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DRAFTKINGS INC-CL A (DKNG) Stock Fundamental Analysis

NASDAQ:DKNG - Nasdaq - US26142V1052 - Common Stock

40.98  -0.53 (-1.28%)

After market: 40.9 -0.08 (-0.2%)

Fundamental Rating

3

Overall DKNG gets a fundamental rating of 3 out of 10. We evaluated DKNG against 134 industry peers in the Hotels, Restaurants & Leisure industry. DKNG has a bad profitability rating. Also its financial health evaluation is rather negative. DKNG is valued quite expensively, but it does show have an excellent growth rating.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

In the past year DKNG has reported negative net income.
In the past year DKNG had a positive cash flow from operations.
In the past 5 years DKNG always reported negative net income.
DKNG had a negative operating cash flow in each of the past 5 years.
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 -500M -1B -1.5B

1.2 Ratios

DKNG's Return On Assets of -9.76% is on the low side compared to the rest of the industry. DKNG is outperformed by 87.02% of its industry peers.
The Return On Equity of DKNG (-38.76%) is worse than 62.60% of its industry peers.
Industry RankSector Rank
ROA -9.76%
ROE -38.76%
ROIC N/A
ROA(3y)-30.62%
ROA(5y)-34.17%
ROE(3y)-96.8%
ROE(5y)N/A
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 0 100 -100 200

1.3 Margins

DKNG has a worse Gross Margin (38.50%) than 66.41% of its industry peers.
In the last couple of years the Gross Margin of DKNG has declined.
DKNG does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 38.5%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.93%
GM growth 5Y-13.75%
DKNG Yearly Profit, Operating, Gross MarginsDKNG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 0 50 -50 -100 -150 -200

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3

2. Health

2.1 Basic Checks

DKNG does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for DKNG has been increased compared to 1 year ago.
The debt/assets ratio for DKNG is higher compared to a year ago.
DKNG Yearly Shares OutstandingDKNG Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 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 1B 2B 3B 4B

2.2 Solvency

An Altman-Z score of 2.43 indicates that DKNG is not a great score, but indicates only limited risk for bankruptcy at the moment.
DKNG's Altman-Z score of 2.43 is fine compared to the rest of the industry. DKNG outperforms 69.47% of its industry peers.
The Debt to FCF ratio of DKNG is 19.61, which is on the high side as it means it would take DKNG, 19.61 years of fcf income to pay off all of its debts.
DKNG has a Debt to FCF ratio (19.61) which is in line with its industry peers.
A Debt/Equity ratio of 1.17 is on the high side and indicates that DKNG has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.17, DKNG is in the better half of the industry, outperforming 61.07% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.17
Debt/FCF 19.61
Altman-Z 2.43
ROIC/WACCN/A
WACC8.9%
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 0 1B 2B

2.3 Liquidity

DKNG has a Current Ratio of 1.00. This is a bad value and indicates that DKNG is not financially healthy enough and could expect problems in meeting its short term obligations.
DKNG's Current ratio of 1.00 is in line compared to the rest of the industry. DKNG outperforms 55.73% of its industry peers.
DKNG has a Quick Ratio of 1.00. This is a bad value and indicates that DKNG is not financially healthy enough and could expect problems in meeting its short term obligations.
DKNG has a Quick ratio of 1.00. This is in the better half of the industry: DKNG outperforms 60.31% of its industry peers.
Industry RankSector Rank
Current Ratio 1
Quick Ratio 1
DKNG Yearly Current Assets VS Current LiabilitesDKNG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

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7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 43.59% over the past year.
DKNG shows a strong growth in Revenue. In the last year, the Revenue has grown by 40.01%.
DKNG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 74.54% yearly.
EPS 1Y (TTM)43.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-71.43%
Revenue 1Y (TTM)40.01%
Revenue growth 3Y81.36%
Revenue growth 5Y74.54%
Sales Q2Q%38.68%

3.2 Future

Based on estimates for the next years, DKNG will show a very strong growth in Earnings Per Share. The EPS will grow by 38.13% on average per year.
The Revenue is expected to grow by 21.78% on average over the next years. This is a very strong growth
EPS Next Y30.53%
EPS Next 2Y56.48%
EPS Next 3Y48.81%
EPS Next 5Y38.13%
Revenue Next Year33.4%
Revenue Next 2Y31.84%
Revenue Next 3Y26.99%
Revenue Next 5Y21.78%

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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1

4. Valuation

4.1 Price/Earnings Ratio

DKNG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 80.83, which means the current valuation is very expensive for DKNG.
DKNG's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. DKNG is more expensive than 64.89% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.37. DKNG is valued rather expensively when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 80.83
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

DKNG's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. DKNG is more expensive than 61.83% of the companies in the same industry.
Industry RankSector Rank
P/FCF 311.99
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 high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DKNG does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as DKNG's earnings are expected to grow with 48.81% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y56.48%
EPS Next 3Y48.81%

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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 (1/22/2025, 7:52:46 PM)

After market: 40.9 -0.08 (-0.2%)

40.98

-0.53 (-1.28%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)11-07 2024-11-07/amc
Earnings (Next)02-13 2025-02-13/amc
Inst Owners72.99%
Inst Owner Change-0.13%
Ins Owners2.42%
Ins Owner Change3.88%
Market Cap19.98B
Analysts81.86
Price Target52.39 (27.84%)
Short Float %4.76%
Short Ratio2.54
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)1
Avg EPS beat(2)534.89%
Min EPS beat(2)-40.93%
Max EPS beat(2)1110.71%
EPS beat(4)1
Avg EPS beat(4)211.1%
Min EPS beat(4)-219.94%
Max EPS beat(4)1110.71%
EPS beat(8)5
Avg EPS beat(8)122.9%
EPS beat(12)9
Avg EPS beat(12)89.36%
EPS beat(16)9
Avg EPS beat(16)54.9%
Revenue beat(2)0
Avg Revenue beat(2)-3%
Min Revenue beat(2)-3.4%
Max Revenue beat(2)-2.61%
Revenue beat(4)1
Avg Revenue beat(4)-1.58%
Min Revenue beat(4)-3.4%
Max Revenue beat(4)2.44%
Revenue beat(8)5
Avg Revenue beat(8)3.43%
Revenue beat(12)8
Avg Revenue beat(12)4.02%
Revenue beat(16)11
Avg Revenue beat(16)7.44%
PT rev (1m)1.07%
PT rev (3m)5.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-102.22%
EPS NY rev (1m)0%
EPS NY rev (3m)-180.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.55%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-4.6%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 80.83
P/S 4.34
P/FCF 311.99
P/OCF 121.37
P/B 18.57
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-0.88
EYN/A
EPS(NY)0.51
Fwd EY1.24%
FCF(TTM)0.13
FCFY0.32%
OCF(TTM)0.34
OCFY0.82%
SpS9.45
BVpS2.21
TBVpS-2.61
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -9.76%
ROE -38.76%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 38.5%
FCFM 1.39%
ROA(3y)-30.62%
ROA(5y)-34.17%
ROE(3y)-96.8%
ROE(5y)N/A
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-4.93%
GM growth 5Y-13.75%
F-Score7
Asset Turnover1.08
Health
Industry RankSector Rank
Debt/Equity 1.17
Debt/FCF 19.61
Debt/EBITDA N/A
Cap/Depr 38.7%
Cap/Sales 2.18%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1
Quick Ratio 1
Altman-Z 2.43
F-Score7
WACC8.9%
ROIC/WACCN/A
Cap/Depr(3y)52.9%
Cap/Depr(5y)88.1%
Cap/Sales(3y)3.96%
Cap/Sales(5y)5.6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)43.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-71.43%
EPS Next Y30.53%
EPS Next 2Y56.48%
EPS Next 3Y48.81%
EPS Next 5Y38.13%
Revenue 1Y (TTM)40.01%
Revenue growth 3Y81.36%
Revenue growth 5Y74.54%
Sales Q2Q%38.68%
Revenue Next Year33.4%
Revenue Next 2Y31.84%
Revenue Next 3Y26.99%
Revenue Next 5Y21.78%
EBIT growth 1Y50.15%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year134.16%
EBIT Next 3Y61.76%
EBIT Next 5Y41.76%
FCF growth 1Y108.71%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y125.36%
OCF growth 3YN/A
OCF growth 5YN/A