Canterbury Park Holding Corp (NASDAQ: CPHC)

Sector: Consumer Cyclical Industry: Resorts & Casinos CIK: 0001672909
Market Cap 67.80 Mn
P/B 1.75
P/E 23.65
P/S 1.20
ROIC (Qtr) 1.83
Div Yield % 1.86
Rev 1y % (Qtr) -5.03
Total Debt (Qtr) 125,682.00
Debt/Equity (Qtr) 0.00
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About

Canterbury Park Holding Corporation (CPHC) operates in the entertainment and gaming industry, with its subsidiaries Canterbury Park Entertainment LLC and Canterbury Development driving its business activities. The company is listed on the NASDAQ stock exchange and is based in Minnesota, where it has established itself as a significant player in the horse racing and gaming sectors. Canterbury Park's main business activities include hosting pari-mutuel wagering on thoroughbred and quarter horse races, operating a casino, offering food and beverage...

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Investment thesis

Bull case

  • Strong operating cash flow of 6.21M provides robust 49.42x coverage of total debt 125682, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 16.99M provide 483.89x coverage of short-term debt 35111, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 114.38M provides 910.08x coverage of total debt 125682, indicating robust asset backing and low credit risk.
  • Tangible assets of 114.38M provide exceptional 241.31x coverage of deferred revenue 474005, showing strong service capability backing.
  • Operating cash flow of 6.21M provides strong 13.10x coverage of deferred revenue 474005, indicating service delivery capability.

Bear case

  • Operating cash flow of 6.21M barely covers its investment activities of (10.37M), with a coverage ratio of -0.60, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 6.21M provides thin coverage of dividend payments of (1.42M) with a -4.37 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • High receivables of 8.90M relative to inventory of 290726 (30.61 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • The company's operating cash flow of 6.21M shows concerning coverage of stock compensation expenses of 1.57M, with a 3.94 ratio indicating potential earnings quality issues.
  • Operating cash flow of 6.21M provides minimal -10.08x coverage of tax expenses of (616115), suggesting potential tax planning inefficiencies or unsustainable tax positions.

Segments Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

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 0.46 1.18
EV to Cash from Ops. EV/CFO 6.37 39.36
EV to Debt EV to Debt 419.32 32.02
EV to EBIT EV/EBIT 10.94 44.55
EV to EBITDA EV/EBITDA 7.22 19.91
EV to Free Cash Flow [EV/FCF] EV/FCF 11.92 -82.04
EV to Market Cap EV to Market Cap 0.78 4.40
EV to Revenue EV/Rev 0.93 4.33
Price to Book Value [P/B] P/B 1.75 3.49
Price to Earnings [P/E] P/E 23.65 199.09
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -0.97 2.40
Dividend Payout Ratio % Div Payout % (Qtr) -103.70 38.73
Dividend per Basic Share Div per Share (Qtr) 0.28 1.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -38.94 21.58
Interest Coverage Int. cover (Qtr) 0.00 -1.90
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 23.28 7.02
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -24.24 3.69
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 6.21
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -129.32 -15.96
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -44.28 -13.29
EBIT Growth (1y) % EBIT 1y % (Qtr) -129.45 -1.32
EBT Growth (1y) % EBT 1y % (Qtr) -129.45 -10.90
EPS Growth (1y) % EPS 1y % (Qtr) -128.42 9.03
FCF Growth (1y) % FCF 1y % (Qtr) -62.98 81.04
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -3.74 4.33
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.52 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.09 0.11
Cash Ratio Cash Ratio (Qtr) 1.33 0.59
Current Ratio Curr Ratio (Qtr) 2.07 0.90
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 4.57
Interest Cover Ratio Int Coverage (Qtr) 0.00 -1.90
Times Interest Earned Times Interest Earned (Qtr) 0.00 -1.90
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 3.20 18.45
EBIT Margin % EBIT Margin % (Qtr) -3.39 11.71
EBT Margin % EBT Margin % (Qtr) -3.39 4.06
Gross Margin % Gross Margin % (Qtr) 79.70 47.91
Net Profit Margin % Net Margin % (Qtr) -2.30 2.46