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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 5/10

vs
industry
vs
history
Cash to Debt 0.24
PENN's Cash to Debt is ranked higher than
56% of the 838 Companies
in the Global Resorts & Casinos industry.

( Industry Median: 0.88 vs. PENN: 0.24 )
PENN' s 10-Year Cash to Debt Range
Min: 0.04   Max: 35.33
Current: 0.24

0.04
35.33
Equity to Asset 0.35
PENN's Equity to Asset is ranked higher than
54% of the 827 Companies
in the Global Resorts & Casinos industry.

( Industry Median: 0.51 vs. PENN: 0.35 )
PENN' s 10-Year Equity to Asset Range
Min: 0.13   Max: 0.79
Current: 0.35

0.13
0.79
F-Score: 4
Z-Score: -0.10
M-Score: -4.46
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 6/10

vs
industry
vs
history
Operating margin (%) -26.45
PENN's Operating margin (%) is ranked lower than
56% of the 840 Companies
in the Global Resorts & Casinos industry.

( Industry Median: 8.29 vs. PENN: -26.45 )
PENN' s 10-Year Operating margin (%) Range
Min: -26.45   Max: 24.57
Current: -26.45

-26.45
24.57
Net-margin (%) -27.22
PENN's Net-margin (%) is ranked lower than
56% of the 840 Companies
in the Global Resorts & Casinos industry.

( Industry Median: 5.19 vs. PENN: -27.22 )
PENN' s 10-Year Net-margin (%) Range
Min: -27.22   Max: 13.91
Current: -27.22

-27.22
13.91
ROE (%) -104.74
PENN's ROE (%) is ranked lower than
59% of the 800 Companies
in the Global Resorts & Casinos industry.

( Industry Median: 7.08 vs. PENN: -104.74 )
PENN' s 10-Year ROE (%) Range
Min: -104.74   Max: 35.51
Current: -104.74

-104.74
35.51
ROA (%) -36.37
PENN's ROA (%) is ranked lower than
58% of the 843 Companies
in the Global Resorts & Casinos industry.

( Industry Median: 3.27 vs. PENN: -36.37 )
PENN' s 10-Year ROA (%) Range
Min: -36.37   Max: 7.25
Current: -36.37

-36.37
7.25
ROC (Joel Greenblatt) (%) -155.18
PENN's ROC (Joel Greenblatt) (%) is ranked lower than
58% of the 843 Companies
in the Global Resorts & Casinos industry.

( Industry Median: 12.95 vs. PENN: -155.18 )
PENN' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -155.18   Max: 42.31
Current: -155.18

-155.18
42.31
Revenue Growth (%) 5.90
PENN's Revenue Growth (%) is ranked higher than
78% of the 707 Companies
in the Global Resorts & Casinos industry.

( Industry Median: 4.60 vs. PENN: 5.90 )
PENN' s 10-Year Revenue Growth (%) Range
Min: -3.7   Max: 85.5
Current: 5.9

-3.7
85.5
EPS Growth (%) 137.40
PENN's EPS Growth (%) is ranked higher than
99% of the 523 Companies
in the Global Resorts & Casinos industry.

( Industry Median: 7.10 vs. PENN: 137.40 )
PENN' s 10-Year EPS Growth (%) Range
Min: 3.2   Max: 137.4
Current: 137.4

3.2
137.4
» PENN's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2013

PENN Guru Trades in Q3 2013

Alan Fournier 978,400 sh (New)
Richard Perry 1,250,000 sh (New)
Leon Cooperman 1,557,487 sh (New)
RS Investment Management 604,836 sh (New)
Murray Stahl 5,938 sh (New)
John Keeley 455,330 sh (New)
John Burbank 1,269,171 sh (+80.58%)
Ron Baron 7,873,726 sh (+3.17%)
Jim Simons Sold Out
Columbia Wanger 859,000 sh (-4.34%)
Mario Gabelli 44,000 sh (-8.33%)
Steven Cohen 83,730 sh (-85.43%)
» More
Q4 2013

PENN Guru Trades in Q4 2013

Paul Tudor Jones 16,604 sh (New)
David Einhorn 1,000,000 sh (New)
Murray Stahl 37,673 sh (+534.44%)
RS Investment Management 3,000,957 sh (+396.16%)
Steven Cohen 103,004 sh (+23.02%)
Mario Gabelli 44,000 sh (unchged)
Columbia Wanger 859,000 sh (unchged)
John Keeley Sold Out
Richard Perry Sold Out
John Burbank Sold Out
Alan Fournier Sold Out
Leon Cooperman Sold Out
Ron Baron 7,856,266 sh (-0.22%)
» More
Q1 2014

PENN Guru Trades in Q1 2014

John Burbank 37,620 sh (New)
David Einhorn 2,000,000 sh (+100%)
Mario Gabelli 45,000 sh (+2.27%)
Columbia Wanger Sold Out
Murray Stahl Sold Out
RS Investment Management Sold Out
Ron Baron 7,724,763 sh (-1.67%)
Paul Tudor Jones 10,837 sh (-34.73%)
Steven Cohen 22,202 sh (-78.45%)
» More
Q2 2014

PENN Guru Trades in Q2 2014

Joel Greenblatt 166,520 sh (New)
Paul Tudor Jones Sold Out
David Einhorn Sold Out
Ron Baron 7,578,624 sh (-1.89%)
Mario Gabelli 41,000 sh (-8.89%)
John Burbank 12,883 sh (-65.75%)
» More
» Details

Insider Trades

Latest Guru Trades with PENN

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2014-06-30 New Buy0.03%$10.8 - $13.39 $ 10.98-7%166520
John Burbank 2014-06-30 Reduce -65.75%0.01%$10.8 - $13.39 $ 10.98-7%12883
John Burbank 2014-03-31 New Buy0.01%$11.09 - $14.62 $ 10.98-12%37620
John Burbank 2013-12-31 Sold Out 2.3%$12.396 - $15.18 $ 10.98-20%0
Richard Perry 2013-12-31 Sold Out 1.7%$12.396 - $15.18 $ 10.98-20%0
Leon Cooperman 2013-12-31 Sold Out 1.3%$12.396 - $15.18 $ 10.98-20%0
John Keeley 2013-12-31 Sold Out 0.46%$12.396 - $15.18 $ 10.98-20%0
Richard Perry 2013-09-30 New Buy1.7%$2.5 - $2.92 $ 10.98304%1250000
Leon Cooperman 2013-09-30 New Buy1.3%$2.5 - $2.92 $ 10.98304%1557487
John Burbank 2013-09-30 Add 80.58%1.03%$2.5 - $2.92 $ 10.98304%1269171
John Keeley 2013-09-30 New Buy0.46%$2.5 - $2.92 $ 10.98304%455330
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Penn National Gaming Inc

Baron Funds Comments on Penn National Gaming - Feb 21, 2014

In the quarter, we increased our investment in Penn National Gaming, Inc. (PENN). Penn is the largest regional casino operator. The company is highly acquisitive and well diversified, with less than 20% of its cash flow coming from any one property. Penn has a strong pipeline of projects. Its casinos in Kansas, Toledo and Columbus are rapidly growing; we expect the rebranding of its recently acquired Hollywood St. Louis casino and the opening of two new racetracks in Ohio to boost results in 2014. Longer term, the company should be able to continue to invest in its properties and potentially make accretive acquisitions. Otherwise, it can use its cash flow to pay down debt, which would be accretive for its shareholders. Penn is vying for licenses in Massachusetts and Philadelphia, which could be awarded in mid-2014. Possible gaming expansions in Japan, Korea, Texas or Florida offer further growth opportunities. (David Baron)



From Baron Funds fourth quarter commentary 2013.



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Baron Funds Comments on Penn National Gaming - Feb 06, 2013

Penn National Gaming, Inc. (PENN), the largest operator of regional casinos, announced a major split of its business into an operating company ("opco") and a real estate company ("propco"). The stock rose 13.9%.We think that the propco can trade at a significantly higher value than where the company traded in the past, and therefore, the reorganization will enhance value. Plus, we are excited about the growth prospects for each entity, so we applaud the bold move by Penn management.

From Baron Funds' fourth quarter letter.


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Baron Funds Comments on Penn National Gaming Inc. - Dec 06, 2012

We have been an investor in regional gaming operator and developer Penn National Gaming, Inc. (PENN) for more than four years. We have followed the company for a lot longer than that. Penn's share price fell 3.3% in the quarter. This is though Penn's business is growing nicely; it is quite profitable; and it holds very valuable real estate and licenses. Further, we think Peter Carlino, its entrepreneurial chief executive, who refers to himself as Penn's Shareholder in Chief, is one of the most straightforward, hardworking, honorable chief executives we know.We would have bought more Penn shares in the period were it not for two reasons. Our entire firm has been limited to ownership of 9.99% of Penn's outstanding shares by a state regulator or we would otherwise negatively impact Penn's ability to be licensed in that jurisdiction. Further, to manage risk, we have had an internal rule for many years restricting purchases in publicly owned businesses where we already own 9.99%. Last week Penn announced that it intends to separate its real estate and casino operating businesses into a gaming REIT and a casino operating company. Investors thought this was a great idea and bid up Penn's shares 28% in a single day! We think Penn remains undervalued, and when this restructuring is completed at the end of 2013, its share price could reach $60-70 per share. Of course, Penn's state licenses provide it with competitive advantage over others who might like to own and operate regional casinos.

From Baron Funds’ third quarter commentary.


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Top Ranked Articles about Penn National Gaming Inc

Baron Funds Comments on Penn National Gaming
In the quarter, we increased our investment in Penn National Gaming, Inc. (PENN). Penn is the largest regional casino operator. The company is highly acquisitive and well diversified, with less than 20% of its cash flow coming from any one property. Penn has a strong pipeline of projects. Its casinos in Kansas, Toledo and Columbus are rapidly growing; we expect the rebranding of its recently acquired Hollywood St. Louis casino and the opening of two new racetracks in Ohio to boost results in 2014. Longer term, the company should be able to continue to invest in its properties and potentially make accretive acquisitions. Otherwise, it can use its cash flow to pay down debt, which would be accretive for its shareholders. Penn is vying for licenses in Massachusetts and Philadelphia, which could be awarded in mid-2014. Possible gaming expansions in Japan, Korea, Texas or Florida offer further growth opportunities. (David Baron) Read more...

Ratios

vs
industry
vs
history
P/B 1.10
PENN's P/B is ranked higher than
83% of the 907 Companies
in the Global Resorts & Casinos industry.

( Industry Median: 2.42 vs. PENN: 1.10 )
PENN' s 10-Year P/B Range
Min: 0.14   Max: 1.59
Current: 1.1

0.14
1.59
P/S 0.30
PENN's P/S is ranked higher than
92% of the 907 Companies
in the Global Resorts & Casinos industry.

( Industry Median: 1.57 vs. PENN: 0.30 )
PENN' s 10-Year P/S Range
Min: 0.1   Max: 0.63
Current: 0.3

0.1
0.63
PFCF 10.70
PENN's PFCF is ranked higher than
89% of the 907 Companies
in the Global Resorts & Casinos industry.

( Industry Median: 39.70 vs. PENN: 10.70 )
PENN' s 10-Year PFCF Range
Min: 2.15   Max: 104.44
Current: 10.7

2.15
104.44
Current Ratio 1.26
PENN's Current Ratio is ranked higher than
65% of the 479 Companies
in the Global Resorts & Casinos industry.

( Industry Median: 1.29 vs. PENN: 1.26 )
PENN' s 10-Year Current Ratio Range
Min: 0.42   Max: 2.8
Current: 1.26

0.42
2.8
Quick Ratio 1.26
PENN's Quick Ratio is ranked higher than
72% of the 479 Companies
in the Global Resorts & Casinos industry.

( Industry Median: 1.09 vs. PENN: 1.26 )
PENN' s 10-Year Quick Ratio Range
Min: 0.35   Max: 2.8
Current: 1.26

0.35
2.8

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 0.50
PENN's Price/DCF (Projected) is ranked higher than
97% of the 907 Companies
in the Global Resorts & Casinos industry.

( Industry Median: 24.00 vs. PENN: 0.50 )
PENN' s 10-Year Price/DCF (Projected) Range
Min: 0.17   Max: 5.36
Current: 0.5

0.17
5.36
Price/Median PS Value 1.10
PENN's Price/Median PS Value is ranked higher than
78% of the 907 Companies
in the Global Resorts & Casinos industry.

( Industry Median: 1.20 vs. PENN: 1.10 )
PENN' s 10-Year Price/Median PS Value Range
Min: 0.35   Max: 2.14
Current: 1.1

0.35
2.14
Earnings Yield (Greenblatt) 27.30
PENN's Earnings Yield (Greenblatt) is ranked higher than
97% of the 761 Companies
in the Global Resorts & Casinos industry.

( Industry Median: 5.80 vs. PENN: 27.30 )
PENN' s 10-Year Earnings Yield (Greenblatt) Range
Min: 5.9   Max: 27.8
Current: 27.3

5.9
27.8
Forward Rate of Return (Yacktman) 12.17
PENN's Forward Rate of Return (Yacktman) is ranked higher than
81% of the 637 Companies
in the Global Resorts & Casinos industry.

( Industry Median: 5.75 vs. PENN: 12.17 )
PENN' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 1.4   Max: 67.3
Current: 12.17

1.4
67.3

Business Description

Industry: Travel & Leisure » Resorts & Casinos
Compare:LVS, SCHYY, GXYEY, WYNMF, SJMHF » details
Traded in other countries:PN1.Germany
Penn National Gaming was incorporated in Pennsylvania in 1982 as PNRC Corp. and adopted its current name in 1994, when the Company became a public company. The Company is a diversified, multi-jurisdictional owner and manager of gaming and pari-mutuel properties. In 1997, the Company began its transition from a pari-mutuel company to a gaming company with the acquisition of the Charles Town property and the introduction of video lottery terminals in West Virginia. Since 1997, the Company has continued to expand its gaming operations through acquisitions of Hollywood Casino Bay St. Louis and Boomtown Biloxi, CRC Holdings, Inc., the Bullwhackers properties, Hollywood Casino Corporation, Argosy Gaming Company, Zia Park Casino, Sanford-Orlando Kennel Club and The M Resorts LLC, greenfield projects (such as at Hollywood Casino at Penn National Race Course, Hollywood Slots Hotel and Raceway and Hollywood Casino Perryville), and property expansions (such as Hollywood Casino at Charles Town Races and Hollywood Casino Lawrenceburg). As of December 21, 2012, the Company currently owns manages, or have ownership interests in twenty-nine facilities in nineteen jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Pennsylvania, Texas, West Virginia, Ontario, and Kansas. The Company owns a number of trademarks registered with the U.S. Patent and Trademark Office, including but not limited to, 'Telebet,' 'The World Series of Handicapping,' and 'Players' Choice.' As owners and managers of gaming and pari-mutuel wagering facilities, the Company is subject to extensive state, local and, in Canada, provincial regulation.
» More Articles for PENN

Headlines

Articles On GuruFocus.com
Four CEOs Reporting Large Insider Buys May 09 2014 
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Ron Baron Continued - Opportunities Everywhere, Response to Marc Faber Nov 08 2013 
Ron Baron on Penn National Gaming and Seeing Accelerated Economic Growth Nov 08 2013 
Baron Funds Comments on Penn National Gaming Feb 06 2013 
Baron Funds Comments on Penn National Gaming Inc. Dec 06 2012 
Weekly CFO Buys Highlight: NGL, PENN, CNET, PTEK, SPIN, LINC Dec 03 2012 
Answers from GuruFocus' Q&A with Chuck Akre Jun 06 2011 
Penn National Gaming Inc. (PENN) Chairman & CEO Peter M Carlino sells 4,200 Shares Feb 23 2011 

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