Is PENN a high-quality business?

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

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

AlphaQuality assigns a letter grade (A through F) to PENN 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 PENN 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.

PENN - PENN Entertainment, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $20.29 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

F 29.0 / 100 pillar composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

⚠ 3 of the last 5 fiscal years showed negative net income — AlphaQuality will not grade above F for persistent unprofitability in a stable earnings power business.

Grade overrides the 29.0 pillar composite because hard gates always win. Use the pillar breakdown below to see where the underlying numbers sit.

Profitability

Weight: 20%

F 16.3

5yr Avg ROIC 2.7% 23/100
Operating Margin Trend -4.22 pp/yr 0/100

Capital Efficiency

Weight: 15%

D 34.8

5yr Avg ROE -10.9% 0/100
5yr Share-Count CAGR -4.7% 99/100

Growth Quality

Weight: 15%

D+ 40.3

5yr Revenue CAGR 4.2% 54/100
5yr EPS CAGR -48.0% 0/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 15%

C+ 58.6

5yr FCF Margin 3.5% 42/100
5yr FCF/NI Conversion 2.11x 78/100

Balance Sheet

Weight: 20%

F 1.1

Net Debt / EBITDA 240.34x 0/100
Interest Coverage (EBIT/Int) -1.02x 0/100
Altman Z-Score 0.30 5/100

Stability

Weight: 15%

D 36.7

EPS Volatility (σ/μ) 1.09 0/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 1/5 80/100

4 of 4 gurus held; 2 new buys; 1 added; 1 trimmed.

Holders: 4 +2
Avg Δ position: +166.5%
New buys: 2
Full exits: 0

Dalio new
Greenblatt new
Cooperman increased +400%

How this is calculated

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

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

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.