DRAFTKINGS INC-CL A (DKNG)

US26142V1052 - Common Stock

45.41  +0.06 (+0.13%)

After market: 45.26 -0.15 (-0.33%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to DKNG. DKNG was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and financial health of DKNG have multiple concerns. DKNG is valied quite expensively at the moment, while it does show a decent growth rate.



0

1. Profitability

1.1 Basic Checks

In the past year DKNG has reported negative net income.
In the past year DKNG has reported a negative cash flow from operations.
DKNG had negative earnings in each of the past 5 years.
DKNG had a negative operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of -20.33%, DKNG is doing worse than 94.78% of the companies in the same industry.
With a Return On Equity value of -95.46%, DKNG is not doing good in the industry: 68.66% of the companies in the same industry are doing better.
Industry RankSector Rank
ROA -20.33%
ROE -95.46%
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 has a Gross Margin of 37.46%. This is in the lower half of the industry: DKNG underperforms 67.16% of its industry peers.
DKNG's Gross Margin has declined in the last couple of years.
DKNG does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 37.46%
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%

3

2. Health

2.1 Basic Checks

DKNG does not have a ROIC to compare to the WACC, probably because it is not profitable.
DKNG has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, DKNG has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.48 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 2.48, DKNG is in the better half of the industry, outperforming 72.39% of the companies in the same industry.
DKNG has a Debt/Equity ratio of 1.49. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.49, DKNG is in line with its industry, outperforming 56.72% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.49
Debt/FCF N/A
Altman-Z 2.48
ROIC/WACCN/A
WACC8.57%

2.3 Liquidity

A Current Ratio of 1.34 indicates that DKNG should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.34, DKNG is doing good in the industry, outperforming 65.67% of the companies in the same industry.
DKNG has a Quick Ratio of 1.34. This is a normal value and indicates that DKNG is financially healthy and should not expect problems in meeting its short term obligations.
DKNG has a Quick ratio of 1.34. This is in the better half of the industry: DKNG outperforms 70.15% of its industry peers.
Industry RankSector Rank
Current Ratio 1.34
Quick Ratio 1.34

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 59.21% over the past year.
Looking at the last year, DKNG shows a very strong growth in Revenue. The Revenue has grown by 63.61%.
The Revenue has been growing by 74.54% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)59.21%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q81.13%
Revenue 1Y (TTM)63.61%
Revenue growth 3Y81.36%
Revenue growth 5Y74.54%
Revenue growth Q2Q43.94%

3.2 Future

DKNG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 34.68% yearly.
The Revenue is expected to grow by 19.49% on average over the next years. This is quite good.
EPS Next Y86.61%
EPS Next 2Y46.09%
EPS Next 3Y33.52%
EPS Next 5Y34.68%
Revenue Next Year60.18%
Revenue Next 2Y38.73%
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.

1

4. Valuation

4.1 Price/Earnings Ratio

DKNG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for DKNG. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A

4.3 Compensation for Growth

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 2Y46.09%
EPS Next 3Y33.52%

0

5. Dividend

5.1 Amount

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

DRAFTKINGS INC-CL A

NASDAQ:DKNG (3/28/2024, 8:05:14 PM)

After market: 45.26 -0.15 (-0.33%)

45.41

+0.06 (+0.13%)

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 Cap21.51B
Analysts
Price Target
Dividend
Industry RankSector 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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE N/A
Fwd PE N/A
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 RankSector Rank
ROA -20.33%
ROE -95.46%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) N/A
GM 37.46%
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 Turnover0.93
Health
Industry RankSector Rank
Debt/Equity 1.49
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)
Growth
EPS 1Y (TTM)59.21%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y86.61%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)63.61%
Revenue growth 3Y81.36%
Revenue growth 5Y
Revenue growth 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