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DRAFTKINGS INC-CL A (DKNG) Stock Fundamental Analysis

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

32.44  -1.17 (-3.48%)

After market: 32.4003 -0.04 (-0.12%)

Fundamental Rating

2

DKNG gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 136 industry peers in the Hotels, Restaurants & Leisure industry. DKNG may be in some trouble as it scores bad on both profitability and health. DKNG is quite expensive at the moment. It does show a decent growth rate.


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.
DKNG had a positive operating cash flow in the past year.
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

With a Return On Assets value of -11.84%, DKNG is not doing good in the industry: 85.29% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -50.20%, DKNG is doing worse than 61.76% of the companies in the same industry.
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 Gross Margin of 38.11%. This is in the lower half of the industry: DKNG underperforms 66.91% 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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3

2. Health

2.1 Basic Checks

DKNG does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, DKNG has more shares outstanding
Compared to 5 years ago, DKNG has more shares outstanding
DKNG has a better debt/assets ratio than last year.
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 1.61. This is a bad value and indicates that DKNG is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of DKNG (1.61) is comparable to the rest of the industry.
The Debt to FCF ratio of DKNG is 4.03, which is a neutral value as it means it would take DKNG, 4.03 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.03, DKNG belongs to the top of the industry, outperforming 80.15% of the companies in the same industry.
A Debt/Equity ratio of 1.24 is on the high side and indicates that DKNG has dependencies on debt financing.
DKNG has a better Debt to Equity ratio (1.24) than 61.03% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.24
Debt/FCF 4.03
Altman-Z 1.61
ROIC/WACCN/A
WACC8.62%
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

DKNG has a Current Ratio of 0.93. 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 0.93 is in line compared to the rest of the industry. DKNG outperforms 52.94% of its industry peers.
DKNG has a Quick Ratio of 0.93. 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 (0.93) which is comparable to the rest of the industry.
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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6

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 44.51% 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 17.42% yearly.
EPS Next Y146.79%
EPS Next 2Y84.47%
EPS Next 3Y61.26%
EPS Next 5Y44.51%
Revenue Next Year34.04%
Revenue Next 2Y26.03%
Revenue Next 3Y22.2%
Revenue Next 5Y17.42%

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 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 2 -2 4 6

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2

4. Valuation

4.1 Price/Earnings Ratio

DKNG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 65.41, DKNG can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, DKNG is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.85, DKNG is valued quite expensively.
Industry RankSector Rank
PE N/A
Fwd PE 65.41
DKNG Price Earnings VS Forward Price EarningsDKNG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40 60

4.2 Price Multiples

DKNG's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 52
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.
DKNG's earnings are expected to grow with 61.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y84.47%
EPS Next 3Y61.26%

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0

5. Dividend

5.1 Amount

No dividends for DKNG!.
Industry RankSector Rank
Dividend Yield N/A

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DRAFTKINGS INC-CL A

NASDAQ:DKNG (4/21/2025, 6:34:31 PM)

After market: 32.4003 -0.04 (-0.12%)

32.44

-1.17 (-3.48%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-13 2025-02-13/amc
Earnings (Next)05-01 2025-05-01/amc
Inst Owners80.97%
Inst Owner Change-0.05%
Ins Owners2.47%
Ins Owner Change22.52%
Market Cap16.22B
Analysts82.44
Price Target58.73 (81.04%)
Short Float %5.04%
Short Ratio2.22
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)-0.05%
PT rev (3m)12.11%
EPS NQ rev (1m)-312.37%
EPS NQ rev (3m)-776.8%
EPS NY rev (1m)-8.34%
EPS NY rev (3m)-2.17%
Revenue NQ rev (1m)-3.71%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)-0.52%
Revenue NY rev (3m)0.68%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 65.41
P/S 3.4
P/FCF 52
P/OCF 38.82
P/B 16.05
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-1.06
EYN/A
EPS(NY)0.5
Fwd EY1.53%
FCF(TTM)0.62
FCFY1.92%
OCF(TTM)0.84
OCFY2.58%
SpS9.54
BVpS2.02
TBVpS-2.96
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 1.61
F-Score7
WACC8.62%
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 Y146.79%
EPS Next 2Y84.47%
EPS Next 3Y61.26%
EPS Next 5Y44.51%
Revenue 1Y (TTM)30.07%
Revenue growth 3Y54.37%
Revenue growth 5Y71.28%
Sales Q2Q%13.15%
Revenue Next Year34.04%
Revenue Next 2Y26.03%
Revenue Next 3Y22.2%
Revenue Next 5Y17.42%
EBIT growth 1Y25.99%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year271.42%
EBIT Next 3Y77.73%
EBIT Next 5Y48.63%
FCF growth 1Y402.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y23958.8%
OCF growth 3YN/A
OCF growth 5YN/A