Churchill Downs, Inc. (CHDN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

DraftKings, Inc.

Liberty Media Corp.

The Walt Disney Co.

Churchill Downs, Inc.

Live Nation Entertainment, Inc.

Cedar Fair LP

Cinemark Holdings, Inc.

PENN Entertainment, Inc.

Madison Square Garden Sports Corp.

United Parks & Resorts, Inc.

Six Flags Entertainment Corp.

Why is Churchill Downs, Inc. ?

Healthy long term growth as Net Sales has grown by an annual rate of 22.25% and Operating profit at 55.45%

Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at USD 805.4 MM
RAW MATERIAL COST(Y) Fallen by -1.33% (YoY)
DEBTORS TURNOVER RATIO(HY) Highest at 31.54 times

With ROCE of 12.33%, it has a fair valuation with a 1.85 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -24.15%, its profits have risen by 2.1% ; the PEG ratio of the company is 7.4

High Institutional Holdings at 90.21%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 6.98% over the previous quarter.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -24.15% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Churchill Downs, Inc. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Churchill Downs, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Churchill Downs, Inc.

-24.15%

-1.08

34.95%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

22.25%

EBIT Growth (5y)

55.45%

EBIT to Interest (avg)

2.44

Debt to EBITDA (avg)

5.95

Net Debt to Equity (avg)

4.56

Sales to Capital Employed (avg)

0.44

Tax Ratio

24.93%

Dividend Payout Ratio

7.20%

Pledged Shares

Institutional Holding

90.21%

ROCE (avg)

11.08%

ROE (avg)

59.12%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.81

EV to EBIT

14.97

EV to EBITDA

11.33

EV to Capital Employed

1.85

EV to Sales

3.76

PEG Ratio

7.42

Dividend Yield

ROCE (Latest)

12.33%

ROE (Latest)

41.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 805.4 MM

RAW MATERIAL COST(Y)

Fallen by -1.33% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 31.54 times

-3What is not working for the Company

ROCE(HY)

Lowest at 37.56%

EPS(Q)

Lowest at USD 0.53

Here's what is working for Churchill Downs, Inc.

Operating Cash Flow

Highest at USD 805.4 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debtors Turnover Ratio

Highest at 31.54 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -1.33% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Churchill Downs, Inc.

EPS

Lowest at USD 0.53

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Non Operating Income

Highest at USD 0.63 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income