CHDN

Churchill Downs Incorporated

Consumer, Finance/Real Estate


Presented:04/24/2014
Price:$14.55
Cap:$1.56B
Current Price:$138.82
Cap:$10.19B

Presented

Date04/24/2014
Price$14.55
Market Cap$1.56B
Ent Value$1.90B
P/E RatioN/A
Book ValueN/A
Div Yield0%
Shares O/S107.14M
Ave Daily Vol300,000
Short Int5.01%

Current

Price$138.82
Market Cap$10.19B
Churchill Downs Incorporated provides pari-mutuel horseracing, casino gaming, and entertainment services. The company operates in four segments: Racing Operations, Gaming, Online Business, and Other Investments. It provides gaming products through casinos in Mississippi; slot and video poker operations in Louisiana and Florida; slot and table games operations in Maine; and video lottery terminal facility in Ohio. The company’s racing operations includes Churchill Downs Racetrack in Louisville, Kentucky; Arlington International Race Course in Arlington Heights with 11 off-track betting facilities in Illinois; Calder Race Course in Miami Gardens, Florida; and Fair Grounds Race Course in Louisiana. It also offers online account wagering on horseracing events. In addition, the company manufactures and operates pari-mutuel wagering systems for racetracks, off-track betting facilities, and other pari-mutuel wagering businesses; and multimedia poker content brand and publishing. Further, it operates a harness racetrack and video lottery terminal facility in Lebanon, Ohio. Churchill Downs Incorporated was founded in 1928 and is headquartered in Louisville, Kentucky.

Please note, this stock split on 01/28/2019 at a ratio of 3/1 and again 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 $87.30.

Highlights

The presenter is long shares of Churchill Downs, (CHDN), and believes there are numerous ways for shareholders with a longer-term time horizon to win. Shares have run up to the mid-$80s over the past two years (from the $60 level), but investments in online and regional gaming, as well as a new long-term (10-year) TV contract with NBC for the Derby (terms not disclosed) suggest the risk/ reward is favorable. On a sum-of-parts basis it is relatively easy to justify the present market cap, in his opinion.

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