Churchill Downs Inc

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CHDN : NASDAQ : Services
$184.9 up 1.5 | 0.79%
Today's Range: 183.53 - 184.95
Avg. Daily Volume: 76100.0
07/24/17 - 10:20 AM ET

Financial Analysis


CHURCHILL DOWNS INC's gross profit margin for the first quarter of its fiscal year 2017 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. CHURCHILL DOWNS INC has very weak liquidity. Currently, the Quick Ratio is 0.35 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, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 11.22% 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 FY17 Q1 FY16
Net Sales ($mil)279.5288.4
EBITDA ($mil)47.040.1
EBIT ($mil)18.19.4
Net Income ($mil)7.32.8


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)79.974.3
Total Assets ($mil)2256.12238.3
Total Debt ($mil)968.3987.2
Equity ($mil)688.9619.4


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin29.1225.66
EBITDA Margin16.8113.9
Operating Margin6.483.26
Sales Turnover0.580.56
Return on Assets4.993.1
Return on Equity16.3411.22
Debt Q1 FY17 Q1 FY16
Current Ratio0.510.47
Debt/Capital0.580.61
Interest Expense11.810.6
Interest Coverage1.530.89


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)16.516.7
Div / share0.00.0
EPS0.430.16
Book value / share41.7537.09
Institutional Own % n/a n/a
Avg Daily Volume75630.058222.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 36.66 for the Hotels, Restaurants & Leisure industry and a premium compared to the S&P 500 average of 24.66. Conducting a second comparison, its price-to-book ratio of 4.39 indicates a premium versus the S&P 500 average of 3.07 and a significant discount versus the industry average of 10.48. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. 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 27.52 Peers 36.66   CHDN 12.83 Peers 19.65

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

CHDN is trading at a 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 24.35 Peers 24.85   CHDN 13.62 Peers 3.10

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

CHDN is trading at a premium to 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 4.39 Peers 10.48   CHDN 69.46 Peers 117.69

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.

 

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

However, CHDN is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CHDN 2.33 Peers 3.35   CHDN 3.99 Peers 4.04

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.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

CHDN is keeping pace with its peers on the basis of sales growth.

 

 

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