TKO GROUP HOLDINGS INC (TKO) Stock Fundamental Analysis
NYSE:TKO • US87256C1018
206.75 USD
+6.76 (+3.38%)
At close: Feb 13, 2026
206.75 USD
0 (0%)
After Hours: 2/13/2026, 8:04:00 PM
We assign a fundamental rating of 5 out of 10 to TKO. TKO was compared to 80 industry peers in the Entertainment industry. TKO has an average financial health and profitability rating. TKO shows excellent growth, but is valued quite expensive already. This makes TKO very considerable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year TKO was profitable.
- TKO had a positive operating cash flow in the past year.
- Of the past 5 years TKO 4 years were profitable.
- In the past 5 years TKO always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 1.47%, TKO is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- TKO has a better Return On Equity (5.99%) than 78.75% of its industry peers.
- TKO has a better Return On Invested Capital (5.74%) than 78.75% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TKO is in line with the industry average of 7.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 5.99% | ||
| ROIC | 5.74% |
ROA(3y)4.74%
ROA(5y)7.82%
ROE(3y)12.4%
ROE(5y)23.77%
ROIC(3y)9.52%
ROIC(5y)13.24%
1.3 Margins
- With a decent Profit Margin value of 5.27%, TKO is doing good in the industry, outperforming 76.25% of the companies in the same industry.
- In the last couple of years the Profit Margin of TKO has declined.
- With an excellent Operating Margin value of 23.48%, TKO belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
- TKO's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 60.46%, TKO is in the better half of the industry, outperforming 67.50% of the companies in the same industry.
- In the last couple of years the Gross Margin of TKO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.48% | ||
| PM (TTM) | 5.27% | ||
| GM | 60.46% |
OM growth 3Y5.64%
OM growth 5Y17.58%
PM growth 3Y-72.54%
PM growth 5Y-47%
GM growth 3YN/A
GM growth 5Y-6.86%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TKO is still creating some value.
- TKO has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, TKO has more shares outstanding
- Compared to 1 year ago, TKO has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.54 indicates that TKO is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of TKO (2.54) is better than 73.75% of its industry peers.
- The Debt to FCF ratio of TKO is 4.21, which is a neutral value as it means it would take TKO, 4.21 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of TKO (4.21) is better than 80.00% of its industry peers.
- TKO has a Debt/Equity ratio of 1.03. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.03, TKO is doing worse than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 4.21 | ||
| Altman-Z | 2.54 |
ROIC/WACC0.6
WACC9.49%
2.3 Liquidity
- TKO has a Current Ratio of 1.46. This is a normal value and indicates that TKO is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.46, TKO is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
- A Quick Ratio of 1.43 indicates that TKO should not have too much problems paying its short term obligations.
- TKO's Quick ratio of 1.43 is fine compared to the rest of the industry. TKO outperforms 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
- TKO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.50%.
- Measured over the past years, TKO shows a very strong growth in Earnings Per Share. The EPS has been growing by 39.39% on average per year.
- The Revenue has grown by 16.94% in the past year. This is quite good.
- Measured over the past years, TKO shows a very strong growth in Revenue. The Revenue has been growing by 23.90% on average per year.
EPS 1Y (TTM)-37.5%
EPS 3Y27.15%
EPS 5Y39.39%
EPS Q2Q%67.86%
Revenue 1Y (TTM)16.94%
Revenue growth 3Y36.81%
Revenue growth 5Y23.9%
Sales Q2Q%64.4%
3.2 Future
- TKO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.88% yearly.
- The Revenue is expected to grow by 19.97% on average over the next years. This is quite good.
EPS Next Y-38.96%
EPS Next 2Y-6.41%
EPS Next 3Y13.88%
EPS Next 5Y18.88%
Revenue Next Year70.55%
Revenue Next 2Y47.82%
Revenue Next 3Y29.21%
Revenue Next 5Y19.97%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 76.57, TKO can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, TKO is valued a bit cheaper than 70.00% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.19. TKO is valued rather expensively when compared to this.
- TKO is valuated quite expensively with a Price/Forward Earnings ratio of 53.41.
- 65.00% of the companies in the same industry are more expensive than TKO, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of TKO to the average of the S&P500 Index (28.06), we can say TKO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.57 | ||
| Fwd PE | 53.41 |
4.2 Price Multiples
- TKO's Enterprise Value to EBITDA is on the same level as the industry average.
- TKO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TKO is cheaper than 67.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.64 | ||
| EV/EBITDA | 29.81 |
4.3 Compensation for Growth
- TKO has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as TKO's earnings are expected to grow with 13.88% in the coming years.
PEG (NY)N/A
PEG (5Y)1.94
EPS Next 2Y-6.41%
EPS Next 3Y13.88%
5. Dividend
5.1 Amount
- TKO has a yearly dividend return of 0.76%, which is pretty low.
- TKO's Dividend Yield is rather good when compared to the industry average which is at 7.46. TKO pays more dividend than 83.75% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, TKO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
- TKO has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y-6.41%
EPS Next 3Y13.88%
206.75
+6.76 (+3.38%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)11-05 2025-11-05/amc
Earnings (Next)02-25 2026-02-25/amc
Inst Owners97.59%
Inst Owner Change-1.68%
Ins Owners0.82%
Ins Owner Change1.74%
Market Cap40.33B
Revenue(TTM)4.34B
Net Income(TTM)228.78M
Analysts82.96
Price Target226.92 (9.76%)
Short Float %10.47%
Short Ratio6.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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)-12.77%
Min EPS beat(2)-35.98%
Max EPS beat(2)10.45%
EPS beat(4)2
Avg EPS beat(4)24.05%
Min EPS beat(4)-35.98%
Max EPS beat(4)128.96%
EPS beat(8)3
Avg EPS beat(8)69.09%
EPS beat(12)5
Avg EPS beat(12)49.57%
EPS beat(16)9
Avg EPS beat(16)42.44%
Revenue beat(2)1
Avg Revenue beat(2)3.26%
Min Revenue beat(2)-0.89%
Max Revenue beat(2)7.42%
Revenue beat(4)3
Avg Revenue beat(4)7.61%
Min Revenue beat(4)-0.89%
Max Revenue beat(4)18.58%
Revenue beat(8)5
Avg Revenue beat(8)2.32%
Revenue beat(12)7
Avg Revenue beat(12)-0.78%
Revenue beat(16)10
Avg Revenue beat(16)-0.3%
PT rev (1m)3.52%
PT rev (3m)5.39%
EPS NQ rev (1m)-7.31%
EPS NQ rev (3m)-28.24%
EPS NY rev (1m)-1.43%
EPS NY rev (3m)-16.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.57 | ||
| Fwd PE | 53.41 | ||
| P/S | 9.29 | ||
| P/FCF | 42.64 | ||
| P/OCF | 39.06 | ||
| P/B | 10.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.81 |
EPS(TTM)2.7
EY1.31%
EPS(NY)3.87
Fwd EY1.87%
FCF(TTM)4.85
FCFY2.35%
OCF(TTM)5.29
OCFY2.56%
SpS22.24
BVpS19.59
TBVpS-41.4
PEG (NY)N/A
PEG (5Y)1.94
Graham Number34.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 5.99% | ||
| ROCE | 7.26% | ||
| ROIC | 5.74% | ||
| ROICexc | 6.11% | ||
| ROICexgc | 63.49% | ||
| OM | 23.48% | ||
| PM (TTM) | 5.27% | ||
| GM | 60.46% | ||
| FCFM | 21.8% |
ROA(3y)4.74%
ROA(5y)7.82%
ROE(3y)12.4%
ROE(5y)23.77%
ROIC(3y)9.52%
ROIC(5y)13.24%
ROICexc(3y)14.39%
ROICexc(5y)24.2%
ROICexgc(3y)69.32%
ROICexgc(5y)57.66%
ROCE(3y)13.98%
ROCE(5y)20.29%
ROICexgc growth 3Y45.48%
ROICexgc growth 5Y46.59%
ROICexc growth 3Y-46.81%
ROICexc growth 5Y-19.68%
OM growth 3Y5.64%
OM growth 5Y17.58%
PM growth 3Y-72.54%
PM growth 5Y-47%
GM growth 3YN/A
GM growth 5Y-6.86%
F-Score7
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 4.21 | ||
| Debt/EBITDA | 2.69 | ||
| Cap/Depr | 19.78% | ||
| Cap/Sales | 2% | ||
| Interest Coverage | 4.17 | ||
| Cash Conversion | 70.84% | ||
| Profit Quality | 413.43% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 2.54 |
F-Score7
WACC9.49%
ROIC/WACC0.6
Cap/Depr(3y)87.87%
Cap/Depr(5y)67.66%
Cap/Sales(3y)7.02%
Cap/Sales(5y)5.49%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-37.5%
EPS 3Y27.15%
EPS 5Y39.39%
EPS Q2Q%67.86%
EPS Next Y-38.96%
EPS Next 2Y-6.41%
EPS Next 3Y13.88%
EPS Next 5Y18.88%
Revenue 1Y (TTM)16.94%
Revenue growth 3Y36.81%
Revenue growth 5Y23.9%
Sales Q2Q%64.4%
Revenue Next Year70.55%
Revenue Next 2Y47.82%
Revenue Next 3Y29.21%
Revenue Next 5Y19.97%
EBIT growth 1Y66.38%
EBIT growth 3Y44.53%
EBIT growth 5Y45.68%
EBIT Next Year380.63%
EBIT Next 3Y94.57%
EBIT Next 5Y54.71%
FCF growth 1Y240.04%
FCF growth 3Y52.38%
FCF growth 5Y57.41%
OCF growth 1Y178.58%
OCF growth 3Y47.2%
OCF growth 5Y36.82%
TKO GROUP HOLDINGS INC / TKO FAQ
Can you provide the ChartMill fundamental rating for TKO GROUP HOLDINGS INC?
ChartMill assigns a fundamental rating of 5 / 10 to TKO.
Can you provide the valuation status for TKO GROUP HOLDINGS INC?
ChartMill assigns a valuation rating of 3 / 10 to TKO GROUP HOLDINGS INC (TKO). This can be considered as Overvalued.
How profitable is TKO GROUP HOLDINGS INC (TKO) stock?
TKO GROUP HOLDINGS INC (TKO) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for TKO stock?
The Price/Earnings (PE) ratio for TKO GROUP HOLDINGS INC (TKO) is 76.57 and the Price/Book (PB) ratio is 10.56.