Churchill DownsXTER:CHR -0.66%62 Operating Margin % is 21.72% as of Mar. 2026, which is 11% above its 10-year median of 19.50. 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 844 Travel & Leisure companies, Churchill Downs ranks better than 88.15% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Churchill Downs Operating Margin % Related Terms
Churchill Downs Operating Margin % Historical Data
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The historical data trend for Churchill Downs's Operating 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 Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Churchill Downs's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Churchill Downs's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Churchill Downs's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Churchill Downs (XTER:CHR) has a Operating Margin % of 21.72% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Churchill Downs and its competitors. This is 11% above median its historical median of 19.50. Over the past decade, Churchill Downs' Operating Margin % has ranged from 7.47 to 25.63. According to the industry distribution chart, Churchill Downs ranks #100 out of 844 companies in the Travel & Leisure industry, placing it in the top 11.8%.
Is Churchill Downs' Operating Margin % too high?
Churchill Downs' current Operating Margin % of 21.72% is 11% above median its 10-year median of 19.50. Over the past 10 years, this metric has ranged from a low of 7.47 to a high of 25.63. The Travel & Leisure industry median Operating Margin % is 8.14. Churchill Downs' value of 21.72% is 167% above this industry median. Based on the distribution chart, Churchill Downs ranks #100 out of 844 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. 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' Operating Margin % compare to ?
According to the Travel & Leisure industry distribution chart, Churchill Downs ranks #100 out of 844 companies for Operating Margin %. This places Churchill Downs in the top 12% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 8.14. Churchill Downs' value of 21.72% is 167% above this benchmark. Historically, Churchill Downs' own Operating Margin % has ranged from 7.47 to 25.63 over the past decade. While the company's 10-year median is 19.50 vs. the industry median of 8.14, Churchill Downs has consistently been above 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 Operating Margin % for a Travel & Leisure company?
The median Operating Margin % among Travel & Leisure companies is 8.14, based on 844 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Churchill Downs's current Operating Margin % of 21.72% is 167% above 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Churchill Downs and its competitors. For the Travel & Leisure industry, the median Operating Margin % is 8.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Churchill Downs's current Operating Margin % is 21.72%, which is 11% above median its own 10-year median of 19.50. 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 Operating Margin % is 21.72%, which is 11% above median its 10-year median of 19.50 and 167% above the Travel & Leisure industry median of 8.14. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Churchill Downs (XTER:CHR), the current Operating Margin % is 21.72% 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:
Operating Margin %: 21.72% (11% above median its 10-year median of 19.50)
GF Value™: €137.17 vs. price of €75.50 (45% below fair value)
Industry Position: 167% above the Travel & Leisure median (#100 of 844)
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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