Churchill Downs Inc

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CHDN : NASDAQ : Services
$154.55 | %
Today's Range: 154.25 - 156.95
Avg. Daily Volume: 62100.0
03/24/17 - 4:00 PM ET

Financial Analysis


CHURCHILL DOWNS INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. CHURCHILL DOWNS INC has very weak liquidity. Currently, the Quick Ratio is 0.40 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 10.98% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)278.3272.39
EBITDA ($mil)50.448.48
EBIT ($mil)17.717.07
Net Income ($mil)26.87.51


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)83.0104.21
Total Assets ($mil)2254.42277.44
Total Debt ($mil)921.7781.78
Equity ($mil)685.0617.2


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin30.8729.51
EBITDA Margin18.117.79
Operating Margin6.366.27
Sales Turnover0.580.53
Return on Assets4.792.86
Return on Equity15.7810.56
Debt Q4 FY16 Q4 FY15
Current Ratio0.530.35
Debt/Capital0.570.56
Interest Expense10.97.26
Interest Coverage1.622.35


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)16.516.6
Div / share1.321.15
EPS1.60.43
Book value / share41.5237.18
Institutional Own % n/a n/a
Avg Daily Volume61704.092338.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 38.13 for the Hotels, Restaurants & Leisure industry and a discount compared to the S&P 500 average of 26.33. Conducting a second comparison, its price-to-book ratio of 3.73 indicates a premium versus the S&P 500 average of 2.93 and a significant discount versus the industry average of 9.42. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, CHURCHILL DOWNS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CHDN 24.25 Peers 38.13   CHDN 11.27 Peers 16.34

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

CHDN is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

CHDN is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CHDN 20.94 Peers 23.78   CHDN 8.66 Peers 2.82

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

CHDN is trading at a valuation on par with its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

CHDN trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CHDN 3.73 Peers 9.42   CHDN 73.64 Peers 79.35

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

CHDN is trading at a significant discount to its peers.

 

Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

CHDN is expected to keep pace with its peers on the basis of earnings growth.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CHDN 1.95 Peers 3.24   CHDN 7.94 Peers 2.81

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

CHDN is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

CHDN has a sales growth rate that significantly exceeds its peers.

 

 

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