TKO GROUP HOLDINGS INC (TKO) Stock Fundamental Analysis
USA - NYSE:TKO - US87256C1018 - Common Stock
186.97 USD
+0.81 (+0.44%)
186.02 USD
-0.95 (-0.51%)
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 only an average score on both its financial health and profitability. 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.
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
TKO has a better Return On Assets (1.37%) than 62.50% of its industry peers.
Looking at the Return On Equity, with a value of 4.94%, TKO is in the better half of the industry, outperforming 73.75% of the companies in the same industry.
TKO has a Return On Invested Capital of 5.75%. This is in the better half of the industry: TKO outperforms 76.25% 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 9.23%.
| 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
With a decent Profit Margin value of 5.41%, TKO is doing good in the industry, outperforming 73.75% of the companies in the same industry.
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
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
An Altman-Z score of 2.49 indicates that TKO is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.49, TKO is doing good in the industry, outperforming 68.75% of the companies in the same industry.
The Debt to FCF ratio of TKO is 4.09, which is a neutral value as it means it would take TKO, 4.09 years of fcf income to pay off all of its debts.
TKO has a Debt to FCF ratio of 4.09. This is in the better half of the industry: TKO outperforms 73.75% 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.
With a Debt to Equity ratio value of 0.69, TKO is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | 2.49 |
ROIC/WACC0.68
WACC8.5%
2.3 Liquidity
A Current Ratio of 1.30 indicates that TKO should not have too much problems paying its short term obligations.
TKO has a Current ratio (1.30) which is in line with its industry peers.
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.
TKO's Quick ratio of 1.26 is in line compared to the rest of the industry. TKO outperforms 56.25% of its industry peers.
| 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%.
TKO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.39% yearly.
The Revenue has grown by 12.13% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 18.88% on average over the next years. This is quite good.
The Revenue is expected to grow by 18.91% 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 5Y18.88%
Revenue Next Year69.3%
Revenue Next 2Y46.74%
Revenue Next 3Y27.51%
Revenue Next 5Y18.91%
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.
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
With a Price/Earnings ratio of 74.49, TKO can be considered very expensive at the moment.
65.00% of the companies in the same industry are more expensive than TKO, based on the Price/Earnings ratio.
TKO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.57.
With a Price/Forward Earnings ratio of 33.25, TKO can be considered very expensive at the moment.
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's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.49 | ||
| Fwd PE | 33.25 |
4.2 Price Multiples
TKO's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 50.71 | ||
| EV/EBITDA | 28.43 |
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 15.87% in the coming years.
PEG (NY)N/A
PEG (5Y)1.89
EPS Next 2Y12.79%
EPS Next 3Y15.87%
5. Dividend
5.1 Amount
TKO has a yearly dividend return of 0.81%, which is pretty low.
TKO's Dividend Yield is rather good when compared to the industry average which is at 38.93. TKO pays more dividend than 83.75% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, TKO's dividend is way lower than the S&P500 average.
| 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 2Y12.79%
EPS Next 3Y15.87%
186.97
+0.81 (+0.44%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners94.64%
Inst Owner Change0.16%
Ins Owners0.79%
Ins Owner Change0.16%
Market Cap37.08B
Revenue(TTM)3.90B
Net Income(TTM)210.91M
Analysts81.54
Price Target207.54 (11%)
Short Float %9.1%
Short Ratio5.79
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)-2.18%
EPS NQ rev (3m)13.44%
EPS NY rev (1m)2.57%
EPS NY rev (3m)8.78%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)4.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.49 | ||
| Fwd PE | 33.25 | ||
| P/S | 9.5 | ||
| P/FCF | 50.71 | ||
| P/OCF | 46.9 | ||
| P/B | 8.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.43 |
EPS(TTM)2.51
EY1.34%
EPS(NY)5.62
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)1.89
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 | 2.49 |
F-Score7
WACC8.5%
ROIC/WACC0.68
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 5Y18.88%
Revenue 1Y (TTM)12.13%
Revenue growth 3Y36.81%
Revenue growth 5Y23.9%
Sales Q2Q%92.07%
Revenue Next Year69.3%
Revenue Next 2Y46.74%
Revenue Next 3Y27.51%
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%