# Penn National Gaming (PENN.US)

Canonical: https://gigainvestors.com/s/PENN

Analysis as of: 2026-10-16T07:31:07.432Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $15.21 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 4

- Operating margin variation: 1.42×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.18×

- FY2017: 0.15×

- FY2018: 0.18×

- FY2019: 0.11×

- FY2020: -0.11×

- FY2021: 0.18×

- FY2022: 0.15×

- FY2023: -0.11×

- FY2024: 0.01×

- FY2025: 0.04×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 15.3pp below the typical margin (limit 4pp)

- ROIC, median of available years: 5.3%

- ROIC, second-lowest year: -3.0%

- Typical minus recent gross margin: 15.3 pp

- Typical gross margin (annual median): 42.7%

- Recent gross margin (lower of latest and 3-year median): 27.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.4%

- ROIC including acquisitions, ten-year median: 1.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 15.5%

- FY2017: 13.9%

- FY2018: 7.4%

- FY2019: 3.2%

- FY2020: -3.0%

- FY2021: 7.5%

- FY2022: 8.0%

- FY2023: -5.0%

- FY2024: 0.5%

- FY2025: 2.8%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$577M

- Net income, five-year total: -$1.0B

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: 1.6 pp

- Working capital / revenue, final three-year average: 4.7%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: $497M

- FY2022: $517M

- FY2023: -$437M

- FY2024: -$312M

- FY2025: -$843M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- ROIC first 3 years vs last 3 years: 13.9% vs 0.5%

- Per-share earnings: 1.20 to -3.22 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- material buybacks concentrated at lower earnings yields (Spearman rho below threshold)

- acquisition spending exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 4.8%

- Ordinary dilution, 5-year annual growth: 1.5%

- Market cap gain: $876M

- Cumulative retained earnings: $35M

- Diluted shares, 10-year annual growth: 4.8%

- Diluted shares, 5-year annual growth: 1.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: -$4.42

- Per-share value, starting three-year median: $1.20

- Per-share value, ending three-year median: -$3.22

- Buybacks concentrated in cheaper years (correlation): -0.54

- Average buyback yield: 6.0%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: $4.7B

- Cumulative net income, 10 years: -$922M

- ROIC, first three-year median: 13.9%

- ROIC, last three-year median: 0.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.20

- FY2017: $5.38

- FY2018: $0.93

- FY2019: $0.37

- FY2020: -$5.00

- FY2021: $2.40

- FY2022: $1.26

- FY2023: -$3.22

- FY2024: -$2.05

- FY2025: -$5.83

### accounting: pass

- Sloan accruals: -9.5%

- Receivables to sales index (DSRI): 0.94×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 12.0%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.74×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.9%

- FY2017: 0.8%

- FY2018: -2.4%

- FY2019: -4.6%

- FY2020: -6.9%

- FY2021: -2.8%

- FY2022: -3.7%

- FY2023: -5.9%

- FY2024: -4.4%

- FY2025: -9.5%

## Holders

- [Prem Watsa](https://gigainvestors.com/FFH): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [David Einhorn](https://gigainvestors.com/GLRE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 79% since Oct 2021 · "2025 Interactive EBITDA Guidance: Loss of $200 million to $100 million." (finance.yahoo.com, Apr 2025) · sales +5.8%

Story as of 2026-10-16T09:59:23.024Z; price observation 2026-10-15.

- 2026-02-27: PENN Entertainment (PENN) Climbs 16.7% on Double-Digit Growth Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/penn-entertainment-penn-climbs-16-103825303.html))

### Sales · FY2024–2025

sales +5.8%; source https://www.sec.gov/Archives/edgar/data/921738/000092173826000008/penn-20251231.htm; observed 2026-02-26.

- FY2016: $3.0B 

- FY2017: $3.1B 

- FY2018: $3.6B 

- FY2019: $5.3B 

- FY2020: $3.6B 

- FY2021: $5.9B 

- FY2022: $6.4B 

- FY2023: $6.4B 

- FY2024: $6.6B 

- FY2025: $7.0B 

### Gross margin · FY2025

gross margin 27.4%; source https://www.sec.gov/Archives/edgar/data/921738/000092173826000008/penn-20251231.htm; observed 2026-02-26.

- FY2016: 42.1% 

- FY2017: 42.4% 

- FY2018: 42.9% 

- FY2019: 44.3% 

- FY2020: 47.8% 

- FY2021: 46.7% 

- FY2022: 43.3% 

- FY2023: 37.1% 

- FY2024: 32.9% 

- FY2025: 27.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in resorts & casinos; annual sales are USD 7 billion.

- Source: https://www.sec.gov/Archives/edgar/data/921738/000092173826000008/penn-20251231.htm (filed 2026-02-26); FY2025: revenue 6961000000; grossProfit 1905500000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); PENN.US: PENN Entertainment, Inc., together with its subsidiaries, provides integrated entertainment, sports content, and casino gaming experiences in the United States and internationally. The company operates through five segments: Northeast, South, West, Midwest, and Interactive. It operates a portfolio of casinos, racetracks, and online sports betting; online gaming portfolio, such as theScore Bet, an online sportsbook; theScore Casino, a stand-alone iCasino website and app; Hollywood Casino, an iCasino and theScore Bet website and app; PENN Game Studios, its in-house iCasino and social gaming content studio; and PENN Play, a customer loyalty program. The company also engages in gaming operations, including slot machines and table games; food and beverage offerings; and hotel visitation. It offers its products under the Ameristar, Argosy, Boomtown, Hollywood Casino, Hollywood Gaming, L'Auberge, M Resort, PENN Entertainment, and PENN Play, as well as theScore, theScore Bet, and theScore esports brands. The company was formerly known as Penn National Gaming, Inc. and changed its name to PENN Entertainment, Inc. in August 2022. PENN Entertainment, Inc. was founded in 1972 and is based in Wyomissing, Pennsylvania.

### Why customers stay

Margins ranged from 27.4% to 37.1% during 2023–25; it earns 5.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: grossProfit / revenue = 37.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: grossProfit / revenue = 32.9%.

- Source: https://www.sec.gov/Archives/edgar/data/921738/000092173826000008/penn-20251231.htm (filed 2026-02-26); FY2025: grossProfit / revenue = 27.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on capital observations [[2016,0.15538259099269403],[2017,0.13852085464737762],[2018,0.07387039258048113],[2019,0.03240085417937767],[2020,-0.02999759321657348],[2021,0.07502309544738389],[2022,0.07988124431030665],[2023,-0.04967096033669175],[2024,0.005282599472431794],[2025,0.027778581859064653]]; median 0.0531356233799294. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 3 of 10 years; bought back USD 354.4 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2016: growth capex 0; upkeep 100310000; cash acquisitions 84192000; owner earnings 280214000. Growth capex plus acquisitions / owner earnings = 0.30045607999600304.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2017: growth capex 0; upkeep 100761000; cash acquisitions 127700000; owner earnings 669157000. Growth capex plus acquisitions / owner earnings = 0.19083712790869706.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2018: growth capex 0; upkeep 174161000; cash acquisitions 1945200000; owner earnings 188343000. Growth capex plus acquisitions / owner earnings = 10.327965467259203.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2019: growth capex 0; upkeep 202300000; cash acquisitions 1359400000; owner earnings 255800000. Growth capex plus acquisitions / owner earnings = 5.3143080531665365.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2021: growth capex 0; upkeep 268300000; cash acquisitions 877600000; owner earnings 497000000. Growth capex plus acquisitions / owner earnings = 1.76579476861167.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2022: growth capex 0; upkeep 272400000; cash acquisitions 0; owner earnings 517200000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,1900000],[2020,0],[2021,0],[2022,6900000],[2023,5300000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/921738/000092173826000008/penn-20251231.htm (filed 2026-02-26); FY2025: cash repurchases 354400000 USD.

### Are managers owners

Insiders own 1.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); PENN.US SharesStats.PercentInsiders = 1.5879999999999999 percentage points; cache date 2026-10-15.

### What the price says

The price is 0.3 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Closing price 15.21 USD; reporting-to-trading FX 1; FY2025 annual sales per share 48.13969571230982; price multiple 0.31595546616865394. FY2025 cash earnings/share -5.830567081604426. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $12.93 per share

- 2016-11: $13.28 per share

- 2016-12: $13.79 per share

- 2017-01: $13.78 per share

- 2017-02: $14.47 per share

- 2017-03: $18.43 per share

- 2017-04: $18.48 per share

- 2017-05: $19.33 per share

- 2017-06: $21.40 per share

- 2017-07: $20.16 per share

- 2017-08: $22.19 per share

- 2017-09: $23.39 per share

- 2017-10: $26.09 per share

- 2017-11: $28.76 per share

- 2017-12: $31.33 per share

- 2018-01: $31.91 per share

- 2018-02: $26.61 per share

- 2018-03: $26.26 per share

- 2018-04: $30.31 per share

- 2018-05: $34.08 per share

- 2018-06: $33.59 per share

- 2018-07: $32.05 per share

- 2018-08: $34.46 per share

- 2018-09: $32.92 per share

- 2018-10: $24.28 per share

- 2018-11: $22.11 per share

- 2018-12: $18.83 per share

- 2019-01: $24.24 per share

- 2019-02: $24.85 per share

- 2019-03: $20.10 per share

- 2019-04: $21.67 per share

- 2019-05: $18.85 per share

- 2019-06: $19.26 per share

- 2019-07: $19.52 per share

- 2019-08: $19.17 per share

- 2019-09: $18.63 per share

- 2019-10: $21.32 per share

- 2019-11: $23.03 per share

- 2019-12: $25.56 per share

- 2020-01: $29.83 per share

- 2020-02: $29.57 per share

- 2020-03: $12.65 per share

- 2020-04: $17.82 per share

- 2020-05: $32.81 per share

- 2020-06: $30.54 per share

- 2020-07: $33.85 per share

- 2020-08: $51.10 per share

- 2020-09: $72.70 per share

- 2020-10: $53.98 per share

- 2020-11: $70.00 per share

- 2020-12: $86.37 per share

- 2021-01: $103.72 per share

- 2021-02: $115.78 per share

- 2021-03: $104.84 per share

- 2021-04: $89.12 per share

- 2021-05: $81.97 per share

- 2021-06: $76.49 per share

- 2021-07: $68.38 per share

- 2021-08: $81.10 per share

- 2021-09: $72.46 per share

- 2021-10: $71.60 per share

- 2021-11: $51.23 per share

- 2021-12: $51.85 per share

- 2022-01: $45.61 per share

- 2022-02: $51.35 per share

- 2022-03: $42.42 per share

- 2022-04: $36.57 per share

- 2022-05: $31.96 per share

- 2022-06: $30.42 per share

- 2022-07: $34.55 per share

- 2022-08: $31.23 per share

- 2022-09: $27.51 per share

- 2022-10: $33.10 per share

- 2022-11: $35.19 per share

- 2022-12: $29.70 per share

- 2023-01: $35.45 per share

- 2023-02: $30.53 per share

- 2023-03: $29.66 per share

- 2023-04: $29.79 per share

- 2023-05: $25.04 per share

- 2023-06: $24.03 per share

- 2023-07: $26.29 per share

- 2023-08: $23.69 per share

- 2023-09: $22.95 per share

- 2023-10: $19.73 per share

- 2023-11: $24.56 per share

- 2023-12: $26.02 per share

- 2024-01: $22.55 per share

- 2024-02: $18.30 per share

- 2024-03: $18.21 per share

- 2024-04: $16.54 per share

- 2024-05: $17.50 per share

- 2024-06: $19.36 per share

- 2024-07: $19.97 per share

- 2024-08: $18.62 per share

- 2024-09: $18.86 per share

- 2024-10: $19.75 per share

- 2024-11: $21.59 per share

- 2024-12: $19.82 per share

- 2025-01: $20.60 per share

- 2025-02: $21.51 per share

- 2025-03: $16.31 per share

- 2025-04: $15.22 per share

- 2025-05: $14.83 per share

- 2025-06: $17.87 per share

- 2025-07: $18.06 per share

- 2025-08: $20.23 per share

- 2025-09: $19.26 per share

- 2025-10: $16.46 per share

- 2025-11: $14.84 per share

- 2025-12: $14.75 per share

- 2026-01: $12.84 per share

- 2026-02: $15.64 per share

- 2026-03: $15.03 per share

- 2026-04: $17.46 per share

- 2026-05: $18.83 per share

- 2026-06: $21.36 per share

- 2026-07: $20.53 per share

- 2026-08: $16.71 per share

- 2026-09: $14.65 per share

- 2026-10: $15.21 per share

## Annual estimated value (USD per share)

- FY2016: low $3.16 per share, central $3.35 per share, high $3.59 per share

- FY2017: low $3.68 per share, central $3.93 per share, high $4.20 per share

- FY2018: low $25.11 per share, central $28.66 per share, high $32.67 per share

- FY2019: low $28.63 per share, central $32.19 per share, high $36.93 per share

- FY2020: low $28.62 per share, central $30.74 per share, high $33.55 per share

- FY2021: low $29.25 per share, central $31.91 per share, high $35.46 per share

- FY2022: low $29.27 per share, central $32.14 per share, high $35.96 per share

- FY2023: low $28.27 per share, central $31.32 per share, high $35.36 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/921738/000092173826000008/penn-20251231.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Prem Watsa](https://gigainvestors.com/FFH): 54,900 PENN shares; USD 1,174,000 reported position value; 0.04% of portfolio; hold; quarter 2026 Q2.
- [David Einhorn](https://gigainvestors.com/GLRE): 5,860,270 PENN shares; USD 125,175,000 reported position value; 3.2% of portfolio; reduce; quarter 2026 Q2.

# PENN — Penn National Gaming Inc.

Held by 2 investors · USD 126,349,000 total · 2026 Q2 · reported price USD 21.38 (split-adjusted).
Page: https://gigainvestors.com/s/PENN

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| David Einhorn (https://gigainvestors.com/GLRE) | USD 125,175,000 | 3.2% | reduce -3.05% |
| Prem Watsa (https://gigainvestors.com/FFH) | USD 1,174,000 | <0.1% | hold |

## Total held by quarter

- 2013 Q4: USD 14,330,000 · 1 holder · USD 34.66
- 2014 Q1: USD 24,640,000 · 1 holder · USD 29.80
- 2014 Q2: USD 0 · 0 holders
- 2014 Q3: USD 0 · 0 holders
- 2014 Q4: USD 0 · 0 holders
- 2015 Q1: USD 0 · 0 holders
- 2015 Q2: USD 0 · 0 holders
- 2015 Q3: USD 0 · 0 holders
- 2015 Q4: USD 0 · 0 holders
- 2016 Q1: USD 0 · 0 holders
- 2016 Q2: USD 0 · 0 holders
- 2016 Q3: USD 0 · 0 holders
- 2016 Q4: USD 0 · 0 holders
- 2017 Q1: USD 0 · 0 holders
- 2017 Q2: USD 0 · 0 holders
- 2017 Q3: USD 0 · 0 holders
- 2017 Q4: USD 0 · 0 holders
- 2018 Q1: USD 0 · 0 holders
- 2018 Q2: USD 0 · 0 holders
- 2018 Q3: USD 0 · 0 holders
- 2018 Q4: USD 0 · 0 holders
- 2019 Q1: USD 0 · 0 holders
- 2019 Q2: USD 0 · 0 holders
- 2019 Q3: USD 0 · 0 holders
- 2019 Q4: USD 1,660,750 · 1 holder · USD 61.80
- 2020 Q1: USD 580,980 · 1 holder · USD 30.55
- 2020 Q2: USD 611,000 · 1 holder · USD 30.55
- 2020 Q3: USD 0 · 0 holders
- 2020 Q4: USD 0 · 0 holders
- 2021 Q1: USD 0 · 0 holders
- 2021 Q2: USD 0 · 0 holders
- 2021 Q3: USD 0 · 0 holders
- 2021 Q4: USD 0 · 0 holders
- 2022 Q1: USD 0 · 0 holders
- 2022 Q2: USD 0 · 0 holders
- 2022 Q3: USD 0 · 0 holders
- 2022 Q4: USD 0 · 0 holders
- 2023 Q1: USD 0 · 0 holders
- 2023 Q2: USD 0 · 0 holders
- 2023 Q3: USD 0 · 0 holders
- 2023 Q4: USD 0 · 0 holders
- 2024 Q1: USD 82,941,269 · 1 holder · USD 18.21
- 2024 Q2: USD 98,594,829 · 1 holder · USD 19.35
- 2024 Q3: USD 106,007,722 · 1 holder · USD 18.86
- 2024 Q4: USD 113,934,081 · 1 holder · USD 19.82
- 2025 Q1: USD 102,238,256 · 1 holder · USD 16.31
- 2025 Q2: USD 134,906,706 · 2 holders · USD 17.87
- 2025 Q3: USD 131,436,239 · 2 holders · USD 19.26
- 2025 Q4: USD 89,964,716 · 2 holders · USD 14.75
- 2026 Q1: USD 91,673,080 · 2 holders · USD 15.03
- 2026 Q2: USD 126,349,000 · 2 holders · USD 21.38