Churchill Downs (CHDN)
Key Statistics
EV/EBIT = 17.8x
ROE = 43.24%
Debt/Equity = 470%
FCF Yield = .13%
Dividend Yield = .28%
Market Cap = $10.09 billion
The Company
Churchill Downs (CHDN), based in Louisville, Kentucky, is a gambling company with 150 years of history, most famously through its iconic Kentucky Derby.
The company began in 1875 with the opening of Churchill Downs and the first Kentucky Derby and Kentucky Oaks, both of which have since become iconic horse races. Over the years, Churchill solidified its position in thoroughbred racing, with the formation of the Kentucky Jockey Club in 1919 to consolidate the state’s racing industry. In 1937, Churchill went public, and by the 1990s, it began expanding beyond horse racing, acquiring casinos and racetracks across the U.S.
The launch of TwinSpires in the 2000s marked Churchill’s entry into online wagering, which has since become a key growth area for the company. Throughout the 2010s, Churchill continued to innovate by investing in technology and historical horse racing machines (HRMs). In the 2020s, Churchill shifted its focus toward diversifying revenue streams through strategic acquisitions and partnerships.
Today, Churchill Downs is a major gambling powerhouse, operating racetracks, off-track betting venues, HRM outlets, casinos, online gambling platforms, and more.
The company operates in four main business segments: Live and Historical Racing, TwinSpires online wagering, Gaming, and Other. Live & Historical Racing represent 43% of the company’s revenue, TwinSpires 18.2%, Gaming 38.7%, and Other just 0.4%. Although there are internal transactions between these segments, such as TwinSpires bets on live races at Churchill Downs, they account for only about 2% of total revenue.
