TKO GROUP HOLDINGS INC (TKO) Stock Fundamental Analysis
USA - NYSE:TKO - US87256C1018 - Common Stock
187.45 USD
-0.06 (-0.03%)
187.45 USD
0 (0%)
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 is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
TKO had positive earnings in the past year.
TKO had a positive operating cash flow in the past year.
Of the past 5 years TKO 4 years were profitable.
Each year in the past 5 years TKO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TKO (1.37%) is better than 62.50% of its industry peers.
TKO has a Return On Equity of 4.94%. This is in the better half of the industry: TKO outperforms 73.75% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.75%, TKO is in the better half of the industry, outperforming 76.25% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TKO is in line with the industry average of 9.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | 4.94% | ||
| ROIC | 5.75% |
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 (5.41%) is better than 73.75% of its industry peers.
TKO's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 25.89%, 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.
Looking at the Gross Margin, with a value of 61.98%, TKO is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
TKO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.89% | ||
| PM (TTM) | 5.41% | ||
| GM | 61.98% |
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.
The number of shares outstanding for TKO has been reduced compared to 1 year ago.
The number of shares outstanding for TKO has been increased compared to 5 years ago.
The debt/assets ratio for TKO is higher compared to a year ago.
2.2 Solvency
TKO has an Altman-Z score of 2.51. 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.
The Altman-Z score of TKO (2.51) is better than 68.75% of its industry peers.
TKO has a debt to FCF ratio of 4.09. This is a neutral value as TKO would need 4.09 years to pay back of all of its debts.
The Debt to FCF ratio of TKO (4.09) is better than 72.50% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that TKO is somewhat dependend on debt financing.
TKO has a worse Debt to Equity ratio (0.69) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | 2.51 |
ROIC/WACC0.67
WACC8.54%
2.3 Liquidity
TKO has a Current Ratio of 1.30. 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 1.30, TKO is in line with its industry, outperforming 55.00% of the companies in the same industry.
A Quick Ratio of 1.26 indicates that TKO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.26, TKO is in line with its industry, outperforming 56.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
TKO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -48.25%.
The Earnings Per Share has been growing by 39.39% on average over the past years. This is a very strong growth
TKO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.13%.
The Revenue has been growing by 23.90% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-48.25%
EPS 3Y27.15%
EPS 5Y39.39%
EPS Q2Q%62.5%
Revenue 1Y (TTM)12.13%
Revenue growth 3Y36.81%
Revenue growth 5Y23.9%
Sales Q2Q%92.07%
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.
Based on estimates for the next years, TKO will show a quite strong growth in Revenue. The Revenue will grow by 18.91% on average per year.
EPS Next Y-28.85%
EPS Next 2Y12.96%
EPS Next 3Y16.06%
EPS Next 5Y18.88%
Revenue Next Year69.59%
Revenue Next 2Y47.11%
Revenue Next 3Y27.99%
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
With a Price/Earnings ratio of 74.68, TKO can be considered very expensive at the moment.
Based on the Price/Earnings ratio, TKO is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
TKO is valuated expensively when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 33.23, the valuation of TKO can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TKO indicates a somewhat cheap valuation: TKO is cheaper than 72.50% of the companies listed in the same industry.
TKO is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.68 | ||
| Fwd PE | 33.23 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TKO.
TKO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TKO is cheaper than 63.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.84 | ||
| EV/EBITDA | 28.63 |
4.3 Compensation for Growth
The decent profitability rating of TKO may justify a higher PE ratio.
A more expensive valuation may be justified as TKO's earnings are expected to grow with 16.06% in the coming years.
PEG (NY)N/A
PEG (5Y)1.9
EPS Next 2Y12.96%
EPS Next 3Y16.06%
5. Dividend
5.1 Amount
With a yearly dividend of 0.81%, TKO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 34.93, 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 0.81, TKO pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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 2Y12.96%
EPS Next 3Y16.06%
187.45
-0.06 (-0.03%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners94.64%
Inst Owner Change0.49%
Ins Owners0.79%
Ins Owner Change0.16%
Market Cap37.17B
Revenue(TTM)3.90B
Net Income(TTM)210.91M
Analysts81.54
Price Target207.54 (10.72%)
Short Float %10.51%
Short Ratio6.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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)1.62%
Min EPS beat(2)-7.22%
Max EPS beat(2)10.45%
EPS beat(4)2
Avg EPS beat(4)21.81%
Min EPS beat(4)-44.96%
Max EPS beat(4)128.96%
EPS beat(8)4
Avg EPS beat(8)78.38%
EPS beat(12)6
Avg EPS beat(12)54.92%
EPS beat(16)10
Avg EPS beat(16)47.43%
Revenue beat(2)2
Avg Revenue beat(2)13%
Min Revenue beat(2)7.42%
Max Revenue beat(2)18.58%
Revenue beat(4)4
Avg Revenue beat(4)8.21%
Min Revenue beat(4)1.51%
Max Revenue beat(4)18.58%
Revenue beat(8)5
Avg Revenue beat(8)-0.96%
Revenue beat(12)8
Avg Revenue beat(12)-0.12%
Revenue beat(16)10
Avg Revenue beat(16)-0.38%
PT rev (1m)2.66%
PT rev (3m)10.36%
EPS NQ rev (1m)-6.14%
EPS NQ rev (3m)16%
EPS NY rev (1m)-0.95%
EPS NY rev (3m)7.74%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)0.81%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)4.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.68 | ||
| Fwd PE | 33.23 | ||
| P/S | 9.53 | ||
| P/FCF | 50.84 | ||
| P/OCF | 47.03 | ||
| P/B | 8.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.63 |
EPS(TTM)2.51
EY1.34%
EPS(NY)5.64
Fwd EY3.01%
FCF(TTM)3.69
FCFY1.97%
OCF(TTM)3.99
OCFY2.13%
SpS19.67
BVpS21.51
TBVpS-38.85
PEG (NY)N/A
PEG (5Y)1.9
Graham Number34.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | 4.94% | ||
| ROCE | 7.28% | ||
| ROIC | 5.75% | ||
| ROICexc | 5.98% | ||
| ROICexgc | 58.66% | ||
| OM | 25.89% | ||
| PM (TTM) | 5.41% | ||
| GM | 61.98% | ||
| FCFM | 18.74% |
ROA(3y)4.74%
ROA(5y)7.82%
ROE(3y)12.4%
ROE(5y)23.77%
ROIC(3y)9.52%
ROIC(5y)13.24%
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 Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.09 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 15.84% | ||
| Cap/Sales | 1.52% | ||
| Interest Coverage | 4.2 | ||
| Cash Conversion | 57.08% | ||
| Profit Quality | 346.63% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 2.51 |
F-Score7
WACC8.54%
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)-48.25%
EPS 3Y27.15%
EPS 5Y39.39%
EPS Q2Q%62.5%
EPS Next Y-28.85%
EPS Next 2Y12.96%
EPS Next 3Y16.06%
EPS Next 5Y18.88%
Revenue 1Y (TTM)12.13%
Revenue growth 3Y36.81%
Revenue growth 5Y23.9%
Sales Q2Q%92.07%
Revenue Next Year69.59%
Revenue Next 2Y47.11%
Revenue Next 3Y27.99%
Revenue Next 5Y18.91%
EBIT growth 1Y73.41%
EBIT growth 3Y44.53%
EBIT growth 5Y45.68%
EBIT Next Year376.12%
EBIT Next 3Y91.37%
EBIT Next 5Y53.61%
FCF growth 1Y1180.9%
FCF growth 3Y52.38%
FCF growth 5Y57.41%
OCF growth 1Y198.87%
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 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.
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 -28.85% in the next year.