Churchill Downs Inc

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CHDN : NASDAQ : Services
$147.24 -0.74 | -0.50%
Today's Range: 146.38 - 148.43
Avg. Daily Volume: 87,400
09/29/16 - 3:59 PM ET

Financial Analysis


CHURCHILL DOWNS INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. CHURCHILL DOWNS INC has very weak liquidity. Currently, the Quick Ratio is 0.34 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 decreased by 10.13% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)438.5409.24
EBITDA ($mil)150.7144.45
EBIT ($mil)120.0114.84
Net Income ($mil)69.855.04


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)86.687.93
Total Assets ($mil)2248.12298.99
Total Debt ($mil)925.7619.51
Equity ($mil)679.8756.44


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin42.1943.09
EBITDA Margin34.3635.29
Operating Margin27.3728.06
Sales Turnover0.570.44
Return on Assets3.751.87
Return on Equity12.45.71
Debt Q2 FY16 Q2 FY15
Current Ratio0.490.34
Debt/Capital0.580.45
Interest Expense11.17.11
Interest Coverage10.8116.15


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)16.617.58
Div / share0.00.0
EPS4.113.1
Book value / share40.9543.03
Institutional Own % n/a n/a
Avg Daily Volume100016.0135107.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 30.89 for the Hotels, Restaurants & Leisure industry and a premium compared to the S&P 500 average of 25.19. Conducting a second comparison, its price-to-book ratio of 3.66 indicates a premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 40.23. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly 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 30.32 Peers 30.89   CHDN 10.03 Peers 14.25

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

CHDN is trading at a valuation on par with 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 22.32 Peers 25.80   CHDN 0.55 Peers 2.94

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 3.66 Peers 40.23   CHDN 105.83 Peers 30.41

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 1.94 Peers 2.97   CHDN 27.11 Peers 6.48

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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