Embarr Downs

EMBR

Gambling, Resorts & Casinos · Consumer Cyclical

Price

$0.01

-0.00 (-3.51%)

Market Cap

$279,461

Exchange

Other OTC

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 9, 2026 · filings through May 31, 2026

Share count rising — dilution

+2621899.5% over 12y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 40K (2013) → 1.04B (2025)

Embarr Downs, Inc. is a small company operating in the gambling and gaming industry, focused on horse racing and related wagering activities. Its core business centers on pari-mutuel betting, where customers place wagers on horse races and the house takes a percentage of the total pool. The company serves recreational bettors and horse racing enthusiasts as its primary customers.

Embarr Downs generates revenue by collecting a "takeout" fee from each betting pool, which explains its high gross margin near 89%. The company appears to operate on a small scale, with a market cap near zero, suggesting it is a micro-cap or shell-stage business. Horse racing faces long-term structural headwinds as younger audiences shift toward sports betting and online casino platforms, which are growing faster and attracting more regulatory support. The company's ability to compete against larger, well-funded gaming operators and digital betting platforms represents its most significant ongoing risk.

Winston Score History

Score breakdown

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Quality

Gross Margin

88.8%

Premium pricing power — 88.8% gross margin

Operating Margin

22.1%

Excellent — 22.1% operating margin

ROCE

120.1%

Exceptional — 120.1% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales YoY

N/A

Data not available

EPS YoY

N/A

—

Data not available

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

-881%

Weak — only -881% of profit becomes cash

FCF Margin

-152.9%

Burning cash (-152.9%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

N/A

Data not available

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

55.0x

Expensive — P/E 55.0

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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