Caesars EntertainmentSTU:2ER -1.74%76 Gross Margin % is 50.28% as of Mar. 2026, which is 1% above its 10-year median of 49.56. GuruFocus rates STU:2ER with a GF Score™ of 76/100 and a GF Value™ of €33.76 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 793 Travel & Leisure companies, Caesars Entertainment ranks better than 58.51% on this metric.
STU:2ER's Gross Margin % is ranked better than 58.51% of 793
companies
in the Travel & Leisure industry
Industry Median: 43.92
vs STU:2ER: 49.94
Caesars Entertainment had a gross margin of 50.28% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Caesars Entertainment was 0.50% per year.
Caesars Entertainment (STU:2ER) 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
Caesars Entertainment had a gross margin of 50.28% for the quarter that ended in Mar. 2026 => Durable competitive advantage
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.
Caesars Entertainment Gross Margin % Related Terms
Caesars Entertainment Gross Margin % Historical Data
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The historical data trend for Caesars 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.
STU:2ER vs BYD, MTN, HGV: Gross Margin % Comparison
For the Resorts & Casinos subindustry, Caesars 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.
Caesars Entertainment Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Caesars Entertainment's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Caesars 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.
Caesars Entertainment (STU:2ER) has a Gross Margin % of 50.28% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Caesars Entertainment and its competitors. This is near median its historical median of 49.56. Over the past decade, Caesars Entertainment's Gross Margin % has ranged from 39.28 to 53.20. According to the industry distribution chart, Caesars Entertainment ranks #329 out of 793 companies in the Travel & Leisure industry, placing it in the top 41.5%.
Is Caesars Entertainment's Gross Margin % too high?
Caesars Entertainment's current Gross Margin % of 50.28% is near median its 10-year median of 49.56. Over the past 10 years, this metric has ranged from a low of 39.28 to a high of 53.20. The Travel & Leisure industry median Gross Margin % is 43.92. Caesars Entertainment's value of 50.28% is 14.5% above this industry median. Based on the distribution chart, Caesars Entertainment ranks #329 out of 793 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Caesars Entertainment has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Caesars Entertainment's Gross Margin % compare to BYD and MTN?
According to the Travel & Leisure industry distribution chart, Caesars Entertainment ranks #329 out of 793 companies for Gross Margin %. This puts Caesars Entertainment in the upper half of its industry. The industry median Gross Margin % is 43.92. Caesars Entertainment's value of 50.28% is 14.5% above this benchmark. Historically, Caesars Entertainment's own Gross Margin % has ranged from 39.28 to 53.20 over the past decade. While the company's 10-year median is 49.56 vs. the industry median of 43.92, Caesars Entertainment has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Travel & Leisure company?
The median Gross Margin % among Travel & Leisure companies is 43.92, based on 793 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Caesars Entertainment's current Gross Margin % of 50.28% is 14.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Caesars Entertainment and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 43.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Caesars Entertainment's current Gross Margin % is 50.28%, which is near median its own 10-year median of 49.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Caesars Entertainment stock overvalued right now?
Based on GuruFocus' analysis, Caesars Entertainment (STU:2ER) is currently considered Modestly Undervalued. The stock's GF Value™ is €33.76, compared to a current price of €26.03 — trading 22.9% below its estimated fair value. The current Gross Margin % is 50.28%, which is near median its 10-year median of 49.56 and 14.5% above the Travel & Leisure industry median of 43.92. Caesars Entertainment's overall GF Score™ is 76/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Caesars Entertainment (STU:2ER), the current Gross Margin % is 50.28% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Caesars Entertainment (STU:2ER) Overvalued in 2026?
Based on GuruFocus' analysis, Caesars Entertainment stock appears to be undervalued.
The current stock price of €26.03 is trading 22.9% below its estimated GF Value™ of €33.76.
GuruFocus considers Caesars Entertainment to be Modestly Undervalued.
Key valuation signals for STU:2ER:
Gross Margin %: 50.28% (near median its 10-year median of 49.56)
GF Value™: €33.76 vs. price of €26.03 (22.9% below fair value)
Industry Position: 14.5% above the Travel & Leisure median (#329 of 793)
No single metric tells the full story. See the STU:2ER stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Caesars Entertainment's stand-alone portfolio includes about 50 domestic gaming properties across the Las Vegas (48% of 2025 EBITDAR) and regional (49%) markets. Additionally, the company hosts managed properties and digital assets that produced marginal EBITDA in 2025. Caesars' US presence roughly doubled with the 2020 acquisition by Eldorado, which built its first casino in Reno, Nevada, in 1973. Caesars' brands include Caesars, Harrah's, Tropicana, Bally's, Isle, and Flamingo. Also, the company owns the US portion of William Hill (it sold the international operation in 2022), a digital sports betting platform. The portfolio is set to expand to more than 60 casinos with the proposed acquisition of Caesars by Fertitta Entertainment and its Golden Nugget resorts.
76GF Score
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