ENDEAVOR GROUP HOLD-CLASS A (EDR)

US29260Y1091 - Common Stock

25.73  +0.22 (+0.86%)

After market: 25.73 0 (0%)

Fundamental Rating

5

EDR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 77 industry peers in the Entertainment industry. While EDR is still in line with the averages on profitability rating, there are concerns on its financial health. EDR has a correct valuation and a medium growth rate.



6

1. Profitability

1.1 Basic Checks

In the past year EDR was profitable.
In the past year EDR had a positive cash flow from operations.
In multiple years EDR reported negative net income over the last 5 years.
Each year in the past 5 years EDR had a positive operating cash flow.

1.2 Ratios

With a decent Return On Assets value of 1.65%, EDR is doing good in the industry, outperforming 70.13% of the companies in the same industry.
EDR's Return On Equity of 7.45% is amongst the best of the industry. EDR outperforms 80.52% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.52%, EDR is in the better half of the industry, outperforming 64.94% of the companies in the same industry.
Industry RankSector Rank
ROA 1.65%
ROE 7.45%
ROIC 1.52%
ROA(3y)0.03%
ROA(5y)-2.53%
ROE(3y)-3.16%
ROE(5y)-57.13%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

The Profit Margin of EDR (5.98%) is better than 76.62% of its industry peers.
EDR's Profit Margin has declined in the last couple of years.
EDR has a Operating Margin of 6.62%. This is in the better half of the industry: EDR outperforms 71.43% of its industry peers.
In the last couple of years the Operating Margin of EDR has grown nicely.
The Gross Margin of EDR (59.04%) is better than 77.92% of its industry peers.
In the last couple of years the Gross Margin of EDR has grown nicely.
Industry RankSector Rank
OM 6.62%
PM (TTM) 5.98%
GM 59.04%
OM growth 3Y50.68%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5Y-7.34%
GM growth 3Y5.81%
GM growth 5Y2.44%

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EDR is destroying value.
Compared to 1 year ago, EDR has more shares outstanding
The number of shares outstanding for EDR has been increased compared to 5 years ago.
EDR has a better debt/assets ratio than last year.

2.2 Solvency

EDR has an Altman-Z score of 0.79. This is a bad value and indicates that EDR is not financially healthy and even has some risk of bankruptcy.
EDR's Altman-Z score of 0.79 is in line compared to the rest of the industry. EDR outperforms 51.95% of its industry peers.
The Debt to FCF ratio of EDR is 31.40, which is on the high side as it means it would take EDR, 31.40 years of fcf income to pay off all of its debts.
EDR's Debt to FCF ratio of 31.40 is fine compared to the rest of the industry. EDR outperforms 66.23% of its industry peers.
A Debt/Equity ratio of 1.04 is on the high side and indicates that EDR has dependencies on debt financing.
EDR has a worse Debt to Equity ratio (1.04) than 66.23% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.04
Debt/FCF 31.4
Altman-Z 0.79
ROIC/WACC0.14
WACC10.7%

2.3 Liquidity

A Current Ratio of 1.24 indicates that EDR should not have too much problems paying its short term obligations.
EDR's Current ratio of 1.24 is in line compared to the rest of the industry. EDR outperforms 59.74% of its industry peers.
A Quick Ratio of 1.24 indicates that EDR should not have too much problems paying its short term obligations.
EDR has a better Quick ratio (1.24) than 61.04% of its industry peers.
Industry RankSector Rank
Current Ratio 1.24
Quick Ratio 1.24

6

3. Growth

3.1 Past

EDR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.64%, which is quite good.
EDR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.16% yearly.
Looking at the last year, EDR shows a quite strong growth in Revenue. The Revenue has grown by 13.14% in the last year.
Measured over the past years, EDR shows a quite strong growth in Revenue. The Revenue has been growing by 10.53% on average per year.
EPS 1Y (TTM)11.64%
EPS 3YN/A
EPS 5Y-9.16%
EPS growth Q2Q-94.39%
Revenue 1Y (TTM)13.14%
Revenue growth 3Y19.66%
Revenue growth 5Y10.53%
Revenue growth Q2Q25.57%

3.2 Future

EDR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.94% yearly.
Based on estimates for the next years, EDR will show a quite strong growth in Revenue. The Revenue will grow by 9.83% on average per year.
EPS Next Y-17.18%
EPS Next 2Y-4.19%
EPS Next 3Y10.47%
EPS Next 5Y10.94%
Revenue Next Year29.55%
Revenue Next 2Y14.5%
Revenue Next 3Y14.1%
Revenue Next 5Y9.83%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 12.19, which indicates a correct valuation of EDR.
Compared to the rest of the industry, the Price/Earnings ratio of EDR indicates a rather cheap valuation: EDR is cheaper than 87.01% of the companies listed in the same industry.
EDR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.48.
With a Price/Forward Earnings ratio of 14.72, EDR is valued correctly.
EDR's Price/Forward Earnings ratio is rather cheap when compared to the industry. EDR is cheaper than 87.01% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.79. EDR is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 12.19
Fwd PE 14.72

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EDR indicates a somewhat cheap valuation: EDR is cheaper than 64.94% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, EDR is valued a bit cheaper than 66.23% of the companies in the same industry.
Industry RankSector Rank
P/FCF 74.95
EV/EBITDA 20.85

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-4.19%
EPS Next 3Y10.47%

3

5. Dividend

5.1 Amount

With a yearly dividend of 0.94%, 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 28.45. EDR pays more dividend than 88.31% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, EDR's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.94%

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

35.11% of the earnings are spent on dividend by EDR. This is a low number and sustainable payout ratio.
DP35.11%
EPS Next 2Y-4.19%
EPS Next 3Y10.47%

ENDEAVOR GROUP HOLD-CLASS A

NYSE:EDR (3/28/2024, 8:06:26 PM)

After market: 25.73 0 (0%)

25.73

+0.22 (+0.86%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.00B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.94%
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)
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Revenue beat(2)
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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 12.19
Fwd PE 14.72
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 1.65%
ROE 7.45%
ROCE
ROIC
ROICexc
ROICexgc
OM 6.62%
PM (TTM) 5.98%
GM 59.04%
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 Turnover0.28
Health
Industry RankSector Rank
Debt/Equity 1.04
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.24
Quick Ratio 1.24
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)11.64%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-17.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.14%
Revenue growth 3Y19.66%
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