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TKO GROUP HOLDINGS INC (TKO) Stock Fundamental Analysis

NYSE:TKO - New York Stock Exchange, Inc. - US87256C1018 - Common Stock - Currency: USD

156.23  -3.61 (-2.26%)

After market: 156.23 0 (0%)

Fundamental Rating

4

Taking everything into account, TKO scores 4 out of 10 in our fundamental rating. TKO was compared to 71 industry peers in the Entertainment industry. TKO has an average financial health and profitability rating. TKO is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year TKO was profitable.
TKO had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TKO reported negative net income in multiple years.
Of the past 5 years TKO 4 years had a positive operating cash flow.
TKO Yearly Net Income VS EBIT VS OCF VS FCFTKO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M

1.2 Ratios

TKO has a Return On Assets of -0.63%. This is in the better half of the industry: TKO outperforms 64.79% of its industry peers.
With a decent Return On Equity value of -2.00%, TKO is doing good in the industry, outperforming 66.20% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.37%, TKO is in the better half of the industry, outperforming 71.83% of the companies in the same industry.
TKO had an Average Return On Invested Capital over the past 3 years of 14.73%. This is significantly below the industry average of 23.28%.
The 3 year average ROIC (14.73%) for TKO is well above the current ROIC(4.37%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA -0.63%
ROE -2%
ROIC 4.37%
ROA(3y)9.63%
ROA(5y)9.36%
ROE(3y)28.1%
ROE(5y)29.24%
ROIC(3y)14.73%
ROIC(5y)14.52%
TKO Yearly ROA, ROE, ROICTKO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30 40

1.3 Margins

TKO has a better Operating Margin (25.88%) than 95.77% of its industry peers.
In the last couple of years the Operating Margin of TKO has grown nicely.
TKO has a better Gross Margin (68.42%) than 78.87% of its industry peers.
Industry RankSector Rank
OM 25.88%
PM (TTM) N/A
GM 68.42%
OM growth 3Y16.54%
OM growth 5Y23.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
TKO Yearly Profit, Operating, Gross MarginsTKO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

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4

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.
There is no outstanding debt for TKO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
TKO Yearly Shares OutstandingTKO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
TKO Yearly Total Debt VS Total AssetsTKO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.2 Solvency

TKO has an Altman-Z score of 2.46. This is not the best score and indicates that TKO is in the grey zone with still only limited risk for bankruptcy at the moment.
TKO has a Altman-Z score of 2.46. This is in the better half of the industry: TKO outperforms 71.83% of its industry peers.
TKO has a debt to FCF ratio of 4.52. This is a neutral value as TKO would need 4.52 years to pay back of all of its debts.
TKO's Debt to FCF ratio of 4.52 is fine compared to the rest of the industry. TKO outperforms 70.42% of its industry peers.
TKO has a Debt/Equity ratio of 0.73. This is a neutral value indicating TKO is somewhat dependend on debt financing.
TKO has a Debt to Equity ratio (0.73) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.73
Debt/FCF 4.52
Altman-Z 2.46
ROIC/WACC0.47
WACC9.26%
TKO Yearly LT Debt VS Equity VS FCFTKO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

2.3 Liquidity

A Current Ratio of 0.99 indicates that TKO may have some problems paying its short term obligations.
TKO has a Current ratio (0.99) which is comparable to the rest of the industry.
TKO has a Quick Ratio of 0.99. This is a bad value and indicates that TKO is not financially healthy enough and could expect problems in meeting its short term obligations.
TKO has a Quick ratio (0.99) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 0.99
Quick Ratio 0.99
TKO Yearly Current Assets VS Current LiabilitesTKO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

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4

3. Growth

3.1 Past

TKO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -67.86%.
The Earnings Per Share has been growing by 36.50% on average over the past years. This is a very strong growth
EPS 1Y (TTM)-67.86%
EPS 3Y22.79%
EPS 5Y36.5%
EPS Q2Q%-77.38%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%101.49%

3.2 Future

The Earnings Per Share is expected to grow by 11.97% on average over the next years. This is quite good.
TKO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.42% yearly.
EPS Next Y-33.94%
EPS Next 2Y13.41%
EPS Next 3Y15.48%
EPS Next 5Y11.97%
Revenue Next Year55.71%
Revenue Next 2Y39.86%
Revenue Next 3Y24.62%
Revenue Next 5Y9.42%

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.
TKO Yearly Revenue VS EstimatesTKO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B 4B 5B
TKO Yearly EPS VS EstimatesTKO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 2 4 6

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2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 96.44, the valuation of TKO can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TKO indicates a somewhat cheap valuation: TKO is cheaper than 66.20% of the companies listed in the same industry.
TKO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.91.
The Price/Forward Earnings ratio is 30.52, which means the current valuation is very expensive for TKO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TKO indicates a somewhat cheap valuation: TKO is cheaper than 71.83% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TKO to the average of the S&P500 Index (21.85), we can say TKO is valued slightly more expensively.
Industry RankSector Rank
PE 96.44
Fwd PE 30.52
TKO Price Earnings VS Forward Price EarningsTKO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

TKO's Enterprise Value to EBITDA ratio is in line with the industry average.
TKO's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 47.15
EV/EBITDA 33.79
TKO Per share dataTKO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 -20 -30

4.3 Compensation for Growth

TKO's earnings are expected to grow with 15.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)2.64
EPS Next 2Y13.41%
EPS Next 3Y15.48%

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5

5. Dividend

5.1 Amount

TKO has a yearly dividend return of 0.24%, which is pretty low.
TKO's Dividend Yield is rather good when compared to the industry average which is at 6.63. TKO pays more dividend than 80.28% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, TKO's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.24%

5.2 History

TKO has paid a dividend for at least 10 years, which is a reliable track record.
TKO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years11
TKO Yearly Dividends per shareTKO Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2025 1 2 3 4

5.3 Sustainability

23.38% of the earnings are spent on dividend by TKO. This is a low number and sustainable payout ratio.
DP23.38%
EPS Next 2Y13.41%
EPS Next 3Y15.48%
TKO Yearly Income VS Free CF VS DividendTKO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M 400M
TKO Dividend Payout.TKO Dividend Payout, showing the Payout Ratio.TKO Dividend Payout.PayoutRetained Earnings

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TKO GROUP HOLDINGS INC

NYSE:TKO (5/22/2025, 8:04:00 PM)

After market: 156.23 0 (0%)

156.23

-3.61 (-2.26%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)08-06 2025-08-06/amc
Inst Owners94.61%
Inst Owner Change3.97%
Ins Owners5.75%
Ins Owner Change0.8%
Market Cap30.92B
Analysts83.33
Price Target171.47 (9.75%)
Short Float %9.89%
Short Ratio3.73
Dividend
Industry RankSector Rank
Dividend Yield 0.24%
Yearly Dividend0.48
Dividend Growth(5Y)N/A
DP23.38%
Div Incr Years1
Div Non Decr Years11
Ex-Date03-14 2025-03-14 (0.38)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)262.92%
Min EPS beat(2)-44.96%
Max EPS beat(2)570.8%
EPS beat(4)2
Avg EPS beat(4)128.16%
Min EPS beat(4)-51.56%
Max EPS beat(4)570.8%
EPS beat(8)4
Avg EPS beat(8)68.07%
EPS beat(12)8
Avg EPS beat(12)53.71%
EPS beat(16)11
Avg EPS beat(16)52.67%
Revenue beat(2)2
Avg Revenue beat(2)1.72%
Min Revenue beat(2)1.51%
Max Revenue beat(2)1.93%
Revenue beat(4)2
Avg Revenue beat(4)-6.61%
Min Revenue beat(4)-27.06%
Max Revenue beat(4)1.93%
Revenue beat(8)5
Avg Revenue beat(8)-2.54%
Revenue beat(12)7
Avg Revenue beat(12)-2.07%
Revenue beat(16)9
Avg Revenue beat(16)-1.5%
PT rev (1m)0.33%
PT rev (3m)10.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-20%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 96.44
Fwd PE 30.52
P/S 12.15
P/FCF 47.15
P/OCF 46.23
P/B 7.75
P/tB N/A
EV/EBITDA 33.79
EPS(TTM)1.62
EY1.04%
EPS(NY)5.12
Fwd EY3.28%
FCF(TTM)3.31
FCFY2.12%
OCF(TTM)3.38
OCFY2.16%
SpS12.85
BVpS20.17
TBVpS-35.75
PEG (NY)N/A
PEG (5Y)2.64
Profitability
Industry RankSector Rank
ROA -0.63%
ROE -2%
ROCE 5.5%
ROIC 4.37%
ROICexc 4.47%
ROICexgc 84.04%
OM 25.88%
PM (TTM) N/A
GM 68.42%
FCFM 25.78%
ROA(3y)9.63%
ROA(5y)9.36%
ROE(3y)28.1%
ROE(5y)29.24%
ROIC(3y)14.73%
ROIC(5y)14.52%
ROICexc(3y)24.53%
ROICexc(5y)26.42%
ROICexgc(3y)44.43%
ROICexgc(5y)38.81%
ROCE(3y)22.69%
ROCE(5y)22.64%
ROICexcg growth 3Y11.84%
ROICexcg growth 5Y-0.18%
ROICexc growth 3Y-54.96%
ROICexc growth 5Y-41.05%
OM growth 3Y16.54%
OM growth 5Y23.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.2
Health
Industry RankSector Rank
Debt/Equity 0.73
Debt/FCF 4.52
Debt/EBITDA 2.94
Cap/Depr 3.88%
Cap/Sales 0.51%
Interest Coverage 250
Cash Conversion 67.26%
Profit Quality N/A
Current Ratio 0.99
Quick Ratio 0.99
Altman-Z 2.46
F-Score4
WACC9.26%
ROIC/WACC0.47
Cap/Depr(3y)96.87%
Cap/Depr(5y)79.58%
Cap/Sales(3y)7.32%
Cap/Sales(5y)6.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-67.86%
EPS 3Y22.79%
EPS 5Y36.5%
EPS Q2Q%-77.38%
EPS Next Y-33.94%
EPS Next 2Y13.41%
EPS Next 3Y15.48%
EPS Next 5Y11.97%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%101.49%
Revenue Next Year55.71%
Revenue Next 2Y39.86%
Revenue Next 3Y24.62%
Revenue Next 5Y9.42%
EBIT growth 1Y151.25%
EBIT growth 3Y39.61%
EBIT growth 5Y38.63%
EBIT Next Year54.14%
EBIT Next 3Y35.9%
EBIT Next 5Y21.35%
FCF growth 1Y309.81%
FCF growth 3Y12.83%
FCF growth 5Y22.14%
OCF growth 1Y161.37%
OCF growth 3Y13.55%
OCF growth 5Y20.2%