101.91 USD
-0.63 (-0.61%)
We assign a fundamental rating of 5 out of 10 to CHDN. CHDN was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. CHDN has an excellent profitability rating, but there are concerns on its financial health. CHDN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- CHDN had positive earnings in the past year.
- In the past year CHDN had a positive cash flow from operations.
- Of the past 5 years CHDN 4 years were profitable.
- Each year in the past 5 years CHDN had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of CHDN (5.37%) is better than 70.45% of its industry peers.
- CHDN has a Return On Equity of 38.69%. This is amongst the best in the industry. CHDN outperforms 87.12% of its industry peers.
- CHDN has a Return On Invested Capital of 8.04%. This is in the better half of the industry: CHDN outperforms 65.91% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CHDN is below the industry average of 10.36%.
- The last Return On Invested Capital (8.04%) for CHDN is above the 3 year average (6.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 38.69% | ||
| ROIC | 8.04% |
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
- CHDN's Profit Margin of 13.88% is amongst the best of the industry. CHDN outperforms 83.33% of its industry peers.
- CHDN's Profit Margin has improved in the last couple of years.
- CHDN's Operating Margin of 25.14% is amongst the best of the industry. CHDN outperforms 90.15% of its industry peers.
- CHDN's Operating Margin has improved in the last couple of years.
- The Gross Margin of CHDN (34.10%) is worse than 70.45% 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 | 25.14% | ||
| PM (TTM) | 13.88% | ||
| GM | 34.1% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, CHDN has less shares outstanding
- The number of shares outstanding for CHDN has been reduced compared to 5 years ago.
- CHDN has a better debt/assets ratio than last year.
2.2 Solvency
- CHDN has an Altman-Z score of 1.52. 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 1.52 is in line compared to the rest of the industry. CHDN outperforms 48.48% of its industry peers.
- The Debt to FCF ratio of CHDN is 19.26, which is on the high side as it means it would take CHDN, 19.26 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of CHDN (19.26) is comparable to the rest of the industry.
- CHDN has a Debt/Equity ratio of 4.87. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 4.87, CHDN is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.87 | ||
| Debt/FCF | 19.26 | ||
| Altman-Z | 1.52 |
ROIC/WACC1.03
WACC7.77%
2.3 Liquidity
- CHDN has a Current Ratio of 0.57. 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 has a worse Current ratio (0.57) than 71.21% of its industry peers.
- CHDN has a Quick Ratio of 0.57. 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 0.56 is on the low side compared to the rest of the industry. CHDN is outperformed by 68.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 5.64% over the past year.
- CHDN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.64% yearly.
- Looking at the last year, CHDN shows a small growth in Revenue. The Revenue has grown by 7.97% in the last year.
- The Revenue has been growing by 15.51% on average over the past years. This is quite good.
EPS 1Y (TTM)5.64%
EPS 3Y22%
EPS 5Y22.64%
EPS Q2Q%12.37%
Revenue 1Y (TTM)7.97%
Revenue growth 3Y19.63%
Revenue growth 5Y15.51%
Sales Q2Q%8.67%
3.2 Future
- The Earnings Per Share is expected to grow by 12.19% on average over the next years. This is quite good.
- Based on estimates for the next years, CHDN will show a small growth in Revenue. The Revenue will grow by 3.77% on average per year.
EPS Next Y8.57%
EPS Next 2Y9.65%
EPS Next 3Y8.57%
EPS Next 5Y12.19%
Revenue Next Year6.79%
Revenue Next 2Y5.27%
Revenue Next 3Y4.61%
Revenue Next 5Y3.77%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- 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 16.49, which indicates a correct valuation of CHDN.
- Compared to the rest of the industry, the Price/Earnings ratio of CHDN indicates a somewhat cheap valuation: CHDN is cheaper than 75.76% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of CHDN to the average of the S&P500 Index (27.21), we can say CHDN is valued slightly cheaper.
- A Price/Forward Earnings ratio of 14.34 indicates a correct valuation of CHDN.
- CHDN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CHDN is cheaper than 78.03% of the companies in the same industry.
- CHDN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.49 | ||
| Fwd PE | 14.34 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as CHDN.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CHDN indicates a somewhat cheap valuation: CHDN is cheaper than 65.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.81 | ||
| EV/EBITDA | 12.68 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CHDN does not grow enough to justify the current Price/Earnings ratio.
- CHDN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.92
PEG (5Y)0.73
EPS Next 2Y9.65%
EPS Next 3Y8.57%
5. Dividend
5.1 Amount
- CHDN has a yearly dividend return of 0.43%, which is pretty low.
- CHDN's Dividend Yield is comparable with the industry average which is at 1.21.
- Compared to an average S&P500 Dividend Yield of 1.81, CHDN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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 7.67% 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.
DP7.67%
EPS Next 2Y9.65%
EPS Next 3Y8.57%
CHURCHILL DOWNS INC / CHDN FAQ
Can you provide the ChartMill fundamental rating for CHURCHILL DOWNS INC?
ChartMill assigns a fundamental rating of 5 / 10 to CHDN.
Can you provide the valuation status for CHURCHILL DOWNS INC?
ChartMill assigns a valuation rating of 5 / 10 to CHURCHILL DOWNS INC (CHDN). This can be considered as Fairly Valued.
Can you provide the profitability details for CHURCHILL DOWNS INC?
CHURCHILL DOWNS INC (CHDN) has a profitability rating of 7 / 10.
What are the PE and PB ratios of CHURCHILL DOWNS INC (CHDN) stock?
The Price/Earnings (PE) ratio for CHURCHILL DOWNS INC (CHDN) is 16.49 and the Price/Book (PB) ratio is 6.87.
What is the earnings growth outlook for CHURCHILL DOWNS INC?
The Earnings per Share (EPS) of CHURCHILL DOWNS INC (CHDN) is expected to grow by 8.57% in the next year.