Is CZR a high-quality business?

AlphaMadera's AlphaQuality grade scores Caesars Entertainment, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how CZR compares to a Buffett-style quality bar.

What is Caesars Entertainment, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to CZR based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes CZR a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

CZR - Caesars Entertainment, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $31.11 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

F 30.0 / 100 pillar composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — the six pillars score only reported financials, no analyst input.

⚠ 4 of the last 5 fiscal years showed negative net income — AlphaQuality will not grade above F for persistent unprofitability in a platform & compounding fcf business.

Grade overrides the 30.0 pillar composite because hard gates always win. Use the pillar breakdown below to see where the underlying numbers sit.

Profitability

Weight: 25%

C- 49.7

5yr Avg ROIC 4.9% 34/100
Operating Margin Trend +1.01 pp/yr 85/100

Capital Efficiency

Weight: 15%

F 0.0

5yr Avg ROE -10.1% 0/100
5yr Share-Count CAGR 9.9% 0/100

Growth Quality

Weight: 25%

A+ 93.8

5yr Revenue CAGR 25.9% 100/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 20%

C 51.8

5yr FCF Margin 2.9% 40/100
5yr FCF/NI Conversion 0.69x 67/100

Balance Sheet

Weight: 10%

F 5.2

Net Debt / EBITDA 7.73x 0/100
Interest Coverage (EBIT/Int) 0.81x 11/100
Altman Z-Score 0.53 8/100

Stability

Weight: 5%

D+ 39.8

EPS Volatility (σ/μ) 0.83 7/100
Negative-Revenue Years (5) 1/5 80/100
Piotroski F-Score 5 56/100

6 of 6 gurus held; 2 new buys; 2 added; 1 trimmed; 2 full exits.

Holders: 6 +1
Avg Δ position: +1.8%
New buys: 2
Full exits: 2

Soros new
Dalio sold -100%
Laffont new

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (25%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (25%) — 5yr Revenue CAGR, Revenue-Growth Years (5)
Cash Generation (20%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (10%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (5%) — EPS Volatility (σ/μ), Negative-Revenue Years (5), Piotroski F-Score

The six pillars read only reported financial-statement fields — no analyst targets or consensus ratings. The archetype that picks which pillar formulas apply is not fully price-free, though: it can route a company to the distressed/ungradable archetype based on price vs. its 52-week high, and beta affects one classification check. A minimum of 5 fiscal years of audited statements is required. Insurers and banks are graded on their own methodology — insurers on loss ratio, its trend and stability, and premiums-to-surplus; banks on the efficiency ratio, its trend and stability, and equity-to-assets — rather than on industrial margin/ROIC signals. Distressed, highly leveraged infrastructure, asset-manager, and other financial businesses are declared ungradable rather than forced into a numeric score.