiment.

AI Score Breakdown

Revenue Growth — Score: 4/10

Revenue stands at $1.72 billion, though the company is experiencing a net loss, indicating challenges in converting revenue into profit. Growth stability remains uncertain due to financial losses.

Profitability — Score: 2/10

The significant net loss of $864.6 million and negative EPS of -$6.03 suggest poor profitability and operating inefficiency. Margins are deeply negative, warranting improvement.

Cash Flow Quality — Score: 2/10

With operating and free cash flows at zero, the company shows weak cash flow quality and liquidity. Absence of dividends and buybacks further indicates cash constraints.

Leverage & Balance Sheet — Score: 3/10

The balance sheet shows total liabilities of $12.36 billion and net debt of $7.67 billion, reflecting high leverage. Equity stands at $1.95 billion, highlighting a stressed financial position.

Shareholder Returns — Score: 3/10

No recent dividends or buybacks, with potential price appreciation suggested by analyst targets. However, lack of these returns, combined with possible underperformance, affects investor satisfaction.

Analyst Sentiment & Valuation — Score: 4/10

The consensus price target of $19.5 indicates possible valuation recovery, suggesting analysts see limited upside. Current valuation struggles due to high debt and negative earnings.

⚠ AI-generated — informational only, not financial advice.