CHURCHILL DOWNS INC (CHDN) Stock Fundamental Analysis
NASDAQ:CHDN - Nasdaq - US1714841087 - Common Stock - Currency: USD
Taking everything into account, CHDN scores 5 out of 10 in our fundamental rating. CHDN was compared to 136 industry peers in the Hotels, Restaurants & Leisure industry. CHDN scores excellent on profitability, but there are concerns on its financial health. CHDN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CHDN was profitable.
In the past year CHDN had a positive cash flow from operations.
CHDN had positive earnings in 4 of the past 5 years.
Each year in the past 5 years CHDN had a positive operating cash flow.
1.2 Ratios
CHDN has a Return On Assets of 5.72%. This is in the better half of the industry: CHDN outperforms 73.53% of its industry peers.
CHDN has a better Return On Equity (39.20%) than 88.24% of its industry peers.
With a decent Return On Invested Capital value of 8.09%, CHDN is doing good in the industry, outperforming 63.97% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CHDN is significantly below the industry average of 15.76%.
The 3 year average ROIC (6.83%) for CHDN is below the current ROIC(8.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.72% | ||
| ROE | 39.2% | ||
| ROIC | 8.09% |
ROA(3y)6.3%
ROA(5y)4.84%
ROE(3y)55.16%
ROE(5y)44.87%
ROIC(3y)6.83%
ROIC(5y)6.39%
1.3 Margins
Looking at the Profit Margin, with a value of 15.08%, CHDN belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
CHDN's Profit Margin has improved in the last couple of years.
CHDN's Operating Margin of 25.32% is amongst the best of the industry. CHDN outperforms 88.97% of its industry peers.
CHDN's Operating Margin has improved in the last couple of years.
CHDN has a worse Gross Margin (34.45%) than 71.32% of its industry peers.
In the last couple of years the Gross Margin of CHDN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.32% | ||
| PM (TTM) | 15.08% | ||
| GM | 34.45% |
OM growth 3Y10%
OM growth 5Y9.05%
PM growth 3Y-0.21%
PM growth 5Y8.43%
GM growth 3Y3.21%
GM growth 5Y1.43%
2. Health
2.1 Basic Checks
CHDN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CHDN has less shares outstanding than it did 1 year ago.
CHDN has less shares outstanding than it did 5 years ago.
CHDN has a better debt/assets ratio than last year.
2.2 Solvency
CHDN has an Altman-Z score of 1.47. This is a bad value and indicates that CHDN is not financially healthy and even has some risk of bankruptcy.
CHDN has a Altman-Z score of 1.47. This is comparable to the rest of the industry: CHDN outperforms 51.47% of its industry peers.
The Debt to FCF ratio of CHDN is 16.68, which is on the high side as it means it would take CHDN, 16.68 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 16.68, CHDN is in line with its industry, outperforming 46.32% of the companies in the same industry.
CHDN has a Debt/Equity ratio of 4.49. This is a high value indicating a heavy dependency on external financing.
CHDN has a Debt to Equity ratio (4.49) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.49 | ||
| Debt/FCF | 16.68 | ||
| Altman-Z | 1.47 |
ROIC/WACC0.97
WACC8.35%
2.3 Liquidity
A Current Ratio of 0.53 indicates that CHDN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.53, CHDN is doing worse than 70.59% of the companies in the same industry.
CHDN has a Quick Ratio of 0.53. This is a bad value and indicates that CHDN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.52, CHDN is doing worse than 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.71% over the past year.
Measured over the past 5 years, CHDN shows a small growth in Earnings Per Share. The EPS has been growing by 6.77% on average per year.
Looking at the last year, CHDN shows a quite strong growth in Revenue. The Revenue has grown by 11.75% in the last year.
Measured over the past years, CHDN shows a quite strong growth in Revenue. The Revenue has been growing by 15.51% on average per year.
EPS 1Y (TTM)14.71%
EPS 3Y-3.17%
EPS 5Y6.77%
EPS Q2Q%-5.31%
Revenue 1Y (TTM)11.75%
Revenue growth 3Y19.63%
Revenue growth 5Y15.51%
Sales Q2Q%8.75%
3.2 Future
CHDN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.77% yearly.
CHDN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.73% yearly.
EPS Next Y9.83%
EPS Next 2Y12.55%
EPS Next 3Y11.77%
EPS Next 5YN/A
Revenue Next Year7.29%
Revenue Next 2Y6.35%
Revenue Next 3Y5.73%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.34, CHDN is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of CHDN indicates a somewhat cheap valuation: CHDN is cheaper than 75.74% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.88, CHDN is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 11.99, the valuation of CHDN can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CHDN indicates a rather cheap valuation: CHDN is cheaper than 82.35% of the companies listed in the same industry.
CHDN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.34 | ||
| Fwd PE | 11.99 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CHDN is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, CHDN is valued a bit cheaper than the industry average as 68.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.56 | ||
| EV/EBITDA | 12.38 |
4.3 Compensation for Growth
CHDN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of CHDN may justify a higher PE ratio.
PEG (NY)1.56
PEG (5Y)2.27
EPS Next 2Y12.55%
EPS Next 3Y11.77%
5. Dividend
5.1 Amount
CHDN has a yearly dividend return of 0.45%, which is pretty low.
The stock price of CHDN dropped by -26.84% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
CHDN's Dividend Yield is a higher than the industry average which is at 3.85.
Compared to an average S&P500 Dividend Yield of 2.45, CHDN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
5.2 History
On average, the dividend of CHDN grows each year by 7.32%, which is quite nice.
CHDN has paid a dividend for at least 10 years, which is a reliable track record.
CHDN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.32%
Div Incr Years14
Div Non Decr Years23
5.3 Sustainability
7.31% of the earnings are spent on dividend by CHDN. This is a low number and sustainable payout ratio.
CHDN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP7.31%
EPS Next 2Y12.55%
EPS Next 3Y11.77%
NASDAQ:CHDN (5/1/2025, 12:22:02 PM)
89.765
-0.64 (-0.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners79.7%
Inst Owner Change1.28%
Ins Owners5.41%
Ins Owner Change2.19%
Market Cap6.60B
Analysts84.71
Price Target149.89 (66.98%)
Short Float %2.62%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Yearly Dividend0.39
Dividend Growth(5Y)7.32%
DP7.31%
Div Incr Years14
Div Non Decr Years23
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.71%
Min EPS beat(2)-5.06%
Max EPS beat(2)3.64%
EPS beat(4)2
Avg EPS beat(4)-1.78%
Min EPS beat(4)-10.31%
Max EPS beat(4)4.63%
EPS beat(8)4
Avg EPS beat(8)3.08%
EPS beat(12)7
Avg EPS beat(12)3.39%
EPS beat(16)10
Avg EPS beat(16)4.36%
Revenue beat(2)0
Avg Revenue beat(2)-1.75%
Min Revenue beat(2)-2.18%
Max Revenue beat(2)-1.31%
Revenue beat(4)1
Avg Revenue beat(4)-0.93%
Min Revenue beat(4)-2.18%
Max Revenue beat(4)1.7%
Revenue beat(8)2
Avg Revenue beat(8)-1.03%
Revenue beat(12)3
Avg Revenue beat(12)-1.1%
Revenue beat(16)5
Avg Revenue beat(16)-0.74%
PT rev (1m)-8.01%
PT rev (3m)-9.85%
EPS NQ rev (1m)-4.91%
EPS NQ rev (3m)-18.37%
EPS NY rev (1m)-2.64%
EPS NY rev (3m)-10.56%
Revenue NQ rev (1m)-0.73%
Revenue NQ rev (3m)-2.68%
Revenue NY rev (1m)-0.8%
Revenue NY rev (3m)-2.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.34 | ||
| Fwd PE | 11.99 | ||
| P/S | 2.37 | ||
| P/FCF | 22.56 | ||
| P/OCF | 8.63 | ||
| P/B | 6.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.38 |
EPS(TTM)5.85
EY6.52%
EPS(NY)7.49
Fwd EY8.34%
FCF(TTM)3.98
FCFY4.43%
OCF(TTM)10.4
OCFY11.59%
SpS37.91
BVpS14.58
TBVpS-30.41
PEG (NY)1.56
PEG (5Y)2.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.72% | ||
| ROE | 39.2% | ||
| ROCE | 10.85% | ||
| ROIC | 8.09% | ||
| ROICexc | 8.31% | ||
| ROICexgc | 17.42% | ||
| OM | 25.32% | ||
| PM (TTM) | 15.08% | ||
| GM | 34.45% | ||
| FCFM | 10.5% |
ROA(3y)6.3%
ROA(5y)4.84%
ROE(3y)55.16%
ROE(5y)44.87%
ROIC(3y)6.83%
ROIC(5y)6.39%
ROICexc(3y)7%
ROICexc(5y)6.74%
ROICexgc(3y)15.35%
ROICexgc(5y)12.91%
ROCE(3y)9.16%
ROCE(5y)8.57%
ROICexcg growth 3Y5.55%
ROICexcg growth 5Y7.97%
ROICexc growth 3Y-6.37%
ROICexc growth 5Y1.4%
OM growth 3Y10%
OM growth 5Y9.05%
PM growth 3Y-0.21%
PM growth 5Y8.43%
GM growth 3Y3.21%
GM growth 5Y1.43%
F-Score9
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.49 | ||
| Debt/FCF | 16.68 | ||
| Debt/EBITDA | 5.25 | ||
| Cap/Depr | 223.32% | ||
| Cap/Sales | 16.95% | ||
| Interest Coverage | 2.35 | ||
| Cash Conversion | 83.39% | ||
| Profit Quality | 69.6% | ||
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 1.47 |
F-Score9
WACC8.35%
ROIC/WACC0.97
Cap/Depr(3y)358.93%
Cap/Depr(5y)283.57%
Cap/Sales(3y)24.24%
Cap/Sales(5y)20.14%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.71%
EPS 3Y-3.17%
EPS 5Y6.77%
EPS Q2Q%-5.31%
EPS Next Y9.83%
EPS Next 2Y12.55%
EPS Next 3Y11.77%
EPS Next 5YN/A
Revenue 1Y (TTM)11.75%
Revenue growth 3Y19.63%
Revenue growth 5Y15.51%
Sales Q2Q%8.75%
Revenue Next Year7.29%
Revenue Next 2Y6.35%
Revenue Next 3Y5.73%
Revenue Next 5YN/A
EBIT growth 1Y16.77%
EBIT growth 3Y31.58%
EBIT growth 5Y25.96%
EBIT Next Year70.23%
EBIT Next 3Y24.98%
EBIT Next 5YN/A
FCF growth 1Y258.77%
FCF growth 3Y-2.53%
FCF growth 5Y12.31%
OCF growth 1Y23.81%
OCF growth 3Y32.06%
OCF growth 5Y21.69%