Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, casino operator Caesars Entertainment (Nasdaq: CZR ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Caesars and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Las Vegas (1937)|
|Market Cap||$906.0 million|
|Industry||Casinos and gaming|
|Trailing-12-Month Revenue||$8.9 billion|
|Management||Chairman/CEO Gary Loveman
President of Operations Thomas Jenkin
|Return on Capital (average, past 3 years)||2.8%|
|Cash / Debt||$985.1 million / $20.3 billion|
MGM Resorts International
Trump Entertainment Resorts
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 77% of the 62 members who have rated Caesars believe the stock will underperform the S&P 500 going forward.
Caesars currently has high debt levels and no clear way to pay off its debt. As a regional casino operator, it has no footprint in Asia and an inability to attract big customers. Management seems to be incompetent and is looking to expand operations in [Massachusetts] rather than pay down debt that is out-stripping revenues. This was a horrible IPO that was foisted on the investing public.
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