CHDN

Churchill Downs, Inc.

Consumer


Presented:08/23/2022
Price:$104.33
Cap:$7.87B
Current Price:$138.82
Cap:$10.19B

Presented

Date08/23/2022
Price$104.33
Market Cap$7.87B
Ent Value$8.65B
P/E Ratio16.62x
Book Value$8.00
Div Yield0.32%
Shares O/S75.40M
Ave Daily Vol345,998
Short Int2.45%

Current

Price$138.82
Market Cap$10.19B
Churchill Downs, Inc. operates as a provider of pari-mutuel horse racing, online account wagering on horse racing 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 expenses 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 $208.66.
Publicly traded companies mentioned herein: Churchill Downs Inc (CHDN)

Highlights

The presenter is long shares of Churchill Downs Inc (CHDN), believing it has the most attractive organic and inorganic growth profiles in US gaming. CHDN has ~$1B of in-motion, high ROIC projects that should drive EBITDA growth in almost any macroeconomic environment, a strong management team to execute on these opportunities, and he is confident that the P2E acquisition will be highly accretive to earnings. Modeling >15% upside to consensus EBITDA estimates in 2023 – 2024, the stock trades at ~9x and ~8x his 2023 and 2024 EBITDA forecasts, respectively. Applying a more normal 12.5x multiple to his ~$1.4B 2024 EBITDA figure creates ~60% upside to his $330 18-month price target. 

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Idea Discussion

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