ENDEAVOR GROUP HOLD-CLASS A (EDR)
US29260Y1091 - Common Stock
We assign a fundamental rating of 5 out of 10 to EDR. EDR was compared to 77 industry peers in the Entertainment industry. There are concerns on the financial health of EDR while its profitability can be described as average. EDR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year EDR was profitable.
EDR had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: EDR reported negative net income in multiple years.
In the past 5 years EDR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.62%, EDR is in the better half of the industry, outperforming 69.74% of the companies in the same industry.
EDR's Return On Equity of 2.85% is fine compared to the rest of the industry. EDR outperforms 77.63% of its industry peers.
EDR has a better Return On Invested Capital (1.87%) than 64.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.62% | ||
| ROE | 2.85% | ||
| ROIC | 1.87% |
ROA(3y)-2.79%
ROA(5y)-2.21%
ROE(3y)-78.41%
ROE(5y)-54.73%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of EDR (2.41%) is better than 73.68% of its industry peers.
EDR has a better Operating Margin (7.98%) than 76.32% of its industry peers.
In the last couple of years the Operating Margin of EDR has grown nicely.
EDR has a better Gross Margin (59.91%) than 77.63% of its industry peers.
In the last couple of years the Gross Margin of EDR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.98% | ||
| PM (TTM) | 2.41% | ||
| GM | 59.91% |
OM growth 3Y33.01%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.32%
GM growth 5Y1.92%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EDR is destroying value.
Compared to 1 year ago, EDR has more shares outstanding
Compared to 5 years ago, EDR has more shares outstanding
The debt/assets ratio for EDR has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.77, we must say that EDR is in the distress zone and has some risk of bankruptcy.
EDR has a Altman-Z score (0.77) which is in line with its industry peers.
The Debt to FCF ratio of EDR is 29.61, which is on the high side as it means it would take EDR, 29.61 years of fcf income to pay off all of its debts.
EDR's Debt to FCF ratio of 29.61 is fine compared to the rest of the industry. EDR outperforms 71.05% of its industry peers.
EDR has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of EDR (1.05) is worse than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 29.61 | ||
| Altman-Z | 0.77 |
ROIC/WACC0.12
WACC15.48%
2.3 Liquidity
EDR has a Current Ratio of 1.26. This is a normal value and indicates that EDR is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.26, EDR perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
A Quick Ratio of 1.26 indicates that EDR should not have too much problems paying its short term obligations.
EDR has a Quick ratio (1.26) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
EDR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 168.97%, which is quite impressive.
EDR shows a small growth in Revenue. In the last year, the Revenue has grown by 2.26%.
EDR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.77% yearly.
EPS 1Y (TTM)168.97%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q41.67%
Revenue 1Y (TTM)2.26%
Revenue growth 3Y4.84%
Revenue growth 5Y11.77%
Revenue growth Q2Q10.07%
3.2 Future
Based on estimates for the next years, EDR will show a small growth in Earnings Per Share. The EPS will grow by 4.39% on average per year.
The Revenue is expected to grow by 7.07% on average over the next years.
EPS Next Y-64.46%
EPS Next 2Y-3.71%
EPS Next 3Y-0.92%
EPS Next 5Y4.39%
Revenue Next Year7.98%
Revenue Next 2Y12.96%
Revenue Next 3Y8.62%
Revenue Next 5Y7.07%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
EDR is valuated cheaply with a Price/Earnings ratio of 7.78.
Compared to the rest of the industry, the Price/Earnings ratio of EDR indicates a rather cheap valuation: EDR is cheaper than 90.79% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.05. EDR is valued rather cheaply when compared to this.
EDR is valuated correctly with a Price/Forward Earnings ratio of 13.84.
Based on the Price/Forward Earnings ratio, EDR is valued cheaply inside the industry as 85.53% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.08, EDR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.78 | ||
| Fwd PE | 13.84 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EDR.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EDR indicates a somewhat cheap valuation: EDR is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.03 | ||
| EV/EBITDA | 20.97 |
4.3 Compensation for Growth
The decent profitability rating of EDR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.71%
EPS Next 3Y-0.92%
5. Dividend
5.1 Amount
With a yearly dividend of 0.98%, EDR is not a good candidate for dividend investing.
EDR's Dividend Yield is rather good when compared to the industry average which is at 5.11. EDR pays more dividend than 94.74% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.63, EDR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
EDR does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
EDR pays out 27.61% of its income as dividend. This is a sustainable payout ratio.
DP27.61%
EPS Next 2Y-3.71%
EPS Next 3Y-0.92%
ENDEAVOR GROUP HOLD-CLASS A
NYSE:EDR (12/1/2023, 7:04:00 PM)
After market: 24.25 -0.01 (-0.04%)24.26
-0.05 (-0.21%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)11-08 2023-11-08/bmo
Earnings (Next)02-26 2024-02-26/amc
Inst Owners55.95%
Inst Owner Change-0.05%
Ins Owners10.03%
Ins Owner Change-6.25%
Market Cap11.59B
Analysts85.33
Price Target31.62 (30.34%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Dividend Growth(5Y)N/A
DP27.61%
Div Incr Years0
Div Non Decr Years0
Ex-Date09-14 2023-09-14 (0.06)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)192.72%
Min EPS beat(2)18.12%
Max EPS beat(2)367.31%
EPS beat(4)4
Avg EPS beat(4)210.92%
Min EPS beat(4)9.74%
Max EPS beat(4)448.52%
Revenue beat(2)2
Avg Revenue beat(2)3.18%
Min Revenue beat(2)1%
Max Revenue beat(2)5.36%
Revenue beat(4)3
Avg Revenue beat(4)1.4%
Min Revenue beat(4)-1.76%
Max Revenue beat(4)5.36%
PT rev (1m)-4.91%
PT rev (3m)-5.01%
EPS NQ rev (1m)-13.85%
EPS NQ rev (3m)-21.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-45.44%
Revenue NQ rev (1m)5.46%
Revenue NQ rev (3m)5.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.78 | ||
| Fwd PE | 13.84 | ||
| P/S | 2.06 | ||
| P/FCF | 68.03 | ||
| P/OCF | 29.85 | ||
| P/B | 2.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.97 |
EPS(TTM)3.12
EY12.86%
EPS(NY)1.75
Fwd EY7.22%
FCF(TTM)0.36
FCFY1.47%
OCF(TTM)0.81
OCFY3.35%
SpS11.8
BVpS9.97
TBVpS-22.39
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.62% | ||
| ROE | 2.85% | ||
| ROCE | 2.37% | ||
| ROIC | 1.87% | ||
| ROICexc | 2.02% | ||
| ROICexgc | 16.31% | ||
| OM | 7.98% | ||
| PM (TTM) | 2.41% | ||
| GM | 59.91% | ||
| FCFM | 3.02% |
ROA(3y)-2.79%
ROA(5y)-2.21%
ROE(3y)-78.41%
ROE(5y)-54.73%
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 3Y23.76%
ROICexcg growth 5YN/A
ROICexc growth 3Y25.38%
ROICexc growth 5YN/A
OM growth 3Y33.01%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.32%
GM growth 5Y1.92%
F-Score7
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 29.61 | ||
| Debt/EBITDA | 6.82 | ||
| Cap/Depr | 77.66% | ||
| Cap/Sales | 3.86% | ||
| Interest Coverage | 0.24 | ||
| Cash Conversion | 53.15% | ||
| Profit Quality | 125.48% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 0.77 |
F-Score7
WACC15.48%
ROIC/WACC0.12
Cap/Depr(3y)37.94%
Cap/Depr(5y)42.68%
Cap/Sales(3y)2.28%
Cap/Sales(5y)3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
Growth
EPS 1Y (TTM)168.97%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q41.67%
EPS Next Y-64.46%
EPS Next 2Y-3.71%
EPS Next 3Y-0.92%
EPS Next 5Y4.39%
Revenue 1Y (TTM)2.26%
Revenue growth 3Y4.84%
Revenue growth 5Y11.77%
Revenue growth Q2Q10.07%
Revenue Next Year7.98%
Revenue Next 2Y12.96%
Revenue Next 3Y8.62%
Revenue Next 5Y7.07%
EBIT growth 1Y-16.11%
EBIT growth 3Y39.46%
EBIT growth 5YN/A
EBIT Next Year24.73%
EBIT Next 3Y20.56%
EBIT Next 5Y15.14%
FCF growth 1Y85.03%
FCF growth 3Y13.8%
FCF growth 5Y18.93%
OCF growth 1Y73.01%
OCF growth 3Y10.32%
OCF growth 5Y14.8%