Churchill Downs Inc

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CHDN : NASDAQ : Services
$131.23 up 0.37 | 0.28%
Today's Range: 129.87 - 131.60
Avg. Daily Volume: 163,500
07/26/16 - 4:00 PM ET

Financial Analysis


CHURCHILL DOWNS INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. CHURCHILL DOWNS INC has very weak liquidity. Currently, the Quick Ratio is 0.32 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 11.35% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)288.4250.91
EBITDA ($mil)40.130.4
EBIT ($mil)9.42.27
Net Income ($mil)2.8-1.56


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)74.370.3
Total Assets ($mil)2238.32302.37
Total Debt ($mil)987.2701.05
Equity ($mil)619.4698.74


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin25.6624.79
EBITDA Margin13.912.11
Operating Margin3.260.91
Sales Turnover0.560.39
Return on Assets3.11.97
Return on Equity11.226.51
Debt Q1 FY16 Q1 FY15
Current Ratio0.470.59
Debt/Capital0.610.5
Interest Expense10.67.48
Interest Coverage0.890.3


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)16.717.58
Div / share0.00.0
EPS0.16-0.09
Book value / share37.0939.74
Institutional Own % n/a n/a
Avg Daily Volume159419.072735.0

Valuation


BUY. CHURCHILL DOWNS INC's P/E ratio indicates a premium compared to an average of 28.27 for the Hotels, Restaurants & Leisure industry and a premium compared to the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 3.47 indicates a premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 11.48. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CHDN 32.77 Peers 28.27   CHDN 8.69 Peers 13.95

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

CHDN is trading at a premium 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 18.77 Peers 24.99   CHDN 0.66 Peers 2.68

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.

 

Discount. 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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CHDN 3.47 Peers 11.48   CHDN 56.57 Peers 18.32

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.

 

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

CHDN is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CHDN 1.72 Peers 2.92   CHDN 38.79 Peers 8.46

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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