Investment Thesis
Bally's Corp is in severe financial distress with significant negative profitability (-17.6% net margin), substantial net losses of $296.8M, and critically weak liquidity (0.68x current ratio). The company is burning cash with negative operating and free cash flows while carrying an unsustainable debt burden of $3.7B against only $521.5M in equity, resulting in a 7.17x debt-to-equity ratio that presents acute solvency risk.
Strengths
- Revenue base of $1.7B provides ongoing operational cash inflows
- Maintains $160.7M in cash and equivalents providing near-term liquidity cushion
- Hotels & Motels sector has potential for operational improvements and margin expansion
Risks
- Massive net loss of $296.8M demonstrates inability to generate profitability at current operational levels
- Critically weak liquidity position (0.68x current ratio) with current liabilities exceeding current assets, creating immediate solvency concerns
- Extremely high leverage with 7.17x debt-to-equity ratio and negative interest coverage (-0.0x), indicating difficulty servicing debt obligations
- Negative free cash flow of -$160M annually despite capital expenditures, unsustainable without refinancing or asset sales
- Deteriorating operational efficiency with negative operating margin and cash burn suggesting structural business problems
Key Metrics to Watch
- Operating cash flow trend and path to positive FCF generation
- Debt refinancing status and covenant compliance
- Net margin improvement toward breakeven profitability
- Current ratio recovery above 1.0x to stabilize liquidity position
Financial Metrics
Revenue
1.7B
Net Income
-296.8M
EPS (Diluted)
$-4.90
Free Cash Flow
-160.0M
Total Assets
7.6B
Cash
160.7M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-0.2%
Net Margin
-17.6%
ROE
-56.9%
ROA
-3.9%
FCF Margin
-9.5%
Balance Sheet & Liquidity
Current Ratio
0.68x
Quick Ratio
0.66x
Debt/Equity
7.17x
Debt/Assets
93.1%
Interest Coverage
-0.02x
Long-term Debt
3.7B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-03-20T15:40:13.061782 |
Data as of: 2025-09-30 |
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