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CHDN Stock Analysis - Churchill Downs Inc AI Rating

CHDN Nasdaq Services-Racing, Including Track Operation KY CIK: 0000020212
Recently Updated • Analysis: Mar 22, 2026 • SEC Data: 2025-12-31
AI Rating
HOLD
62% Confidence

📊 CHDN Key Takeaways

Revenue: $2.9B
Net Margin: 13.1%
Free Cash Flow: $208.8M
Current Ratio: 0.60x
Debt/Equity: 5.02x
EPS: $5.49
AI Rating: HOLD with 62% confidence

Investment Thesis

Churchill Downs demonstrates strong operational profitability with a 23.4% operating margin and impressive 37.9% ROE, supported by robust free cash flow generation of $208.8M. However, the company faces significant financial leverage with a 5.02x debt-to-equity ratio and weak liquidity position (0.60x current ratio), raising concerns about financial flexibility despite the exceptional 1082.8% YoY revenue growth which appears anomalous and warrants scrutiny.

CHDN Strengths

  • + Strong operating margins of 23.4% demonstrate efficient business operations
  • + Excellent return on equity of 37.9% shows effective capital deployment
  • + Solid free cash flow generation of $208.8M with 7.1% FCF margin
  • + Healthy interest coverage ratio of 9.7x indicates ability to service debt
  • + Consistent net income growth of 0.9% YoY despite operational challenges

CHDN Risks

  • ! Critically high debt-to-equity ratio of 5.02x indicates excessive financial leverage
  • ! Poor liquidity position with current ratio of 0.60x and quick ratio of 0.59x
  • ! Anomalous 1082.8% YoY revenue growth requires investigation into accounting changes, acquisitions, or data quality
  • ! Low cash position of $200.6M relative to $5.1B long-term debt creates refinancing risk
  • ! ROA of only 5.1% suggests limited efficiency in asset utilization

Key Metrics to Watch

CHDN Financial Metrics

Revenue
$2.9B
Net Income
$383.0M
EPS (Diluted)
$5.49
Free Cash Flow
$208.8M
Total Assets
$7.5B
Cash Position
$200.6M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

CHDN Profitability Ratios

Gross Margin N/A
Operating Margin 23.4%
Net Margin 13.1%
ROE 37.9%
ROA 5.1%
FCF Margin 7.1%

CHDN vs Default Sector

How Churchill Downs Inc compares to Default sector averages

Net Margin
CHDN 13.1%
vs
Sector Avg 12.0%
CHDN Sector
ROE
CHDN 37.9%
vs
Sector Avg 15.0%
CHDN Sector
Current Ratio
CHDN 0.6x
vs
Sector Avg 1.8x
CHDN Sector
Debt/Equity
CHDN 5.0x
vs
Sector Avg 0.7x
CHDN Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

CHDN Balance Sheet & Liquidity

Current Ratio
0.60x
Quick Ratio
0.59x
Debt/Equity
5.02x
Debt/Assets
85.9%
Interest Coverage
9.71x
Long-term Debt
$5.1B

CHDN 5-Year Financial Trend

CHDN 5-year financial data: Year 2023: Revenue $2.5B, Net Income $249.1M, EPS $3.18. Year 2024: Revenue $2.7B, Net Income $439.4M, EPS N/A. Year 2025: Revenue $2.9B, Net Income $417.3M, EPS N/A.
Revenue
Net Income
EPS (right axis)

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 Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
7.1%
Free cash flow / Revenue

CHDN Quarterly Performance

Quarterly financial performance data for Churchill Downs Inc including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
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.

CHDN Capital Allocation

Operating Cash Flow
$246.5M
Cash generated from operations
Stock Buybacks
$427.8M
Shares repurchased (TTM)
Capital Expenditures
$37.7M
Investment in assets
Dividends Paid
$30.8M
Returned to shareholders

CHDN SEC Filings

Access official SEC EDGAR filings for Churchill Downs Inc (CIK: 0000020212)

📋 Recent SEC Filings

Date Form Document Action
Mar 20, 2026 4 xslF345X06/wk-form4_1774037001.xml View →
Mar 20, 2026 4 xslF345X06/wk-form4_1774036995.xml View →
Mar 12, 2026 DEF 14A d123994ddef14a.htm View →
Feb 25, 2026 10-K chdn-20251231.htm View →
Feb 25, 2026 8-K chdn-20260225.htm View →

Frequently Asked Questions about CHDN

What is the AI rating for CHDN?

Churchill Downs Inc (CHDN) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CHDN's key strengths?

Strong operating margins of 23.4% demonstrate efficient business operations. Excellent return on equity of 37.9% shows effective capital deployment.

What are the risks of investing in CHDN?

Critically high debt-to-equity ratio of 5.02x indicates excessive financial leverage. Poor liquidity position with current ratio of 0.60x and quick ratio of 0.59x.

What is CHDN's revenue and growth?

Churchill Downs Inc reported revenue of $2.9B.

Does CHDN pay dividends?

Churchill Downs Inc pays dividends, with $30.8M 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?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 22, 2026 | Data as of: 2025-12-31 | Powered by Claude AI