CPHC CANTERBURY PARK HOLDING
Sector financial performance:
This company, which primarily earns revenue by hosting horse races and card games and by providing related service and activities, has been grouped into beauty salon sector in personal care industry.
It seems that demand for products and service of companies in this sector, according to the typical company data, has been growing in a fast pace in 2017 and the trend continues in 2018 as indicated by the increase of average 10% in revenue of card and horse racing in 2017.
As the revenue increases from its core revenue resource in this sector, the gross margin, from the typical company data, seems to have been improved. The current typical gross margin is about 30% in 2017. The typical operating margin is now at about 9% with a SG&A as percentage of sales of about 21%.
The typical average stock Price/cash flow ratio is 24.
It seems that the demand for card casino and horse racing service of this company in the past two years has been growing quickly.
The first three months of fiscal 2018 compared with the same period of 2017
Net sales increased 6.8% attributable primarily to increase of 7.4% in card casino and increase in horse racing offset by decrease in food and beverage,
The fiscal 2017 compared with 2016
Net sales increased 8.6% attributable primarily to increase in all segment including 9.3% in card casino and 10.9% in horsing racing.
Fiscal 2016 compared with fiscal 2015
Net sales increased 0.4% attributable primarily to increase of 0.8% in card casino offset by decrease 5.3% in horsing racing.
Its gross margin (including depreciation) has gone up from 28% of 2015 to 30% in 2018, And with the slight improved SG&A as percentage of sales (to around 22%), its operating margin went up to about 9% in 2017.
This stock currently has a stock price/cash flow ratio of 24. We think that its stock is being relatively undervalued considering potential increase in cash flow.
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