CHDN

Churchill Downs, Inc.

Consumer, Event Driven/Special Sit


Presented:08/01/2019
Price:$63.12
Cap:$5.07B
Current Price:$138.82
Cap:$10.19B

Presented

Date08/01/2019
Price$63.12
Market Cap$5.07B
Ent Value$5.94B
P/E Ratio27.65x
Book Value$7.00
Div Yield0.43%
Shares O/S80.40M
Ave Daily Vol555,406
Short Int7.69%

Current

Price$138.82
Market Cap$10.19B
Churchill Downs, Inc. operates as a provider of pari-mutuel horseracing, online account wagering on horseracing and casino gaming. It operates through the following business segments: Racing, Casino, Online Wagering, Corporate, and Other Investments. The Racing segment includes Churchill Downs Racetrack, Arlington Park Racecourse, Calder Race Course, and Fair Grounds Race Course. The Casinos segment includes Oxford Casino, Riverwalk Casino Hotel, Harlow's Casino Resort and Spa, Calder Casino, Fair Grounds Slots, Video Services and equity investment. The Online Wagering segment offers simulcasting and interactive wagering hub. The Corporate segment includes miscellaneous and other revenue, compensation expense, professional fees and other general and administrative expense not allocated to other operating segments. The Other Investments and Corporate segment consists of United Tote Company and United Tote Canada, Capital View Casino and Resort, Bluff Media, and minor investments. The company was founded in 1875 and is headquartered in Louisville, KY.

Please note, this stock split on 05/22/23 at a ratio of 2/1. The presented data has been updated to account for the change, however, the text of the note may refer to data based on the original presented price of $126.23.
Publicly traded companies mentioned herein: Churchill Downs Inc (CHDN)

Highlights

The presenter is long shares of Churchill Downs Inc (CHDN) despite an ~8% rise in the share price due to strong Q2 results. He views CHDN as a unique asset with an excellent management team that has created a long backlog of high ROIC projects, which will act as catalysts over the next 12 – 24 months. These catalysts include continued legalization and growth of online sports betting, an expanded gaming bill in Illinois, and the further development of the company’s namesake race track in Kentucky. At the current price of ~$130 per share, he considers shares to be undervalued and sees upside to $200+ over the next couple of years. 

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Idea Discussion

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