Why PENN is the Ultimate High-Stakes Gamble (For the Wrong Reasons)
Written by: Jerry from The Smartin Team
PENN $20.79 (-0.18%) · Smartin Score: 0/100 — NO · as of 2026-06-23
What is the deal with gambling companies? You go to a casino specifically to lose your money in exchange for a free cocktail and a flashing light, but PENN has decided to cut out the middleman. They’re losing the money themselves. They’ve managed to achieve a Smartin Score of 0. Zero! That’s not a financial rating; that’s a medical emergency.
The Mathematics of a Controlled Demolition
If you look at the numbers—and I use the term “numbers” loosely because they look more like a cry for help—PENN is currently sitting on an EPS of -$7.18. How do you lose seven dollars for every share of the company? You have to actively try to do that. It’s like running a lemonade stand where you pay the customers to drink the juice and then throw the pitcher at a passing car.
A Growth Rate in Reverse
The algorithm points out that earnings growth is down 99.0% per year. Usually, when something goes down 99%, it’s a skydiver whose parachute has become a backpack. This isn’t a “rough patch.” This is a company that turned unprofitable and decided to make it a lifestyle choice. They’ve officially earned the “❌ Turned Unprofitable 💀” flag, which is the algorithm’s way of saying, “Maybe just keep your twenty bucks in your pocket.”
A Balance Sheet That Needs a Hug
Then we get to the debt. When people ask what is a good debt to equity ratio, the answer is generally “not one that looks like a radio station frequency.” PENN is sporting a D/E of 4.52. That means for every dollar they actually own, they owe four and a half dollars to someone else.
If I walked into a bank and asked for a loan with a 4.52 debt-to-equity ratio, they wouldn’t give me a mortgage; they’d give me a brochure for a support group. It’s a level of leverage that makes a seesaw look like a stable foundation. The algorithm is screaming “❌ HIGH Debt” for a reason. This isn’t just a company with a few bills; this is a company that is basically a collection of IOUs held together by hope and sportsbook apps.
The Verdict: Don’t Bet the House
The Peter Lynch philosophy is all about buying what you know, but you also have to know when the balance sheet is on fire. PENN is currently losing money faster than a tourist at a rigged blackjack table. With no PEG ratio to even compute—because you can’t calculate growth when the earnings are a black hole—this is a “NO” in every sense of the word.
If you’re thinking about putting money here, you might be better off just throwing it into a slot machine. At least there, you get a free drink while you lose.
Before you put your hard-earned cash into a company that owes the bank four times what it’s worth, run the ticker through this tool to see if the house is actually falling down. Check the math before you place the bet