Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, casino operator Caesars Entertainment (Nasdaq: CZR ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Caesars' business and see what CAPS investors are saying about the stock right now.
Caesars facts
| Headquarters (founded) | Las Vegas (1937) |
| Market Cap | $1.5 billion |
| Industry | Casinos and gaming |
| Trailing-12-Month Revenue | $8.9 billion |
| Management | Chairman/CEO Gary Loveman CFO Jonathan Halkyard |
| Return on Capital (average, past 3 years) | 2.9% |
| Cash/Debt | $1.1 billion / $20.3 billion |
| Competitors | Boyd Gaming MGM Resorts International Wynn Resorts |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 83% of the 64 members who have rated Caesars believe the stock will underperform the S&P 500 going forward.
A few months ago, one of those Fools, All-Star BuffettJunior1, succinctly summed up the bear case for our community:
One of the worst IPOs in recent memory! A company that is consistently losing money, and with an enterprise value of $19.5 billion is ridiculous! The company's interest expense alone is [roughly twice] its current market cap. Valuing this company based on its book value is also wrong. Since most of the assets are made up of casinos (recorded at original cost) I guarantee you that they are worth a lot less than what's stated on the balance sheet.
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