GURUFOCUS.COM » STOCK LIST » USA » NAS » PENN Entertainment Inc (NAS:PENN) » Definitions » Owner Earnings per Share (TTM)
Switch to:

PENN Entertainment Owner Earnings per Share (TTM)

: 1.95 (As of Jun. 2022)
View and export this data going back to 1994. Start your Free Trial

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

PENN Entertainment's Owner Earnings per Share (TTM) ended in Jun. 2022 was $1.95. It's Price-to-Owner-Earnings ratio for today is 14.


The historical rank and industry rank for PENN Entertainment's Owner Earnings per Share (TTM) or its related term are showing as below:

PENN' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 3.52   Med: 11.37   Max: 158.72
Current: 13.37


During the past 13 years, the highest Price-to-Owner-Earnings ratio of PENN Entertainment was 158.72. The lowest was 3.52. And the median was 11.37.


PENN's Price-to-Owner-Earnings is ranked worse than
51.67% of 329 companies
in the Travel & Leisure industry
Industry Median: 14.18 vs PENN: 13.37

PENN Entertainment's Earnings per Share (Diluted) for the three months ended in Jun. 2022 was $0.15. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2022 was $1.22. It's PE Ratio ratio for today is 22.38.

PENN Entertainment's EPS without NRI for the three months ended in Jun. 2022 was $0.15. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2022 was $1.22. It's PE Ratio without NRI ratio for today is 22.38.


PENN Entertainment Owner Earnings per Share (TTM) Historical Data

The historical data trend for PENN Entertainment's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

PENN Entertainment Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.01 1.39 2.44 -4.65 2.87

PENN Entertainment Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.40 3.13 2.87 2.73 1.95

Competitive Comparison

For the Resorts & Casinos subindustry, PENN Entertainment's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

PENN Entertainment Owner Earnings per Share (TTM) Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, PENN Entertainment's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where PENN Entertainment's Owner Earnings per Share (TTM) falls into.



PENN Entertainment Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

PENN Entertainment's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 209
Depreciation, Depletion and Amortization 450
Change In Deferred Tax 13
5Y Average of Maintenance Capital Expenditure 163
Change In Working Capital -157
Shares Outstanding (Diluted Average) 180

1. Start with "Net Income" from income statement. PENN Entertainment's Net Income for the trailing twelve months (TTM) ended in Jun. 2022 was $209 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. PENN Entertainment's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Jun. 2022 was $450 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. PENN Entertainment's Change In Deferred Tax for the trailing twelve months (TTM) ended in Jun. 2022 was $13 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $163 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

PENN Entertainment's 5-Year Average Maintenance Capital Expenditure = $163 Mil

5. "Change In Working Capital" is from cashflow statement. PENN Entertainment's Change In Working Capital for the trailing twelve months (TTM) ended in Jun. 2022 was $-157 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. PENN Entertainment's Shares Outstanding (Diluted Average) for the months ended in Jun. 2022 was 180.200 Mil.

PENN Entertainment's Onwer Earnings Per Share for Jun. 2022 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 208.9 +449.8+13.3
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-163.46420891646+-156.6)/180.200
=1.95

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=27.30/1.95
=14

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


PENN Entertainment Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of PENN Entertainment's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


PENN Entertainment Business Description

PENN Entertainment logo
Traded in Other Exchanges
Address
825 Berkshire Boulevard, Suite 200, Wyomissing, PA, USA, 19610
Penn National Gaming Inc is the operator of gaming and racing properties and video gaming terminal operations in the U.S. It operates retail sports betting across the company's portfolio, as well as online sports betting, online social casino, bingo, and online casinos. It offers live sports betting at its properties in Indiana, Iowa, Mississippi, Nevada, Pennsylvania, and West Virginia.
Executives
Black Gupta Vimla director 825 BERKSHIRE BLVD. WYOMISSING PA 19610
Hendrix Felicia officer: EVP and CFO 825 BERKSHIRE BLVD. WYOMISSING PA 19610
George Todd officer: EVP, Operations 825 BERKSHIRE BLVD. WYOMISSING PA 19610
Kaplowitz Marla director 825 BERKSHIRE BLVD. WYOMISSING PA 19610
Labombard Christine officer: SVP and CAO 825 BERKSHIRE BOULEVARD WYOMISSING PA 19610
Naples Ronald J director 96 S. GEORGE STREET SUITE 500 YORK PA 17401
Scaccetti Jane director 3111 W ALLEGHENY AVE PHILADELPHIA PA 19132
Rogers Christopher Byron officer: EVP and Chief Strategy Officer 825 BERKSHIRE BLVD. WYOMISSING PA 19610
Ko Harper H. officer: EVP, CLO and Sec. 7250 S. TENAYA WAY SUITE 100 LAS VEGAS NV 89113
Williams David Edward officer: EVP and CFO 825 BERKSHIRE BOULEVARD WYOMISSING PA 19610
Reibstein Saul officer: EVP-Finance, CFO & Treasurer C/O VISHAY PRECISION GROUP, INC. 3 GREAT VALLEY PARKWAY, SUITE 150 MALVERN PA 19355
Sottosanti Carl officer: SVP,Gen Counsel & Secretary 825 BERKSHIRE BOULEVARD SUITE 200 WYOMISSING PA 19610
Snowden Jay A officer: EVP-Chief Operating Officer 825 BERKSHIRE BOULEVARD SUITE 200 WYOMISSING PA 19610
Fair William J officer: EVP - Chief Dev Officer 825 BERKSHIRE BOULEVARD SUITE 200 WYOMISSING PA 19610
Burke Desiree A. officer: V. P. and Chief Accounting Off 845 BERKSHIRE BOULEVARD SUITE 200 WYOMISSING PA 19610

PENN Entertainment Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)