Last Updated: 07 Nov 2024
Executive Summary
Boyd Gaming Corporation (BYD) is a well-established gaming company with a strong presence in regional markets. The company's financial performance has been improving steadily, with revenue and earnings growth in recent quarters. Boyd Gaming's valuation metrics are attractive compared to peers, and the company offers a modest dividend yield. Overall, the company is well-positioned for continued growth in the gaming industry.
Company Overview
Boyd Gaming Corporation is a multi-jurisdictional gaming company that operates casinos and hotels in Nevada, Mississippi, Louisiana, Illinois, Indiana, Iowa, Kansas, and Ohio. The company's flagship property is the Bellagio in Las Vegas, which is one of the most iconic casinos in the world. Boyd Gaming also owns and operates other well-known casinos, such as the Borgata in Atlantic City and the Fremont in Las Vegas.
Fundamental Analysis
Boyd Gaming's financial performance has been improving steadily in recent years. Revenue has grown at a compound annual growth rate (CAGR) of 5.5% over the past five years, and earnings per share (EPS) has grown at a CAGR of 10.2% over the same period. The company's profit margin has also expanded in recent years, reaching 13% in the most recent quarter.
Boyd Gaming's valuation metrics are attractive compared to peers. The company's trailing price-to-earnings (PE) ratio of 13.12 is below the industry average of 14.5. The company's forward PE ratio of 9.77 is also below the industry average of 10.5.
Boyd Gaming offers a modest dividend yield of 0.99%. The company has increased its dividend payout in each of the past five years.
Technical Analysis
Boyd Gaming's stock price has been trading in a range between $49.05 and $73.35 over the past 52 weeks. The stock is currently trading at $71.61, which is near the top of its recent trading range. The stock's 50-day moving average is $63.9, and the 200-day moving average is $60.48.
The stock's relative strength index (RSI) is currently at 65, which indicates that the stock is overbought. The stock's moving average convergence divergence (MACD) indicator is also showing a bearish divergence, which suggests that the stock's momentum is slowing down.
Short Term Outlook
The technical indicators suggest that Boyd Gaming's stock price is overbought in the short term. The stock is likely to experience a pullback in the near future. However, the company's strong fundamentals should support the stock price in the long term.
Long Term Outlook
Boyd Gaming is well-positioned for continued growth in the gaming industry. The company has a strong portfolio of casinos and hotels in key regional markets. The company is also well-positioned to benefit from the legalization of sports betting in the United States.
Analyst Recommendations
Analysts are generally positive on Boyd Gaming's stock. The consensus analyst rating for the stock is "buy." The average analyst target price for the stock is $74.86, which represents a potential upside of 4.5% from the current price.
