PENN EntertainmentFRA:PN1 75 Operating Margin % is 5.46% as of Mar. 2026, which is 62% below its 10-year median of 14.39. GuruFocus rates FRA:PN1 with a GF Score™ of 75/100 and a GF Value™ of €19.76 (Fairly Valued). The stock has 10 warning signs investors should review. Among 844 Travel & Leisure companies, PENN Entertainment ranks worse than 61.49% on this metric.
PENN Entertainment Inc has recorded a loss in operating income at least once over the past 3 years.
PENN Entertainment (FRA:PN1) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
PENN Entertainment Operating Margin % Related Terms
PENN Entertainment Operating Margin % Historical Data
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The historical data trend for PENN Entertainment's Operating 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.
FRA:PN1 vs MCRI, VAC, RRR: Operating Margin % Comparison
For the Resorts & Casinos subindustry, PENN Entertainment's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, PENN Entertainment's Operating Margin % distribution charts can be found below:
* The bar in red indicates where PENN Entertainment's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
PENN Entertainment's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
PENN Entertainment (FRA:PN1) has a Operating Margin % of 5.46% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on PENN Entertainment and its competitors. This is 62% below median its historical median of 14.39. Over the past decade, PENN Entertainment's Operating Margin % has ranged from 2.46 to 18.65. According to the industry distribution chart, PENN Entertainment ranks #519 out of 844 companies in the Travel & Leisure industry, placing it in the top 61.5%.
Is PENN Entertainment's Operating Margin % too high?
PENN Entertainment's current Operating Margin % of 5.46% is 62% below median its 10-year median of 14.39. Over the past 10 years, this metric has ranged from a low of 2.46 to a high of 18.65. The Travel & Leisure industry median Operating Margin % is 8.14. PENN Entertainment's value of 5.46% is 32.9% below this industry median. Based on the distribution chart, PENN Entertainment ranks #519 out of 844 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, PENN Entertainment has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does PENN Entertainment's Operating Margin % compare to MCRI and VAC?
According to the Travel & Leisure industry distribution chart, PENN Entertainment ranks #519 out of 844 companies for Operating Margin %. This places PENN Entertainment in the lower half of its industry. The industry median Operating Margin % is 8.14. PENN Entertainment's value of 5.46% is 32.9% below this benchmark. Historically, PENN Entertainment's own Operating Margin % has ranged from 2.46 to 18.65 over the past decade. While the company's 10-year median is 14.39 vs. the industry median of 8.14, PENN Entertainment has consistently been below 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 Operating Margin % for a Travel & Leisure company?
The median Operating Margin % among Travel & Leisure companies is 8.14, based on 844 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PENN Entertainment's current Operating Margin % of 5.46% is 32.9% below 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on PENN Entertainment and its competitors. For the Travel & Leisure industry, the median Operating Margin % is 8.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PENN Entertainment's current Operating Margin % is 5.46%, which is 62% below median its own 10-year median of 14.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PENN Entertainment stock overvalued right now?
Based on GuruFocus' analysis, PENN Entertainment (FRA:PN1) is currently considered Fairly Valued. The stock's GF Value™ is €19.76, compared to a current price of €17.90 — trading 9.4% below its estimated fair value. The current Operating Margin % is 5.46%, which is 62% below median its 10-year median of 14.39 and 32.9% below the Travel & Leisure industry median of 8.14. PENN Entertainment's overall GF Score™ is 75/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For PENN Entertainment (FRA:PN1), the current Operating Margin % is 5.46% 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 PENN Entertainment (FRA:PN1) Overvalued in 2026?
Based on GuruFocus' analysis, PENN Entertainment stock appears to be undervalued.
The current stock price of €17.90 is trading 9.4% below its estimated GF Value™ of €19.76.
GuruFocus considers PENN Entertainment to be Fairly Valued.
Key valuation signals for FRA:PN1:
Operating Margin %: 5.46% (62% below median its 10-year median of 14.39)
GF Value™: €19.76 vs. price of €17.90 (9.4% below fair value)
Industry Position: 32.9% below the Travel & Leisure median (#519 of 844)
No single metric tells the full story. See the FRA:PN1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Penn Entertainment's origins date back to its 1972 racetrack opening in Pennsylvania. Today, Penn operates 42 properties across 20 states and 12 brands, including Hollywood Casino and Ameristar. Land-based casinos represented 81% of total sales in 2025; 19% was from the interactive segment, which includes sports, i-gaming, and media revenue. The retail portfolio generates low-30s EBITDAR margins and helps position the company to obtain licenses for the digital wagering markets. Additionally, Penn's media asset, theScore, provides access to sports betting/i-gaming technology and clientele, helping it form a leading digital position.
75GF Score
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