TKO GROUP HOLDINGS INC (TKO) Stock Fundamental Analysis
NYSE:TKO - US87256C1018 - Common Stock
196.43 USD
-2.29 (-1.15%)
196.43 USD
0 (0%)
Overall TKO gets a fundamental rating of 4 out of 10. We evaluated TKO against 79 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 valied quite expensively at the moment, while it does show a decent growth rate.
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.
In multiple years TKO reported negative net income over the last 5 years.
TKO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of -0.63%, TKO perfoms like the industry average, outperforming 58.23% of the companies in the same industry.
TKO's Return On Equity of -2.00% is fine compared to the rest of the industry. TKO outperforms 60.76% of its industry peers.
TKO has a Return On Invested Capital of 4.37%. This is in the better half of the industry: TKO outperforms 72.15% of its industry peers.
TKO had an Average Return On Invested Capital over the past 3 years of 14.73%. This is significantly below the industry average of 20.67%.
The last Return On Invested Capital (4.37%) for TKO is well below the 3 year average (14.73%), which needs to be investigated, but indicates that TKO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.63% | ||
| ROE | -2% | ||
| ROIC | 4.37% |
ROA(3y)9.63%
ROA(5y)9.36%
ROE(3y)28.1%
ROE(5y)29.24%
ROIC(3y)14.73%
ROIC(5y)14.52%
1.3 Margins
TKO has a Operating Margin of 25.88%. This is amongst the best in the industry. TKO outperforms 94.94% of its industry peers.
In the last couple of years the Operating Margin of TKO has grown nicely.
The Gross Margin of TKO (68.42%) is better than 78.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.88% | ||
| PM (TTM) | N/A | ||
| GM | 68.42% |
OM growth 3Y16.54%
OM growth 5Y23.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
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.
There is no outstanding debt for TKO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
TKO has an Altman-Z score of 3.01. This indicates that TKO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.01, TKO is in the better half of the industry, outperforming 72.15% of the companies in the same industry.
TKO has a debt to FCF ratio of 4.52. This is a neutral value as TKO would need 4.52 years to pay back of all of its debts.
TKO has a better Debt to FCF ratio (4.52) than 68.35% of its industry peers.
TKO has a Debt/Equity ratio of 0.73. This is a neutral value indicating TKO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.73, TKO is not doing good in the industry: 62.03% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 4.52 | ||
| Altman-Z | 3.01 |
ROIC/WACC0.5
WACC8.75%
2.3 Liquidity
A Current Ratio of 0.99 indicates that TKO may have some problems paying its short term obligations.
With a Current ratio value of 0.99, TKO perfoms like the industry average, outperforming 48.10% of the companies in the same industry.
TKO has a Quick Ratio of 0.99. This is a bad value and indicates that TKO is not financially healthy enough and could expect problems in meeting its short term obligations.
TKO has a Quick ratio (0.99) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The earnings per share for TKO have decreased strongly by -43.08% in the last year.
TKO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.50% yearly.
EPS 1Y (TTM)-43.08%
EPS 3Y22.79%
EPS 5Y36.5%
EPS Q2Q%317.86%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%92.07%
3.2 Future
The Earnings Per Share is expected to grow by 19.77% on average over the next years. This is quite good.
Based on estimates for the next years, TKO will show a quite strong growth in Revenue. The Revenue will grow by 18.74% on average per year.
EPS Next Y-22.22%
EPS Next 2Y16.83%
EPS Next 3Y19.07%
EPS Next 5Y19.77%
Revenue Next Year69.37%
Revenue Next 2Y46.25%
Revenue Next 3Y27.18%
Revenue Next 5Y18.74%
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.
4. Valuation
4.1 Price/Earnings Ratio
TKO is valuated quite expensively with a Price/Earnings ratio of 78.26.
Based on the Price/Earnings ratio, TKO is valued a bit cheaper than 67.09% of the companies in the same industry.
When comparing the Price/Earnings ratio of TKO to the average of the S&P500 Index (27.07), we can say TKO is valued expensively.
A Price/Forward Earnings ratio of 36.16 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 70.89% of the companies are valued more expensively.
TKO's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.26 | ||
| Fwd PE | 36.16 |
4.2 Price Multiples
TKO's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TKO is valued a bit cheaper than the industry average as 60.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.4 | ||
| EV/EBITDA | 41.87 |
4.3 Compensation for Growth
A more expensive valuation may be justified as TKO's earnings are expected to grow with 19.07% in the coming years.
PEG (NY)N/A
PEG (5Y)2.14
EPS Next 2Y16.83%
EPS Next 3Y19.07%
5. Dividend
5.1 Amount
TKO has a yearly dividend return of 0.80%, which is pretty low.
TKO's Dividend Yield is rather good when compared to the industry average which is at 10.54. TKO pays more dividend than 83.54% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.46, TKO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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
23.38% of the earnings are spent on dividend by TKO. This is a low number and sustainable payout ratio.
DP23.38%
EPS Next 2Y16.83%
EPS Next 3Y19.07%
196.43
-2.29 (-1.15%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners98.13%
Inst Owner Change-3.37%
Ins Owners0.73%
Ins Owner Change-0.24%
Market Cap38.95B
Analysts81.6
Price Target198.62 (1.11%)
Short Float %7.94%
Short Ratio5.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP23.38%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)262.92%
Min EPS beat(2)-44.96%
Max EPS beat(2)570.8%
EPS beat(4)2
Avg EPS beat(4)128.16%
Min EPS beat(4)-51.56%
Max EPS beat(4)570.8%
EPS beat(8)4
Avg EPS beat(8)68.07%
EPS beat(12)8
Avg EPS beat(12)53.71%
EPS beat(16)11
Avg EPS beat(16)52.67%
Revenue beat(2)2
Avg Revenue beat(2)1.72%
Min Revenue beat(2)1.51%
Max Revenue beat(2)1.93%
Revenue beat(4)2
Avg Revenue beat(4)-6.61%
Min Revenue beat(4)-27.06%
Max Revenue beat(4)1.93%
Revenue beat(8)5
Avg Revenue beat(8)-2.54%
Revenue beat(12)7
Avg Revenue beat(12)-2.07%
Revenue beat(16)9
Avg Revenue beat(16)-1.5%
PT rev (1m)5.62%
PT rev (3m)9.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.26 | ||
| Fwd PE | 36.16 | ||
| P/S | 15.31 | ||
| P/FCF | 59.4 | ||
| P/OCF | 58.24 | ||
| P/B | 9.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 41.87 |
EPS(TTM)2.51
EY1.28%
EPS(NY)5.43
Fwd EY2.77%
FCF(TTM)3.31
FCFY1.68%
OCF(TTM)3.37
OCFY1.72%
SpS12.83
BVpS20.13
TBVpS-35.68
PEG (NY)N/A
PEG (5Y)2.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.63% | ||
| ROE | -2% | ||
| ROCE | 5.5% | ||
| ROIC | 4.37% | ||
| ROICexc | 4.47% | ||
| ROICexgc | 84.04% | ||
| OM | 25.88% | ||
| PM (TTM) | N/A | ||
| GM | 68.42% | ||
| FCFM | 25.78% |
ROA(3y)9.63%
ROA(5y)9.36%
ROE(3y)28.1%
ROE(5y)29.24%
ROIC(3y)14.73%
ROIC(5y)14.52%
ROICexc(3y)24.53%
ROICexc(5y)26.42%
ROICexgc(3y)44.43%
ROICexgc(5y)38.81%
ROCE(3y)22.69%
ROCE(5y)22.64%
ROICexcg growth 3Y11.84%
ROICexcg growth 5Y-0.18%
ROICexc growth 3Y-54.96%
ROICexc growth 5Y-41.05%
OM growth 3Y16.54%
OM growth 5Y23.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 4.52 | ||
| Debt/EBITDA | 2.94 | ||
| Cap/Depr | 3.88% | ||
| Cap/Sales | 0.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.26% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 3.01 |
F-Score4
WACC8.75%
ROIC/WACC0.5
Cap/Depr(3y)96.87%
Cap/Depr(5y)79.58%
Cap/Sales(3y)7.32%
Cap/Sales(5y)6.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-43.08%
EPS 3Y22.79%
EPS 5Y36.5%
EPS Q2Q%317.86%
EPS Next Y-22.22%
EPS Next 2Y16.83%
EPS Next 3Y19.07%
EPS Next 5Y19.77%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%92.07%
Revenue Next Year69.37%
Revenue Next 2Y46.25%
Revenue Next 3Y27.18%
Revenue Next 5Y18.74%
EBIT growth 1Y151.25%
EBIT growth 3Y39.61%
EBIT growth 5Y38.63%
EBIT Next Year54.14%
EBIT Next 3Y37.41%
EBIT Next 5Y28.78%
FCF growth 1Y309.81%
FCF growth 3Y12.83%
FCF growth 5Y22.14%
OCF growth 1Y161.37%
OCF growth 3Y13.55%
OCF growth 5Y20.2%