📊 AI Stock Rating — Summary

For the quarter ending September 30, 2025, Churchill Downs Incorporated (CHDN) reported a revenue of $683 million with a net income of $37.9 million translating to an EPS of $0.54. The company demonstrated a relatively strong net margin for the quarter. The free cash flow for this period was $267.8 million despite a high level of capital expenditure. Year-over-year revenue growth reveals a moderate upward trend, suggesting steady business operations. Profitability showed some fluctuation across the quarters but remained reasonably solid, with June 2025 displaying the highest EPS. The balance sheet shows a stable equity base and high net debt, indicating leverage management as an area for attention. CHDN’s high debt level relative to total assets is reflected in its net debt of approximately $4.9 billion. The company executed share buybacks and marginally reduced its debt, indicating efforts to manage capital structure. While dividends have been consistently issued, yielding shareholder returns, the stock's notable price appreciation further indicates positive investor sentiment. Analyst price targets reaching up to $167 imply potential further gains. Current valuation metrics were not provided, potentially limiting deeper analysis of comparative market positioning and valuation accuracy. Overall, with strong cash flow generation and attentive capital return activities, CHDN shows stable operational performance and potential for investor returns.

AI Score Breakdown

Revenue Growth — Score: 7/10

CHDN experienced a stable to moderately growing revenue trend, with an uptick seen over the past quarters. The main drivers are consistent operational performance with some seasonal revenue peaks.

Profitability — Score: 7/10

Profitability has been solid, especially in the most recent quarters, with net income and EPS demonstrating a healthy upward trend indicative of operational efficiency.

Cash Flow Quality — Score: 8/10

The company shows robust free cash flow, especially in the recent quarter, signaling strong cash generation capability. Despite large capex, cash flow management supports continued investments and shareholder payouts.

Leverage & Balance Sheet — Score: 5/10

CHDN has high leverage, with net debt above $4.9 billion. While equity remains stable, the company's debt level requires cautious watch for financial resilience.

Shareholder Returns — Score: 8/10

Shareholder returns are bolstered by share buybacks and dividends alongside a strong price performance. Analyst targets suggesting upside are supported by recent stock appreciation trends.

Analyst Sentiment & Valuation — Score: 7/10

Analyst sentiment is positive with price targets reaching up to $167. Without detailed valuation metrics, further comparison with peers remains limited, but sentiment indicates upside potential relative to current price.

⚠ AI-generated — informational only, not financial advice.