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Here's How Much You'd Have If You Invested $1000 in Boyd Gaming a Decade Ago

Zacks Equity Research
·4-min read

For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in Boyd Gaming (BYD) ten years ago? It may not have been easy to hold on to BYD for all that time, but if you did, how much would your investment be worth today?

Boyd Gaming's Business In-Depth

With that in mind, let's take a look at Boyd Gaming's main business drivers.

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Founded in 1975 and headquartered in Las Vegas, Boyd Gaming Corporation is a multi-jurisdictional gaming company. It owns and operates gaming entertainment properties in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio and Pennsylvania. As of Dec 31, 2022, the company owns and operates 27 properties, offering 1.72 million square feet of casino space, 29,836 slot machines, 626 table games and 10,751 hotel rooms.

Boyd Gaming reports its operating results under the following segment:

Las Vegas Locals (26.1% of total revenues in 2022): This segment consists of nine casinos and mainly targets the people of Las Vegas metropolitan area. The segment competes directly with other locals casinos and gaming companies.

Downtown Las Vegas (6.8%): This segment consists of three casinos, which competes with eight other casinos in the area.

Midwest and South (67.1%): The segment has four land-based casinos, six dockside riverboat casinos, three racinos and four barge-based casinos. These casinos operate in nine states in the Midwest and southern United States.

During 2019, Boyd Gaming completed several transactions to improve its long-term financial position. In the fourth quarter of 2019, the company issued $1 billion aggregate principal amount due December 2027. The proceeds from the debt issuance were used to finance the redemption of all of its outstanding 6.875% senior notes due 2023 and prepay a portion of Refinancing Term B Loans.

One of the notable initiatives by Boyd Gaming has been regarding the legalization of sports gambling. In July 2018, the company entered a partnership with MGM Resorts International, under which the companies have the opportunity to offer online and mobile gaming platforms, including sports betting, casino gaming and poker.

In 2018, Boyd Gaming opened sports books at its two Mississippi properties, IP Casino Resort Spa (“IP”) in Biloxi, and Sam’s Town Hotel & Gambling Hall in Tunica. It also entered a partnership with FanDuel Group to pursue sports betting and online gaming opportunities across the United States.

Bottom Line

Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Boyd Gaming a decade ago, you're probably feeling pretty good about your investment today.

A $1000 investment made in May 2013 would be worth $6,045.30, or a gain of 504.53%, as of May 1, 2023, according to our calculations. This return excludes dividends but includes price appreciation.

The S&P 500 rose 163.52% and the price of gold increased 29.44% over the same time frame in comparison.

Analysts are forecasting more upside for BYD too.

Shares of Boyd Gaming have outperformed the industry in the past three months. The company reported solid first-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The metrics also increased on a year-over-year basis. Notably, it is benefiting from Las Vegas operations, the FanDuel partnership and the Pala Interactive acquisition. The company emphasizes on strengthening current operations and growth through capital investment and other strategic measures. Moreover, the expansion of online betting offerings bodes well. In 2023, the company expects EBITDAR from online operations to be approximately $50 million. The company expects solid contributions from FanDuel operations (in Ohio and Kansas) and Boyd Interactive's portfolio.

The stock has jumped 8.23% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 5 higher, for fiscal 2023; the consensus estimate has moved up as well.

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Zacks Investment Research