Is CHDN's EPS growth sustainable beyond Q1 2025?
4/6/2025 12:21am
**Churchill Downs' EPS growth may not be sustainable beyond Q1 2025** based on several points of analysis:
1. **Recent Performance**: The most recent data shows a decline in the Diluted EPS growth rate, with a last change of -5.83% and a Yoy growth of -0.26%. This recent negative trend suggests that the immediate future may not reflect the past growth.
2. **Market Sensitivity**: The P/E ratio stands at 17.68, which is relatively high, indicating that the stock is expensive relative to its earnings. This high valuation could be sensitive to earnings misses or downturns, potentially leading to a correction in the stock price if the EPS growth does not sustain.
|code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code|
|---|---|---|---|---|---|---|---|
|CHDN|CHDN.O|Churchill Downs|20240408|26.083903|0|10.008576441797224|185|
|CHDN|CHDN.O|Churchill Downs|20240409|26.831798|0|10.295548889827662|185|
|CHDN|CHDN.O|Churchill Downs|20240410|26.438508|0|10.144640964570279|185|
|CHDN|CHDN.O|Churchill Downs|20240411|26.732938|0|10.25761575014548|185|
|CHDN|CHDN.O|Churchill Downs|20240412|25.946359|0|9.955799899630707|185|
|CHDN|CHDN.O|Churchill Downs|20240415|26.260131|0|10.076196386448075|185|
|CHDN|CHDN.O|Churchill Downs|20240416|26.670614|0|10.233701379476274|185|
|CHDN|CHDN.O|Churchill Downs|20240417|26.023327|0|9.984662071128021|185|
|CHDN|CHDN.O|Churchill Downs|20240418|25.640757|0|9.837877313227395|185|
|CHDN|CHDN.O|Churchill Downs|20240419|25.567682|0|9.80983977520143|185|
3. **Analyst Expectations**: Historical EPS has not always met analyst expectations, with a notable miss of $0.26 reported in the past. This track record raises questions about the predictability of their earnings.
4. **Strategic Investments**: While strategic investments by financial institutions like Jump Financial and Sigma Planning Corp indicate confidence in Churchill Downs' growth potential, these investments alone do not guarantee sustained EPS growth.
5. **Industry Dynamics**: The gaming industry is highly competitive and subject to regulatory changes, economic cycles, and consumer preferences. These factors can impact profitability and make it challenging to sustain EPS growth over the long term.
In conclusion, while there is potential for growth based on strategic investments and past performance, the current data and market conditions suggest that Churchill Downs' EPS growth may not be sustainable beyond Q1 2025 without significant positive developments or improvements in operational efficiency.