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TKO GROUP HOLDINGS INC (TKO) Stock Fundamental Analysis

NYSE:TKO - New York Stock Exchange, Inc. - US87256C1018 - Common Stock - Currency: USD

177.14  -0.32 (-0.18%)

After market: 177.14 0 (0%)

Fundamental Rating

4

Overall TKO gets a fundamental rating of 4 out of 10. We evaluated TKO against 72 industry peers in the Entertainment industry. TKO has only an average score on both its financial health and profitability. TKO is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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5

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.
In multiple years TKO reported negative net income over the last 5 years.
Of the past 5 years TKO 4 years had a positive operating cash flow.
TKO Yearly Net Income VS EBIT VS OCF VS FCFTKO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M

1.2 Ratios

The Return On Assets of TKO (-0.63%) is better than 63.89% of its industry peers.
TKO has a better Return On Equity (-2.00%) than 68.06% of its industry peers.
TKO has a better Return On Invested Capital (4.37%) than 72.22% 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 22.90%.
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 RankSector 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%
TKO Yearly ROA, ROE, ROICTKO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30 40

1.3 Margins

TKO has a better Operating Margin (25.88%) than 95.83% of its industry peers.
TKO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 68.42%, TKO is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
Industry RankSector 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
TKO Yearly Profit, Operating, Gross MarginsTKO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

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4

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.
TKO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
TKO Yearly Shares OutstandingTKO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
TKO Yearly Total Debt VS Total AssetsTKO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.2 Solvency

An Altman-Z score of 2.75 indicates that TKO is not a great score, but indicates only limited risk for bankruptcy at the moment.
TKO has a better Altman-Z score (2.75) than 69.44% of its industry peers.
The Debt to FCF ratio of TKO is 4.52, which is a neutral value as it means it would take TKO, 4.52 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.52, TKO is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
A Debt/Equity ratio of 0.73 indicates that TKO is somewhat dependend on debt financing.
TKO's Debt to Equity ratio of 0.73 is in line compared to the rest of the industry. TKO outperforms 41.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.73
Debt/FCF 4.52
Altman-Z 2.75
ROIC/WACC0.49
WACC8.98%
TKO Yearly LT Debt VS Equity VS FCFTKO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

2.3 Liquidity

TKO has a Current 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 Current ratio of 0.99. This is comparable to the rest of the industry: TKO outperforms 52.78% of its industry peers.
A Quick Ratio of 0.99 indicates that TKO may have some problems paying its short term obligations.
TKO has a Quick ratio of 0.99. This is comparable to the rest of the industry: TKO outperforms 55.56% of its industry peers.
Industry RankSector Rank
Current Ratio 0.99
Quick Ratio 0.99
TKO Yearly Current Assets VS Current LiabilitesTKO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

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4

3. Growth

3.1 Past

TKO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -67.86%.
Measured over the past years, TKO shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.50% on average per year.
EPS 1Y (TTM)-67.86%
EPS 3Y22.79%
EPS 5Y36.5%
EPS Q2Q%-77.38%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%101.49%

3.2 Future

The Earnings Per Share is expected to grow by 11.97% 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 17.99% on average per year.
EPS Next Y-26.65%
EPS Next 2Y15.34%
EPS Next 3Y16.3%
EPS Next 5Y11.97%
Revenue Next Year61.65%
Revenue Next 2Y41.78%
Revenue Next 3Y24.61%
Revenue Next 5Y17.99%

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.
TKO Yearly Revenue VS EstimatesTKO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
TKO Yearly EPS VS EstimatesTKO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 2 4 6

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3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 109.35, 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 62.50% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.45. TKO is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 33.46, which means the current valuation is very expensive for TKO.
Based on the Price/Forward Earnings ratio, TKO is valued a bit cheaper than the industry average as 68.06% of the companies are valued more expensively.
TKO is valuated expensively when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 109.35
Fwd PE 33.46
TKO Price Earnings VS Forward Price EarningsTKO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

TKO's Enterprise Value to EBITDA ratio is in line with the industry average.
61.11% of the companies in the same industry are more expensive than TKO, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 53.46
EV/EBITDA 38.02
TKO Per share dataTKO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 -20 -30

4.3 Compensation for Growth

TKO's earnings are expected to grow with 16.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)3
EPS Next 2Y15.34%
EPS Next 3Y16.3%

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4

5. Dividend

5.1 Amount

TKO has a yearly dividend return of 0.86%, which is pretty low.
Compared to an average industry Dividend Yield of 6.64, TKO pays a better dividend. On top of this TKO pays more dividend than 84.72% of the companies listed in the same industry.
With a Dividend Yield of 0.86, TKO pays less dividend than the S&P500 average, which is at 2.42.
Industry RankSector 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
TKO Yearly Dividends per shareTKO Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2025 1 2 3 4

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 2Y15.34%
EPS Next 3Y16.3%
TKO Yearly Income VS Free CF VS DividendTKO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M 400M
TKO Dividend Payout.TKO Dividend Payout, showing the Payout Ratio.TKO Dividend Payout.PayoutRetained Earnings

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TKO GROUP HOLDINGS INC

NYSE:TKO (7/3/2025, 8:12:58 PM)

After market: 177.14 0 (0%)

177.14

-0.32 (-0.18%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)08-06 2025-08-06/amc
Inst Owners96.67%
Inst Owner Change3.95%
Ins Owners0.79%
Ins Owner Change0.93%
Market Cap35.06B
Analysts83.33
Price Target183.71 (3.71%)
Short Float %9.51%
Short Ratio6.35
Dividend
Industry RankSector Rank
Dividend Yield 0.86%
Yearly Dividend0.48
Dividend Growth(5Y)N/A
DP23.38%
Div Incr Years0
Div Non Decr Years0
Ex-Date06-13 2025-06-13 (0.38)
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)7.14%
PT rev (3m)7.49%
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 RankSector Rank
PE 109.35
Fwd PE 33.46
P/S 13.78
P/FCF 53.46
P/OCF 52.42
P/B 8.78
P/tB N/A
EV/EBITDA 38.02
EPS(TTM)1.62
EY0.91%
EPS(NY)5.29
Fwd EY2.99%
FCF(TTM)3.31
FCFY1.87%
OCF(TTM)3.38
OCFY1.91%
SpS12.85
BVpS20.17
TBVpS-35.75
PEG (NY)N/A
PEG (5Y)3
Profitability
Industry RankSector 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 RankSector 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 2.75
F-Score4
WACC8.98%
ROIC/WACC0.49
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)-67.86%
EPS 3Y22.79%
EPS 5Y36.5%
EPS Q2Q%-77.38%
EPS Next Y-26.65%
EPS Next 2Y15.34%
EPS Next 3Y16.3%
EPS Next 5Y11.97%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%101.49%
Revenue Next Year61.65%
Revenue Next 2Y41.78%
Revenue Next 3Y24.61%
Revenue Next 5Y17.99%
EBIT growth 1Y151.25%
EBIT growth 3Y39.61%
EBIT growth 5Y38.63%
EBIT Next Year54.14%
EBIT Next 3Y36.71%
EBIT Next 5Y27.62%
FCF growth 1Y309.81%
FCF growth 3Y12.83%
FCF growth 5Y22.14%
OCF growth 1Y161.37%
OCF growth 3Y13.55%
OCF growth 5Y20.2%