CHDN Stock Analysis — Churchill Downs Incorporated
Sector: Gaming & Leisure
AI Verdict
CHDN is cheap for the growth you're getting, and the unique moat around the Derby and gaming licenses makes the earnings ramp look credible.
Competitive Moat
Churchill Downs owns the Kentucky Derby and related gaming properties, giving it a unique brand and regulatory moat in horse racing and gambling. Its control of premier racing events and established licenses create high barriers for new entrants.
Summary
CHDN is notable for its deep earnings growth forecast at a discount multiple, driven by its irreplaceable racing assets.
Where It Stands
CHDN trades at 11.5x next year's earnings, well below the consumer sector median of 20x, with analysts expecting 33.2% EPS growth and a trailing P/E of 15.3x.
Key Metrics
- Trailing P/E: 15.3x
- Forward P/E: 11.5x
- PEG Ratio: 0.46
- Earnings Growth: +0.3%
- Revenue Growth: +0.1%
- Dividend Yield: 0.00%
- 52-Week High: $118.35
- 52-Week Low: $79.40
Analyst Consensus
17 Buy · 1 Hold · 0 Sell (18 analysts)
Bull Case
You are paying just 11.5x forward earnings for a business expected to grow EPS by 33.2% next year, making it cheap for the growth on offer.
Bear Case
If the forward P/E reverts to the sector median of 20x, the stock could see a sharp re-rating, but if growth falters, even the current low multiple could compress further.
Catalyst to Watch
Watch for Kentucky Derby results and gaming expansion updates, as any disruption to these core drivers could shift earnings expectations.