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PENN Entertainment (NAS:PENN) Owner Earnings per Share (TTM)

: 1.55 (As of Dec. 2022)
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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 Dec. 2022 was $1.55. It's Price-to-Owner-Earnings ratio for today is 22.17.


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: 3.66   Med: 11.77   Max: 158.72
Current: 22.2


During the past 13 years, the highest Price-to-Owner-Earnings ratio of PENN Entertainment was 158.72. The lowest was 3.66. And the median was 11.77.


PENN's Price-to-Owner-Earnings is ranked worse than
63.13% of 339 companies
in the Travel & Leisure industry
Industry Median: 15.63 vs PENN: 22.20

PENN Entertainment's Earnings per Share (Diluted) for the three months ended in Sep. 2022 was $0.72. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2022 was $1.29. It's PE Ratio ratio for today is 26.64.

PENN Entertainment's EPS without NRI for the three months ended in Sep. 2022 was $0.72. Its EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2022 was $1.29. It's PE Ratio without NRI ratio for today is 26.64.


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 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.39 2.44 -4.65 2.87 -

PENN Entertainment Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
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 2.87 2.73 1.95 1.55 -

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 in comparison to its industry or sector. The grey bar indicates the Owner Earnings per Share (TTM)'s extreme value range as defined by GuruFocus.



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 222
Depreciation, Depletion and Amortization 568
Change In Deferred Tax -146
5Y Average of Maintenance Capital Expenditure 176
Change In Working Capital -53
Shares Outstanding (Diluted Average) 170

1. Start with "Net Income" from income statement. PENN Entertainment's Net Income for the trailing twelve months (TTM) ended in Dec. 2022 was $222 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 Dec. 2022 was $568 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 Dec. 2022 was $-146 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $176 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 = $176 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 Dec. 2022 was $-53 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 Dec. 2022 was 169.700 Mil.

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

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 222.1 +567.5+-146.1
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-175.64470793645+-52.6)/169.700
=1.55

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=34.36/1.55
=22.17

* 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 (NAS:PENN) Business Description

PENN Entertainment logo
Traded in Other Exchanges
Address
825 Berkshire Boulevard, Suite 200, Wyomissing, PA, USA, 19610
PENN Entertainment Inc provides integrated entertainment, sports content, and casino gaming experiences. It 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.
Executives
Gupta Vimla Black director 825 BERKSHIRE BLVD., WYOMISSING PA 19610
Felicia Hendrix officer: EVP and CFO 825 BERKSHIRE BLVD., WYOMISSING PA 19610
Todd George officer: EVP, Operations 825 BERKSHIRE BLVD., WYOMISSING PA 19610
Marla Kaplowitz director 825 BERKSHIRE BLVD., WYOMISSING PA 19610
Christine Labombard officer: SVP and CAO 825 BERKSHIRE BOULEVARD, WYOMISSING PA 19610
Ronald J Naples director 96 S. GEORGE STREET, SUITE 500, YORK PA 17401
Jane Scaccetti director 3111 W ALLEGHENY AVE, PHILADELPHIA PA 19132
Christopher Byron Rogers officer: EVP and Chief Strategy Officer 825 BERKSHIRE BLVD., WYOMISSING PA 19610
Harper H. Ko officer: EVP, CLO and Sec. 7250 S. TENAYA WAY, SUITE 100, LAS VEGAS NV 89113
David Edward Williams officer: EVP and CFO 825 BERKSHIRE BOULEVARD, WYOMISSING PA 19610
Saul Reibstein officer: EVP-Finance, CFO & Treasurer C/O VISHAY PRECISION GROUP, INC., 3 GREAT VALLEY PARKWAY, SUITE 150, MALVERN PA 19355
Carl Sottosanti officer: SVP,Gen Counsel & Secretary 825 BERKSHIRE BOULEVARD, SUITE 200, WYOMISSING PA 19610
Jay A Snowden officer: EVP-Chief Operating Officer 825 BERKSHIRE BOULEVARD, SUITE 200, WYOMISSING PA 19610
William J Fair officer: EVP - Chief Dev Officer 825 BERKSHIRE BOULEVARD, SUITE 200, WYOMISSING PA 19610
Desiree A. Burke officer: V. P. and Chief Accounting Off 845 BERKSHIRE BOULEVARD, SUITE 200, WYOMISSING PA 19610

PENN Entertainment (NAS:PENN) Headlines

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