TKO GROUP HOLDINGS INC (TKO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TKO - US87256C1018 - Common Stock
181.65 USD
+3.48 (+1.95%)
181.65 USD
0 (0%)
TKO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 80 industry peers in the Entertainment industry. TKO has an average financial health and profitability rating. TKO is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make TKO suitable 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.
TKO had positive earnings in 4 of the past 5 years.
Each year in the past 5 years TKO had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 1.47%, TKO is doing good in the industry, outperforming 71.25% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.99%, TKO is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.74%, TKO is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TKO is in line with the industry average of 9.30%.
| 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
TKO's Profit Margin of 5.27% is fine compared to the rest of the industry. TKO outperforms 72.50% of its industry peers.
TKO's Profit Margin has declined in the last couple of years.
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.
The Gross Margin of TKO (60.46%) is better than 68.75% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TKO is still creating some value.
Compared to 1 year ago, TKO has less shares outstanding
Compared to 5 years ago, TKO has more shares outstanding
TKO has a worse debt/assets ratio than last year.
2.2 Solvency
TKO has an Altman-Z score of 2.29. 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's Altman-Z score of 2.29 is fine compared to the rest of the industry. TKO outperforms 67.50% 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.
Looking at the Debt to FCF ratio, with a value of 4.21, TKO is in the better half of the industry, outperforming 75.00% 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 | 2.29 |
ROIC/WACC0.67
WACC8.57%
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 66.25% of the companies in the same industry.
TKO has a Quick Ratio of 1.43. 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 Quick ratio, with a value of 1.43, TKO is in the better half of the industry, outperforming 67.50% of the companies in the same industry.
| 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%.
TKO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.39% yearly.
TKO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.94%.
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
Based on estimates for the next years, TKO will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.88% on average per year.
TKO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.91% yearly.
EPS Next Y-26.53%
EPS Next 2Y13.78%
EPS Next 3Y16.29%
EPS Next 5Y18.88%
Revenue Next Year69.62%
Revenue Next 2Y47.14%
Revenue Next 3Y28.04%
Revenue Next 5Y18.91%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
TKO is valuated quite expensively with a Price/Earnings ratio of 67.28.
Compared to the rest of the industry, the Price/Earnings ratio of TKO indicates a somewhat cheap valuation: TKO is cheaper than 66.25% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.65, TKO is valued quite expensively.
The Price/Forward Earnings ratio is 31.74, which means the current valuation is very expensive for TKO.
Based on the Price/Forward Earnings ratio, TKO is valued a bit cheaper than 72.50% of the companies in the same industry.
TKO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.45, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.28 | ||
| Fwd PE | 31.74 |
4.2 Price Multiples
TKO's Enterprise Value to EBITDA ratio is in line with the industry average.
67.50% of the companies in the same industry are more expensive than TKO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.08 | ||
| EV/EBITDA | 26.38 |
4.3 Compensation for Growth
The decent profitability rating of TKO may justify a higher PE ratio.
TKO's earnings are expected to grow with 16.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.71
EPS Next 2Y13.78%
EPS Next 3Y16.29%
5. Dividend
5.1 Amount
TKO has a yearly dividend return of 0.86%, which is pretty low.
Compared to an average industry Dividend Yield of 44.99, TKO pays a better dividend. On top of this TKO pays more dividend than 83.75% of the companies listed in the same industry.
With a Dividend Yield of 0.86, TKO pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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 2Y13.78%
EPS Next 3Y16.29%
181.65
+3.48 (+1.95%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners94.64%
Inst Owner Change-0.94%
Ins Owners0.79%
Ins Owner Change0.05%
Market Cap36.02B
Revenue(TTM)4.34B
Net Income(TTM)228.78M
Analysts82.96
Price Target217.84 (19.92%)
Short Float %10.03%
Short Ratio5.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)4.96%
PT rev (3m)9.68%
EPS NQ rev (1m)-22.03%
EPS NQ rev (3m)-2.28%
EPS NY rev (1m)3.26%
EPS NY rev (3m)4.91%
Revenue NQ rev (1m)2.27%
Revenue NQ rev (3m)3.28%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.28 | ||
| Fwd PE | 31.74 | ||
| P/S | 8.3 | ||
| P/FCF | 38.08 | ||
| P/OCF | 34.88 | ||
| P/B | 9.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.38 |
EPS(TTM)2.7
EY1.49%
EPS(NY)5.72
Fwd EY3.15%
FCF(TTM)4.77
FCFY2.63%
OCF(TTM)5.21
OCFY2.87%
SpS21.88
BVpS19.27
TBVpS-40.73
PEG (NY)N/A
PEG (5Y)1.71
Graham Number34.21
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 | 2.29 |
F-Score7
WACC8.57%
ROIC/WACC0.67
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-26.53%
EPS Next 2Y13.78%
EPS Next 3Y16.29%
EPS Next 5Y18.88%
Revenue 1Y (TTM)16.94%
Revenue growth 3Y36.81%
Revenue growth 5Y23.9%
Sales Q2Q%64.4%
Revenue Next Year69.62%
Revenue Next 2Y47.14%
Revenue Next 3Y28.04%
Revenue Next 5Y18.91%
EBIT growth 1Y66.38%
EBIT growth 3Y44.53%
EBIT growth 5Y45.68%
EBIT Next Year376.12%
EBIT Next 3Y91.37%
EBIT Next 5Y53.61%
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.
What is the valuation status of TKO GROUP HOLDINGS INC (TKO) stock?
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.
What is the earnings growth outlook for TKO GROUP HOLDINGS INC?
The Earnings per Share (EPS) of TKO GROUP HOLDINGS INC (TKO) is expected to decline by -26.53% in the next year.