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Boyd Gaming (BYD)
NYSE:BYD
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Boyd Gaming
(NYSE:BYD)
Rating:76Outperform
Price Target:
$97.00
▲(14.55% Upside)
Positive Factors
FanDuel Transaction
The sale of the FanDuel stake provides significant capital for debt reduction and growth investments, enhancing Boyd Gaming's financial stability and strategic flexibility.
Revenue Growth
Consistent revenue and EBITDAR growth indicate strong operational performance and the ability to capitalize on market opportunities, supporting long-term business expansion.
Las Vegas Locals Segment Growth
Growth in the Las Vegas Locals segment reflects effective market positioning and customer engagement, contributing to sustained profitability and competitive advantage.
Negative Factors
High Leverage
High leverage can limit financial flexibility and increase risk, potentially impacting Boyd Gaming's ability to invest in growth and weather economic downturns.
Decline in Free Cash Flow
A decline in free cash flow can constrain Boyd Gaming's capacity to fund new projects and return capital to shareholders, affecting long-term growth prospects.
Las Vegas Strip Demand Softness
Softer demand on the Las Vegas Strip could pressure revenue and profitability, highlighting the need for strategic adjustments to maintain market competitiveness.
Boyd Gaming (BYD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.90B
Dividend Yield0.83%
Average Volume (3M)955.46K
Price to Earnings (P/E)13.2
Beta (1Y)0.90
Revenue Growth6.40%
EPS Growth26.09%
CountryUS
Employees16,129
SectorConsumer Cyclical
Sector Strength81
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)1.87
Shares Outstanding80,184,204
10 Day Avg. Volume782,534
30 Day Avg. Volume955,463
Financial Highlights & Ratios
PEG Ratio10.24
Price to Book (P/B)4.28
Price to Sales (P/S)1.72
P/FCF Ratio12.16
Enterprise Value/Market Cap1.50
Enterprise Value/Revenue2.58
Enterprise Value/Gross Profit4.99
Enterprise Value/Ebitda8.55
Forecast
1Y Price Target
$87.71Price Target Upside3.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
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 generates revenue through multiple streams, primarily from its casino operations, which include gaming revenue from slot machines, table games, and poker. The company also earns money from hotel accommodations, dining services, and entertainment options offered at its properties. A significant portion of revenue comes from its loyalty program, B Connected, which incentivizes repeat visits and increases customer retention. Additionally, Boyd Gaming has expanded into the online gaming and sports betting markets, contributing to its earnings through digital platforms and partnerships. The company's strategic partnerships, particularly in states where online gaming and sports betting are legal, further enhance its revenue potential and market presence.
Boyd Gaming Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
Boyd Gaming's earnings call showcased strong financial performance and strategic moves like the FanDuel transaction, which significantly improved the company's financial position and capital return strategy. However, challenges such as softer demand on the Las Vegas Strip and natural events like flooding in the Midwest and South were noted.Q2-2025 Updates
Positive Updates
FanDuel Transaction
Boyd Gaming reached an agreement to sell its 5% equity interest in FanDuel to Flutter Entertainment for $1.755 billion in cash. The proceeds will be used to pay down debt, reducing leverage below 2x and positioning the company for future growth opportunities.
Strong Financial Performance
Second quarter revenues grew 4%, and EBITDAR increased by 4% to $358 million. Property level EBITDAR growth was the strongest in over 3 years, with margins exceeding 40%.
Las Vegas Locals Segment Growth
The Las Vegas Locals segment delivered its first year-over-year revenue and EBITDAR growth in more than 2 years, maintaining margins of nearly 50%.
Capital Return Program
Boyd Gaming repurchased $105 million in stock and paid $15 million in dividends in Q2. The company plans to increase its target for share repurchases from $100 million to $150 million per quarter.
Midwest and South Segment Performance
Despite flood-related closures, the Midwest and South segment achieved revenue and EBITDAR gains of over 3%, marking its highest quarterly revenue and EBITDAR in nearly 3 years.
Negative Updates
Las Vegas Strip Demand Softness
The Las Vegas Strip experienced softer demand trends, impacting Boyd Gaming's properties, particularly the Orleans, due to lower summer room rates.
Downtown Las Vegas Segment Challenges
The Downtown Las Vegas segment faced challenges due to a tough comparison with a prior year that benefited from pent-up demand from Hawaiian customers.
Flood-Related Closures
The Midwest and South segment was impacted by flood-related closures, affecting overall performance despite achieving growth.
Company Guidance
During Boyd Gaming's second-quarter 2025 earnings call, significant financial metrics and strategic updates were provided. The company announced a 4% increase in both revenue and EBITDAR, reaching $358 million, driven by growth across its operational segments. Boyd Gaming's market access agreement with FanDuel was extended through 2038, following the sale of its 5% equity interest in FanDuel to Flutter Entertainment for $1.755 billion. The proceeds are earmarked for debt reduction, targeting leverage below 2x, which will lower annual interest expenses by $85 million. The Las Vegas Locals segment achieved nearly 50% margins, while the Midwest and South segment reported revenue and EBITDAR growth of over 3%, marking its best quarterly performance in nearly three years. Boyd's managed business and online segments also showed robust growth, with the latter expected to generate $50-$55 million in EBITDAR for 2025. Capital investments continue with a projected annual expenditure of $600-$650 million, including ongoing renovations and new developments. The company increased its share repurchase target to $150 million per quarter, highlighting its commitment to returning capital to shareholders while maintaining a strong balance sheet.Boyd Gaming Financial Statement Overview
Summary
Boyd Gaming shows solid financial performance with consistent revenue growth and strong profitability metrics. However, high leverage and a decline in free cash flow growth present potential risks. The company maintains a stable financial position but should monitor debt levels and cash flow trends closely.Income Statement
Boyd Gaming has shown consistent revenue growth over the years, with a TTM revenue growth rate of 1.68%. The company maintains healthy margins, with a gross profit margin of 51.6% and a net profit margin of 13.99% in the TTM. However, there has been a slight decline in margins compared to previous years, indicating potential pressure on profitability.75
Positive
Balance Sheet
The company has a high debt-to-equity ratio of 3.06 in the TTM, indicating significant leverage. While the return on equity is strong at 37.82%, the high leverage poses a risk. The equity ratio is relatively stable, suggesting a balanced asset structure.65
Positive
Cash Flow
Operating cash flow remains robust, with a coverage ratio of 1.52 in the TTM. However, free cash flow has declined by 3.76% in the TTM, which could impact future investments. The free cash flow to net income ratio is moderate at 0.49, indicating reasonable cash generation relative to earnings.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.03B | 3.93B | 3.74B | 3.56B | 3.37B | 2.18B |
| Gross Profit | 2.08B | 2.05B | 2.02B | 1.99B | 1.94B | 1.14B |
| EBITDA | 1.21B | 1.21B | 1.18B | 1.24B | 1.07B | 340.50M |
| Net Income | 563.44M | 577.95M | 620.02M | 639.38M | 463.85M | -134.70M |
Balance Sheet | ||||||
| Total Assets | 6.56B | 6.39B | 6.27B | 6.31B | 6.22B | 6.56B |
| Cash, Cash Equivalents and Short-Term Investments | 320.11M | 316.69M | 304.27M | 283.47M | 344.56M | 519.18M |
| Total Debt | 4.26B | 3.93B | 3.73B | 3.90B | 3.93B | 4.84B |
| Total Liabilities | 5.16B | 4.81B | 4.53B | 4.72B | 4.69B | 5.44B |
| Stockholders Equity | 1.39B | 1.58B | 1.74B | 1.59B | 1.54B | 1.12B |
Cash Flow | ||||||
| Free Cash Flow | 463.98M | 556.67M | 540.57M | 706.96M | 810.96M | 114.00M |
| Operating Cash Flow | 954.67M | 957.08M | 914.52M | 976.11M | 1.01B | 289.03M |
| Investing Cash Flow | -604.27M | -433.91M | -264.33M | -422.31M | -129.58M | -171.18M |
| Financing Cash Flow | -308.76M | -509.50M | -637.25M | -615.85M | -1.06B | 146.70M |
Boyd Gaming Technical Analysis
Neutral
84.68
Price Trends
84.02
Positive
78.84
Positive
75.28
Positive
Market Momentum
0.60
Positive
48.90
Neutral
26.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BYD, the sentiment is Neutral. The current price of 84.68 is below the 20-day moving average (MA) of 85.34, above the 50-day MA of 84.02, and above the 200-day MA of 75.28, indicating a neutral trend. The MACD of 0.60 indicates Positive momentum. The RSI at 48.90 is Neutral, neither overbought nor oversold. The STOCH value of 26.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $6.93B | 16.99 | 41.20% | 0.42% | 8.20% | 7.02% | |
76 Outperform | $6.90B | 13.25 | 36.36% | 0.83% | 6.40% | 26.09% | |
72 Outperform | $6.51B | 23.48 | 97.52% | 3.26% | 7.47% | 2.58% | |
68 Neutral | $12.88B | 36.26 | -51.73% | 0.82% | -1.94% | -53.90% | |
62 Neutral | $9.62B | 19.04 | 17.34% | ― | 0.89% | -31.56% | |
61 Neutral | $18.16B | 12.70 | -2.51% | 3.03% | 1.44% | -15.67% | |
52 Neutral | $5.39B | ― | -4.76% | ― | -0.15% | 28.05% |
* Consumer Cyclical Sector Average
Performance Comparison
BYD
Boyd Gaming
84.68
23.68
38.82%
CHDN
Churchill Downs
96.32
-43.83
-31.27%
MGM
MGM Resorts
34.55
-1.89
-5.19%
WYNN
Wynn Resorts
121.45
43.31
55.43%
CZR
Caesars Entertainment
25.09
-14.34
-36.37%
RRR
Red Rock Resorts
61.34
10.11
19.73%
Boyd Gaming Corporate Events
Dividends
Boyd Gaming Announces Cash Dividend Declaration
Neutral
Aug 14, 2025
On August 12, 2025, Boyd Gaming Corporation’s Board of Directors announced a cash dividend of $0.18 per share. This dividend will be payable on October 15, 2025, to shareholders who are recorded by September 15, 2025.
M&A TransactionsBusiness Operations and Strategy
Boyd Gaming Completes Sale of FanDuel Stake
Positive
Jul 31, 2025
On July 31, 2025, Boyd Gaming Corporation announced the completion of the sale of its 5% equity interest in FanDuel Group to Flutter Entertainment for $1.758 billion. The proceeds from this transaction will be used to repay existing debt, invest in properties, pursue growth opportunities, and return capital to shareholders, thereby maintaining a strong balance sheet and strategic focus.
M&A TransactionsBusiness Operations and Strategy
Boyd Gaming Sells Stake in FanDuel for $1.755B
Positive
Jul 15, 2025
On July 10, 2025, Boyd Gaming announced the sale of its 5% equity interest in FanDuel Group to Flutter Entertainment for $1.755 billion, with the transaction expected to close in the third quarter of 2025. This move is set to strengthen Boyd’s financial position, allowing it to reduce debt and continue investing in growth opportunities. The sale also includes new market-access agreements with FanDuel, extending through 2038, which will enhance Boyd’s revenue from FanDuel’s operations in several states. Boyd Gaming anticipates significant operating income from these agreements, highlighting the successful partnership with FanDuel in the rapidly growing sports betting industry.
Executive/Board Changes
Boyd Gaming COO Announces Retirement by Year-End
Neutral
Jun 4, 2025
Theodore A. Bogich, Chief Operating Officer of Boyd Gaming Corporation, announced his retirement effective December 31, 2025, after serving since December 2023. His departure is due to personal reasons and not due to any disagreements with the company.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.