TKO GROUP HOLDINGS INC (TKO) Stock Fundamental Analysis
NYSE:TKO • US87256C1018
204.91 USD
+4.92 (+2.46%)
Last: Feb 13, 2026, 12:25 PM
TKO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 80 industry peers in the Entertainment industry. Both the profitability and the financial health of TKO get a neutral evaluation. Nothing too spectacular is happening here. TKO is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
- In the past year TKO was profitable.
- In the past year TKO had a positive cash flow from operations.
- TKO had positive earnings in 4 of the past 5 years.
- TKO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of TKO (1.47%) is better than 73.75% of its industry peers.
- TKO has a Return On Equity of 5.99%. This is in the better half of the industry: TKO outperforms 76.25% of its industry peers.
- TKO's Return On Invested Capital of 5.74% is fine compared to the rest of the industry. TKO outperforms 77.50% of its industry peers.
- TKO had an Average Return On Invested Capital over the past 3 years of 9.52%. This is in line with the industry average of 8.67%.
| 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
- The Profit Margin of TKO (5.27%) is better than 73.75% of its industry peers.
- In the last couple of years the Profit Margin of TKO has declined.
- Looking at the Operating Margin, with a value of 23.48%, TKO belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of TKO has grown nicely.
- The Gross Margin of TKO (60.46%) is better than 67.50% of its industry peers.
- 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
- TKO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- TKO has less shares outstanding than it did 1 year ago.
- TKO has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, TKO has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.48 indicates that TKO is not a great score, but indicates only limited risk for bankruptcy at the moment.
- TKO has a Altman-Z score of 2.48. This is in the better half of the industry: TKO outperforms 73.75% of its industry peers.
- TKO has a debt to FCF ratio of 4.21. This is a neutral value as TKO would need 4.21 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 4.21, TKO is doing good in the industry, outperforming 78.75% of the companies in the same industry.
- A Debt/Equity ratio of 1.03 is on the high side and indicates that TKO has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.03, TKO is doing worse than 66.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 4.21 | ||
| Altman-Z | 2.48 |
ROIC/WACC0.58
WACC9.84%
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.
- TKO has a Current ratio of 1.46. This is in the better half of the industry: TKO outperforms 66.25% of its industry peers.
- A Quick Ratio of 1.43 indicates that TKO should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.43, TKO is doing good in the industry, outperforming 66.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
- The earnings per share for TKO have decreased strongly by -37.50% in the last year.
- 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.
- Looking at the last year, TKO shows a quite strong growth in Revenue. The Revenue has grown by 16.94% in the last year.
- 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 20.04% on average over the next years. This is a very strong growth
EPS Next Y-38.1%
EPS Next 2Y18.35%
EPS Next 3Y17.62%
EPS Next 5Y18.88%
Revenue Next Year70.59%
Revenue Next 2Y47.95%
Revenue Next 3Y28.91%
Revenue Next 5Y20.04%
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
- The Price/Earnings ratio is 75.89, which means the current valuation is very expensive for TKO.
- Based on the Price/Earnings ratio, TKO is valued a bit cheaper than 67.50% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.67. TKO is valued rather expensively when compared to this.
- TKO is valuated quite expensively with a Price/Forward Earnings ratio of 33.10.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TKO indicates a somewhat cheap valuation: TKO is cheaper than 71.25% of the companies listed in the same industry.
- TKO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 27.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 75.89 | ||
| Fwd PE | 33.1 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as TKO.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TKO indicates a somewhat cheap valuation: TKO is cheaper than 67.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.26 | ||
| EV/EBITDA | 28.9 |
4.3 Compensation for Growth
- TKO has a very decent profitability rating, which may justify a higher PE ratio.
- TKO's earnings are expected to grow with 17.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.93
EPS Next 2Y18.35%
EPS Next 3Y17.62%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.73%, TKO is not a good candidate for dividend investing.
- TKO's Dividend Yield is rather good when compared to the industry average which is at 7.58. TKO pays more dividend than 82.50% of the companies in the same industry.
- With a Dividend Yield of 0.73, TKO pays less dividend than the S&P500 average, which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
- TKO has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y18.35%
EPS Next 3Y17.62%
NYSE:TKO (2/13/2026, 12:25:41 PM)
204.91
+4.92 (+2.46%)
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-0.88%
Ins Owners0.82%
Ins Owner Change1.75%
Market Cap39.97B
Revenue(TTM)4.34B
Net Income(TTM)228.78M
Analysts82.96
Price Target226.92 (10.74%)
Short Float %11.18%
Short Ratio7.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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)-0.04%
EPS NY rev (3m)-15.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 75.89 | ||
| Fwd PE | 33.1 | ||
| P/S | 9.21 | ||
| P/FCF | 42.26 | ||
| P/OCF | 38.71 | ||
| P/B | 10.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.9 |
EPS(TTM)2.7
EY1.32%
EPS(NY)6.19
Fwd EY3.02%
FCF(TTM)4.85
FCFY2.37%
OCF(TTM)5.29
OCFY2.58%
SpS22.24
BVpS19.59
TBVpS-41.4
PEG (NY)N/A
PEG (5Y)1.93
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 | 2.48 |
F-Score7
WACC9.84%
ROIC/WACC0.58
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-38.1%
EPS Next 2Y18.35%
EPS Next 3Y17.62%
EPS Next 5Y18.88%
Revenue 1Y (TTM)16.94%
Revenue growth 3Y36.81%
Revenue growth 5Y23.9%
Sales Q2Q%64.4%
Revenue Next Year70.59%
Revenue Next 2Y47.95%
Revenue Next 3Y28.91%
Revenue Next 5Y20.04%
EBIT growth 1Y66.38%
EBIT growth 3Y44.53%
EBIT growth 5Y45.68%
EBIT Next Year380.03%
EBIT Next 3Y94.44%
EBIT Next 5Y55.19%
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 4 / 10 to TKO GROUP HOLDINGS INC (TKO). This can be considered as Fairly Valued.
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 75.89 and the Price/Book (PB) ratio is 10.46.