NasdaqGS:CHDN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Solid track record 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


Market Performance


7 Day Return

1.3%

NasdaqGS:CHDN

0.4%

US Hospitality

0.6%

US Market


1 Year Return

18.5%

NasdaqGS:CHDN

-3.7%

US Hospitality

3.2%

US Market

CHDN outperformed the Hospitality industry which returned -5.2% over the past year.

CHDN outperformed the Market in United States of America which returned 3.8% over the past year.


Share holder returns

CHDNIndustryMarket
7 Day1.3%0.4%0.6%
30 Day7.2%3.3%2.1%
90 Day26.0%-1.2%2.0%
1 Year19.2%18.5%-1.4%-3.7%5.5%3.2%
3 Year176.7%170.8%52.2%42.7%46.8%37.2%
5 Year326.2%309.7%35.6%20.7%61.5%43.6%

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

Valuation

Is Churchill Downs undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Churchill Downs's share price is below the future cash flow value, and at a moderate discount (> 20%).

Churchill Downs's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Churchill Downs is overvalued based on earnings compared to the US Hospitality industry average.

Churchill Downs is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Churchill Downs earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Churchill Downs is overvalued based on assets compared to the US Hospitality industry average.


Next Steps

Future Growth

How is Churchill Downs expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

-4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Churchill Downs's revenue is expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).

Churchill Downs's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Churchill Downs's revenue growth is expected to exceed the United States of America market average.

Churchill Downs's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Churchill Downs's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Churchill Downs will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Churchill Downs performed over the past 5 years?

30.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Churchill Downs has delivered over 20% year on year earnings growth in the past 5 years.

Churchill Downs's 1-year earnings growth exceeds its 5-year average (34.3% vs 30.9%)

Churchill Downs's earnings growth has exceeded the US Hospitality industry average in the past year (34.3% vs -0.5%).


Return on Equity

Whilst Churchill Downs has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Churchill Downs used its assets more efficiently than the US Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Churchill Downs has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Churchill Downs's financial position?


Financial Position Analysis

Churchill Downs's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Churchill Downs's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Churchill Downs's level of debt (322.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (52.3% vs 322.8% today).

Debt is not well covered by operating cash flow (14.4%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

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

0.46%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Churchill Downs's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Churchill Downs's dividend is below the markets top 25% of dividend payers in United States of America (3.77%).

Churchill Downs is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

Churchill Downs is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Churchill Downs's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

No need to calculate the sustainability of Churchill Downs's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Churchill Downs's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average management tenure


CEO

Bill Carstanjen (51yo)

4.9yrs

Tenure

US$21,120,369

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

Bill's remuneration is higher than average for companies of similar size in United States of America.

Bill's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.9yrs

Average Tenure

55yo

Average Age

The tenure for the Churchill Downs management team is about average.


Board Age and Tenure

5.8yrs

Average Tenure

64yo

Average Age

The tenure for the Churchill Downs board of directors is about average.


Insider Trading

More shares have been bought than sold by Churchill Downs individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$50,91501 May 19
R. Rankin
EntityIndividual
Role
Chairman of the Board
Shares500
Max PriceUS$101.83
BuyUS$85,21925 Mar 19
Karole Lloyd
EntityIndividual
Role
Member of the Board of Directors
Shares1,000
Max PriceUS$85.22
BuyUS$196,78319 Feb 19
Austin Miller
EntityIndividual
Role
Senior Vice President of Gaming Operations
Shares2,069
Max PriceUS$95.11
SellUS$019 Feb 19
Austin Miller
EntityIndividual
Role
Senior Vice President of Gaming Operations
Shares994
Max PriceUS$95.11
BuyUS$440,80003 Jan 19
Austin Miller
EntityIndividual
Role
Senior Vice President of Gaming Operations
Shares5,421
Max PriceUS$81.31
SellUS$003 Jan 19
Austin Miller
EntityIndividual
Role
Senior Vice President of Gaming Operations
Shares3,111
Max PriceUS$81.31
BuyUS$602,53203 Jan 19
William Mudd
EntityIndividual
Role
President & COO
Shares7,410
Max PriceUS$81.31
BuyUS$1,459,24903 Jan 19
William Carstanjen
EntityIndividual
Role
CEO & Director
Member of the Board of Directors
Shares17,946
Max PriceUS$81.31
SellUS$003 Jan 19
William Mudd
EntityIndividual
Role
President & COO
Shares6,465
Max PriceUS$81.31
BuyUS$382,74203 Jan 19
Marcia Dall
EntityIndividual
Role
Executive VP & CFO
Shares4,707
Max PriceUS$81.31
SellUS$003 Jan 19
William Carstanjen
EntityIndividual
Role
CEO & Director
Member of the Board of Directors
Shares15,171
Max PriceUS$81.31
SellUS$003 Jan 19
Marcia Dall
EntityIndividual
Role
Executive VP & CFO
Shares4,110
Max PriceUS$81.31
BuyUS$23,41127 Dec 18
R. Rankin
EntityIndividual
Role
Chairman of the Board
Shares300
Max PriceUS$78.04
BuyUS$257,90918 Dec 18
Karole Lloyd
EntityIndividual
Role
Member of the Board of Directors
Shares3,000
Max PriceUS$85.97
BuyUS$504,31317 Dec 18
Richard Duchossois
EntityIndividual
Shares5,850
Max PriceUS$86.21
BuyUS$1,510,94309 Nov 18
Richard Duchossois
EntityIndividual
Shares16,650
Max PriceUS$91.86
BuyUS$1,004,43906 Nov 18
Richard Duchossois
EntityIndividual
Shares11,100
Max PriceUS$90.49
BuyUS$108,47806 Nov 18
R. Rankin
EntityIndividual
Role
Chairman of the Board
Shares1,200
Max PriceUS$90.40
SellUS$016 Oct 18
Marcia Dall
EntityIndividual
Role
Executive VP & CFO
Shares2,019
Max PriceUS$93.35
BuyUS$325,15016 Oct 18
Marcia Dall
EntityIndividual
Role
Executive VP & CFO
Shares3,483
Max PriceUS$93.35

Ownership Breakdown


Management Team

  • Brad Blackwell

    Senior VP

    • Tenure: 2.3yrs
  • Marcia Dall (55yo)

    Executive VP & CFO

    • Tenure: 3.8yrs
    • Compensation: $2.55m
  • Nick Zangari

    Vice President of Treasury

    • Tenure: 2.0yrs
  • T. Flanery (55yo)

    Senior VP & President of Churchill Downs Racetrack

  • Austin Miller (55yo)

    Senior Vice President of Gaming Operations

    • Tenure: 5.9yrs
    • Compensation: $1.56m
  • Bill Mudd (48yo)

    President & COO

    • Tenure: 4.9yrs
    • Compensation: $11.41m
  • Chad Dobson

    Chief Accounting Officer & VP

  • Chuck Kenyon

    Senior Vice President of Human Resources

  • Ben Murr

    Senior VP & CTO

    • Tenure: 7.5yrs
  • Bill Carstanjen (51yo)

    CEO & Director

    • Tenure: 4.9yrs
    • Compensation: $21.12m

Board Members

  • R. Rankin (64yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: $374.02k
  • Charles Bidwill (90yo)

    Director Emeritus

    • Tenure: 14.1yrs
  • Dan Harrington (63yo)

    Independent Director

    • Tenure: 21.5yrs
    • Compensation: $266.50k
  • Karole Lloyd (60yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: $184.51k
  • Thomas Meeker (75yo)

    Director Emeritus

    • Compensation: $1.72m
  • G. Humphrey (74yo)

    Director Emeritus

    • Compensation: $41.59k
  • Bill Carstanjen (51yo)

    CEO & Director

    • Tenure: 4.0yrs
    • Compensation: $21.12m
  • Douglas Grissom (52yo)

    Director

    • Tenure: 2.0yrs
    • Compensation: $219.88k
  • Ulysses Bridgeman (64yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: $228.00k
  • Robert Fealy (67yo)

    Independent Director

    • Tenure: 19.5yrs
    • Compensation: $234.38k

Company Information

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


Key Information

  • Name: Churchill Downs Incorporated
  • Ticker: CHDN
  • Exchange: NasdaqGS
  • Founded: 1875
  • Industry: casinos and gaming
  • Sector: consumer services
  • Market Cap: US$4.612b
  • Shares outstanding: 39.60m
  • Website: Click here

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

Biography

Churchill Downs Incorporated operates as a racing, gaming, and online entertainment company in the United States. It operates through Racing, Casinos, Online Wagering, and Other Investments and Corporate s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/24 01:12
End of Day Share Price2019/07/23 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.