Churchill Downs Incorporated
Churchill Downs Incorporated Fundamental Analysis
Churchill Downs Incorporated (CHDN) shows strong financial fundamentals with a PE ratio of 16.30, profit margin of 13.98%, and ROE of 38.11%. The company generates $2.9B in annual revenue with strong year-over-year growth of 11.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CHDN's fundamental strength across five key dimensions:
Efficiency Score
WeakCHDN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCHDN trades at attractive valuation levels.
Growth Score
ModerateCHDN shows steady but slowing expansion.
Financial Health Score
WeakCHDN carries high financial risk with limited liquidity.
Profitability Score
ModerateCHDN maintains healthy but balanced margins.
Key Financial Metrics
Is CHDN Expensive or Cheap?
P/E Ratio
CHDN trades at 16.30 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CHDN's PEG of -2.90 indicates potential undervaluation.
Price to Book
The market values Churchill Downs Incorporated at 6.35 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 1.59 times EBITDA. This is generally considered low.
How Well Does CHDN Make Money?
Net Profit Margin
For every $100 in sales, Churchill Downs Incorporated keeps $13.98 as profit after all expenses.
Operating Margin
Core operations generate 23.82 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $38.11 in profit for every $100 of shareholder equity.
ROA
Churchill Downs Incorporated generates $5.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Churchill Downs Incorporated generates strong operating cash flow of $797.86M, reflecting robust business health.
Free Cash Flow
Churchill Downs Incorporated generates strong free cash flow of $585.50M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.40 in free cash annually.
FCF Yield
CHDN converts 9.03% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.90
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.93
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.38
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How CHDN Stacks Against Its Sector Peers
| Metric | CHDN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.30 | 24.85 | Better (Cheaper) |
| ROE | 38.11% | 1165.00% | Weak |
| Net Margin | 13.98% | 749.00% | Weak |
| Debt/Equity | 4.93 | 0.76 | Weak (High Leverage) |
| Current Ratio | 0.57 | 9.23 | Weak Liquidity |
| ROA | 5.41% | 1271.00% | Weak |
CHDN outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Churchill Downs Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
122.86%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
236.41%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
189.17%
Industry Style: Cyclical, Growth, Discretionary
High Growth