TKO GROUP HOLDINGS INC (TKO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TKO - US87256C1018 - Common Stock
217.44 USD
-0.54 (-0.25%)
217.44 USD
0 (0%)
Taking everything into account, TKO scores 5 out of 10 in our fundamental rating. TKO was compared to 80 industry peers in the Entertainment industry. TKO has an average financial health and profitability rating. TKO shows excellent growth, but is valued quite expensive already.
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.
TKO had positive earnings in 4 of the past 5 years.
Each year in the past 5 years TKO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.47%, TKO is in the better half of the industry, outperforming 72.50% of the companies in the same industry.
TKO has a Return On Equity of 5.99%. This is in the better half of the industry: TKO outperforms 76.25% of its industry peers.
With a decent Return On Invested Capital value of 5.74%, TKO is doing good in the industry, outperforming 77.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TKO is in line with the industry average of 8.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 5.99% | ||
| ROIC | 5.74% |
ROA(3y)4.74%
ROA(5y)7.82%
ROE(3y)12.4%
ROE(5y)23.77%
ROIC(3y)9.52%
ROIC(5y)13.24%
1.3 Margins
TKO has a better Profit Margin (5.27%) than 72.50% of its industry peers.
In the last couple of years the Profit Margin of TKO has declined.
TKO has a better Operating Margin (23.48%) than 95.00% 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 60.46%, TKO is in the better half of the industry, outperforming 67.50% of the companies in the same industry.
TKO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.48% | ||
| PM (TTM) | 5.27% | ||
| GM | 60.46% |
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) below the Cost of Capital (WACC), TKO is destroying 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
An Altman-Z score of 2.66 indicates that TKO is not a great score, but indicates only limited risk for bankruptcy at the moment.
TKO's Altman-Z score of 2.66 is fine compared to the rest of the industry. TKO outperforms 70.00% of its industry peers.
The Debt to FCF ratio of TKO is 4.21, which is a neutral value as it means it would take TKO, 4.21 years of fcf income to pay off all of its debts.
TKO's Debt to FCF ratio of 4.21 is fine compared to the rest of the industry. TKO outperforms 77.50% of its industry peers.
TKO has a Debt/Equity ratio of 1.03. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TKO (1.03) is worse than 66.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 4.21 | ||
| Altman-Z | 2.66 |
ROIC/WACC0.58
WACC9.93%
2.3 Liquidity
TKO has a Current Ratio of 1.46. 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 Current ratio of 1.46 is fine compared to the rest of the industry. TKO outperforms 66.25% of its industry peers.
A Quick Ratio of 1.43 indicates that TKO should not have too much problems paying its short term obligations.
TKO has a Quick ratio of 1.43. This is in the better half of the industry: TKO outperforms 67.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
TKO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.50%.
Measured over the past years, TKO shows a very strong growth in Earnings Per Share. The EPS has been growing by 39.39% on average per year.
TKO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.94%.
The Revenue has been growing by 23.90% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-37.5%
EPS 3Y27.15%
EPS 5Y39.39%
EPS Q2Q%67.86%
Revenue 1Y (TTM)16.94%
Revenue growth 3Y36.81%
Revenue growth 5Y23.9%
Sales Q2Q%64.4%
3.2 Future
Based on estimates for the next years, TKO will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.88% on average per year.
TKO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.04% yearly.
EPS Next Y-38.07%
EPS Next 2Y20.51%
EPS Next 3Y18.75%
EPS Next 5Y18.88%
Revenue Next Year70.55%
Revenue Next 2Y48.76%
Revenue Next 3Y28.84%
Revenue Next 5Y20.04%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 80.53, 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 66.25% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.57. TKO is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 33.87, the valuation of TKO can be described as expensive.
Based on the Price/Forward Earnings ratio, TKO is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
TKO's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.53 | ||
| Fwd PE | 33.87 |
4.2 Price Multiples
TKO's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TKO indicates a somewhat cheap valuation: TKO is cheaper than 67.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.85 | ||
| EV/EBITDA | 31.31 |
4.3 Compensation for Growth
TKO has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TKO's earnings are expected to grow with 18.75% in the coming years.
PEG (NY)N/A
PEG (5Y)2.04
EPS Next 2Y20.51%
EPS Next 3Y18.75%
5. Dividend
5.1 Amount
With a yearly dividend of 0.70%, TKO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.98, TKO pays a better dividend. On top of this TKO pays more dividend than 83.75% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, TKO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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
5.3 Sustainability
DPN/A
EPS Next 2Y20.51%
EPS Next 3Y18.75%
217.44
-0.54 (-0.25%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners97.62%
Inst Owner Change-0.93%
Ins Owners0.82%
Ins Owner Change-0.01%
Market Cap42.42B
Revenue(TTM)4.34B
Net Income(TTM)228.78M
Analysts82.96
Price Target219.2 (0.81%)
Short Float %11.12%
Short Ratio6.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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)-12.77%
Min EPS beat(2)-35.98%
Max EPS beat(2)10.45%
EPS beat(4)2
Avg EPS beat(4)24.05%
Min EPS beat(4)-35.98%
Max EPS beat(4)128.96%
EPS beat(8)3
Avg EPS beat(8)69.09%
EPS beat(12)5
Avg EPS beat(12)49.57%
EPS beat(16)9
Avg EPS beat(16)42.44%
Revenue beat(2)1
Avg Revenue beat(2)3.26%
Min Revenue beat(2)-0.89%
Max Revenue beat(2)7.42%
Revenue beat(4)3
Avg Revenue beat(4)7.61%
Min Revenue beat(4)-0.89%
Max Revenue beat(4)18.58%
Revenue beat(8)5
Avg Revenue beat(8)2.32%
Revenue beat(12)7
Avg Revenue beat(12)-0.78%
Revenue beat(16)10
Avg Revenue beat(16)-0.3%
PT rev (1m)1.22%
PT rev (3m)7.8%
EPS NQ rev (1m)-9.34%
EPS NQ rev (3m)-22.71%
EPS NY rev (1m)-15.72%
EPS NY rev (3m)-11.58%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)3.19%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.53 | ||
| Fwd PE | 33.87 | ||
| P/S | 9.78 | ||
| P/FCF | 44.85 | ||
| P/OCF | 41.08 | ||
| P/B | 11.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 31.31 |
EPS(TTM)2.7
EY1.24%
EPS(NY)6.42
Fwd EY2.95%
FCF(TTM)4.85
FCFY2.23%
OCF(TTM)5.29
OCFY2.43%
SpS22.24
BVpS19.59
TBVpS-41.4
PEG (NY)N/A
PEG (5Y)2.04
Graham Number34.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 5.99% | ||
| ROCE | 7.26% | ||
| ROIC | 5.74% | ||
| ROICexc | 6.11% | ||
| ROICexgc | 63.49% | ||
| OM | 23.48% | ||
| PM (TTM) | 5.27% | ||
| GM | 60.46% | ||
| FCFM | 21.8% |
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 Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 4.21 | ||
| Debt/EBITDA | 2.69 | ||
| Cap/Depr | 19.78% | ||
| Cap/Sales | 2% | ||
| Interest Coverage | 4.17 | ||
| Cash Conversion | 70.84% | ||
| Profit Quality | 413.43% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 2.66 |
F-Score7
WACC9.93%
ROIC/WACC0.58
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)-37.5%
EPS 3Y27.15%
EPS 5Y39.39%
EPS Q2Q%67.86%
EPS Next Y-38.07%
EPS Next 2Y20.51%
EPS Next 3Y18.75%
EPS Next 5Y18.88%
Revenue 1Y (TTM)16.94%
Revenue growth 3Y36.81%
Revenue growth 5Y23.9%
Sales Q2Q%64.4%
Revenue Next Year70.55%
Revenue Next 2Y48.76%
Revenue Next 3Y28.84%
Revenue Next 5Y20.04%
EBIT growth 1Y66.38%
EBIT growth 3Y44.53%
EBIT growth 5Y45.68%
EBIT Next Year379.73%
EBIT Next 3Y94.6%
EBIT Next 5Y55.19%
FCF growth 1Y240.04%
FCF growth 3Y52.38%
FCF growth 5Y57.41%
OCF growth 1Y178.58%
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 -38.07% in the next year.