33.16 USD
+0.96 (+2.98%)
33.1169 USD
-0.04 (-0.13%)
We assign a fundamental rating of 3 out of 10 to DKNG. DKNG was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. The financial health of DKNG is average, but there are quite some concerns on its profitability. DKNG is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years DKNG always reported negative net income.
DKNG had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
DKNG's Return On Assets of -5.79% is on the low side compared to the rest of the industry. DKNG is outperformed by 77.27% of its industry peers.
Looking at the Return On Equity, with a value of -36.54%, DKNG is doing worse than 61.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.79% | ||
| ROE | -36.54% | ||
| 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
1.3 Margins
The Gross Margin of DKNG (39.23%) is worse than 63.64% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 39.23% |
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%
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.
The number of shares outstanding for DKNG has been increased compared to 5 years ago.
The debt/assets ratio for DKNG has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.48, we must say that DKNG is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.48, DKNG is in line with its industry, outperforming 46.97% of the companies in the same industry.
The Debt to FCF ratio of DKNG is 3.42, which is a good value as it means it would take DKNG, 3.42 years of fcf income to pay off all of its debts.
DKNG has a better Debt to FCF ratio (3.42) than 79.55% of its industry peers.
DKNG has a Debt/Equity ratio of 2.51. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.51, DKNG perfoms like the industry average, outperforming 47.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.51 | ||
| Debt/FCF | 3.42 | ||
| Altman-Z | 1.48 |
ROIC/WACCN/A
WACC8.33%
2.3 Liquidity
DKNG has a Current Ratio of 1.09. This is a normal value and indicates that DKNG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.09, DKNG is in line with its industry, outperforming 58.33% of the companies in the same industry.
A Quick Ratio of 1.09 indicates that DKNG should not have too much problems paying its short term obligations.
DKNG has a better Quick ratio (1.09) than 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
DKNG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.23%, which is quite impressive.
The Revenue has grown by 18.51% in the past year. This is quite good.
DKNG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 71.28% yearly.
EPS 1Y (TTM)35.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%13.33%
Revenue 1Y (TTM)18.51%
Revenue growth 3Y54.37%
Revenue growth 5Y71.28%
Sales Q2Q%4.43%
3.2 Future
The Earnings Per Share is expected to grow by 40.44% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 17.86% on average over the next years. This is quite good.
EPS Next Y125.82%
EPS Next 2Y76.72%
EPS Next 3Y58.5%
EPS Next 5Y40.44%
Revenue Next Year29.85%
Revenue Next 2Y24.87%
Revenue Next 3Y21.75%
Revenue Next 5Y17.86%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
DKNG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
DKNG is valuated quite expensively with a Price/Forward Earnings ratio of 27.86.
DKNG's Price/Forward Earnings is on the same level as the industry average.
DKNG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 27.86 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as DKNG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.71 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as DKNG's earnings are expected to grow with 58.50% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y76.72%
EPS Next 3Y58.5%
5. Dividend
5.1 Amount
DKNG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
33.16
+0.96 (+2.98%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners84.69%
Inst Owner Change11.34%
Ins Owners2.45%
Ins Owner Change0.89%
Market Cap16.46B
Revenue(TTM)5.46B
Net Income(TTM)-267.57M
Analysts82.38
Price Target46.62 (40.59%)
Short Float %7.05%
Short Ratio1.9
Dividend
| Industry Rank | Sector 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)1
Avg EPS beat(2)34.89%
Min EPS beat(2)-21.61%
Max EPS beat(2)91.4%
EPS beat(4)2
Avg EPS beat(4)3.96%
Min EPS beat(4)-74.95%
Max EPS beat(4)91.4%
EPS beat(8)3
Avg EPS beat(8)107.53%
EPS beat(12)7
Avg EPS beat(12)83.25%
EPS beat(16)11
Avg EPS beat(16)68.01%
Revenue beat(2)1
Avg Revenue beat(2)-1.53%
Min Revenue beat(2)-7.74%
Max Revenue beat(2)4.67%
Revenue beat(4)1
Avg Revenue beat(4)-2.89%
Min Revenue beat(4)-7.74%
Max Revenue beat(4)4.67%
Revenue beat(8)2
Avg Revenue beat(8)-2.24%
Revenue beat(12)6
Avg Revenue beat(12)1.33%
Revenue beat(16)9
Avg Revenue beat(16)2.29%
PT rev (1m)-16.3%
PT rev (3m)-16.75%
EPS NQ rev (1m)-69.82%
EPS NQ rev (3m)-70.2%
EPS NY rev (1m)-16.15%
EPS NY rev (3m)-36.09%
Revenue NQ rev (1m)-5.99%
Revenue NQ rev (3m)-5.95%
Revenue NY rev (1m)-0.84%
Revenue NY rev (3m)-2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 27.86 | ||
| P/S | 3.02 | ||
| P/FCF | 30.71 | ||
| P/OCF | 24.66 | ||
| P/B | 22.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.57
EYN/A
EPS(NY)1.19
Fwd EY3.59%
FCF(TTM)1.08
FCFY3.26%
OCF(TTM)1.34
OCFY4.06%
SpS10.99
BVpS1.47
TBVpS-3.39
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.79% | ||
| ROE | -36.54% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 39.23% | ||
| FCFM | 9.82% |
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.51 | ||
| Debt/FCF | 3.42 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 49.14% | ||
| Cap/Sales | 2.41% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 1.48 |
F-Score7
WACC8.33%
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)35.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%13.33%
EPS Next Y125.82%
EPS Next 2Y76.72%
EPS Next 3Y58.5%
EPS Next 5Y40.44%
Revenue 1Y (TTM)18.51%
Revenue growth 3Y54.37%
Revenue growth 5Y71.28%
Sales Q2Q%4.43%
Revenue Next Year29.85%
Revenue Next 2Y24.87%
Revenue Next 3Y21.75%
Revenue Next 5Y17.86%
EBIT growth 1Y37.48%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year255.09%
EBIT Next 3Y75.95%
EBIT Next 5Y48.22%
FCF growth 1Y261.38%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y400.33%
OCF growth 3YN/A
OCF growth 5YN/A
DRAFTKINGS INC-CL A / DKNG FAQ
What is the fundamental rating for DKNG stock?
ChartMill assigns a fundamental rating of 3 / 10 to DKNG.
Can you provide the valuation status for DRAFTKINGS INC-CL A?
ChartMill assigns a valuation rating of 3 / 10 to DRAFTKINGS INC-CL A (DKNG). This can be considered as Overvalued.
What is the profitability of DKNG stock?
DRAFTKINGS INC-CL A (DKNG) has a profitability rating of 0 / 10.