Bally's Corp

Acquisitive global gaming operator running operating and net losses with heavy leverage and a control-weakness flag.

Strengths

• Sizable cash ($798M, 68th pct) and ~17.9 quarters of runway
• Diversified casino/iGaming/lottery footprint with new license wins (Bronx, Chicago)

Risks

• Negative operating (-11.4%) and net (-26.7%) margins, negative ROE/ROA, FCF deeply negative (7th pct)
• Debt/equity 4.5x (81st pct) plus a disclosed material weakness in internal controls

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• Weak liquidityCurrent ratio 0.80 (<1)
• Material weakness• Our management identified material weaknesses in our internal control over financial reporting which could, if not remediated, result in material misstatements in our consolidated financial statem
• High leverageHigh leverage (debt/equity 4.49)
• Net lossNet loss (net margin -26.7%)
• Cash burnNegative free cash flow (-178.9M)
• Strong balance sheetStrong balance sheet — $798M cash & investments, ~18 quarters of runway