As we delve into the financials of Gaming Leisure Properties (USA Stocks: GLPI), a prominent player in the Equity Real Estate Investment Trusts (REITs) sector, it's important to weigh the potential risks and rewards of this investment. The company, which operates within the REIT-Specialty industry, has a total asset base of
$10.93B, inclusive of intangible assets worth $652.8M. The company's
financial health is reflected in its strong cash flow from operations, which stood at $920.13M at the end of the period, albeit a decrease from the beginning period cash flow of $724.6M. This decrease in cash flow could potentially signal some risks, but it's crucial to consider the company's overall
financial performance. Gaming Leisure Properties reported a total revenue of
$1.3B with a cost of revenue at a mere $49M, indicating a healthy profit margin. The company's EBITDA, a measure of a company's overall financial performance, was also impressive at $1.3B. However, the company did record a loss in its change to liabilities, which decreased by $1.5M. Investors should also note the company's total debt of $6.36B, which could pose a risk if not managed effectively. However, the company's issuance of capital stock worth $611.3M and other cash flows from financing activities at $379.5M could potentially offset this debt. The company's return on equity stands at 20.31%, which is a positive indicator of the company's profitability. However, the company's price to earnings ratio is 21.58X, and its price book is 3.7527, which could be considered high, indicating that the stock may be overvalued. In conclusion, while Gaming Leisure Properties has demonstrated strong financial performance, potential investors should carefully consider the company's high debt and valuation metrics. The company's stock has a 52-week low of $41.5002, which could offer a potential entry point for investors looking for a bargain. However, as always, potential investors should conduct their own thorough research before making any investment decisions. While some baby boomers may express concerns about the equity real estate investment trusts (REITs) sector, it is worthwhile to consider Gaming and Leisure Properties. We will assess why we maintain our confidence in the prospect of a recovery. Is the stock's valuation justified? We will explore Gaming and Leisure Properties' perspective on valuation to provide you with a more informed viewpoint before deciding to invest in this stock.
We determine the current worth of Gaming Leisure Properties using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Gaming Leisure Properties based exclusively on its
fundamental and basic
technical indicators. By analyzing Gaming Leisure's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Gaming Leisure's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Gaming Leisure. We calculate exposure to Gaming Leisure's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Gaming Leisure's related companies.
Gaming Leisure Properties Investment Alerts
Gaming investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Gaming Leisure Properties performance across your portfolios.Please check all
investment alerts for Gaming
Gaming Leisure Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Gaming value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Gaming Leisure competition to find
correlations between indicators driving the intrinsic value of Gaming.
Gaming Leisure Gross Profit
Gaming Leisure Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Gaming Leisure previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Gaming Leisure Gross Profit growth over the last 10 years. Please check Gaming Leisure's
gross profit and other
fundamental indicators for more details.
Going after Gaming Financials
The small plunge in market price for the last few months may raise some interest from traders. The stock closed today at a share price of
49.21 on very low momentum in trading volume. The company executives did not add much value to Gaming Leisure Properties investors in
June. However, diversifying your holdings with Gaming Leisure Properties or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.12. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
Margins Breakdown
Gaming profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Gaming Leisure itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Gaming Leisure profit margins.
| Operating Margin | 58.99 |
| EBITDA Margin | 0.91 |
| Gross Margin | 0.99 |
| Profit Margin | 0.45 |
Gaming Leisure Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. The recent value of Gaming Leisure Earnings Before Interest Taxes and Depreciation Amortization USD is 1,049,842,684. Moreover, Gaming Leisure Average Assets is increasing over the last 8 years. Gaming Leisure Properties (GLPI) is a REIT-Specialty company traded on the NASDAQ.
With a total of 262.36M shares outstanding and a short ratio of 3.06X, the company has a significant number of shares shorted at 3.59M. This indicates a bearish sentiment among investors. However, the company's financials paint a different picture. The company's net asset stands at a robust
$10.93B, with net tangible assets amounting to $3.8B. GLPI's total operating expenses are $296.9M, which is manageable considering its revenue of $1.31B. The company's net income from continuing operations is a healthy $703.3M, contributing to a profit margin of 0.55%. However, the company has a significant net debt of
$6.1B, which could be a potential risk for investors. The company's PEG ratio is 8.08, which suggests that it may be overvalued. The forward PE of 17.2117 also supports this. However, the company's free cash flow is a strong $896.1M, indicating good liquidity. In conclusion, while GLPI has strong financials and a healthy profit margin, the high PEG ratio and significant net debt are potential risks. Investors should weigh these factors carefully before making a decision. .
Possible August come-back of Gaming?
Gaming and Leisure Properties' stock has recently experienced a decline in its information ratio, which currently stands at -0.12. This negative value suggests that the stock's returns have been lower than the risk-free rate, indicating underperformance. However, investors should not hastily dismiss this stock. The current dip could represent a buying opportunity for those who have faith in the company's long-term prospects. With the summer season underway and the potential for increased leisure activities, Gaming and Leisure Properties may be well-positioned for a rebound in August. Gaming and Leisure Properties exhibits extremely low volatility, with a skewness of 0.27 and a kurtosis of 0.34. However, we recommend investors to further examine Gaming and Leisure Properties' technical indicators to ensure all market information is available and reliable. Understanding different
market volatility trends can often assist investors in timing the market. Proper use of volatility indicators allows traders to measure Gaming and Leisure's stock risk against market volatility during both bullish and bearish trends.
The heightened level of volatility that accompanies bear markets can directly affect Gaming and Leisure's stock price, adding stress to investors as they watch the value of their shares plummet. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. In light of the current data, Gaming Leisure Properties appears to be a solid investment opportunity. With an overall
analyst consensus of 'Buy', and a total of
14 estimates, the target price estimated value stands at
$55.928, indicating a potential upside. The valuation real value is $52.39, which is higher than both the naive expected forecast value of $50.59 and the current market value of $49.21. Furthermore, the number of strong buys (8) significantly outweighs the number of sells (1), reinforcing the positive outlook for this stock. However, investors should also consider the possible downside price of $49.46. In conclusion, while there may be some short-term volatility, the long-term prospects for Gaming Leisure Properties seem promising. .
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
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