TKO GROUP HOLDINGS INC (TKO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TKO - US87256C1018 - Common Stock
193.37 USD
+5.95 (+3.17%)
193.045 USD
-0.33 (-0.17%)
Overall TKO gets a fundamental rating of 5 out of 10. We evaluated TKO 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 growing strongly while it is still valued neutral. This is a good combination! With these ratings, TKO could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
TKO had positive earnings in the past year.
In the past year TKO had a positive cash flow from operations.
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.
TKO has a Return On Equity of 5.99%. This is in the better half of the industry: TKO outperforms 75.00% of its industry peers.
TKO has a better Return On Invested Capital (5.74%) than 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TKO is in line with the industry average of 9.33%.
| 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 71.25% of its industry peers.
TKO's Profit Margin has declined in the last couple of years.
TKO has a Operating Margin of 23.48%. This is amongst the best in the industry. TKO outperforms 95.00% of its industry peers.
In the last couple of years the Operating Margin of TKO has grown nicely.
With a decent Gross Margin value of 60.46%, TKO is doing good in the industry, outperforming 68.75% of the companies in the same industry.
TKO's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TKO is creating some value.
Compared to 1 year ago, TKO has less shares outstanding
TKO has more shares outstanding than it did 5 years ago.
TKO has a worse debt/assets ratio than last year.
2.2 Solvency
TKO has an Altman-Z score of 2.44. 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 (2.44) is better than 68.75% 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.
The Debt to FCF ratio of TKO (4.21) is better than 75.00% of its industry peers.
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 | 2.44 |
ROIC/WACC0.67
WACC8.53%
2.3 Liquidity
A Current Ratio of 1.46 indicates that TKO should not have too much problems paying its short term obligations.
The Current ratio of TKO (1.46) is better than 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.
TKO's Quick ratio of 1.43 is fine compared to the rest of the industry. TKO outperforms 67.50% of its industry peers.
| 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.
The Revenue has grown by 16.94% in the past year. This is quite good.
The Revenue has been growing by 23.90% on average over the past years. This is a very strong growth!
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 18.91% on average over the next years. This is quite good.
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 71.62 indicates a quite expensive valuation of TKO.
TKO's Price/Earnings ratio is a bit cheaper when compared to the industry. TKO is cheaper than 66.25% of the companies in the same industry.
TKO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.15.
A Price/Forward Earnings ratio of 33.79 indicates a quite expensive valuation of TKO.
Based on the Price/Forward Earnings ratio, TKO is valued a bit cheaper than the industry average as 71.25% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.12, TKO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.62 | ||
| Fwd PE | 33.79 |
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.
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 | 40.54 | ||
| EV/EBITDA | 28.45 |
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)1.82
EPS Next 2Y13.78%
EPS Next 3Y16.29%
5. Dividend
5.1 Amount
With a yearly dividend of 0.86%, TKO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 44.93, TKO pays a better dividend. On top of this TKO pays more dividend than 83.75% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, TKO's dividend is way lower than the S&P500 average.
| 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%
193.37
+5.95 (+3.17%)
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 Cap38.35B
Revenue(TTM)4.34B
Net Income(TTM)228.78M
Analysts82.96
Price Target217.84 (12.65%)
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 | 71.62 | ||
| Fwd PE | 33.79 | ||
| P/S | 8.84 | ||
| P/FCF | 40.54 | ||
| P/OCF | 37.13 | ||
| P/B | 10.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.45 |
EPS(TTM)2.7
EY1.4%
EPS(NY)5.72
Fwd EY2.96%
FCF(TTM)4.77
FCFY2.47%
OCF(TTM)5.21
OCFY2.69%
SpS21.88
BVpS19.27
TBVpS-40.73
PEG (NY)N/A
PEG (5Y)1.82
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 | 2.44 |
F-Score7
WACC8.53%
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.