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DRAFTKINGS INC-CL A (DKNG) Stock Fundamental Analysis

NASDAQ:DKNG - Nasdaq - US26142V1052 - Common Stock - Currency: USD

36.5  -1.48 (-3.9%)

After market: 36.5 0 (0%)

Fundamental Rating

3

Taking everything into account, DKNG scores 3 out of 10 in our fundamental rating. DKNG was compared to 133 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.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

DKNG had negative earnings in the past year.
DKNG had a positive operating cash flow in the past year.
In the past 5 years DKNG always reported negative net income.
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

DKNG's Return On Assets of -8.83% is on the low side compared to the rest of the industry. DKNG is outperformed by 84.21% of its industry peers.
DKNG has a worse Return On Equity (-45.66%) than 64.66% of its industry peers.
Industry RankSector Rank
ROA -8.83%
ROE -45.66%
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

Looking at the Gross Margin, with a value of 38.33%, DKNG is doing worse than 65.41% of the companies in the same industry.
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 38.33%
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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4

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
Compared to 5 years ago, DKNG has more shares outstanding
DKNG has a better debt/assets ratio than last year.
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

An Altman-Z score of 1.92 indicates that DKNG is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.92, DKNG is in line with its industry, outperforming 54.89% of the companies in the same industry.
DKNG has a debt to FCF ratio of 7.22. This is a slightly negative value and a sign of low solvency as DKNG would need 7.22 years to pay back of all of its debts.
DKNG's Debt to FCF ratio of 7.22 is fine compared to the rest of the industry. DKNG outperforms 71.43% of its industry peers.
A Debt/Equity ratio of 2.11 is on the high side and indicates that DKNG has dependencies on debt financing.
DKNG has a Debt to Equity ratio (2.11) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 2.11
Debt/FCF 7.22
Altman-Z 1.92
ROIC/WACCN/A
WACC8.99%
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

DKNG has a Current Ratio of 1.20. This is a normal value and indicates that DKNG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of DKNG (1.20) is better than 61.65% of its industry peers.
DKNG has a Quick Ratio of 1.20. This is a normal value and indicates that DKNG is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of DKNG (1.20) is better than 66.17% of its industry peers.
Industry RankSector Rank
Current Ratio 1.2
Quick Ratio 1.2
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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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 9.78% over the past year.
DKNG shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.86%.
DKNG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 71.28% yearly.
EPS 1Y (TTM)9.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%76.67%
Revenue 1Y (TTM)22.86%
Revenue growth 3Y54.37%
Revenue growth 5Y71.28%
Sales Q2Q%19.9%

3.2 Future

The Earnings Per Share is expected to grow by 41.52% on average over the next years. This is a very strong growth
Based on estimates for the next years, DKNG will show a quite strong growth in Revenue. The Revenue will grow by 18.21% on average per year.
EPS Next Y134.8%
EPS Next 2Y83.69%
EPS Next 3Y60.75%
EPS Next 5Y41.52%
Revenue Next Year30.75%
Revenue Next 2Y25.15%
Revenue Next 3Y21.98%
Revenue Next 5Y18.21%

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

The Price/Earnings Ratio is negative for DKNG. In the last year negative earnings were reported.
DKNG is valuated quite expensively with a Price/Forward Earnings ratio of 25.06.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DKNG is on the same level as its industry peers.
DKNG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 25.06
DKNG Price Earnings VS Forward Price EarningsDKNG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40 -40

4.2 Price Multiples

The rest of the industry has a similar Price/Free Cash Flow ratio as DKNG.
Industry RankSector Rank
P/FCF 71.02
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 60.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y83.69%
EPS Next 3Y60.75%

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0

5. Dividend

5.1 Amount

No dividends for DKNG!.
Industry RankSector Rank
Dividend Yield N/A

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DRAFTKINGS INC-CL A

NASDAQ:DKNG (6/13/2025, 7:08:46 PM)

After market: 36.5 0 (0%)

36.5

-1.48 (-3.9%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)07-30 2025-07-30/amc
Inst Owners80.97%
Inst Owner Change5.36%
Ins Owners2.47%
Ins Owner Change23.14%
Market Cap18.11B
Analysts82.56
Price Target54.3 (48.77%)
Short Float %5.14%
Short Ratio2.23
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)1
Avg EPS beat(2)-26.98%
Min EPS beat(2)-74.95%
Max EPS beat(2)20.99%
EPS beat(4)2
Avg EPS beat(4)253.96%
Min EPS beat(4)-74.95%
Max EPS beat(4)1110.71%
EPS beat(8)4
Avg EPS beat(8)109.2%
EPS beat(12)8
Avg EPS beat(12)81.43%
EPS beat(16)10
Avg EPS beat(16)59.6%
Revenue beat(2)0
Avg Revenue beat(2)-4.24%
Min Revenue beat(2)-4.94%
Max Revenue beat(2)-3.55%
Revenue beat(4)0
Avg Revenue beat(4)-3.62%
Min Revenue beat(4)-4.94%
Max Revenue beat(4)-2.61%
Revenue beat(8)3
Avg Revenue beat(8)0.88%
Revenue beat(12)7
Avg Revenue beat(12)3.03%
Revenue beat(16)9
Avg Revenue beat(16)2.83%
PT rev (1m)-3.64%
PT rev (3m)-5.88%
EPS NQ rev (1m)-51.54%
EPS NQ rev (3m)-51.63%
EPS NY rev (1m)-25.63%
EPS NY rev (3m)-31.83%
Revenue NQ rev (1m)-3.68%
Revenue NQ rev (3m)-3.81%
Revenue NY rev (1m)-1.55%
Revenue NY rev (3m)-2.56%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 25.06
P/S 3.62
P/FCF 71.02
P/OCF 49.07
P/B 20.75
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-0.83
EYN/A
EPS(NY)1.46
Fwd EY3.99%
FCF(TTM)0.51
FCFY1.41%
OCF(TTM)0.74
OCFY2.04%
SpS10.08
BVpS1.76
TBVpS-3.2
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -8.83%
ROE -45.66%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 38.33%
FCFM 5.1%
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-Score5
Asset Turnover1.11
Health
Industry RankSector Rank
Debt/Equity 2.11
Debt/FCF 7.22
Debt/EBITDA N/A
Cap/Depr 39.64%
Cap/Sales 2.28%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.2
Quick Ratio 1.2
Altman-Z 1.92
F-Score5
WACC8.99%
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)9.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%76.67%
EPS Next Y134.8%
EPS Next 2Y83.69%
EPS Next 3Y60.75%
EPS Next 5Y41.52%
Revenue 1Y (TTM)22.86%
Revenue growth 3Y54.37%
Revenue growth 5Y71.28%
Sales Q2Q%19.9%
Revenue Next Year30.75%
Revenue Next 2Y25.15%
Revenue Next 3Y21.98%
Revenue Next 5Y18.21%
EBIT growth 1Y6.84%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year252.74%
EBIT Next 3Y76.67%
EBIT Next 5Y48.72%
FCF growth 1Y144.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y178.49%
OCF growth 3YN/A
OCF growth 5YN/A