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DRAFTKINGS INC-CL A (DKNG) Stock Fundamental Analysis

NASDAQ:DKNG - US26142V1052 - Common Stock

46.91 USD
-0.27 (-0.57%)
Last: 8/25/2025, 8:15:10 PM
46.8301 USD
-0.08 (-0.17%)
After Hours: 8/25/2025, 8:15:10 PM
Fundamental Rating

3

Overall DKNG gets a fundamental rating of 3 out of 10. We evaluated DKNG against 131 industry peers in the Hotels, Restaurants & Leisure industry. The financial health of DKNG is average, but there are quite some concerns on its profitability. While showing a medium growth rate, DKNG is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

DKNG had negative earnings in the past year.
In the past year DKNG had a positive cash flow from operations.
DKNG had negative earnings in each of the past 5 years.
DKNG had negative operating cash flow in 4 of the past 5 years.
DKNG Yearly Net Income VS EBIT VS OCF VS FCFDKNG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 0 -500M -1B -1.5B

1.2 Ratios

With a Return On Assets value of -6.80%, DKNG is not doing good in the industry: 78.63% of the companies in the same industry are doing better.
DKNG's Return On Equity of -30.16% is on the low side compared to the rest of the industry. DKNG is outperformed by 61.83% of its industry peers.
Industry RankSector Rank
ROA -6.8%
ROE -30.16%
ROIC N/A
ROA(3y)-22.09%
ROA(5y)-27.91%
ROE(3y)-83.28%
ROE(5y)-77.48%
ROIC(3y)N/A
ROIC(5y)N/A
DKNG Yearly ROA, ROE, ROICDKNG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 0 100 -100 200

1.3 Margins

DKNG's Gross Margin of 39.45% is on the low side compared to the rest of the industry. DKNG is outperformed by 62.60% of its industry peers.
DKNG's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for DKNG so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 39.45%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.53%
GM growth 5Y-10.9%
DKNG Yearly Profit, Operating, Gross MarginsDKNG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100 -150 -200

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5

2. Health

2.1 Basic Checks

DKNG does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for DKNG has been increased compared to 1 year ago.
DKNG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for DKNG has been reduced compared to a year ago.
DKNG Yearly Shares OutstandingDKNG Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
DKNG Yearly Total Debt VS Total AssetsDKNG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.2 Solvency

DKNG has an Altman-Z score of 3.14. This indicates that DKNG is financially healthy and has little risk of bankruptcy at the moment.
DKNG has a better Altman-Z score (3.14) than 74.81% of its industry peers.
The Debt to FCF ratio of DKNG is 4.71, which is a neutral value as it means it would take DKNG, 4.71 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DKNG (4.71) is better than 79.39% of its industry peers.
DKNG has a Debt/Equity ratio of 1.82. This is a high value indicating a heavy dependency on external financing.
DKNG has a Debt to Equity ratio of 1.82. This is comparable to the rest of the industry: DKNG outperforms 53.44% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.82
Debt/FCF 4.71
Altman-Z 3.14
ROIC/WACCN/A
WACC8.95%
DKNG Yearly LT Debt VS Equity VS FCFDKNG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 0 1B 2B

2.3 Liquidity

A Current Ratio of 1.34 indicates that DKNG should not have too much problems paying its short term obligations.
DKNG has a Current ratio of 1.34. This is in the better half of the industry: DKNG outperforms 67.18% of its industry peers.
A Quick Ratio of 1.34 indicates that DKNG should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.34, DKNG is doing good in the industry, outperforming 70.23% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.34
Quick Ratio 1.34
DKNG Yearly Current Assets VS Current LiabilitesDKNG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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6

3. Growth

3.1 Past

DKNG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.17%.
DKNG shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.80%.
The Revenue has been growing by 71.28% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-3.17%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%150%
Revenue 1Y (TTM)25.8%
Revenue growth 3Y54.37%
Revenue growth 5Y71.28%
Sales Q2Q%36.95%

3.2 Future

DKNG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 41.73% yearly.
The Revenue is expected to grow by 18.28% on average over the next years. This is quite good.
EPS Next Y140.4%
EPS Next 2Y79.4%
EPS Next 3Y60.25%
EPS Next 5Y41.73%
Revenue Next Year32.82%
Revenue Next 2Y25.66%
Revenue Next 3Y22.17%
Revenue Next 5Y18.28%

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.
DKNG Yearly Revenue VS EstimatesDKNG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2B 4B 6B 8B 10B
DKNG Yearly EPS VS EstimatesDKNG Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 2 -2 4 6

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3

4. Valuation

4.1 Price/Earnings Ratio

DKNG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 36.33, the valuation of DKNG can be described as expensive.
DKNG's Price/Forward Earnings ratio is in line with the industry average.
DKNG's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.63.
Industry RankSector Rank
PE N/A
Fwd PE 36.33
DKNG Price Earnings VS Forward Price EarningsDKNG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 50 -50 100

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of DKNG is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 59.72
EV/EBITDA N/A
DKNG Per share dataDKNG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6 8 10

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 60.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y79.4%
EPS Next 3Y60.25%

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0

5. Dividend

5.1 Amount

DKNG does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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DRAFTKINGS INC-CL A

NASDAQ:DKNG (8/25/2025, 8:15:10 PM)

After market: 46.8301 -0.08 (-0.17%)

46.91

-0.27 (-0.57%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)08-06 2025-08-06/amc
Earnings (Next)11-05 2025-11-05/amc
Inst Owners83.89%
Inst Owner Change0.17%
Ins Owners2.45%
Ins Owner Change-7.95%
Market Cap23.29B
Analysts82.86
Price Target56 (19.38%)
Short Float %6.92%
Short Ratio3.53
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)56.19%
Min EPS beat(2)20.99%
Max EPS beat(2)91.4%
EPS beat(4)2
Avg EPS beat(4)-0.87%
Min EPS beat(4)-74.95%
Max EPS beat(4)91.4%
EPS beat(8)4
Avg EPS beat(8)116.54%
EPS beat(12)8
Avg EPS beat(12)85.53%
EPS beat(16)11
Avg EPS beat(16)67.8%
Revenue beat(2)1
Avg Revenue beat(2)-0.13%
Min Revenue beat(2)-4.94%
Max Revenue beat(2)4.67%
Revenue beat(4)1
Avg Revenue beat(4)-1.8%
Min Revenue beat(4)-4.94%
Max Revenue beat(4)4.67%
Revenue beat(8)3
Avg Revenue beat(8)-0.07%
Revenue beat(12)7
Avg Revenue beat(12)3.02%
Revenue beat(16)9
Avg Revenue beat(16)2.06%
PT rev (1m)3.6%
PT rev (3m)1.35%
EPS NQ rev (1m)-6.82%
EPS NQ rev (3m)2.86%
EPS NY rev (1m)24.79%
EPS NY rev (3m)16.09%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)0.56%
Revenue NY rev (1m)1.55%
Revenue NY rev (3m)1.48%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 36.33
P/S 4.31
P/FCF 59.72
P/OCF 45.34
P/B 23.07
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-0.65
EYN/A
EPS(NY)1.29
Fwd EY2.75%
FCF(TTM)0.79
FCFY1.67%
OCF(TTM)1.03
OCFY2.21%
SpS10.9
BVpS2.03
TBVpS-2.87
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -6.8%
ROE -30.16%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 39.45%
FCFM 7.21%
ROA(3y)-22.09%
ROA(5y)-27.91%
ROE(3y)-83.28%
ROE(5y)-77.48%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.53%
GM growth 5Y-10.9%
F-Score7
Asset Turnover1.21
Health
Industry RankSector Rank
Debt/Equity 1.82
Debt/FCF 4.71
Debt/EBITDA N/A
Cap/Depr 42.45%
Cap/Sales 2.29%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.34
Quick Ratio 1.34
Altman-Z 3.14
F-Score7
WACC8.95%
ROIC/WACCN/A
Cap/Depr(3y)48.74%
Cap/Depr(5y)49.7%
Cap/Sales(3y)3.1%
Cap/Sales(5y)4.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.17%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%150%
EPS Next Y140.4%
EPS Next 2Y79.4%
EPS Next 3Y60.25%
EPS Next 5Y41.73%
Revenue 1Y (TTM)25.8%
Revenue growth 3Y54.37%
Revenue growth 5Y71.28%
Sales Q2Q%36.95%
Revenue Next Year32.82%
Revenue Next 2Y25.66%
Revenue Next 3Y22.17%
Revenue Next 5Y18.28%
EBIT growth 1Y30.58%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year249.5%
EBIT Next 3Y76.03%
EBIT Next 5Y48.94%
FCF growth 1Y193.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y262.85%
OCF growth 3YN/A
OCF growth 5YN/A