Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Boyd Gaming Corporation (NYSE:BYD) due to its excellent fundamentals in more than one area. BYD has a a strong history of performance and a buoyant future outlook not yet factored into the price. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Boyd Gaming here.
Good value with reasonable growth potential and pays a dividend
In the previous year, BYD has ramped up its bottom line by 80%, with its latest earnings level surpassing its average level over the last five years. Not only did BYD outperformed its past performance, its growth also surpassed the Hospitality industry expansion, which generated a 31% earnings growth. This is an notable feat for the company.
BYD’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of BYD’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the hospitality industry, BYD is also trading below its peers, relative to earnings generated. This bolsters the proposition that BYD’s price is currently discounted.
For Boyd Gaming, I’ve put together three important aspects you should look at:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Dividend Income vs Capital Gains: Does BYD return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from BYD as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BYD? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.