DRAFTKINGS INC-CL A (DKNG)
US26142V1052 - Common Stock
We assign a fundamental rating of 2 out of 10 to DKNG. DKNG was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and financial health of DKNG have multiple concerns. DKNG shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year DKNG has reported negative net income.
DKNG had a positive operating cash flow in the past year.
DKNG had negative earnings in each of the past 5 years.
DKNG had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -9.76%, DKNG is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -38.76%, DKNG is doing worse than 63.16% of the companies in the same industry.
| Industry Rank | Sector 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
1.3 Margins
Looking at the Gross Margin, with a value of 38.50%, DKNG is doing worse than 67.67% of the companies in the same industry.
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 Rank | Sector 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%
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.
The debt/assets ratio for DKNG is higher compared to a year ago.
2.2 Solvency
DKNG has an Altman-Z score of 2.33. 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.
Looking at the Altman-Z score, with a value of 2.33, DKNG is in the better half of the industry, outperforming 65.41% of the companies in the same industry.
DKNG has a debt to FCF ratio of 19.61. This is a negative value and a sign of low solvency as DKNG would need 19.61 years to pay back of 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.
DKNG has a Debt to Equity ratio (1.17) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 19.61 | ||
| Altman-Z | 2.33 |
ROIC/WACCN/A
WACC8.85%
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 has a Current ratio (1.00) which is in line with its industry peers.
A Quick Ratio of 1.00 indicates that DKNG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.00, DKNG is in line with its industry, outperforming 59.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
DKNG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43.59%, which is quite impressive.
The Revenue has grown by 40.01% in the past year. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 38.13% on average over the next years. This is a very strong growth
DKNG is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.78% yearly.
EPS Next Y30.53%
EPS Next 2Y56.48%
EPS Next 3Y48.81%
EPS Next 5Y38.13%
Revenue Next Year33.77%
Revenue Next 2Y31.82%
Revenue Next 3Y26.98%
Revenue Next 5Y21.78%
3.3 Evolution
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 negative for DKNG. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 75.99, DKNG can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, DKNG is valued a bit more expensive than 63.16% of the companies in the same industry.
DKNG is valuated expensively when we compare the Price/Forward Earnings ratio to 23.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 75.99 |
4.2 Price Multiples
61.65% of the companies in the same industry are cheaper than DKNG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 293.3 | ||
| EV/EBITDA | N/A |
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.
DKNG's earnings are expected to grow with 48.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y56.48%
EPS Next 3Y48.81%
5. Dividend
5.1 Amount
DKNG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DRAFTKINGS INC-CL A
NASDAQ:DKNG (12/23/2024, 10:27:08 AM)
38.525
-1.83 (-4.52%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners72.99%
Inst Owner Change7.07%
Ins Owners2.42%
Ins Owner Change3.88%
Market Cap18.79B
Analysts81.86
Price Target51.84 (34.56%)
Short Float %4.13%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)0.99%
PT rev (3m)4.26%
EPS NQ rev (1m)9.22%
EPS NQ rev (3m)-102.22%
EPS NY rev (1m)-170.43%
EPS NY rev (3m)-180.06%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-4.55%
Revenue NY rev (1m)-4.2%
Revenue NY rev (3m)-4.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 75.99 | ||
| P/S | 4.08 | ||
| P/FCF | 293.3 | ||
| P/OCF | 114.1 | ||
| P/B | 17.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.88
EYN/A
EPS(NY)0.51
Fwd EY1.32%
FCF(TTM)0.13
FCFY0.34%
OCF(TTM)0.34
OCFY0.88%
SpS9.45
BVpS2.21
TBVpS-2.61
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.33 |
F-Score7
WACC8.85%
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 Year33.77%
Revenue Next 2Y31.82%
Revenue Next 3Y26.98%
Revenue Next 5Y21.78%
EBIT growth 1Y50.15%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year139.74%
EBIT Next 3Y61.43%
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