CHURCHILL DOWNS INC (CHDN)
US1714841087 - Common Stock
Overall CHDN gets a fundamental rating of 5 out of 10. We evaluated CHDN against 135 industry peers in the Hotels, Restaurants & Leisure industry. CHDN has an excellent profitability rating, but there are concerns on its financial health. CHDN is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year CHDN was profitable.
CHDN had a positive operating cash flow in the past year.
CHDN had positive earnings in 4 of the past 5 years.
CHDN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CHDN has a Return On Assets of 6.00%. This is in the better half of the industry: CHDN outperforms 71.64% of its industry peers.
With an excellent Return On Equity value of 46.70%, CHDN belongs to the best of the industry, outperforming 91.04% of the companies in the same industry.
With a Return On Invested Capital value of 7.02%, CHDN perfoms like the industry average, outperforming 57.46% of the companies in the same industry.
CHDN had an Average Return On Invested Capital over the past 3 years of 7.01%. This is below the industry average of 10.33%.
The 3 year average ROIC (7.01%) for CHDN is below the current ROIC(7.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6% | ||
| ROE | 46.7% | ||
| ROIC | 7.02% |
ROA(3y)7.14%
ROA(5y)4.75%
ROE(3y)69.19%
ROE(5y)42.46%
ROIC(3y)7.01%
ROIC(5y)6.16%
1.3 Margins
With an excellent Profit Margin value of 16.95%, CHDN belongs to the best of the industry, outperforming 91.79% of the companies in the same industry.
In the last couple of years the Profit Margin of CHDN has declined.
CHDN has a better Operating Margin (24.11%) than 90.30% of its industry peers.
In the last couple of years the Operating Margin of CHDN has grown nicely.
CHDN has a worse Gross Margin (32.96%) than 72.39% of its industry peers.
In the last couple of years the Gross Margin of CHDN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.11% | ||
| PM (TTM) | 16.95% | ||
| GM | 32.96% |
OM growth 3Y47.79%
OM growth 5Y4.08%
PM growth 3YN/A
PM growth 5Y-13.48%
GM growth 3Y7.66%
GM growth 5Y2.8%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CHDN is destroying value.
Compared to 1 year ago, CHDN has less shares outstanding
Compared to 5 years ago, CHDN has less shares outstanding
The debt/assets ratio for CHDN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that CHDN is in the distress zone and has some risk of bankruptcy.
CHDN's Altman-Z score of 1.70 is in line compared to the rest of the industry. CHDN outperforms 50.75% of its industry peers.
CHDN has a Debt/Equity ratio of 5.34. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 5.34, CHDN is doing worse than 63.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.7 |
ROIC/WACC0.83
WACC8.49%
2.3 Liquidity
A Current Ratio of 0.53 indicates that CHDN may have some problems paying its short term obligations.
CHDN has a worse Current ratio (0.53) than 74.63% of its industry peers.
A Quick Ratio of 0.53 indicates that CHDN may have some problems paying its short term obligations.
With a Quick ratio value of 0.53, CHDN is not doing good in the industry: 73.13% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.58% over the past year.
The Earnings Per Share has been growing slightly by 7.59% on average over the past years.
The Revenue has grown by 36.02% in the past year. This is a very strong growth!
The Revenue has been growing by 19.53% on average over the past years. This is quite good.
EPS 1Y (TTM)20.58%
EPS 3Y76.52%
EPS 5Y7.59%
EPS growth Q2Q17.81%
Revenue 1Y (TTM)36.02%
Revenue growth 3Y32.68%
Revenue growth 5Y19.53%
Revenue growth Q2Q16.89%
3.2 Future
Based on estimates for the next years, CHDN will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.65% on average per year.
CHDN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.57% yearly.
EPS Next Y18.5%
EPS Next 2Y24.37%
EPS Next 3Y19.65%
EPS Next 5YN/A
Revenue Next Year10.14%
Revenue Next 2Y11.59%
Revenue Next 3Y9.57%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.15, which means the current valuation is very expensive for CHDN.
CHDN's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 24.92, CHDN is valued at the same level.
CHDN is valuated rather expensively with a Price/Forward Earnings ratio of 22.07.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CHDN is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of CHDN to the average of the S&P500 Index (21.49), we can say CHDN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.15 | ||
| Fwd PE | 22.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHDN is valued a bit more expensive than 65.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.64 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CHDN has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CHDN's earnings are expected to grow with 19.65% in the coming years.
PEG (NY)1.41
PEG (5Y)3.44
EPS Next 2Y24.37%
EPS Next 3Y19.65%
5. Dividend
5.1 Amount
With a yearly dividend of 0.30%, CHDN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.58, CHDN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, CHDN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
5.2 History
The dividend of CHDN has a limited annual growth rate of 5.81%.
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)5.81%
Div Incr Years13
Div Non Decr Years19
5.3 Sustainability
CHDN pays out 6.49% of its income as dividend. This is a sustainable payout ratio.
The dividend of CHDN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP6.49%
EPS Next 2Y24.37%
EPS Next 3Y19.65%
CHURCHILL DOWNS INC
NASDAQ:CHDN (4/26/2024, 7:00:00 PM)
After market: 129.44 0 (0%)129.44
+0.21 (+0.16%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.54B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.15 | ||
| Fwd PE | 22.07 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.41
PEG (5Y)3.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6% | ||
| ROE | 46.7% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.11% | ||
| PM (TTM) | 16.95% | ||
| GM | 32.96% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)20.58%
EPS 3Y76.52%
EPS 5Y
EPS growth Q2Q
EPS Next Y18.5%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)36.02%
Revenue growth 3Y32.68%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y