Entain ENT.L
Entain is a global operator of sports betting and online and retail gambling (brands such as Ladbrokes and Coral), generating revenue from commissions and margins on customer bets. Entain, with a forward P/E of 6.73, looks cheap, but Brazil's online betting ban has put 2026 EBITDA at the low end of guidance, and its net debt of 4.13x EBITDA and negative free cash flow conversion (-28.58%) reflect a business under pressure. Revenue growth of 7.40% may not be sustainable without Brazil, and the dividend, with a payout of 134.92%, is at risk.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Entain is a global operator of sports betting and online and retail gambling (brands such as Ladbrokes and Coral), generating revenue from commissions and margins on customer bets. Entain, with a forward P/E of 6.73, looks cheap, but Brazil's online betting ban has put 2026 EBITDA at the low end of guidance, and its net debt of 4.13x EBITDA and negative free cash flow conversion (-28.58%) reflect a business under pressure. Revenue growth of 7.40% may not be sustainable without Brazil, and the dividend, with a payout of 134.92%, is at risk.
Score by category
| Category | Score |
|---|---|
| Financial health | 4.0 |
| Quality / Moat | 4.3 |
| Valuation | 5.0 |
| Growth | 5.7 |
| Dividend | 0.2 |
| Momentum | 1.0 |
| Risk & Context | 6.2 |
OVERALL SCORE: 4.3/10
Context and risks
Material regulatory risk: Brazil's online betting ban, a high-growth market, has already forced 2026 EBITDA to the low end of guidance. Additionally, the sports betting sector is under increasing regulatory scrutiny in several markets, adding uncertainty to future growth prospects.
News considered in the analysis
- Entain Maintains Earnings Guidance Despite Brazil’s Online Betting Ban — La prohibición del juego online en Brasil es un hecho material que afecta a un mercado de alto crecimiento para Entain; aunque mantiene la guía, el impacto en EBITDA 2026 se sitúa en el extremo bajo.
- Entain shares down 3% as Brazil betting ban puts 2026 EBITDA at low end — La caída de la acción refleja la rebaja de expectativas por el veto brasileño, que presiona el EBITDA del año y ya está parcialmente descontado en el precio.
- Entain reveals impact from Brazil online gambling ban — La compañía cuantifica el impacto del veto, un golpe directo a su crecimiento en un mercado clave; la noticia es reciente y el mercado aún está asimilando el alcance.
- 3 Stocks to Watch as Manchester City Fallout Tests Football Betting and Media Shares — El caso Manchester City añade incertidumbre regulatoria y reputacional al sector de apuestas deportivas, pero es un riesgo indirecto y aún no materializado.
- FTSE 100 today: Stocks drop as Hormuz tanker hit, Aramco cuts Europe supply — Noticia de mercado general sin impacto directo en el negocio de Entain; el crudo no es un factor relevante para un operador de apuestas.
Verdict: Hold or reduce: the hit from the Brazil ban and balance sheet weakness are not fully priced in; wait for the company to show it can offset the loss of Brazil before buying.
Main risk: The main risk is Brazil's online betting ban, which removes a high-growth market and pressures 2026 EBITDA, compounded by net debt of 4.13x EBITDA and negative free cash flow conversion.
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