PENN Entertainment Inc gross margin has been in long-term decline. The average rate of decline per year is -2.3%.
The historical rank and industry rank for PENN Entertainment's Gross Margin % or its related term are showing as below:
PENN'
s Gross Margin % Range Over the Past 10 Years
Min: 30.68 Med: 43.1 Max: 47.8
Current: 30.68
During the past 13 years, the highestGross Margin % of PENN Entertainment was 47.80%. The lowest was 30.68%. And the median was 43.10%.
PENN's Gross Margin % is ranked worse than 71.67% of 766
companies
in the Travel & Leisure industry
Industry Median: 43.675
vs PENN: 30.68
PENN Entertainment had a gross margin of 34.69% for the quarter that ended in Sep. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for PENN Entertainment was -2.30% per year.
PENN Entertainment Gross Margin % Historical Data
The historical data trend for PENN Entertainment's Gross Margin % 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.
Competitive Comparison of PENN Entertainment's Gross Margin %
For the Resorts & Casinos subindustry, PENN Entertainment's Gross Margin %, along with its competitors' market caps and Gross Margin % 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's Gross Margin % Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, PENN Entertainment's Gross Margin % distribution charts can be found below:
* The bar in red indicates where PENN Entertainment's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
PENN Entertainment (NAS:PENN) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
PENN Entertainment had a gross margin of 34.69% for the quarter that ended in Sep. 2024 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
PENN Entertainment Gross Margin % Related Terms
Thank you for viewing the detailed overview of PENN Entertainment's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Penn Entertainment's origins date back to its 1972 racetrack opening in Pennsylvania. Today, Penn operates 43 properties across 20 states and 12 brands, including Hollywood Casino and Ameristar. Land-based casinos represented 89% of total sales in 2023; 11% was from the interactive segment, which includes sports, iGaming, and media revenue. The retail portfolio generates mid-30s EBITDAR margins and helps position the company to obtain licenses for the digital wagering markets. Additionally, Penn's media assets, theScore and ESPN (starting with its partnership launch in November 2023), provide access to sports betting/iGaming technology and clientele, helping it form a leading digital position.
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