📊 CHDN Key Takeaways
Is Churchill Downs Inc (CHDN) a Good Investment?
Churchill Downs demonstrates strong cash flow generation and decent operating margins, but faces significant operational challenges: 1082.8% revenue growth yields only 0.9% net income growth, indicating acquisition integration or profitability headwinds. Extreme leverage (4.44x Debt/Equity) with weak interest coverage (2.0x) and poor liquidity (0.54x current ratio) create refinancing risk and limit financial flexibility.
Churchill Downs shows strong underlying profitability, with a 23.4% operating margin and solid interest coverage of 9.7x, indicating the core business can generate meaningful earnings despite a capital-intensive profile. However, the reported revenue surge appears low quality because net income grew only 0.9% and diluted EPS declined 3.9%, while leverage is very high and liquidity is weak. Fundamentally, this looks like a profitable but balance-sheet-constrained business where debt reduction and cleaner cash flow conversion matter more than headline growth.
Why Buy Churchill Downs Inc Stock? CHDN Key Strengths
- Strong free cash flow generation ($257.3M) with 38.8% FCF margin demonstrates underlying operational cash generation capacity
- Solid operating margin of 21.6% indicates core business unit profitability and operational control
- Substantial operating income of $143M provides cushion for debt servicing despite leverage concerns
- Strong operating profitability with a 23.4% operating margin and $683.8M in operating income
- Positive free cash flow generation of $208.8M provides some financial flexibility
- Interest coverage of 9.7x suggests current earnings can support debt servicing
CHDN Stock Risks: Churchill Downs Inc Investment Risks
- Severe growth quality deterioration: 1082.8% revenue growth coupled with 0.9% net income growth suggests failed acquisition integration, one-time revenue recognition, or operational delevering
- Excessive leverage (4.44x Debt/Equity) with dangerously low interest coverage (2.0x) leaves minimal margin for error in economic downturns or interest rate increases
- Acute liquidity crisis with current ratio of 0.54x and quick ratio of 0.53x indicates potential working capital strain despite strong FCF
- Very high leverage with $5.07B of long-term debt and 5.02x debt-to-equity
- Weak liquidity with a 0.60x current ratio and 0.59x quick ratio
- Growth quality is questionable because revenue jumped 1082.8% while net income was nearly flat and diluted EPS declined
Key Metrics to Watch
- Net income margin trend and year-over-year earnings growth to validate sustainable profitability on enlarged revenue base
- Interest coverage ratio improvement and debt reduction progress to reduce refinancing risk
- Cash conversion cycle and working capital management to address liquidity position and current ratio recovery
- Debt reduction progress and debt/EBITDA or debt/equity trend
- Operating cash flow and free cash flow conversion relative to net income
Churchill Downs Inc (CHDN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 38.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
CHDN Profit Margin, ROE & Profitability Analysis
CHDN vs Services Sector: How Churchill Downs Inc Compares
How Churchill Downs Inc compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Churchill Downs Inc Stock Overvalued? CHDN Valuation Analysis 2026
Based on fundamental analysis, Churchill Downs Inc shows some fundamental concerns relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Churchill Downs Inc Balance Sheet: CHDN Debt, Cash & Liquidity
CHDN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Churchill Downs Inc's revenue has grown significantly by 19% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.18 reflects profitable operations.
CHDN Revenue Growth, EPS Growth & YoY Performance
CHDN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $643.0M | $77.0M | $1.02 |
| Q3 2025 | $628.5M | $38.1M | $0.54 |
| Q2 2025 | $890.7M | $76.7M | $2.79 |
| Q1 2025 | $590.9M | $76.7M | $1.02 |
| Q3 2024 | $572.5M | $61.0M | $0.79 |
| Q2 2024 | $768.5M | $80.4M | $1.86 |
| Q1 2024 | $559.5M | $80.4M | $1.08 |
| Q3 2023 | $383.1M | $42.1M | $0.74 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Churchill Downs Inc Dividends, Buybacks & Capital Allocation
CHDN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Churchill Downs Inc (CIK: 0000020212)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 23, 2026 | 4 | xslF345X06/wk-form4_1776974634.xml | View → |
| Apr 23, 2026 | 4 | xslF345X06/wk-form4_1776974630.xml | View → |
| Apr 23, 2026 | 4 | xslF345X06/wk-form4_1776974625.xml | View → |
| Apr 23, 2026 | 4 | xslF345X06/wk-form4_1776974620.xml | View → |
| Apr 23, 2026 | 4 | xslF345X06/wk-form4_1776974616.xml | View → |
❓ Frequently Asked Questions about CHDN
What is the AI rating for CHDN?
Churchill Downs Inc (CHDN) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 62% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CHDN's key strengths?
Claude: Strong free cash flow generation ($257.3M) with 38.8% FCF margin demonstrates underlying operational cash generation capacity. Solid operating margin of 21.6% indicates core business unit profitability and operational control. ChatGPT: Strong operating profitability with a 23.4% operating margin and $683.8M in operating income. Positive free cash flow generation of $208.8M provides some financial flexibility.
What are the risks of investing in CHDN?
Claude: Severe growth quality deterioration: 1082.8% revenue growth coupled with 0.9% net income growth suggests failed acquisition integration, one-time revenue recognition, or operational delevering. Excessive leverage (4.44x Debt/Equity) with dangerously low interest coverage (2.0x) leaves minimal margin for error in economic downturns or interest rate increases. ChatGPT: Very high leverage with $5.07B of long-term debt and 5.02x debt-to-equity. Weak liquidity with a 0.60x current ratio and 0.59x quick ratio.
What is CHDN's revenue and growth?
Churchill Downs Inc reported revenue of $663.0M.
Does CHDN pay dividends?
Churchill Downs Inc pays dividends, with $31.0M distributed to shareholders in the trailing twelve months.
Where can I find CHDN SEC filings?
Official SEC filings for Churchill Downs Inc (CIK: 0000020212) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CHDN's EPS?
Churchill Downs Inc has a diluted EPS of $5.49.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CHDN a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Churchill Downs Inc has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CHDN stock overvalued or undervalued?
Valuation metrics for CHDN: ROE of 7.6% (sector avg: 16%), net margin of 12.5% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy CHDN stock in 2026?
Our dual AI analysis gives Churchill Downs Inc a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CHDN's free cash flow?
Churchill Downs Inc's operating cash flow is $295.0M, with capital expenditures of $37.7M. FCF margin is 38.8%.
How does CHDN compare to other Services stocks?
Vs Services sector averages: Net margin 12.5% (avg: 10%), ROE 7.6% (avg: 16%), current ratio 0.54 (avg: 1.5).
Is Churchill Downs Inc carrying too much debt?
CHDN has a debt-to-equity ratio of 4.44x, which is above the Services sector average of 0.7x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.