Entain Plc (ENT.L) stock analysis

In our weekly check, Entain Plc is graded D (A to F). Of 23 checks on debt, profit, cash flow and trend: 10 pass, warnings: 6, red flags: 7.

About Entain Plc

Entain Plc is a Consumer Cyclical company (Gambling, Resorts & Casinos) based in the United Kingdom, listed on LSE as ENT.L.

What our checks show for ENT.L

Red flags

• Net debt is 3x a year of EBITDA (debt/equity 4.98). That limits room in a downturn and raises refinancing risk.
• The net margin fell by 19.2 points over 5 years, to -12.7%: the company keeps less of each sale as profit.
• The gross margin fell by 4.8 points, to 49.2%: costs are rising faster than prices.
• Weak EPS growth
• The company is losing money: the net margin is -12.7%.
• Entain Plc pays a dividend while losing money: it is funded from reserves or debt.
• The stock has fallen as much as 83% from a peak. Would you have held through that?

Warning signs

• Operating profit covers interest only 2.7 times: a weak year could make the payments hard.
• Analysts expect earnings per share to shrink about 11.6% a year.
• Analysts expect only about 0.3% a year of growth in revenue.
• The price swings a lot: 37.5% annual volatility. Expect large ups and downs.
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 8.1%.

Strengths

• Operating cash flow is 0.99x net profit: the profit arrives as real cash.
• Analysts expect the net margin to improve by 21.3 points from today's -12.7%.
• Free cash flow is 10.5% of revenue: cash for dividends, buybacks or growth.
• Actively traded: about 4 million shares a day.
• Pay in shares is only 2.2% of free cash flow.

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Questions

What grade does Entain Plc (ENT.L) have?

In our weekly check, Entain Plc is graded D (A to F). Of 23 checks on debt, profit, cash flow and trend: 10 pass, warnings: 6, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of ENT.L stock?

This week's biggest flags for Entain Plc: High debt, Margins falling, Gross margin falling. In total 13 of 23 checks show a warning or a red flag.

What does Entain Plc do?

Entain Plc is a Consumer Cyclical company (Gambling, Resorts & Casinos) based in the United Kingdom, listed on LSE as ENT.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-11-07

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