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Boyd Gaming (BYD)
NYSE:BYD
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Boyd Gaming
(NYSE:BYD)
74Outperform
Positive Factors
Earnings
Boyd Gaming beats revenue and EBITDAR expectations, indicating strong business performance and positive consumer trends.
Growth Opportunities
BYD is building an underappreciated growth pipeline, with projects like the casino development in Norfolk, Virginia, expected to provide high returns.
Share Repurchase
Boyd Gaming repurchased nearly 10% of its market cap in 2024, significantly above initial guidance, indicating strong capital allocation.
Negative Factors
Competition
Competition around several assets and the impact on future estimates pose a risk to the company's performance.
Market Exposure
Softness in spending will remain most impactful for lower income players in certain markets within the South & Midwest, where BYD has meaningful exposure.
Regional Trends
Regional gaming top-line trends are expected to continue to be muted, with risks to spending and visitation trends throughout 2025.
Boyd Gaming (BYD) vs. S&P 500 (SPY)
Market Cap
$5.10B
Dividend Yield1.12%
Average Volume (3M)996.53K
Price to Earnings (P/E)10.0
Beta (1Y)0.91
Revenue Growth5.13%
EPS Growth2.04%
CountryUS
Employees16,129
SectorConsumer Cyclical
Sector Strength63
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)6.21
Shares Outstanding82,512,720
10 Day Avg. Volume858,916
30 Day Avg. Volume996,532
Financial Highlights & Ratios
PEG Ratio4.89
Price to Book (P/B)N/A
Price to Sales (P/S)1.45
Price to Cash Flow (P/CF)5.40
P/FCF Ratio9.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$85.38Price Target Upside38.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
Boyd Gaming Business Overview & Revenue Model
Company DescriptionBoyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company. It operates through three segments: Las Vegas Locals, Downtown Las Vegas, and Midwest & South. As of December 31, 2021, the company operated 28 gaming entertainment properties located in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania. It also engages in owning and operating a travel agency. The company was founded in 1975 and is headquartered in Las Vegas, Nevada.
How the Company Makes MoneyBoyd Gaming primarily generates revenue through its gaming operations, which include slot machines, table games, and sports betting. The company earns significant income from its hotel and resort accommodations, dining establishments, and entertainment events. Key revenue streams include gaming revenue from casino operations, which is the largest contributor, as well as non-gaming revenue from hotel room bookings, food and beverage sales, and entertainment offerings. Boyd Gaming also benefits from strategic partnerships and marketing alliances that enhance its customer reach and loyalty programs that encourage repeat patronage. The company's diverse geographic presence across multiple states allows it to capture a wide range of customers and mitigate regional economic fluctuations.
Boyd Gaming Financial Statement Overview
Summary
Boyd Gaming shows solid financial performance with steady revenue growth and efficient cash flow management. However, the balance sheet highlights a need for better equity management and reduced dependency on debt, which tempers the overall financial performance score.Income Statement
Boyd Gaming has shown a consistent revenue growth over the past few years, with a significant increase in total revenue from $3.36 billion in 2021 to $3.93 billion in 2024. The gross profit margin remains strong, indicating efficient management of production costs. However, the decline in net income from 2023 to 2024 suggests challenges in cost control or increased expenses. The EBIT and EBITDA margins remain healthy, showcasing robust operational efficiency.78
Positive
Balance Sheet
The company's debt-to-equity ratio has improved over time, reflecting a reduction in leverage risk. However, the equity ratio remains low, indicating a high reliance on debt. Return on equity has shown fluctuations, with a decrease in the most recent year, signaling potential concerns in generating returns for shareholders. Overall, the balance sheet demonstrates moderate financial stability but with significant room for improvement.65
Positive
Cash Flow
Boyd Gaming has consistently generated positive free cash flow, with growth in operating cash flow over the years. The free cash flow to net income ratio remains strong, indicating efficient cash management. However, the flat growth in free cash flow from 2023 to 2024 suggests potential challenges in cash generation from operations.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.93B | 3.74B | 3.56B | 3.37B | 2.18B | Gross Profit |
| 2.05B | 2.02B | 1.99B | 1.94B | 1.14B | EBIT |
| 927.78M | 901.83M | 981.22M | 900.10M | 235.96M | EBITDA |
| 1.21B | 1.18B | 1.30B | 1.17B | 340.50M | Net Income Common Stockholders |
| 577.95M | 620.02M | 639.38M | 463.85M | -134.70M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 316.69M | 304.27M | 283.47M | 344.56M | 519.18M | Total Assets |
| 6.39B | 6.27B | 6.31B | 6.22B | 6.56B | Total Debt |
| 695.76M | 3.73B | 3.90B | 3.93B | 4.84B | Net Debt |
| 379.07M | 3.42B | 3.61B | 3.59B | 4.32B | Total Liabilities |
| 4.81B | 4.53B | 4.72B | 4.69B | 5.44B | Stockholders Equity |
| 1.58B | 1.74B | 1.59B | 1.54B | 1.12B |
| Cash Flow | Free Cash Flow | |||
| 556.67M | 540.57M | 706.96M | 810.96M | 114.00M | Operating Cash Flow |
| 957.08M | 914.52M | 976.11M | 1.01B | 289.03M | Investing Cash Flow |
| -433.91M | -264.33M | -422.31M | -129.58M | -171.18M | Financing Cash Flow |
| -509.50M | -637.25M | -615.85M | -1.06B | 146.70M |
Boyd Gaming Technical Analysis
Negative
61.77
Price Trends
72.21
Negative
72.61
Negative
66.55
Negative
Market Momentum
-1.86
Positive
34.54
Neutral
22.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BYD, the sentiment is Negative. The current price of 61.77 is below the 20-day moving average (MA) of 66.76, below the 50-day MA of 72.21, and below the 200-day MA of 66.55, indicating a bearish trend. The MACD of -1.86 indicates Positive momentum. The RSI at 34.54 is Neutral, neither overbought nor oversold. The STOCH value of 22.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BYD.
Boyd Gaming Risk Analysis
Boyd Gaming disclosed 18 risk factors in its most recent earnings report. Boyd Gaming reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Boyd Gaming Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $5.10B | 9.98 | 34.76% | 1.12% | 5.13% | 2.04% | |
73 Outperform | $23.58B | 17.01 | 41.30% | 2.55% | 8.93% | 22.50% | |
67 Neutral | $7.44B | 16.10 | -51.73% | 1.43% | 9.13% | -30.00% | |
66 Neutral | $7.60B | 11.23 | 21.76% | ― | 6.66% | -24.59% | |
60 Neutral | $3.99B | 14.86 | 80.25% | 2.66% | 12.47% | -14.15% | |
59 Neutral | $11.20B | 10.09 | -1.41% | 3.96% | 1.31% | -16.95% | |
46 Neutral | $4.91B | ― | -6.38% | ― | -2.45% | -135.17% |
* Consumer Cyclical Sector Average
Performance Comparison
BYD
Boyd Gaming
61.24
-4.04
-6.19%
LVS
Las Vegas Sands
32.10
-19.34
-37.60%
MGM
MGM Resorts
26.30
-20.00
-43.20%
WYNN
Wynn Resorts
67.93
-36.87
-35.18%
CZR
Caesars Entertainment
23.75
-19.33
-44.87%
RRR
Red Rock Resorts
38.47
-21.79
-36.16%
Boyd Gaming Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -21.17% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
The earnings call for Boyd Gaming presented a predominantly positive view with record-breaking annual revenue, strong segment performances, and strategic growth initiatives. Challenges such as competition and weather impacts were noted, but they were not seen as major hindrances. The company is focused on enhancing shareholder value through substantial returns and strategic investments.Highlights
Record-Breaking Revenue and Growth
Boyd Gaming generated over $3.9 billion in revenues in 2024, setting a full year record, and achieved company-wide EBITDA of nearly $1.4 billion while maintaining property-level operating margins of over 40%.
Strong Performance in Las Vegas Locals and Downtown Segments
The Las Vegas Locals segment delivered its best year-over-year performance of 2024 despite competitive pressures, with operating margins exceeding 50%. The Downtown Las Vegas segment also showed strong performance with consistent customer trends.
Treasure Chest Casino Exceeds Expectations
The new facility at Treasure Chest consistently performed ahead of expectations since opening, with revenues up significantly compared to pre-project levels.
Expansion and Growth Initiatives
Boyd Gaming is engaged in multiple expansion projects, including the Norfolk, Virginia resort development and the Cadence Crossing Casino, aimed at strategic growth and capitalizing on growing communities.
Significant Shareholder Returns
The company returned nearly $750 million to shareholders in 2024 through share repurchases and dividends, reducing its share count by more than 23% since October 2021.
Lowlights
Competition and Market Pressures
Ongoing competitive pressures in the Las Vegas Locals market and potential impacts from new supply additions in Illinois are being monitored, though no significant impact has been observed yet.
Weather Impact on Midwest and South Segments
Poor weather conditions in January 2025 impacted the Midwest and South segments, similar to the first quarter of 2024.
Cautious Outlook for Retail Customer Growth
While the core customer base is growing, the retail customer segment remains largely stable without significant growth projections for 2025.
Company Guidance
During the Boyd Gaming Fourth Quarter and Full Year 2024 Earnings Conference Call, CEO Keith Smith highlighted the company's strong financial performance, reporting over $3.9 billion in revenue for 2024, a record for the company, and achieving an EBITDA of nearly $1.4 billion with property-level operating margins exceeding 40%. The fourth quarter marked a milestone as quarterly revenues surpassed $1 billion, with EBITDAR increasing to nearly $380 million. Smith attributed this success to the company’s diversified portfolio, operating efficiencies, and recent property investments, particularly noting the Treasure Chest casino's exceptional performance, which exceeded expectations. The call also detailed economic indicators in Southern Nevada, such as employment growth, population increases, and tourism activity, which underpinned the strong market fundamentals. Boyd Gaming's investment strategy includes ongoing renovations and expansions across its properties, with significant projects like the Sky River Casino expansion and a new development in Norfolk, Virginia, set to drive future growth. The company also reported $686 million in stock repurchases for 2024, emphasizing its commitment to returning capital to shareholders alongside strategic investments.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.