TKO GROUP HOLDINGS INC (TKO) Stock Fundamental Analysis
USA - NYSE:TKO - US87256C1018 - Common Stock
201.96 USD
-3.37 (-1.64%)
198.11 USD
-3.85 (-1.91%)
Taking everything into account, TKO scores 5 out of 10 in our fundamental rating. TKO was compared to 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 valued quite expensively, but it does show have an excellent growth rating.
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.
In the past 5 years TKO always reported a positive cash flow from operatings.
1.2 Ratios
TKO has a Return On Assets of 1.37%. This is in the better half of the industry: TKO outperforms 62.50% of its industry peers.
TKO has a better Return On Equity (4.94%) than 75.00% of its industry peers.
The Return On Invested Capital of TKO (5.75%) is better than 75.00% of its industry peers.
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
TKO's Profit Margin of 5.41% is fine compared to the rest of the industry. TKO outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of TKO has declined.
TKO has a Operating Margin of 25.89%. This is amongst the best in the industry. TKO outperforms 95.00% of its industry peers.
TKO's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 61.98%, TKO is doing good in the industry, outperforming 70.00% 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 | 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
TKO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
TKO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TKO has been increased compared to 5 years ago.
TKO has a worse debt/assets ratio than last year.
2.2 Solvency
TKO has an Altman-Z score of 2.70. 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 2.70 is fine compared to the rest of the industry. TKO outperforms 71.25% 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 75.00% of its industry peers.
TKO has a Debt/Equity ratio of 0.69. This is a neutral value indicating TKO is somewhat dependend on debt financing.
TKO's Debt to Equity ratio of 0.69 is on the low side compared to the rest of the industry. TKO is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | 2.7 |
ROIC/WACC0.66
WACC8.67%
2.3 Liquidity
A Current Ratio of 1.30 indicates that TKO should not have too much problems paying its short term obligations.
With a Current ratio value of 1.30, TKO perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
TKO has a Quick Ratio of 1.26. This is a normal value and indicates that TKO is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.26, TKO perfoms like the industry average, outperforming 58.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The earnings per share for TKO have decreased strongly by -48.25% 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 12.13% 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)-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
TKO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.28% yearly.
The Revenue is expected to grow by 18.74% on average over the next years. This is quite good.
EPS Next Y-28.16%
EPS Next 2Y12.79%
EPS Next 3Y15.87%
EPS Next 5Y17.28%
Revenue Next Year69.27%
Revenue Next 2Y46.47%
Revenue Next 3Y27.27%
Revenue Next 5Y18.74%
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 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
Based on the Price/Earnings ratio of 80.46, the valuation of TKO can be described as expensive.
Based on the Price/Earnings ratio, TKO is valued a bit cheaper than the industry average as 67.50% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.76. TKO is valued rather expensively when compared to this.
TKO is valuated quite expensively with a Price/Forward Earnings ratio of 35.92.
TKO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TKO is cheaper than 73.75% of the companies in the same industry.
TKO is valuated expensively when we compare the Price/Forward Earnings ratio to 23.18, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.46 | ||
| Fwd PE | 35.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TKO is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, TKO is valued a bit cheaper than 63.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.78 | ||
| EV/EBITDA | 31.18 |
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 15.87% in the coming years.
PEG (NY)N/A
PEG (5Y)2.04
EPS Next 2Y12.79%
EPS Next 3Y15.87%
5. Dividend
5.1 Amount
With a yearly dividend of 0.78%, TKO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 21.21, 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 0.78, TKO pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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 2Y12.79%
EPS Next 3Y15.87%
201.96
-3.37 (-1.64%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners94.64%
Inst Owner Change-3.38%
Ins Owners0.79%
Ins Owner Change0.27%
Market Cap40.05B
Analysts81.6
Price Target202.17 (0.1%)
Short Float %9.1%
Short Ratio5.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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)1.79%
PT rev (3m)10.05%
EPS NQ rev (1m)-1.21%
EPS NQ rev (3m)16.22%
EPS NY rev (1m)2.57%
EPS NY rev (3m)8.78%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)4.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.46 | ||
| Fwd PE | 35.92 | ||
| P/S | 10.27 | ||
| P/FCF | 54.78 | ||
| P/OCF | 50.67 | ||
| P/B | 9.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 31.18 |
EPS(TTM)2.51
EY1.24%
EPS(NY)5.62
Fwd EY2.78%
FCF(TTM)3.69
FCFY1.83%
OCF(TTM)3.99
OCFY1.97%
SpS19.67
BVpS21.51
TBVpS-38.85
PEG (NY)N/A
PEG (5Y)2.04
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%
ROICexcg growth 3Y45.48%
ROICexcg 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 | 2.7 |
F-Score7
WACC8.67%
ROIC/WACC0.66
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-28.16%
EPS Next 2Y12.79%
EPS Next 3Y15.87%
EPS Next 5Y17.28%
Revenue 1Y (TTM)12.13%
Revenue growth 3Y36.81%
Revenue growth 5Y23.9%
Sales Q2Q%92.07%
Revenue Next Year69.27%
Revenue Next 2Y46.47%
Revenue Next 3Y27.27%
Revenue Next 5Y18.74%
EBIT growth 1Y73.41%
EBIT growth 3Y44.53%
EBIT growth 5Y45.68%
EBIT Next Year376.12%
EBIT Next 3Y91.37%
EBIT Next 5Y52.99%
FCF growth 1Y1180.9%
FCF growth 3Y52.38%
FCF growth 5Y57.41%
OCF growth 1Y198.87%
OCF growth 3Y47.2%
OCF growth 5Y36.82%