BST:CHR

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Executive Summary

Churchill Downs Incorporated operates as a racing, online wagering, and gaming entertainment company in the United States.


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Churchill Downs's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CHR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.4%

CHR

23.7%

DE Hospitality

3.2%

DE Market


1 Year Return

34.7%

CHR

-29.6%

DE Hospitality

0.01%

DE Market

Return vs Industry: CHR exceeded the German Hospitality industry which returned -21% over the past year.

Return vs Market: CHR exceeded the German Market which returned -0.1% over the past year.


Shareholder returns

CHRIndustryMarket
7 Day10.4%23.7%3.2%
30 Day23.8%15.2%4.7%
90 Day-8.6%-18.1%-0.9%
1 Year35.4%34.7%-27.0%-29.6%1.7%0.01%
3 Year136.4%132.3%-49.7%-56.4%-6.8%-14.0%
5 Year223.7%212.9%-47.7%-58.7%3.9%-9.5%

Price Volatility Vs. Market

How volatile is Churchill Downs's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Churchill Downs undervalued compared to its fair value and its price relative to the market?

35.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CHR (€127) is trading below our estimate of fair value (€271.92)

Significantly Below Fair Value: CHR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CHR is poor value based on its PE Ratio (50x) compared to the Hospitality industry average (22.5x).

PE vs Market: CHR is poor value based on its PE Ratio (50x) compared to the German market (19x).


Price to Earnings Growth Ratio

PEG Ratio: CHR is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: CHR is overvalued based on its PB Ratio (11.8x) compared to the DE Hospitality industry average (1.8x).


Next Steps

Future Growth

How is Churchill Downs forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

37.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHR's forecast earnings growth (37.5% per year) is above the savings rate (0.2%).

Earnings vs Market: CHR's earnings (37.5% per year) are forecast to grow faster than the German market (22.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CHR's revenue (18.7% per year) is forecast to grow faster than the German market (5.7% per year).

High Growth Revenue: CHR's revenue (18.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CHR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Churchill Downs performed over the past 5 years?

22.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHR has high quality earnings.

Growing Profit Margin: CHR's current net profit margins (8%) are lower than last year (16.6%).


Past Earnings Growth Analysis

Earnings Trend: CHR's earnings have grown significantly by 22.9% per year over the past 5 years.

Accelerating Growth: CHR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CHR had negative earnings growth (-41.5%) over the past year, making it difficult to compare to the Hospitality industry average (-36.2%).


Return on Equity

High ROE: Whilst CHR's Return on Equity (24.13%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Churchill Downs's financial position?


Financial Position Analysis

Short Term Liabilities: CHR's short term assets ($843.0M) exceed its short term liabilities ($344.1M).

Long Term Liabilities: CHR's short term assets ($843.0M) do not cover its long term liabilities ($2.4B).


Debt to Equity History and Analysis

Debt Level: CHR's debt to equity ratio (496.3%) is considered high.

Reducing Debt: CHR's debt to equity ratio has increased from 99.9% to 496.3% over the past 5 years.

Debt Coverage: CHR's debt is not well covered by operating cash flow (12.2%).

Interest Coverage: CHR's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Churchill Downs's current dividend yield, its reliability and sustainability?

0.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CHR's dividend (0.44%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.32%).

High Dividend: CHR's dividend (0.44%) is low compared to the top 25% of dividend payers in the German market (4.07%).


Stability and Growth of Payments

Stable Dividend: CHR is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: CHR is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CHR is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CHR's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure


CEO

Bill Carstanjen (51yo)

5.75yrs

Tenure

US$10,601,294

Compensation

Mr. William C. Carstanjen, also known as Bill, has been the Chief Executive Officer of Churchill Downs Incorporated since August 2014. Mr. Carstanjen served as the Chief Operating Officer of Churchill Down ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD10.60M) is above average for companies of similar size in the German market ($USD3.63M).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William Carstanjen
CEO & Director5.75yrsUS$10.60m1.38% $64.1m
William Mudd
President & COO5.75yrsUS$5.27m0.72% $33.8m
Marcia Dall
Executive VP & CFO4.58yrsUS$2.59m0.10% $4.7m
Austin Miller
Senior Vice President of Gaming Operations6.75yrsUS$1.81m0.12% $5.6m
Chad Dobson
Chief Accounting Officer & VPno datano datano data
Benjamin Murr
Senior VP & CTO8.33yrsno datano data
Nick Zangari
Vice President of Treasury2.83yrsno datano data
Bradley Blackwell
Senior VP3.17yrsno datano data
Charles Kenyon
Senior Vice President of Human Resourcesno datano datano data
T. Flanery
Senior VP & President of Churchill Downs Racetrackno datano datano data

5.8yrs

Average Tenure

55yo

Average Age

Experienced Management: CHR's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Carstanjen
CEO & Director5.75yrsUS$10.60m1.38% $64.1m
Douglas Grissom
Independent Director2.83yrsUS$270.75kno data
Thomas Meeker
Director Emeritusno dataUS$572.37kno data
Charles Bidwill
Director Emeritus14.92yrsno datano data
Robert Fealy
Independent Director20.33yrsUS$280.75kno data
Ulysses Bridgeman
Independent Director8.33yrsUS$273.25kno data
Daniel Harrington
Independent Director22.33yrsUS$296.60kno data
Paul Varga
Independent Director0.25yrno data0.021% $960.0k
R. Rankin
Independent Chairman of the Board2.08yrsUS$381.50k0.11% $5.2m
Karole Lloyd
Independent Director2.08yrsUS$281.85k0.023% $1.1m

4.8yrs

Average Tenure

63.5yo

Average Age

Experienced Board: CHR's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CHR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Churchill Downs Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Churchill Downs Incorporated
  • Ticker: CHR
  • Exchange: BST
  • Founded: 1928
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: US$5.155b
  • Listing Market Cap: US$4.663b
  • Shares outstanding: 38.86m
  • Website: https://www.churchilldownsincorporated.com

Number of Employees


Location

  • Churchill Downs Incorporated
  • 600 North Hurstbourne Parkway
  • Suite 400
  • Louisville
  • Kentucky
  • 40222
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHDNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1975
CHRBST (Boerse-Stuttgart)YesCommon StockDEEURJan 1975
CHRDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1975

Biography

Churchill Downs Incorporated operates as a racing, online wagering, and gaming entertainment company in the United States. It operates through three segments: Churchill Downs, Online Wagering, and Gaming. The company owns and operates Derby City Gaming, a historical racing machine in Louisville, Kentucky; online horse racing wagering platform, TwinSpires.com; and offers sports betting and iGaming through BetAmerica platform. It also operates 5 racetracks, including Churchill Downs Racetrack in Louisville, Kentucky; Arlington International Race Course in Arlington Heights with 12 off-track betting (OTB) facilities in Illinois; Fair Grounds Race Course in New Orleans along with 14 OTBs in Louisiana; and Calder Race Course in Miami Gardens, Florida. In addition, the company operates 8 casinos, which provides brick-and-mortar casino gaming services with approximately 11,000 slot machines and video lottery terminals and 200 table games; and operates hotels. Further, it offers streaming video of live horse races, replays, and an assortment of racing and handicapping information; and provides the Bloodstock Research Information Services platform for horse racing statistical data. Additionally, the company manufactures and operates pari-mutuel wagering systems for racetracks, OTBs, and other pari-mutuel wagering businesses; and provides totalizator services. Churchill Downs Incorporated was founded in 1928 and is headquartered in Louisville, Kentucky. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/29 23:15
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.