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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

The Walt Disney Co.

Live Nation Entertainment, Inc.

Liberty Media Corp.

Churchill Downs, Inc.

Cinemark Holdings, Inc.

DraftKings, Inc.

Cedar Fair LP

PENN Entertainment, Inc.

United Parks & Resorts, Inc.

Six Flags Entertainment Corp.

Madison Square Garden Sports Corp.

Why is Churchill Downs, Inc. ?

Healthy long term growth as Net Sales has grown by an annual rate of 22.52% and Operating profit at 68.75%

Flat results in Jun 25

ROCE(HY) Lowest at 41.2%
DEBTORS TURNOVER RATIO(HY) Lowest at 22.24 times

With ROCE of 12.41%, it has a very attractive valuation with a 2.06 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 -24.07%, its profits have risen by 13.5% ; the PEG ratio of the company is 1.2

High Institutional Holdings at 82.56%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -24.07% 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.

-19.24%

-0.62

31.98%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

22.52%

EBIT Growth (5y)

68.75%

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

82.56%

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

6.61

EV to EBIT

16.58

EV to EBITDA

12.68

EV to Capital Employed

2.06

EV to Sales

4.20

PEG Ratio

1.24

Dividend Yield

ROCE (Latest)

12.41%

ROE (Latest)

38.85%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 787.1 MM

INTEREST COVERAGE RATIO(Q)

Highest at 526.42

NET SALES(Q)

Highest at USD 934.4 MM

OPERATING PROFIT(Q)

Highest at USD 390.6 MM

PRE-TAX PROFIT(Q)

Highest at USD 295.5 MM

NET PROFIT(Q)

Highest at USD 219.11 MM

EPS(Q)

Highest at USD 2.99

-3What is not working for the Company

ROCE(HY)

Lowest at 41.2%

DEBTORS TURNOVER RATIO(HY)

Lowest at 22.24 times

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

Operating Cash Flow

Highest at USD 787.1 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)

Interest Coverage Ratio

Highest at 526.42

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at USD 934.4 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 390.6 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 295.5 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 219.11 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 2.99

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

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

Debtors Turnover Ratio

Lowest at 22.24 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio