Churchill DownsXTER:CHR -0.66%62 Gross Margin % is 30.62% as of Mar. 2026, which is 7% above its 10-year median of 28.70. GuruFocus rates XTER:CHR with a GF Score™ of 62/100 and a GF Value™ of €137.17 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 793 Travel & Leisure companies, Churchill Downs ranks worse than 65.7% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Churchill Downs had a gross margin of 30.62% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Churchill Downs Gross Margin % Related Terms
Churchill Downs Gross Margin % Historical Data
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The historical data trend for Churchill Downs's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Gambling subindustry, Churchill Downs's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Churchill Downs Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Churchill Downs's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Churchill Downs's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Churchill Downs (XTER:CHR) has a Gross Margin % of 30.62% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Churchill Downs and its competitors. This is near median its historical median of 28.70. Over the past decade, Churchill Downs' Gross Margin % has ranged from 18.36 to 34.32. According to the industry distribution chart, Churchill Downs ranks #521 out of 793 companies in the Travel & Leisure industry, placing it in the top 65.7%.
Is Churchill Downs' Gross Margin % too high?
Churchill Downs' current Gross Margin % of 30.62% is near median its 10-year median of 28.70. Over the past 10 years, this metric has ranged from a low of 18.36 to a high of 34.32. The Travel & Leisure industry median Gross Margin % is 44.02. Churchill Downs' value of 30.62% is 30.4% below this industry median. Based on the distribution chart, Churchill Downs ranks #521 out of 793 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Churchill Downs has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Churchill Downs' Gross Margin % compare to ?
According to the Travel & Leisure industry distribution chart, Churchill Downs ranks #521 out of 793 companies for Gross Margin %. This places Churchill Downs in the lower half of its industry. The industry median Gross Margin % is 44.02. Churchill Downs' value of 30.62% is 30.4% below this benchmark. Historically, Churchill Downs' own Gross Margin % has ranged from 18.36 to 34.32 over the past decade. While the company's 10-year median is 28.70 vs. the industry median of 44.02, Churchill Downs has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Travel & Leisure company?
The median Gross Margin % among Travel & Leisure companies is 44.02, based on 793 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Churchill Downs's current Gross Margin % of 30.62% is 30.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Churchill Downs and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 44.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Churchill Downs's current Gross Margin % is 30.62%, which is near median its own 10-year median of 28.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Churchill Downs stock overvalued right now?
Based on GuruFocus' analysis, Churchill Downs (XTER:CHR) is currently considered Possible Value Trap. The stock's GF Value™ is €137.17, compared to a current price of €75.50 — trading 45% below its estimated fair value. The current Gross Margin % is 30.62%, which is near median its 10-year median of 28.70 and 30.4% below the Travel & Leisure industry median of 44.02. Churchill Downs' overall GF Score™ is 62/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Churchill Downs (XTER:CHR), the current Gross Margin % is 30.62% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Churchill Downs (XTER:CHR) Overvalued in 2026?
Based on GuruFocus' analysis, Churchill Downs stock appears to be undervalued.
The current stock price of €75.50 is trading 45% below its estimated GF Value™ of €137.17.
GuruFocus considers Churchill Downs to be Possible Value Trap.
Key valuation signals for XTER:CHR:
Gross Margin %: 30.62% (near median its 10-year median of 28.70)
GF Value™: €137.17 vs. price of €75.50 (45% below fair value)
Industry Position: 30.4% below the Travel & Leisure median (#521 of 793)
No single metric tells the full story. See the XTER:CHR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Churchill Downs Inc is a gaming entertainment, online wagering, and racing company. It operates through three business segments: Live and Historical Racing, Wagering Services, and Gaming. The Live and Historical Racing segment includes live and historical pari-mutuel racing. The Wagering Services segment includes the revenue and expenses from pari-mutuel wagers through TwinSpires, companies retail and online sports betting business and Gaming segment includes revenue and expenses for the casino properties and associated racetracks that support the casino license. The Gaming segment generates revenue and expenses from slot machines, video lottery terminals, video poker, HRMs, ancillary food and beverage services, hotel services, commission on pari-mutuel wagering, and racing events.
62GF Score
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