Boyd Gaming Corp (NYSE: BYD)

Sector: Consumer Cyclical Industry: Resorts & Casinos CIK: 0000906553
Market Cap 8.33 Bn
P/B 17.52
P/E -92.47
P/S 2.92
ROIC (Qtr) 12.35
Div Yield % 0.22
Rev 1y % (Qtr) 4.49
Total Debt (Qtr) 2.46 Bn
Debt/Equity (Qtr) 0.92
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About

Boyd Gaming Corporation (BYD) is a prominent player in the gaming industry, with a focus on operating gaming entertainment properties, offering online gaming services, and managing a travel agency and a captive insurance company in Hawaii. The company's operations span across the United States, including Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania, as well as in Canada through its online gaming business, Boyd Interactive. Boyd Gaming's primary business activities involve generating revenue from...

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Investment thesis

Bull case

  • Operating cash flow of 963.45M provides strong 27.98x coverage of stock compensation 34.43M, indicating sustainable incentive practices.
  • Strong operating cash flow of 963.45M provides 1.74x coverage of SG&A expenses 555.05M, showing efficient operational cost management.
  • Operating cash flow of 963.45M fully covers other non-current liabilities 421.81M by 2.28x, showing strong long-term stability.
  • Operating cash flow of 963.45M provides strong 46.04x coverage of inventory 20.93M, indicating efficient inventory management.
  • Tangible assets of 4.17B provide robust 5.02x coverage of other current liabilities 831.99M, indicating strong asset backing.

Bear case

  • Operating cash flow of 963.45M barely covers its investment activities of 1.12B, with a coverage ratio of 0.86, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 963.45M provides thin coverage of dividend payments of (59.09M) with a -16.30 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 323.97M provide limited coverage of acquisition spending of (43.25M), which is -7.49x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 82.22M relative to inventory of 20.93M (3.93 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating cash flow of 963.45M provides minimal 1.81x coverage of tax expenses of 532.76M, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Segments Breakdown of Revenue (2020)

Peer comparison

Companies in the Resorts & Casinos
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 LVS Las Vegas Sands Corp 39.82 Bn 24.48 3.06 15.78 Bn
2 WYNN Wynn Resorts Ltd 20.12 Bn 2,860.00 4.09 12.20 Bn
3 MGM MGM Resorts International 9.16 Bn 44.51 0.52 31.26 Bn
4 BYD Boyd Gaming Corp 8.33 Bn -92.47 2.92 2.46 Bn
5 MTN Vail Resorts Inc 4.91 Bn 196.79 4.35 3.38 Bn
6 HGV Hilton Grand Vacations Inc. 4.44 Bn 83.82 0.89 7.28 Bn
7 CZR Caesars Entertainment, Inc. 3.93 Bn -7.83 0.34 24.88 Bn
8 RRR Red Rock Resorts, Inc. 3.66 Bn 20.78 2.12 3.41 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.91 1.18
EV to Cash from Ops. EV/CFO 49.97 39.36
EV to Debt EV to Debt 5.07 32.02
EV to EBIT EV/EBIT 51.72 44.55
EV to EBITDA EV/EBITDA 22.96 19.91
EV to Free Cash Flow [EV/FCF] EV/FCF 113.36 -82.04
EV to Market Cap EV to Market Cap 1.50 4.40
EV to Revenue EV/Rev 4.37 4.33
Price to Book Value [P/B] P/B 17.52 3.49
Price to Earnings [P/E] P/E -92.47 199.09
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 31.70 2.40
Dividend Payout Ratio % Div Payout % (Qtr) 3.10 38.73
Dividend per Basic Share Div per Share (Qtr) 0.71 1.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 13.92 21.58
Interest Coverage Int. cover (Qtr) 14.50 -1.90
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -43.45 7.02
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 11.63 3.69
Dividend Growth (1y) % Div 1y % (Qtr) 5.97 6.21
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 217.41 -15.96
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 4.20 -13.29
EBIT Growth (1y) % EBIT 1y % (Qtr) 214.03 -1.32
EBT Growth (1y) % EBT 1y % (Qtr) 270.65 -10.90
EPS Growth (1y) % EPS 1y % (Qtr) 334.41 9.03
FCF Growth (1y) % FCF 1y % (Qtr) -21.92 81.04
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3.00 4.33
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.63 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.04 0.11
Cash Ratio Cash Ratio (Qtr) 0.34 0.59
Current Ratio Curr Ratio (Qtr) 0.51 0.90
Debt to Equity Ratio Debt/Equity (Qtr) 0.92 4.57
Interest Cover Ratio Int Coverage (Qtr) 14.50 -1.90
Times Interest Earned Times Interest Earned (Qtr) 14.50 -1.90
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 72.80 18.45
EBIT Margin % EBIT Margin % (Qtr) 63.48 11.71
EBT Margin % EBT Margin % (Qtr) 59.11 4.06
Gross Margin % Gross Margin % (Qtr) 50.80 47.91
Net Profit Margin % Net Margin % (Qtr) 46.00 2.46