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BYD

Boyd Gaming NYSE:BYD Stock Report

Last Price

US$55.23

Market Cap

US$5.9b

7D

0.4%

1Y

-6.8%

Updated

08 Aug, 2022

Data

Company Financials +
BYD fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health3/6
Dividends2/6

BYD Stock Overview

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company.

Boyd Gaming Corporation Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Boyd Gaming
Historical stock prices
Current Share PriceUS$55.23
52 Week HighUS$72.72
52 Week LowUS$47.66
Beta1.87
1 Month Change11.31%
3 Month Change1.30%
1 Year Change-6.75%
3 Year Change131.19%
5 Year Change110.16%
Change since IPO149.63%

Recent News & Updates

Aug 07
Calculating The Fair Value Of Boyd Gaming Corporation (NYSE:BYD)

Calculating The Fair Value Of Boyd Gaming Corporation (NYSE:BYD)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Boyd Gaming...

Jul 25

Boyd Gaming Q2 2022 Earnings Preview

Boyd Gaming (NYSE:BYD) is scheduled to announce Q2 earnings results on Tuesday, July 26th, after market close. The consensus EPS Estimate is $1.39 (-9.7% Y/Y) and the consensus Revenue Estimate is $872.27M (-2.4% Y/Y). Over the last 2 years, BYD has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time. Over the last 3 months, EPS estimates have seen 5 upward revisions and 2 downward. Revenue estimates have seen 4 upward revisions and 6 downward.

Jul 25
Does Boyd Gaming (NYSE:BYD) Have A Healthy Balance Sheet?

Does Boyd Gaming (NYSE:BYD) Have A Healthy Balance Sheet?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Jul 12

Boyd Gaming: Great Value With Clear Road To Recovery

Sporadic covid-19 spikes dull sentiment for gaming sector stocks in general, but Boyd Gaming already is thriving against inflation, lingering covid-19, and recession. BYD's strength is in execution, proven since its low point in the early 2000s. While its 1Q22 results were strong, they may soften in 2Q, but Boyd Gaming remains a must-hold for any well-balanced U.S. gaming portfolio. One of the most enduring truths I have learned through my decades in the casino business is that management focus on execution rather than expressing lofty earnings goals is what defines a foundational portfolio stock. Great properties are more the result of smart management vision that drives execution over time. Quarter-to-quarter results are snapshots. Long term resilience is the product of a smart operational culture that bends but doesn't break in good times or bad. There are few better examples of this than Boyd Gaming Corporation (BYD), which through its long history beginning with visionary founder Sam Boyd in 1975 has displayed a gut level understanding of how to make money in the casino business. Among its demonstrated skill sets over time is smart asset allocation, often against the grain of prevailing conventional wisdom in the industry. Sam had his share of hard way decisions-on the craps table of expansion. He took his profitable Vegas locals operation public in 1963. But over 17 years along came the spiders: in the teeth of recessions hitting gaming markets and his plan to get into the strip luxe market with the ill-fated Echelon project, Sam faced only lesser of various evils. He faced bankruptcy unless he moved fast. BYD stock dropped to $3. But rapidly, Sam put Keith E. Smith in the driver's seat as CEO. (Below: Sam Boyd built a great locals gaming business but stubbed his toe on misread markets. Corrected when he stepped aside). BYD archives What followed next was a rationalization of the company's business from the ground up. Cleaning up the balance sheet, dropping dream sequences about mega-projects, and focusing hard on what had made the company profitable historically: the everyday slot player no matter where he or she was. The biggest decision it made was to partner with MGM, sharing the risk of a great project in Atlantic City. That decision was the conceptual structure of its Atlantic City entry 50% partnered with MGM Resorts International (MGM) -the Borgata casino hotel at the Marina. I recall a presentation to industry leaders I attended run by its management team-to-be in 2000. At that time, the market was predominantly driven by geography as it still is. We all lived off volume bus ridership from New York, Northern New Jersey, and Metro Philadelphia. And we all saw it as a necessary evil. We competed in virtual hand to hand combat over "bus packages" which were heavily couponed offers of coin, food and repeat visit rebates. Harrah's was an exception, focusing its marketing on drive-in to its biggest in town garage. Drive-in patrons had bigger average gaming budgets, were less comp-sensitive, and felt more comfortable in the pleasant, relaxed surroundings of the Marina area. All of us on the Boardwalk learned our lesson in time and built garages to accommodate the more valuable customers. But the bus customer still prevailed as comprising the core source of mass slot business. The one characteristic shared by both bus and drive-in patrons was the basic age demo: Atlantic City's bread and butter customer, no matter the mode of transportation, was the older, if not oldest demographic base of the U.S. northeast. While events and entertainment bookings appealing to younger demos mushroomed, and did begin to move some younger customers into the market, overall, their per-trip numbers and value were a small part of the market. So, during the Borgata industry presentation, management made two points. One, no bus program. And two, its marketing would be strongly aimed at a younger demo. When questions were raised as to how they thought they were to avoid bussing and find a route to a younger demo, their executives simply said they believed the younger, less-giveaway sensitive demo would respond to a superior property and marketing focus. BYD was the operating partners of the Borgata property. From the day it opened in 2003, it quickly soared to first place in gaming win, non-gaming revenue in the market. And any day you walked the property, you saw a paucity of grey hairs at the slots-though they were there. What you did see was masses of Gen Xers, and the younger edge of boomers crowding around the blackjack tables, filling the lounges and dining outlets, and rocking to the leading-edge rock performers of the day. The Borgata, against the grain, was making a ton. As it turned out, BYD's 50% sunk cost in the $1b property had a great run of 13 years with great accretion to its bottom line from the Borgata. Then, in 2016, when management's thinking in the light of the growing competitive grid in neighboring states changed, it sold its interests to its MGM partner for $900m, with net proceeds on the sale of $589m. The company then pivoted and used those proceeds with some lending to vastly expand its regional and Vegas locals market. It was a continuing expression of BYD's carefully laid out expansion program beyond its Nevada borders to acquire modestly profitable or underperforming regional properties, building itself out to the U.S. middle west and south. In the process, BYD became a leading national casino operator, which today comprises 28 properties in 10 states divided in three divisions: Las Vegas Locals, Downtown Vegas, and Midwest/South. BYD archives So, what we saw was a management with a clear-eyed vision of the main chance as the last fifteen years showed a business which was consolidating. They move their capital around to match their recognition as to where the gaming market was headed. They moved their pieces around the board like chess masters in my view by putting their footholds in markets they understood, at acquisition prices that held reasonable premiums and a forward plan for steady growth. BYD saw itself as a U.S. company and did not enter the global fray in Asia or anywhere else. No company in the gaming and leisure sector in the U.S. was, of course, immune to the devastation of the covid-19 outbreak in 2020. BYD was forced to lay off 25% of its workforce. But the company deftly shaved its cost structure to hold operating margins that first and foremost assured solvency through the worst of the crisis. And equally important, positioned itself to recover at a steady pace as the covid-19 crisis evolved into the sporadic outbreaks we live with till this day and recovery began to show in both Las Vegas locals markets and its properties in the Midwest and south. It also launched a partnership with a northern California tribal group south of Sacramento, lending them ~$107m against the future proceeds of a management contract, giving them 35% of the profits pre-tax. The Sky River casino property is expected to open by the end of this year. The metro area has 2.3m people and is a 1.5-hour drive from San Francisco's metro's 4.5m population base. Why BYD is a foundational holding for sector investors Having demonstrated a long track record of very savvy asset allocation reflecting a solid understanding of how and where gaming markets work best, BYD stands among the best buys in the sector today. The U.S. gaming sector as a whole is improving but still bumpy due to sporadic covid-19 outbreaks, scare headlines about new variants, rampant inflation, labor shortages, and supply chain crises. Data by YCharts On the other hand, results from its leading operators in 1Q22 reflect improving results, partially attributable to the massive shower of covid-19 crisis money printing by the federal government that put lots of potentially disposable income in the hands of people who really didn't have to worry about where their next meal was coming from. The core factor in the early recovery cycle has been the confidence in at least the decline of crisis hysteria, of masking mandates dropped, high gas prices, that has brought back the all-crucial older demos to regional casinos. In other words, the core casino customers, scared away by health concerns through 2020 and most of 2021, began streaming back to their favorite properties in great enough numbers to produce real earnings gains. BYD capsule glance post initial covid-19 crisis 2021 revenue: $3.37b. 2022E revenue: $3.48b. 2023E revenue: $3.55b The estimates above are those of a consensus of analysts who follow BYD. I believe them to be generally in the ballpark base on the very difficult forecasting algorithms at their disposal as covid-19 outbreaks continue to spike here and there. Using my own metrics, I come up somewhat more bullish on revenue largely based on conversations with former colleagues and associates active in the same markets as BYD. My questions pose somewhat deeper dives for responders than what one may hear in earnings calls from analysts. Much of what we discuss is casino floor activity seen in rated vs. non-rated play trends, hotel occupancy vs. labor shortages resulting in room inventory unused due to labor shortages. I also look at historic vs. current trends in numbers of covers in food outlets, mass vs. gourmet rooms, staffing and stable or unstable pressures on comping levels due to competitive pressures in their markets. Projecting what I hear against my own historic proprietary measures, I come up with an estimated revenue base of $3.6b for this year and $3.72b for 2023, up from $3.37b in 2021. For comparison, baseline pre-covid-19 2019 revenue was $3.32b, which itself was up 26% from baseline 2018. This tells us that BYD has not only recovered, but surpassed its base year comparisons. That is an indicator that its long-term growth trajectory was positive pre-covid-19, and remarkably has resumed now at near the endgame of the pandemic. However, given the lingering uncertainties and seasonable factors for 2Q22, we see something of a dip in revenue and earnings possible for 2Q22. Investors should not be spooked by such results if BYD experiences an earnings miss for 2Q22. Results in 1Q22, I believe, are more indicative of a more bullish long term trend: 2021 EPS: $5.12 2022E EPS: Consensus: $5.46. Our estimate $6.00 2023E: EPS: $5.85 Our estimate: $6.31 3-year CAGR revenue growth to date; 6.88% Gross profit margin: 73.88% ROE: 37.72% Dividend yield: 1.21% Return of capital to shareholders, dividends and repurchases aimed at authorized goal of $500m by early 2023. Price at writing: $49.05 Alphaspread Discounted Cash Flow value: $74.50. 52-week range: $47.66 to $72.77. This puts the current price near 52-week low representing in our view an excellent entry point. Market cap: $5.44b with an EV of $8.95b. Cash on hand: $493m. Total debt: $3.91b. Current ratio: 0.99. By any measure, indicative of a strong balance sheet in a time frame ahead that is a disconcerting blend of upside potential, lingering covid-19 challenges, inflation, high gas prices, and labor shortages. But the track record of management operational culture lends credence in our view that the stock is significantly undervalued. If moderating circumstances develop going forward on covid-19, recession depth, etc., BYD is positioned to build bullish sentiment in the sector and move into a PT range of $66 by the end of 3Q22. Planning in progress: Estimated capex total $250m expansion and maintenance; Look for completion of the move of its Treasure Chest river boat casino property in Louisiana to a land based, full service casino hotel by mid to late 2023.

Jul 11
At US$49.62, Is It Time To Put Boyd Gaming Corporation (NYSE:BYD) On Your Watch List?

At US$49.62, Is It Time To Put Boyd Gaming Corporation (NYSE:BYD) On Your Watch List?

Boyd Gaming Corporation ( NYSE:BYD ), is not the largest company out there, but it saw significant share price movement...

Shareholder Returns

BYDUS HospitalityUS Market
7D0.4%3.9%1.1%
1Y-6.8%-19.0%-13.0%

Return vs Industry: BYD exceeded the US Hospitality industry which returned -20.1% over the past year.

Return vs Market: BYD exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is BYD's price volatile compared to industry and market?
BYD volatility
BYD Average Weekly Movement6.6%
Hospitality Industry Average Movement8.8%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: BYD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: BYD's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197515,114Keith Smithhttps://www.boydgaming.com

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company. It operates through three segments: Las Vegas Locals, Downtown Las Vegas, and Midwest & South. As of December 31, 2021, the company operated 28 gaming entertainment properties located in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania.

Boyd Gaming Corporation Fundamentals Summary

How do Boyd Gaming's earnings and revenue compare to its market cap?
BYD fundamental statistics
Market CapUS$5.90b
Earnings (TTM)US$557.65m
Revenue (TTM)US$3.48b

10.6x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BYD income statement (TTM)
RevenueUS$3.48b
Cost of RevenueUS$950.67m
Gross ProfitUS$2.53b
Other ExpensesUS$1.97b
EarningsUS$557.65m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)5.22
Gross Margin72.67%
Net Profit Margin16.03%
Debt/Equity Ratio190.2%

How did BYD perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

6%

Payout Ratio