Oftentimes a stock may become beaten down because of bad earnings for a period of time, and why wouldn't it? But, eventually, these stock's fortunes will turn. Here is one company, Boyd Gaming, in the gaming industry, that is going to be doing better going forward. And, now that its stock has turned with the economy, this may be a great opportunity to get in.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Boyd or MGM is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding Boyd Gaming dividends
A dividend is the distribution of a portion of Boyd Gaming earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Boyd Gaming dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Boyd one year expected dividend income is about USD0.2 per share.
At present, Boyd Gaming's
Dividend Payout Ratio is projected to increase slightly based on the last few years of reporting.
Investing in stocks that pay
dividends, such as stock of Boyd Gaming, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Boyd Gaming must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Boyd Gaming. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is Boyd Gaming's Liquidity
Boyd Gaming
financial leverage refers to using borrowed capital as a funding source to finance Boyd Gaming ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Boyd Gaming financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Boyd Gaming's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Boyd Gaming's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Boyd Gaming's total debt and its cash.
Correlation Between Boyd and MGM Resorts International
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Boyd Gaming together with similar or unrelated positions with a negative correlation. For example, you can also add MGM Resorts to your portfolio. If MGM Resorts is not perfectly correlated to Boyd Gaming it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Boyd Gaming, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Boyd Gaming and MGM Resorts in your portfolio? Please note if you are using this as a pair-trade strategy between Boyd Gaming and MGM Resorts, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between BYD and MGM for more information.
Details
Boyd Gaming has had its fair share of volatility with its stock price. Unfortunately over the past couple of years, the earnings were in negative territory. The stock had been trading as high as $50.00 per share. But, when the negative earnings started to come in steadily, the stock was beaten down as traders headed for the exits; BYD was trading at a price under $4.00 per share.
Here is a listing of BYDs earnings over the past several years:
2011: -$0.04
2012: -$10.37
2013: -$0.83
2014: -$0.48
2015: $0.42
There were a few very lean years, with one year being more like a famine. However, the fortunes are changing and so is the economy. With BYD turning profitable in the last year on this chart the stock is had begun moving higher. Now, it is poised to break out to the upside. The fundamentals on this move make a lot of sense and allow for an empowering position for anyone taking this stock.
First, the company is in the gaming industry. This is an industry that is very closely tied to the fortunes of the economy. This is the epitome of discretionary spending. As incomes in American are moving higher so will the profits in the gaming industry. So, this is a business that will appreciate significantly over the course of some time.
Right now the stock is trading at about $5.00 per share. That is a mere tenth of its former self from just a couple of years ago. It is very easy to see this stock return to these levels now that buying has entered into the market. Getting in to a stock like this, one that could easily retrace its move downward, and maybe even eclipse that move, would mean you would earn a 1,000% return. That is tempting.
The fundamentals are there. The earnings-per-share have turned positive and are beginning to move even higher. And, as mentioned, the economy will be driving more opportunities into the gaming industry. When I see companies like this I see a lot of potential. The past few years have forced management to lean out the company. Now, with more sales revenue possibilities available to the company, that leanness will go a long way to adding a large profit ratio.
The leaning up of the company is evident in the assets:liabilities ratio. Whereas before it was nearly 1:2 it now rests at about 1:1.5. The company has paid down some debt and now its revenues are going to be increasing.
These are the types of companies that I like to buy into. This company’s stock has been beaten down significantly. A lot of stocks have had that problem over the past few years. But, this stock has to seen the larger sunup of late. BYD’s move upward has been lagging the overall market. It is as if the market has forgotten, or wanted to forget, this stock.
And that is the perfect time to get into a company like BYD. I had recently written that the price-earnings ratio is a bit high. It is now sitting at about 25.83. Historically it averages 15. Likely there will be some selling the first part of this year. But, I do not see too much potential of selling for this stock. It is already very low; it is sitting at a great buying price. Even if the market does correct itself from its 14% move higher in the past 8 weeks, there is very little downside to this stock.
This kind of company is exactly the kind of company that I look for to add to my own portfolio. You should, too.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
David Taylor is a Senior Member of Macroaxis Editorial Board - Sector Analysis. David is a professional writer who writes for multiple investment news outlets. His primary focus is dynamic movements in financial markets and effects of economic volatility on North American industries and sectors. David has many years of experience in financial service industry including working with major banks as a FX trader. In his free time, he does a lot of outdoors type activities including rock climbing, mountain biking, hiking, mountaineering and kayaking in the summer, and snowboarding in the winter.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and David Taylor do not own shares of Boyd Gaming. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com
