TKO GROUP HOLDINGS INC (TKO) Stock Fundamental Analysis
USA - NYSE:TKO - US87256C1018 - Common Stock
186.85 USD
0 (0%)
186.85 USD
0 (0%)
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 an average financial health and profitability rating. TKO is valued quite expensive, but it does show an excellent growth.
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.
Of the past 5 years TKO 4 years were profitable.
TKO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TKO has a better Return On Assets (1.37%) than 62.50% of its industry peers.
With a decent Return On Equity value of 4.94%, TKO is doing good in the industry, outperforming 73.75% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.75%, TKO is in the better half of the industry, outperforming 76.25% of the companies in the same industry.
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.
TKO's Profit Margin has declined in the last couple of years.
TKO has a better Operating Margin (25.89%) than 95.00% of its industry peers.
In the last couple of years the Operating Margin of TKO has grown nicely.
Looking at the Gross Margin, with a value of 61.98%, TKO is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
TKO's Gross Margin has declined in the last couple of years.
| 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
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.
The debt/assets ratio for TKO is higher compared to a year ago.
2.2 Solvency
TKO has an Altman-Z score of 2.50. 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.
TKO has a better Altman-Z score (2.50) than 68.75% of its industry peers.
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 better Debt to FCF ratio (4.09) than 73.75% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that TKO is somewhat dependend on debt financing.
TKO has a worse Debt to Equity ratio (0.69) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | 2.5 |
ROIC/WACC0.67
WACC8.54%
2.3 Liquidity
TKO has a Current Ratio of 1.30. This is a normal value and indicates that TKO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TKO (1.30) is comparable to the rest of the industry.
A Quick Ratio of 1.26 indicates that TKO should not have too much problems paying its short term obligations.
The Quick ratio of TKO (1.26) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The earnings per share for TKO have decreased strongly by -48.25% in the last year.
The Earnings Per Share has been growing by 39.39% on average over the past years. This is a very strong growth
TKO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.13%.
TKO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.90% yearly.
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
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.
Based on estimates for the next years, TKO will show a quite strong growth in Revenue. The Revenue will grow by 18.91% on average per year.
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
The Price/Earnings ratio is 74.44, which means the current valuation is very expensive for TKO.
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 26.91.
The Price/Forward Earnings ratio is 33.23, 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 73.75% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.92. TKO is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.44 | ||
| Fwd PE | 33.23 |
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.
63.75% of the companies in the same industry are more expensive than TKO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.68 | ||
| EV/EBITDA | 28.53 |
4.3 Compensation for Growth
TKO has a very decent profitability rating, which may justify a higher PE ratio.
TKO's earnings are expected to grow with 15.87% in the coming years. This may justify a more expensive valuation.
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.
With a Dividend Yield of 0.81, TKO pays less dividend than the S&P500 average, which is at 2.34.
| 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%
186.85
0 (0%)
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 Cap37.05B
Revenue(TTM)3.90B
Net Income(TTM)210.91M
Analysts81.54
Price Target207.54 (11.07%)
Short Float %11.82%
Short Ratio7.09
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 | 74.44 | ||
| Fwd PE | 33.23 | ||
| P/S | 9.5 | ||
| P/FCF | 50.68 | ||
| P/OCF | 46.87 | ||
| P/B | 8.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.53 |
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 | 2.5 |
F-Score7
WACC8.54%
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)-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%
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 3 / 10 to TKO GROUP HOLDINGS INC (TKO). This can be considered as Overvalued.
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 -28.16% in the next year.