TKO GROUP HOLDINGS INC (TKO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TKO - US87256C1018 - Common Stock
214.38 USD
+3.73 (+1.77%)
Overall TKO gets a fundamental rating of 6 out of 10. We evaluated TKO against 80 industry peers in the Entertainment industry. TKO has only an average score on both its financial health and profitability. TKO is valued quite expensive, but it does show an excellent growth. These ratings could make TKO a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year TKO was profitable.
TKO had a positive operating cash flow in the past year.
TKO had positive earnings in 4 of the past 5 years.
TKO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TKO has a better Return On Assets (1.47%) than 72.50% of its industry peers.
With a decent Return On Equity value of 5.99%, TKO is doing good in the industry, outperforming 76.25% of the companies in the same industry.
TKO has a Return On Invested Capital of 5.74%. This is in the better half of the industry: TKO outperforms 77.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TKO is in line with the industry average of 8.91%.
| 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
With a decent Profit Margin value of 5.27%, TKO is doing good in the industry, outperforming 72.50% of the companies in the same industry.
TKO's Profit Margin has declined in the last couple of years.
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 68.75% of the companies in the same industry.
In the last couple of years the Gross Margin of TKO has declined.
| 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
TKO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
TKO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TKO has more shares outstanding
TKO has a worse debt/assets ratio than last year.
2.2 Solvency
TKO has an Altman-Z score of 2.58. This is not the best score and indicates that TKO 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 2.58, TKO is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
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.
A Debt/Equity ratio of 1.03 is on the high side and indicates that TKO has dependencies on debt financing.
TKO's Debt to Equity ratio of 1.03 is on the low side compared to the rest of the industry. TKO is outperformed by 66.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 4.21 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.66
WACC8.7%
2.3 Liquidity
A Current Ratio of 1.46 indicates that TKO should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.46, TKO is doing good in the industry, outperforming 65.00% of the companies in the same industry.
A Quick Ratio of 1.43 indicates that TKO should not have too much problems paying its short term obligations.
TKO's Quick ratio of 1.43 is fine compared to the rest of the industry. TKO outperforms 66.25% 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%.
TKO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.39% yearly.
Looking at the last year, TKO shows a quite strong growth in Revenue. The Revenue has grown by 16.94% in the last year.
Measured over the past years, TKO shows a very strong growth in Revenue. The Revenue has been growing by 23.90% on average per year.
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
TKO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.88% yearly.
The Revenue is expected to grow by 20.04% on average over the next years. This is a very strong growth
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
A Price/Earnings ratio of 79.40 indicates a quite expensive valuation of TKO.
Compared to the rest of the industry, the Price/Earnings ratio of TKO indicates a somewhat cheap valuation: TKO is cheaper than 66.25% of the companies listed in the same industry.
TKO is valuated expensively when we compare the Price/Earnings ratio to 26.43, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 33.40, TKO can be considered very expensive at the moment.
TKO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TKO is cheaper than 71.25% of the companies in the same industry.
TKO is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.66, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 79.4 | ||
| Fwd PE | 33.4 |
4.2 Price Multiples
TKO's Enterprise Value to EBITDA is on the same level as 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 | 44.21 | ||
| EV/EBITDA | 30.33 |
4.3 Compensation for Growth
The decent profitability rating of TKO 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)2.02
EPS Next 2Y20.51%
EPS Next 3Y18.75%
5. Dividend
5.1 Amount
TKO has a yearly dividend return of 0.74%, which is pretty low.
Compared to an average industry Dividend Yield of 7.71, TKO pays a better dividend. On top of this TKO pays more dividend than 83.75% of the companies listed in the same industry.
With a Dividend Yield of 0.74, TKO pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
5.2 History
TKO has paid a dividend for at least 10 years, which is 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%
NYSE:TKO (12/17/2025, 1:32:44 PM)
214.38
+3.73 (+1.77%)
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 Cap41.82B
Revenue(TTM)4.34B
Net Income(TTM)228.78M
Analysts82.96
Price Target217.94 (1.66%)
Short Float %11.12%
Short Ratio6.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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)-22.58%
EPS NQ rev (3m)-22.71%
EPS NY rev (1m)-15.72%
EPS NY rev (3m)-11.58%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)3.19%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 79.4 | ||
| Fwd PE | 33.4 | ||
| P/S | 9.64 | ||
| P/FCF | 44.21 | ||
| P/OCF | 40.5 | ||
| P/B | 10.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 30.33 |
EPS(TTM)2.7
EY1.26%
EPS(NY)6.42
Fwd EY2.99%
FCF(TTM)4.85
FCFY2.26%
OCF(TTM)5.29
OCFY2.47%
SpS22.24
BVpS19.59
TBVpS-41.4
PEG (NY)N/A
PEG (5Y)2.02
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 | 2.58 |
F-Score7
WACC8.7%
ROIC/WACC0.66
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 6 / 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.