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Churchill Downs (Churchill Downs) Owner Earnings per Share (TTM) : 3.58 (As of Mar. 2024)


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What is Churchill Downs Owner Earnings per Share (TTM)?

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Churchill Downs's Owner Earnings per Share (TTM) ended in Mar. 2024 was $3.58. It's Price-to-Owner-Earnings ratio for today is 36.16.


The historical rank and industry rank for Churchill Downs's Owner Earnings per Share (TTM) or its related term are showing as below:

CHDN' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 8.64   Med: 20.82   Max: 62.5
Current: 36.16


During the past 13 years, the highest Price-to-Owner-Earnings ratio of Churchill Downs was 62.50. The lowest was 8.64. And the median was 20.82.


CHDN's Price-to-Owner-Earnings is ranked worse than
79.14% of 441 companies
in the Travel & Leisure industry
Industry Median: 14.87 vs CHDN: 36.16

Churchill Downs's Earnings per Share (Diluted) for the three months ended in Mar. 2024 was $1.08. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2024 was $4.49. It's PE Ratio ratio for today is 28.83.

Churchill Downs's EPS without NRI for the three months ended in Mar. 2024 was $1.12. Its EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2024 was $4.88. It's PE Ratio without NRI ratio for today is 26.52.


Churchill Downs Owner Earnings per Share (TTM) Historical Data

The historical data trend for Churchill Downs's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Churchill Downs Owner Earnings per Share (TTM) Chart

Churchill Downs Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Owner Earnings per Share (TTM)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.14 -1.72 3.80 6.64 4.82

Churchill Downs Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Owner Earnings per Share (TTM) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.21 3.94 4.23 4.82 3.58

Competitive Comparison of Churchill Downs's Owner Earnings per Share (TTM)

For the Gambling subindustry, Churchill Downs's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Churchill Downs's Price-to-Owner-Earnings Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Churchill Downs's Price-to-Owner-Earnings distribution charts can be found below:

* The bar in red indicates where Churchill Downs's Price-to-Owner-Earnings falls into.



Churchill Downs Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Churchill Downs's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 342
Depreciation, Depletion and Amortization 183
Change In Deferred Tax 19
5Y Average of Maintenance Capital Expenditure 306
Change In Working Capital 29
Shares Outstanding (Diluted Average) 75

1. Start with "Net Income" from income statement. Churchill Downs's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was $342 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Churchill Downs's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Mar. 2024 was $183 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Churchill Downs's Change In Deferred Tax for the trailing twelve months (TTM) ended in Mar. 2024 was $19 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $306 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous quarter. If the revenue decreased from the previous quarter, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous quarter, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Churchill Downs's 5-Year Average Maintenance Capital Expenditure = $306 Mil

5. "Change In Working Capital" is from cashflow statement. Churchill Downs's Change In Working Capital for the trailing twelve months (TTM) ended in Mar. 2024 was $29 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Churchill Downs's Shares Outstanding (Diluted Average) for the months ended in Mar. 2024 was 74.700 Mil.

Churchill Downs's Onwer Earnings Per Share for Mar. 2024 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 342 +183.4+19.1
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-305.74154376344+28.7)/74.700
=3.58

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=129.44/3.58
=36.16

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Churchill Downs Owner Earnings per Share (TTM) Related Terms

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Churchill Downs (Churchill Downs) Business Description

Traded in Other Exchanges
Address
600 North Hurstbourne Parkway, Suite 400, Louisville, KY, USA, 40222
Churchill Downs Inc is a gaming entertainment, online wagering, and racing company. It operates through three business segments: Live and Historical Racing, TwinSpires, and Gaming. The Live and Historical Racing segment includes live and historical pari-mutuel racing. The TwinSpires segment includes the revenue and expenses for online horse racing and the online and retail sports betting and iGaming wagering business. The company generates more than half of its revenue from the Gaming segment includes revenue from casino properties and associated racetrack or jai alai facilities which support the casino license as applicable.
Executives
Maureen Adams officer: SVP, Gaming Operations 600 N. HURSTBOURNE PARKWAY, SUITE 400, LOUISVLLE KY 40222
Bradley K. Blackwell officer: SVP, General Counsel 600 N. HURSTBOURNE PARKWAY, SUITE 400, LOUISVILLE KY 40222
Andrea M Carter director 600 N. HURSTBOURNE PARKWAY, SUITE 400, LOUISVILLE KY 40222
Karole Lloyd director 1932 WYNNTON ROAD, COLUMBUS GA 31999
Paul C Varga director 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
R Alex Rankin director 700 CENTRAL AVENUE, LOUISVILLE KY 40208
Robert L Fealy director 700 CENTRAL AVE, LOUISVILLE KY 40208
Bridgeman Ulysses L Jr director 7 SYLVAN WAY, PARSIPPANY NJ 07054
Marcia A Dall officer: EVP, and Chief Financial Offic 600 N. HURSTBOURNE PARKWAY, SUITE 400, LOUISVILLE KY 40222
Austin W. Miller officer: SVP, Gaming Operations 600 N. HURSTBOURNE PARKWAY, SUITE 400, LOUISVILLE KY 40222
Douglas C Grissom director THREE FIRST NATIONAL PLAZA STE 3800, CHICAGO IL 60602
William E Mudd officer: President and COO 700 CENTRAL AVENUE, LOUISVILLE KY 40208
Daniel P Harrington director 700 CENTRAL AVE, LOUISVILLE KY 40208
Richard L Duchossois director, 10 percent owner
Robert L Evans director, officer: President and CEO TENLANE FARM, 825 STEELE ROAD, VESAILLES KY 40383