Boyd Gaming (BYD), mcap=$6bn, price $54.86 vs $50.00

– The operator of 30 casino properties in Nevada and 9 in other states.
– “Baby with bathwater” case – BYD undeservedly sold-off with other gaming stocks.
– Structurally improved EBITDA margins after ’20-’21 cost-cutting efforts.
– Minimal exposure to deflating bubble of sports betting.
– Historically low balance sheet leverage.
– Untapped value from real-estate worth more than the current EV.

– Historically traded at 7-10x EBITDAR.
– Now sits at the low end (7x) of the range.
– With flat EBITDAR growth and re-rating to the middle of the range (8.5x) would be $75/stock, or $100/share at the high end (10x) of the range.

Exp. gain: +50% to $75/share

Full $BYD write-up (free guest account required):

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