CluenexCaesars Entertainment CZR
Caesars Entertainment scores weak on business quality (2.9 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Caesars Entertainment does
Caesars Entertainment operates destination resorts, casinos, and digital sports betting, collecting revenue primarily from gaming, hotel stays, and food and beverage sales.
- What it does best
Caesars dominates physical gaming density with a gross margin of 46.8%, outperforming peers like DraftKings at 40.5%. This advantage stems from massive physical scale and integrated loyalty rewards that lock high-rollers into its property network.
- The main risk
Heavy leverage threatens the entire equity value if cash generation stalls. Total debt sits at $24.9 billion against just $887 million in cash, leaving interest coverage at a perilous 0.9x where earnings barely cover debt service.
Quality, check by check
Scored against its own industry, from company filings.
Operating margins stand at a healthy 17.7%, ranking in the top quartile at the 72nd percentile, but net margins slip to -4.0% due to crushing interest expenses. Scale drives operating profit, but debt erases the bottom line.
Scale and physical asset concentration create a regional barrier, ranking in the 66th percentile for gross margin. Replicating multi-billion dollar casino resorts takes years of capital and regulatory approval.
Revenue grew 2.1% to $11.6 billion, marking slow top-line expansion that sits in the bottom third of its sector at the 33rd percentile. Growth remains sluggish compared to digital-first competitors.
Debt overwhelms the balance sheet with a debt-to-equity ratio of 7.1x and interest coverage at 0.9x. Free cash flow reached $508 million, but the heavy debt load leaves the financial foundation deeply distressed.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
4 sold $9.8M outside pre-planned sales.
Our sealed record on CZR
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Caesars Entertainment scores weak on the Cluenex quality check (2.9 of 10), measured against its own industry. Profitability is weak, moat weak, growth slow and financial health weak.
In the last 90 days of SEC Form 4 filings: 4 sold $9.8M outside pre-planned sales.
Oct 27, 2026, after the close.
See CZR today
- Today's verdict on CZR, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Caesars Entertainment (CZR)”, https://cluenex.com/stocks/czr/, data as of Oct 10, 2026.