Churchill Downs IncorporatedCHDN
NasdaqGS•Consumer Cyclical•Gambling
Churchill Downs Incorporated operates live and historical racing entertainment venues, online wagering businesses, and regional casino gaming properties in the United States. It operates through three segments: Live and Historical Racing, Wagering Services and Solutions, and Gaming. The Live and Historical Racing segment engages in live and historical pari-mutuel racing related activities at Churchill Downs Racetrack and its historical racing properties in Kentucky, Virginia, and New Hampshire; provides racing event-related services, including admissions, personal seat licenses, sponsorships, television rights, and other miscellaneous services, as well as food and beverages services. The Wagering Services and Solutions engages in pari-mutuel wagers through TwinSpires, which operates the online horse racing wagering business for TwinSpires.com, BetAmerica.com, and other white-label platforms; facilitates dollar wagering; provides the Bloodstock Research Information Services platform for horse racing statistical data; offers streaming video of live horse races, replays, and an assortment of racing and handicapping information; and provides technology services to third parties. This segment also operates retail and online sports betting businesses, United Tote, which manufactures and operates pari-mutuel wagering systems for racetracks, OTBs, and other pari-mutuel wagering businesses, and Exacta, which provides central determinant system technology in HRMs. The Gaming segment operates the casino properties and associated racetracks, which include slot machines, table games, video lottery terminals, video poker, HRMs, ancillary food and beverage services, hotel services, commission on pari-mutuel wagering, racing event-related services, and other miscellaneous operations. Churchill Downs Incorporated was founded in 1875 and is headquartered in Louisville, Kentucky.
Churchill Downs, Incorporated (CHDN) reported trailing twelve months revenue of $2.95B as of March 2026, a 5.8% increase year-over-year. Quarterly revenue reached $663.00M, reflecting continued top-line momentum.
Churchill Downs, Incorporated generated $389.30M in TTM net income, with quarterly EBITDA of $199.00M. The operating margin expanded from 20.9% to 21.6%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (21.6%) and net margin (12.5%) indicates moderate non-operating costs. Net margin has improved from 11.9% a year ago, signaling stronger bottom-line efficiency.
CHDN trades at a P/E of 15.6x (in line with broad market averages) and a P/S of 2.1x. The price-to-book ratio of 5.6x indicates a significant premium over book value.
The company generated $255.00M in free cash flow over the trailing twelve months, a 42.5% increase year-over-year, indicating cash generation ability. The balance sheet shows $7.49B in total assets with $4.87B in long-term debt against $1.10B in stockholders equity for a debt-to-equity ratio of 4.4, a relatively leveraged position. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~23.5% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 38.7% suggests a durable competitive advantage and efficient capital allocation.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~12.7% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Operating margins declined 9.0% — watch for continued compression, which may signal competitive or cost pressure.
FCF covers net income by 1.7x on average — earnings are well-supported by cash generation.
D/E ratio is 4.4 — dangerously high. The company is heavily leveraged and vulnerable to rising rates or cash flow dips.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 5.3% — net buybacks are reducing shares outstanding and boosting per-share value.