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DRAFTKINGS INC-CL A (DKNG) Stock Fundamental Analysis

NASDAQ:DKNG - Nasdaq - US26142V1052 - Common Stock - Currency: USD

45.57  -3.87 (-7.83%)

After market: 45.5001 -0.07 (-0.15%)

Fundamental Rating

2

DKNG gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. DKNG may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, DKNG is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

DKNG had negative earnings in the past year.
In the past year DKNG had a positive cash flow from operations.
In the past 5 years DKNG always reported negative net income.
In the past 5 years DKNG reported 4 times negative operating cash flow.
DKNG Yearly Net Income VS EBIT VS OCF VS FCFDKNG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 0 -500M -1B -1.5B

1.2 Ratios

DKNG has a Return On Assets of -11.84%. This is amonst the worse of the industry: DKNG underperforms 90.84% of its industry peers.
DKNG has a worse Return On Equity (-50.20%) than 62.60% of its industry peers.
Industry RankSector Rank
ROA -11.84%
ROE -50.2%
ROIC N/A
ROA(3y)-22.09%
ROA(5y)-27.91%
ROE(3y)-83.28%
ROE(5y)-77.48%
ROIC(3y)N/A
ROIC(5y)N/A
DKNG Yearly ROA, ROE, ROICDKNG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 0 100 -100 200

1.3 Margins

DKNG has a worse Gross Margin (38.11%) than 67.18% of its industry peers.
In the last couple of years the Gross Margin of DKNG has declined.
The Profit Margin and Operating Margin are not available for DKNG so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 38.11%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.53%
GM growth 5Y-10.9%
DKNG Yearly Profit, Operating, Gross MarginsDKNG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100 -150 -200

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2. Health

2.1 Basic Checks

DKNG does not have a ROIC to compare to the WACC, probably because it is not profitable.
DKNG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, DKNG has more shares outstanding
Compared to 1 year ago, DKNG has an improved debt to assets ratio.
DKNG Yearly Shares OutstandingDKNG Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
DKNG Yearly Total Debt VS Total AssetsDKNG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.2 Solvency

DKNG has an Altman-Z score of 2.94. This is not the best score and indicates that DKNG is in the grey zone with still only limited risk for bankruptcy at the moment.
DKNG's Altman-Z score of 2.94 is fine compared to the rest of the industry. DKNG outperforms 74.05% of its industry peers.
DKNG has a debt to FCF ratio of 4.03. This is a neutral value as DKNG would need 4.03 years to pay back of all of its debts.
DKNG has a better Debt to FCF ratio (4.03) than 77.10% of its industry peers.
A Debt/Equity ratio of 1.24 is on the high side and indicates that DKNG has dependencies on debt financing.
DKNG has a Debt to Equity ratio of 1.24. This is comparable to the rest of the industry: DKNG outperforms 59.54% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.24
Debt/FCF 4.03
Altman-Z 2.94
ROIC/WACCN/A
WACC9.37%
DKNG Yearly LT Debt VS Equity VS FCFDKNG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 0 1B 2B

2.3 Liquidity

A Current Ratio of 0.93 indicates that DKNG may have some problems paying its short term obligations.
With a Current ratio value of 0.93, DKNG perfoms like the industry average, outperforming 51.91% of the companies in the same industry.
A Quick Ratio of 0.93 indicates that DKNG may have some problems paying its short term obligations.
DKNG has a Quick ratio of 0.93. This is comparable to the rest of the industry: DKNG outperforms 56.49% of its industry peers.
Industry RankSector Rank
Current Ratio 0.93
Quick Ratio 0.93
DKNG Yearly Current Assets VS Current LiabilitesDKNG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 6.19% over the past year.
Looking at the last year, DKNG shows a very strong growth in Revenue. The Revenue has grown by 30.07%.
DKNG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 71.28% yearly.
EPS 1Y (TTM)6.19%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-180%
Revenue 1Y (TTM)30.07%
Revenue growth 3Y54.37%
Revenue growth 5Y71.28%
Sales Q2Q%13.15%

3.2 Future

The Earnings Per Share is expected to grow by 45.21% on average over the next years. This is a very strong growth
DKNG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.32% yearly.
EPS Next Y151.04%
EPS Next 2Y85.17%
EPS Next 3Y61.33%
EPS Next 5Y45.21%
Revenue Next Year34.18%
Revenue Next 2Y25.69%
Revenue Next 3Y21.71%
Revenue Next 5Y18.32%

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
DKNG Yearly Revenue VS EstimatesDKNG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2B 4B 6B 8B 10B
DKNG Yearly EPS VS EstimatesDKNG Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 2 -2 4 6

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for DKNG. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 84.22, which means the current valuation is very expensive for DKNG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DKNG indicates a slightly more expensive valuation: DKNG is more expensive than 66.41% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of DKNG to the average of the S&P500 Index (22.68), we can say DKNG is valued expensively.
Industry RankSector Rank
PE N/A
Fwd PE 84.22
DKNG Price Earnings VS Forward Price EarningsDKNG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40 -40 60 80

4.2 Price Multiples

The rest of the industry has a similar Price/Free Cash Flow ratio as DKNG.
Industry RankSector Rank
P/FCF 71.25
EV/EBITDA N/A
DKNG Per share dataDKNG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6 8

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as DKNG's earnings are expected to grow with 61.33% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y85.17%
EPS Next 3Y61.33%

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5. Dividend

5.1 Amount

DKNG does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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DRAFTKINGS INC-CL A

NASDAQ:DKNG (2/21/2025, 8:14:04 PM)

After market: 45.5001 -0.07 (-0.15%)

45.57

-3.87 (-7.83%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-13 2025-02-13/amc
Earnings (Next)04-30 2025-04-30/amc
Inst Owners72.99%
Inst Owner Change6.41%
Ins Owners2.42%
Ins Owner Change4.56%
Market Cap22.22B
Analysts82.79
Price Target57.7 (26.62%)
Short Float %4.66%
Short Ratio2.53
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-57.94%
Min EPS beat(2)-74.95%
Max EPS beat(2)-40.93%
EPS beat(4)1
Avg EPS beat(4)247.35%
Min EPS beat(4)-74.95%
Max EPS beat(4)1110.71%
EPS beat(8)4
Avg EPS beat(8)112.03%
EPS beat(12)8
Avg EPS beat(12)82.85%
EPS beat(16)9
Avg EPS beat(16)52.79%
Revenue beat(2)0
Avg Revenue beat(2)-3.47%
Min Revenue beat(2)-3.55%
Max Revenue beat(2)-3.4%
Revenue beat(4)1
Avg Revenue beat(4)-1.78%
Min Revenue beat(4)-3.55%
Max Revenue beat(4)2.44%
Revenue beat(8)4
Avg Revenue beat(8)2.4%
Revenue beat(12)7
Avg Revenue beat(12)3.38%
Revenue beat(16)10
Avg Revenue beat(16)4.99%
PT rev (1m)0.21%
PT rev (3m)2.28%
EPS NQ rev (1m)-1820.56%
EPS NQ rev (3m)-153.44%
EPS NY rev (1m)-18.84%
EPS NY rev (3m)-221.38%
Revenue NQ rev (1m)-8.14%
Revenue NQ rev (3m)-18.6%
Revenue NY rev (1m)-1.34%
Revenue NY rev (3m)-5.75%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 84.22
P/S 4.66
P/FCF 71.25
P/OCF 53.19
P/B 21.99
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-1.06
EYN/A
EPS(NY)0.54
Fwd EY1.19%
FCF(TTM)0.64
FCFY1.4%
OCF(TTM)0.86
OCFY1.88%
SpS9.78
BVpS2.07
TBVpS-3.03
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -11.84%
ROE -50.2%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 38.11%
FCFM 6.54%
ROA(3y)-22.09%
ROA(5y)-27.91%
ROE(3y)-83.28%
ROE(5y)-77.48%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.53%
GM growth 5Y-10.9%
F-Score7
Asset Turnover1.11
Health
Industry RankSector Rank
Debt/Equity 1.24
Debt/FCF 4.03
Debt/EBITDA N/A
Cap/Depr 39.09%
Cap/Sales 2.22%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.93
Quick Ratio 0.93
Altman-Z 2.94
F-Score7
WACC9.37%
ROIC/WACCN/A
Cap/Depr(3y)48.74%
Cap/Depr(5y)49.7%
Cap/Sales(3y)3.1%
Cap/Sales(5y)4.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.19%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-180%
EPS Next Y151.04%
EPS Next 2Y85.17%
EPS Next 3Y61.33%
EPS Next 5Y45.21%
Revenue 1Y (TTM)30.07%
Revenue growth 3Y54.37%
Revenue growth 5Y71.28%
Sales Q2Q%13.15%
Revenue Next Year34.18%
Revenue Next 2Y25.69%
Revenue Next 3Y21.71%
Revenue Next 5Y18.32%
EBIT growth 1Y25.99%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year268.69%
EBIT Next 3Y78.01%
EBIT Next 5Y50.72%
FCF growth 1Y402.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y23958.8%
OCF growth 3YN/A
OCF growth 5YN/A