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TKO GROUP HOLDINGS INC (TKO) Stock Fundamental Analysis

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

168.855  -1.89 (-1.1%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to TKO. TKO was compared to 72 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 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.
TKO had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TKO reported negative net income in multiple 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

With a decent Return On Assets value of -0.63%, TKO is doing good in the industry, outperforming 62.50% of the companies in the same industry.
TKO has a Return On Equity of -2.00%. This is in the better half of the industry: TKO outperforms 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.37%, TKO is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TKO is significantly below the industry average of 23.15%.
The 3 year average ROIC (14.73%) for TKO is well above the current ROIC(4.37%). The reason for the recent decline needs to be investigated.
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

With an excellent Operating Margin value of 25.88%, TKO belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
In the last couple of years the Operating Margin of TKO has grown nicely.
TKO's Gross Margin of 68.42% is fine compared to the rest of the industry. TKO outperforms 79.17% of its industry peers.
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

TKO has an Altman-Z score of 2.66. 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.
With a decent Altman-Z score value of 2.66, TKO is doing good in the industry, outperforming 72.22% of the companies in the same industry.
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.
TKO has a Debt to FCF ratio of 4.52. This is in the better half of the industry: TKO outperforms 73.61% 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.
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 2.66
ROIC/WACC0.48
WACC9.09%
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

A Current Ratio of 0.99 indicates that TKO may have some problems paying 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.
The Quick ratio of TKO (0.99) is comparable to the rest of the industry.
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

The earnings per share for TKO have decreased strongly by -67.86% 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)-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

TKO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.97% yearly.
The Revenue is expected to grow by 17.99% on average over the next years. This is quite good.
EPS Next Y-26.65%
EPS Next 2Y15.45%
EPS Next 3Y16.37%
EPS Next 5Y11.97%
Revenue Next Year62.04%
Revenue Next 2Y42.03%
Revenue Next 3Y24.87%
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

Based on the Price/Earnings ratio of 104.23, the valuation of TKO can be described as expensive.
Based on the Price/Earnings ratio, TKO is valued a bit cheaper than 65.28% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.93, TKO is valued quite expensively.
Based on the Price/Forward Earnings ratio of 31.83, the valuation of TKO can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TKO indicates a somewhat cheap valuation: TKO is cheaper than 68.06% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.78. TKO is around the same levels.
Industry RankSector Rank
PE 104.23
Fwd PE 31.83
TKO Price Earnings VS Forward Price EarningsTKO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150 200 250

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 61.11% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 50.96
EV/EBITDA 36.68
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 16.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)2.86
EPS Next 2Y15.45%
EPS Next 3Y16.37%

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4

5. Dividend

5.1 Amount

With a yearly dividend of 0.90%, TKO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.03, TKO pays a better dividend. On top of this TKO pays more dividend than 83.33% of the companies listed in the same industry.
With a Dividend Yield of 0.90, TKO pays less dividend than the S&P500 average, which is at 2.32.
Industry RankSector Rank
Dividend Yield 0.9%

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

TKO pays out 23.38% of its income as dividend. This is a sustainable payout ratio.
DP23.38%
EPS Next 2Y15.45%
EPS Next 3Y16.37%
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 (7/29/2025, 10:11:47 AM)

168.855

-1.89 (-1.1%)

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 Change0.61%
Ins Owners0.79%
Ins Owner Change-0.13%
Market Cap33.42B
Analysts83.85
Price Target188.06 (11.37%)
Short Float %8.91%
Short Ratio6.64
Dividend
Industry RankSector Rank
Dividend Yield 0.9%
Yearly DividendN/A
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)2.36%
PT rev (3m)10.29%
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 104.23
Fwd PE 31.83
P/S 13.14
P/FCF 50.96
P/OCF 49.97
P/B 8.37
P/tB N/A
EV/EBITDA 36.68
EPS(TTM)1.62
EY0.96%
EPS(NY)5.3
Fwd EY3.14%
FCF(TTM)3.31
FCFY1.96%
OCF(TTM)3.38
OCFY2%
SpS12.85
BVpS20.17
TBVpS-35.75
PEG (NY)N/A
PEG (5Y)2.86
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 2.66
F-Score4
WACC9.09%
ROIC/WACC0.48
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 2Y15.45%
EPS Next 3Y16.37%
EPS Next 5Y11.97%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%101.49%
Revenue Next Year62.04%
Revenue Next 2Y42.03%
Revenue Next 3Y24.87%
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%