Boyd Gaming Corp

Boyd Gaming maintains a capital structure defined by significant leverage, with long-term debt of $2.27 billion against total equity of $2.54 billion, resulting in a debt-to-equity ratio of 0.9. Liquidity is constrained, evidenced by a current ratio of 0.6, indicating that current liabilities exceed current assets. The company holds $372.7 million in cash and equivalents, but net cash is negative after subtracting total debt. Operating cash flow for Q1 2026 was $134.3 million, which was insufficient to cover capital expenditures of $155.2 million, resulting in negative free cash flow of -$20.8 million.

Profitability metrics show strong returns on capital, with a return on equity of 72.7% and return on assets of 27.9%. The company generated operating income of $164.0 million on revenue of $997.4 million, yielding an operating margin of approximately 16.4%. Net income attributable to Boyd Gaming was $105.5 million, or $1.37 per diluted share. The valuation snapshot indicates a price-to-earnings ratio of 3.62 and an EV/EBITDA of 8.16, suggesting the market prices the stock at a discount relative to earnings power.

Revenue concentration is heavily weighted toward gaming, which contributed $650.5 million, or roughly 65% of total revenue. Food and beverage services added $75.8 million, while room revenue contributed $45.9 million. Online gaming revenue declined to $26.2 million from $40.0 million in the prior year period, offset partially by an increase in online reimbursements to $135.4 million. Management fees and other services contributed $26.2 million and $37.2 million respectively.

Growth trajectory shows modest revenue expansion, with total revenue increasing to $997.4 million from $991.6 million in Q1 2025. However, operating income decreased to $164.0 million from $199.9 million year-over-year, driven by higher operating costs and project development expenses. Net income declined slightly to $105.5 million from $111.4 million, despite a reduction in interest expense from $48.4 million to $28.5 million. The company repurchased and retired $155.0 million in shares, reducing basic shares outstanding to 74.8 million from 85.1 million in the prior year.

Risk assessment highlights high liquidity risk due to the current ratio of 0.6 and negative net cash position. Dilution risk is rated medium, with source documents mentioning offering risk. Key flags include current liabilities exceeding current assets and negative net cash after debt subtraction. The company’s reliance on debt financing is evident in the cash flow statement, which shows $644.6 million in borrowings against $419.6 million in payments during the quarter.

Recent events include an 8-K filing with material items under code 2.02, indicating a medium severity event. Analyst sentiment is mixed, with a mean recommendation of 2.47 and a mean price target of $96.62, implying upside from the current market price of $86.95. The company continues to operate 27 properties with 27,267 slot machines and 10,146 hotel rooms as of December 31, 2025.

Analysts project an 8.3% upside to the mean price target of $94.14, reflecting a consensus buy recommendation.

Boyd Gaming generated $556.7 million in free cash flow during FY2024, demonstrating strong cash generation capabilities.

The company's return on invested capital of 15.56% indicates efficient deployment of capital relative to its operations.

Boyd Gaming faces high liquidity risk, compounded by a current ratio of only 0.54 as of late 2025.

The company's debt-to-equity ratio of 0.90 places it in the bottom quartile of the Travel & Leisure cohort.

Revenue declined by 4.9% year-over-year in FY2025, signaling potential weakness in top-line growth momentum.

Cash conversion of 0.53 ranks in the bottom quartile of the Travel & Leisure cohort, indicating inefficiency.

Boyd Gaming carries a medium dilution risk, which could negatively impact existing shareholder value over time.

Revenue $997.4M; Operating income $164.0M.

• ▍Revenue $997.4M
• ▍Operating income $164.0M
• ▍Net margin 10.6%

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• ▍Operating income $582.0M
• ▍Net margin 56.2%

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• ▍Revenue $2.03B
• ▍Operating income $442.3M
• ▍Net margin 13.0%

Revenue $4.09B; Operating income $748.4M.

• ▍Revenue $4.09B
• ▍Operating income $748.4M
• ▍Net margin 45.0%

Revenue $3.93B; Operating income $927.8M.

• ▍Revenue $3.93B
• ▍Operating income $927.8M
• ▍Net margin 14.7%

Revenue $3.93B; Operating income $927.8M.

• ▍Revenue $3.93B
• ▍Operating income $927.8M
• ▍Net margin 14.7%

Revenue $3.74B; Operating income $901.8M.

• ▍Revenue $3.74B
• ▍Operating income $901.8M
• ▍Net margin 16.6%

Revenue $3.74B; Operating income $901.8M.

• ▍Revenue $3.74B
• ▍Operating income $901.8M
• ▍Net margin 16.6%