Assessing Boyd Gaming (BYD) Valuation As Growth And Profitability Concerns Temper A Reiterated Positive Rating

Boyd Gaming (BYD) is back in focus after a major analyst reiterated a positive rating, even as other research highlights weaker long term revenue growth, softer cash profitability, and a declining return on invested capital.

See our latest analysis for Boyd Gaming.

At a share price of $89.56, Boyd Gaming has seen a 5.35% 1 month share price return and an 8.73% 3 month share price return. Its 1 year total shareholder return of 22.05% and 5 year total shareholder return of 87.40% suggest momentum has been building over time despite concerns around slower revenue growth and weaker cash profitability.

If Boyd Gaming’s mixed signals have you reassessing your watchlist, this could be a good moment to scan fast growing stocks with high insider ownership for other ideas that might better fit your style.

So with Boyd Gaming trading around $89.56, sitting close to analyst targets but flagged for weak revenue growth, softer cash generation, and declining returns, are you looking at an overlooked opportunity or a stock already pricing in future gains?

Most Popular Narrative: 3% Undervalued

With Boyd Gaming last closing at US$89.56 and the widely followed fair value sitting around US$92.33, the narrative points to a modest valuation gap built on detailed assumptions about future earnings, margins, and capital returns.

The analysts have a consensus price target of $90.769 for Boyd Gaming based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $101.0, and the most bearish reporting a price target of just $80.0.

Read the complete narrative.

Curious how slow revenue expectations, firmer margins, steady earnings and shrinking share count still add up to this fair value? The full narrative lays out the math.

Result: Fair Value of $92.33 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, competitive pressure at key properties and caution around economic conditions could easily unsettle revenue, margins, and the valuation story you see today.

Find out about the key risks to this Boyd Gaming narrative.

Build Your Own Boyd Gaming Narrative

If you see the story differently or prefer to stress test the assumptions with your own inputs, you can build a custom view in minutes by starting with Do it your way.

A great starting point for your Boyd Gaming research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Boyd Gaming is only one piece of your watchlist, this is the moment to widen your search and line up a few more high conviction candidates.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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