BYD

Boyd Gaming Corp.

Consumer


Presented:04/13/2022
Price:$62.84
Cap:$6.91B
Current Price:$64.16
Cap:$5.89B

Presented

Date04/13/2022
Price$62.84
Market Cap$6.91B
Ent Value$11.06B
P/E Ratio15.46x
Book Value$13.83
Div Yield0.24%
Shares O/S109.97M
Ave Daily Vol1,261,910
Short Int5.11%

Current

Price$64.16
Market Cap$5.89B
Boyd Gaming Corp. engages in the management and operation of gaming and entertainment properties. It operates through the following segments: Las Vegas Locals, Downtown Las Vegas and Midwest & South. The Las Vegas Locals segment consists of casinos that serve the resident population of the Las Vegas metropolitan area. The Downtown Las Vegas segment consists of the following casinos: California Hotel and Casino, Fremont Hotel and Casino and Main Street Station Casino, Brewery and Hotel. The Midwest & South segment operates land-based casinos, dockside riverboat casinos, racinos and barge-based casinos in the Midwest and southern United States. Its portfolio includes hotels, casinos, breweries, resorts and spas. The company was founded by William Samuel Boyd and Sam Boyd on January 1, 1975, and is headquartered in Las Vegas, NV.

Publicly traded companies mentioned herein: Boyd Gaming Corp (BYD), DraftKings Inc (DKNG), Flutter Entertainment PLC (FLTR LN), Fox Corp (FOXA)

Highlights

The presenter is long shares of Boyd Gaming Corp (BYD), a regional casino operator with 28 gaming properties across 10 states. The Las Vegas market accounts for 11 of these properties and 35% – 40% of total EBITDA. Management has maintained a long-term focus, opportunistically expanding its portfolio through the use of leverage and disciplined M&A. BYD has cut its leverage in half over the last ~20 months to 2.4x, in line with its target, and has also expanded margins during the pandemic by cutting unnecessary spend and focusing on gaming. The presenter agrees with management on the sustainability of these margins and models YoY EBITDA growth this year compared to consensus estimates that call for a 1% YoY decrease in EBITDA. As the company continues to perform well post-COVID and return capital to investors, he underwrites multiple expansion to 10x 2023 EBITDA, yielding a price target of $90 (45% upside) with incremental sources of optionality over the longer term. 

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.