CHURCHILL DOWNS INC (CHDN) Stock Fundamental Analysis
USA - NASDAQ:CHDN - US1714841087 - Common Stock
96.39 USD
+0.29 (+0.3%)
96.39 USD
0 (0%)
Taking everything into account, CHDN scores 5 out of 10 in our fundamental rating. CHDN was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. While CHDN belongs to the best of the industry regarding profitability, there are concerns on its financial health. CHDN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CHDN had positive earnings in the past year.
CHDN had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 5.79%, CHDN is doing good in the industry, outperforming 72.18% of the companies in the same industry.
The Return On Equity of CHDN (40.99%) is better than 90.23% of its industry peers.
CHDN's Return On Invested Capital of 7.97% is fine compared to the rest of the industry. CHDN outperforms 65.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CHDN is significantly below the industry average of 15.68%.
The last Return On Invested Capital (7.97%) for CHDN is above the 3 year average (6.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.79% | ||
| ROE | 40.99% | ||
| ROIC | 7.97% |
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
The Profit Margin of CHDN (15.09%) is better than 87.97% of its industry peers.
CHDN's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 24.95%, CHDN belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
In the last couple of years the Operating Margin of CHDN has grown nicely.
The Gross Margin of CHDN (34.08%) is worse than 72.18% of its industry peers.
CHDN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.95% | ||
| PM (TTM) | 15.09% | ||
| GM | 34.08% |
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.
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
CHDN has an Altman-Z score of 1.49. This is a bad value and indicates that CHDN is not financially healthy and even has some risk of bankruptcy.
CHDN's Altman-Z score of 1.49 is in line compared to the rest of the industry. CHDN outperforms 43.61% of its industry peers.
The Debt to FCF ratio of CHDN is 13.66, which is on the high side as it means it would take CHDN, 13.66 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 13.66, CHDN perfoms like the industry average, outperforming 50.38% of the companies in the same industry.
CHDN has a Debt/Equity ratio of 4.74. This is a high value indicating a heavy dependency on external financing.
CHDN's Debt to Equity ratio of 4.74 is on the low side compared to the rest of the industry. CHDN is outperformed by 60.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.74 | ||
| Debt/FCF | 13.66 | ||
| Altman-Z | 1.49 |
ROIC/WACC0.93
WACC8.61%
2.3 Liquidity
A Current Ratio of 0.60 indicates that CHDN may have some problems paying its short term obligations.
CHDN's Current ratio of 0.60 is on the low side compared to the rest of the industry. CHDN is outperformed by 68.42% of its industry peers.
CHDN has a Quick Ratio of 0.60. This is a bad value and indicates that CHDN is not financially healthy enough and could expect problems in meeting its short term obligations.
CHDN's Quick ratio of 0.58 is on the low side compared to the rest of the industry. CHDN is outperformed by 65.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.39% over the past year.
CHDN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.77% yearly.
CHDN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.20%.
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)5.39%
EPS 3Y-3.17%
EPS 5Y6.77%
EPS Q2Q%7.27%
Revenue 1Y (TTM)8.2%
Revenue growth 3Y19.63%
Revenue growth 5Y15.51%
Sales Q2Q%4.91%
3.2 Future
The Earnings Per Share is expected to grow by 10.71% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.61% on average over the next years.
EPS Next Y6.83%
EPS Next 2Y10.06%
EPS Next 3Y10.71%
EPS Next 5YN/A
Revenue Next Year6.39%
Revenue Next 2Y5.37%
Revenue Next 3Y4.61%
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
A Price/Earnings ratio of 15.91 indicates a correct valuation of CHDN.
Based on the Price/Earnings ratio, CHDN is valued a bit cheaper than 78.20% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. CHDN is valued slightly cheaper when compared to this.
CHDN is valuated correctly with a Price/Forward Earnings ratio of 13.46.
Based on the Price/Forward Earnings ratio, CHDN is valued a bit cheaper than the industry average as 76.69% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, CHDN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.91 | ||
| Fwd PE | 13.46 |
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.
78.20% of the companies in the same industry are more expensive than CHDN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.45 | ||
| EV/EBITDA | 12.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CHDN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.33
PEG (5Y)2.35
EPS Next 2Y10.06%
EPS Next 3Y10.71%
5. Dividend
5.1 Amount
With a yearly dividend of 0.41%, CHDN is not a good candidate for dividend investing.
CHDN's Dividend Yield is a higher than the industry average which is at 3.93.
Compared to an average S&P500 Dividend Yield of 2.38, CHDN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.32%
Div Incr Years14
Div Non Decr Years23
5.3 Sustainability
CHDN pays out 7.17% of its income as dividend. This is a sustainable payout ratio.
CHDN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP7.17%
EPS Next 2Y10.06%
EPS Next 3Y10.71%
96.39
+0.29 (+0.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners83.31%
Inst Owner Change-3.02%
Ins Owners5.63%
Ins Owner Change0.39%
Market Cap6.76B
Analysts84.44
Price Target140.4 (45.66%)
Short Float %3.25%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
Yearly Dividend0.39
Dividend Growth(5Y)7.32%
DP7.17%
Div Incr Years14
Div Non Decr Years23
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.72%
Min EPS beat(2)-0.83%
Max EPS beat(2)4.28%
EPS beat(4)1
Avg EPS beat(4)-2.98%
Min EPS beat(4)-10.31%
Max EPS beat(4)4.28%
EPS beat(8)4
Avg EPS beat(8)5%
EPS beat(12)6
Avg EPS beat(12)3.32%
EPS beat(16)9
Avg EPS beat(16)3.6%
Revenue beat(2)0
Avg Revenue beat(2)-1.3%
Min Revenue beat(2)-1.66%
Max Revenue beat(2)-0.94%
Revenue beat(4)0
Avg Revenue beat(4)-1.46%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)-0.94%
Revenue beat(8)2
Avg Revenue beat(8)-0.46%
Revenue beat(12)3
Avg Revenue beat(12)-0.97%
Revenue beat(16)4
Avg Revenue beat(16)-1.05%
PT rev (1m)-0.13%
PT rev (3m)1.18%
EPS NQ rev (1m)-0.57%
EPS NQ rev (3m)-13.69%
EPS NY rev (1m)2.28%
EPS NY rev (3m)1.28%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-2.13%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.91 | ||
| Fwd PE | 13.46 | ||
| P/S | 2.39 | ||
| P/FCF | 18.45 | ||
| P/OCF | 8.6 | ||
| P/B | 6.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.49 |
EPS(TTM)6.06
EY6.29%
EPS(NY)7.16
Fwd EY7.43%
FCF(TTM)5.22
FCFY5.42%
OCF(TTM)11.21
OCFY11.63%
SpS40.36
BVpS14.85
TBVpS-32.3
PEG (NY)2.33
PEG (5Y)2.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.79% | ||
| ROE | 40.99% | ||
| ROCE | 10.69% | ||
| ROIC | 7.97% | ||
| ROICexc | 8.2% | ||
| ROICexgc | 16.9% | ||
| OM | 24.95% | ||
| PM (TTM) | 15.09% | ||
| GM | 34.08% | ||
| FCFM | 12.94% |
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-Score7
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.74 | ||
| Debt/FCF | 13.66 | ||
| Debt/EBITDA | 5.34 | ||
| Cap/Depr | 190.82% | ||
| Cap/Sales | 14.84% | ||
| Interest Coverage | 2.38 | ||
| Cash Conversion | 84.89% | ||
| Profit Quality | 85.8% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 1.49 |
F-Score7
WACC8.61%
ROIC/WACC0.93
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)5.39%
EPS 3Y-3.17%
EPS 5Y6.77%
EPS Q2Q%7.27%
EPS Next Y6.83%
EPS Next 2Y10.06%
EPS Next 3Y10.71%
EPS Next 5YN/A
Revenue 1Y (TTM)8.2%
Revenue growth 3Y19.63%
Revenue growth 5Y15.51%
Sales Q2Q%4.91%
Revenue Next Year6.39%
Revenue Next 2Y5.37%
Revenue Next 3Y4.61%
Revenue Next 5YN/A
EBIT growth 1Y3.2%
EBIT growth 3Y31.58%
EBIT growth 5Y25.96%
EBIT Next Year65.45%
EBIT Next 3Y22.06%
EBIT Next 5YN/A
FCF growth 1Y951.86%
FCF growth 3Y-2.53%
FCF growth 5Y12.31%
OCF growth 1Y40.6%
OCF growth 3Y32.06%
OCF growth 5Y21.69%