Churchill Downs CHDN
United StatesConsumer Cyclical · GamblingUSD
130.83 USD (+76.9%)
12 analysts
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Churchill Downs operates racetracks, casinos, and online betting (TwinSpires), generating revenue from horse racing, gaming, and sports betting in the United States.
Key points
from its scores- ✕Little or no dividend3.0
- ✕Fragile balance sheet3.9
- !Weak share-price trend5.1
AI analysis
bottom line, main risk, context and newsSolid profitability and valuation offset high leverage, but debt limits the margin of safety.
Churchill Downs combines a 36.5% operating margin and a 33.9% ROE with an attractive valuation (P/E 12.6), but its high debt (4.7x EBITDA) and low liquidity ratio (0.36) are the main drags on its financial health.
High leverage (Net Debt/EBITDA of 4.7) and low liquidity (0.36) make the company vulnerable to tighter credit conditions or a slowdown in discretionary spending.
Context and risks
Churchill Downs' business is heavily regulated in the U.S., where gaming licenses and state regulations can change. Its high leverage (Net Debt/EBITDA of 4.7) amplifies sensitivity to tighter financial conditions, although its operating cash generation is solid.
Is Churchill Downs stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 20% below the Consumer Cyclical median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 12.6 | 17.8 | −29% |
| EV / EBITDA | 10.0 | 11.2 | −11% |
| Price / book | 3.9 | 2.9 | +34% |
| Price / sales | 1.7 | 1.3 | +37% |
Sector: median of the 228 Consumer Cyclical companies analysed. In bold, the multiples used for the comparison.
Valuation score: 6.9 out of 10 (median for Consumer Cyclical: 6.6).
Average analyst target: 130.83 USD, +76.9% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 3.9 (sector 5.7), Growth 6.2 (sector 5.9).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Cyclical medianValuation
- P/E
- 12.6
- Forward P/E
- 10.0
- EV / EBITDA
- 10.0
- Price / book
- 3.9
- Price / sales
- 1.7
- PEG
- 1.69
- Market cap
- 5.2B USD
- Enterprise value
- 9.9B USD
Profitability
- ROE
- 33.8%
- ROA
- 6.5%
- ROIC (approx.)
- 17.6%
- Gross margin
- 34.2%
- Operating margin
- 36.5%
- Net margin
- 13.8%
- Free cash flow
- 138.7M USD
- FCF yield
- 2.7%
- Cash conversion
- 14%
Solvency
- Total debt
- 4.9B USD
- Net debt
- 4.7B USD
- Cash
- 196.0M USD
- EBITDA
- 990.7M USD
- Net debt / EBITDA
- 4.70
- Debt / equity
- 349.17
- Current ratio
- 0.36
- Quick ratio
- 0.24
Growth
- Revenue growth
- +4.9%
- Earnings growth
- +14.4%
- EPS (TTM)
- 5.86 USD
- EPS (forward)
- 7.40 USD
Dividend
- Dividend yield
- 0.6%
- Payout
- 7.5%
Risk and market
- Beta
- 0.77
- Analyst consensus
- Strong buy (12)
- Target price
- 130.83 USD
- 52-week range
- 73.44 – 118.35
Recent news
All CHDN news →Compare it with its sector
All 228 in Consumer Cyclical →Frequently asked questions about Churchill Downs
Is Churchill Downs stock cheap or expensive?
On P/E and EV / EBITDA, it trades 20% below the Consumer Cyclical median on average. Valuation score: 6.9 out of 10 (median for Consumer Cyclical: 6.6). Average analyst target: 130.83 USD, +76.9% versus the price. This is not investment advice.
What score does Churchill Downs get on MeridIAn Screener?
It scores 5.8 out of 10, rank 1,136 of 2,130 (better than 43% of the companies analysed). Its strongest category is Valuation (6.9) and its weakest, Dividend (3.0). Analysis of 08/10/2026.
What is Churchill Downs's P/E ratio?
Its P/E is 12.6: the share price equals 12.6 times earnings per share over the last 12 months. The Consumer Cyclical median is 17.8. Based on the earnings analysts expect, the forward P/E is 10.0.
How much is Churchill Downs worth on the stock market?
Its market capitalisation is 5.2B USD and its enterprise value, debt included, is 9.9B USD.
How much debt does Churchill Downs have?
Its net debt (debt minus cash) is 4.7B USD. That is 4.70 times its EBITDA; the Consumer Cyclical median is 1.91.
Does Churchill Downs pay a dividend?
Yes: its dividend yield is 0.59% and it pays out 7% of its earnings.
How has Churchill Downs stock performed over the last year?
It has fallen 17.5% over the last year, excluding dividends. Over the last 52 weeks it has traded between 73.44 and 118.35 USD. Past performance does not guarantee future results.
What do analysts think of Churchill Downs?
12 analysts cover it; their average recommendation is “Strong buy” and their average target is 130.83 USD (+76.9% versus the price). It is an estimate, not market data.