Churchill DownsXTER:CHR -0.66%62 Pretax Margin % is 17.04% as of Mar. 2026, which is 13% below its 10-year median of 19.58. GuruFocus rates XTER:CHR with a GF Score™ of 62/100 and a GF Value™ of €139.08 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 845 Travel & Leisure companies, Churchill Downs ranks better than 78.46% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Churchill Downs Pretax Margin % Related Terms
Churchill Downs Pretax Margin % Historical Data
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The historical data trend for Churchill Downs's Pretax 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 Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Churchill Downs's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Churchill Downs's Pretax 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.
Churchill Downs (XTER:CHR) has a Pretax Margin % of 17.04% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Churchill Downs and its competitors. This is 13% below median its historical median of 19.58. Over the past decade, Churchill Downs' Pretax Margin % has ranged from 0.76 to 33.64. According to the industry distribution chart, Churchill Downs ranks #182 out of 845 companies in the Travel & Leisure industry, placing it in the top 21.5%.
Is Churchill Downs' Pretax Margin % too high?
Churchill Downs' current Pretax Margin % of 17.04% is 13% below median its 10-year median of 19.58. Over the past 10 years, this metric has ranged from a low of 0.76 to a high of 33.64. The Travel & Leisure industry median Pretax Margin % is 6.11. Churchill Downs' value of 17.04% is 178.9% above this industry median. Based on the distribution chart, Churchill Downs ranks #182 out of 845 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' Pretax Margin % compare to ?
According to the Travel & Leisure industry distribution chart, Churchill Downs ranks #182 out of 845 companies for Pretax Margin %. This places Churchill Downs in the top 22% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 6.11. Churchill Downs' value of 17.04% is 178.9% above this benchmark. Historically, Churchill Downs' own Pretax Margin % has ranged from 0.76 to 33.64 over the past decade. While the company's 10-year median is 19.58 vs. the industry median of 6.11, 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 Pretax Margin % for a Travel & Leisure company?
The median Pretax Margin % among Travel & Leisure companies is 6.11, based on 845 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Churchill Downs's current Pretax Margin % of 17.04% is 178.9% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Churchill Downs and its competitors. For the Travel & Leisure industry, the median Pretax Margin % is 6.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Churchill Downs's current Pretax Margin % is 17.04%, which is 13% below median its own 10-year median of 19.58. 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 €139.08, compared to a current price of €75.50 — trading 45.7% below its estimated fair value. The current Pretax Margin % is 17.04%, which is 13% below median its 10-year median of 19.58 and 178.9% above the Travel & Leisure industry median of 6.11. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Churchill Downs (XTER:CHR), the current Pretax Margin % is 17.04% 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 45.7% below its estimated GF Value™ of €139.08.
GuruFocus considers Churchill Downs to be Possible Value Trap.
Key valuation signals for XTER:CHR:
Pretax Margin %: 17.04% (13% below median its 10-year median of 19.58)
GF Value™: €139.08 vs. price of €75.50 (45.7% below fair value)
Industry Position: 178.9% above the Travel & Leisure median (#182 of 845)
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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