Investors are usually forced to pay up for management teams that generate these types of returns. With the company trading at around 6x 2009 EV/EBITDA, they won’t have to.
- PENN has generated a decent to spectacular ROI on every material acquisition/project
- Despite the recent industry downturn, LTM ROI is equal to or higher than the 1st 12 month (following acquisition) ROI in every instance. I guess PENN can operate casinos too.
- PENN company EBITDA LTM ROIC of 17.5% exceeds industry by almost 5%