DRAFTKINGS INC-CL A (DKNG)
US26142V1052 - Common Stock
We assign a fundamental rating of 2 out of 10 to DKNG. DKNG was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and financial health of DKNG have multiple concerns. DKNG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DKNG has reported negative net income.
In the past year DKNG had a positive cash flow from operations.
In the past 5 years DKNG always reported negative net income.
DKNG had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
DKNG's Return On Assets of -14.41% is on the low side compared to the rest of the industry. DKNG is outperformed by 90.23% of its industry peers.
With a Return On Equity value of -65.90%, DKNG is not doing good in the industry: 66.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -14.41% | ||
| ROE | -65.9% | ||
| ROIC | N/A |
ROA(3y)-30.62%
ROA(5y)-34.17%
ROE(3y)-96.8%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
DKNG's Gross Margin of 39.06% is on the low side compared to the rest of the industry. DKNG is outperformed by 66.92% of its industry peers.
In the last couple of years the Gross Margin of DKNG has declined.
DKNG does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 39.06% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.93%
GM growth 5Y-13.75%
2. Health
2.1 Basic Checks
DKNG does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, DKNG has more shares outstanding
DKNG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.97 indicates that DKNG is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of DKNG (1.97) is comparable to the rest of the industry.
The Debt to FCF ratio of DKNG is 43.43, which is on the high side as it means it would take DKNG, 43.43 years of fcf income to pay off all of its debts.
DKNG has a Debt to FCF ratio of 43.43. This is comparable to the rest of the industry: DKNG outperforms 40.60% of its industry peers.
DKNG has a Debt/Equity ratio of 1.51. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.51, DKNG perfoms like the industry average, outperforming 54.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 43.43 | ||
| Altman-Z | 1.97 |
ROIC/WACCN/A
WACC8.83%
2.3 Liquidity
A Current Ratio of 1.34 indicates that DKNG should not have too much problems paying its short term obligations.
DKNG's Current ratio of 1.34 is fine compared to the rest of the industry. DKNG outperforms 63.91% of its industry peers.
A Quick Ratio of 1.34 indicates that DKNG should not have too much problems paying its short term obligations.
DKNG has a Quick ratio of 1.34. This is in the better half of the industry: DKNG outperforms 67.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 63.78% over the past year.
Looking at the last year, DKNG shows a very strong growth in Revenue. The Revenue has grown by 57.00%.
Measured over the past years, DKNG shows a very strong growth in Revenue. The Revenue has been growing by 74.54% on average per year.
EPS 1Y (TTM)63.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%41.18%
Revenue 1Y (TTM)57%
Revenue growth 3Y81.36%
Revenue growth 5Y74.54%
Sales Q2Q%52.67%
3.2 Future
Based on estimates for the next years, DKNG will show a very strong growth in Earnings Per Share. The EPS will grow by 38.04% on average per year.
The Revenue is expected to grow by 19.49% on average over the next years. This is quite good.
EPS Next Y90.64%
EPS Next 2Y59.22%
EPS Next 3Y33.52%
EPS Next 5Y38.04%
Revenue Next Year64.17%
Revenue Next 2Y21.06%
Revenue Next 3Y18.5%
Revenue Next 5Y19.49%
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for DKNG. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 40.44, which means the current valuation is very expensive for DKNG.
62.41% of the companies in the same industry are cheaper than DKNG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DKNG to the average of the S&P500 Index (20.07), we can say DKNG is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 40.44 |
4.2 Price Multiples
62.41% of the companies in the same industry are cheaper than DKNG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 579.2 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
DKNG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DKNG's earnings are expected to grow with 33.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y59.22%
EPS Next 3Y33.52%
5. Dividend
5.1 Amount
No dividends for DKNG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DRAFTKINGS INC-CL A
NASDAQ:DKNG (5/31/2024, 7:00:00 PM)
After market: 35.2 +0.07 (+0.2%)35.13
-0.69 (-1.93%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.73B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 40.44 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -14.41% | ||
| ROE | -65.9% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 39.06% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)63.78%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y90.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)57%
Revenue growth 3Y81.36%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y