TKO GROUP HOLDINGS INC (TKO)
US87256C1018 - Common Stock
TKO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 72 industry peers in the Entertainment industry. Both the profitability and the financial health of TKO get a neutral evaluation. Nothing too spectacular is happening here. TKO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TKO was profitable.
TKO had a positive operating cash flow in the past year.
Of the past 5 years TKO 4 years were profitable.
TKO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TKO has a Return On Assets of -0.63%. This is in the better half of the industry: TKO outperforms 62.12% of its industry peers.
The Return On Equity of TKO (-2.00%) is better than 65.15% of its industry peers.
TKO has a Return On Invested Capital of 4.37%. This is in the better half of the industry: TKO outperforms 74.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TKO is significantly below the industry average of 94.24%.
The last Return On Invested Capital (4.37%) for TKO is well below the 3 year average (14.73%), which needs to be investigated, but indicates that TKO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.63% | ||
| ROE | -2% | ||
| ROIC | 4.37% |
ROA(3y)9.63%
ROA(5y)9.36%
ROE(3y)28.1%
ROE(5y)29.24%
ROIC(3y)14.73%
ROIC(5y)14.52%
1.3 Margins
TKO has a Operating Margin of 25.88%. This is amongst the best in the industry. TKO outperforms 95.45% of its industry peers.
TKO's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 68.42%, TKO belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.88% | ||
| PM (TTM) | N/A | ||
| GM | 68.42% |
OM growth 3Y16.54%
OM growth 5Y23.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
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 more shares outstanding than it did 1 year ago.
TKO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TKO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.00 indicates that TKO is not a great score, but indicates only limited risk for bankruptcy at the moment.
TKO has a better Altman-Z score (2.00) than 68.18% of its industry peers.
TKO has a debt to FCF ratio of 4.52. This is a neutral value as TKO would need 4.52 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.52, TKO is doing good in the industry, outperforming 74.24% of the companies in the same industry.
TKO has a Debt/Equity ratio of 0.73. This is a neutral value indicating TKO is somewhat dependend on debt financing.
TKO has a Debt to Equity ratio (0.73) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 4.52 | ||
| Altman-Z | 2 |
ROIC/WACC0.47
WACC9.36%
2.3 Liquidity
TKO has a Current Ratio of 0.99. This is a bad value and indicates that TKO is not financially healthy enough and could expect problems in meeting its short term obligations.
TKO has a Current ratio (0.99) which is comparable to the rest of the industry.
TKO has a Quick Ratio of 0.99. This is a bad value and indicates that TKO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.99, TKO perfoms like the industry average, outperforming 53.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
TKO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 57.66%, which is quite impressive.
TKO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.71% yearly.
TKO shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.69%.
The Revenue has been growing by 12.48% on average over the past years. This is quite good.
EPS 1Y (TTM)57.66%
EPS 3Y16.87%
EPS 5Y16.71%
EPS Q2Q%-65.43%
Revenue 1Y (TTM)29.69%
Revenue growth 3Y19.8%
Revenue growth 5Y12.48%
Sales Q2Q%51.68%
3.2 Future
The Earnings Per Share is expected to grow by 18.12% on average over the next years. This is quite good.
TKO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.92% yearly.
EPS Next Y-100.08%
EPS Next 2Y14.49%
EPS Next 3Y26.44%
EPS Next 5Y18.12%
Revenue Next Year7.63%
Revenue Next 2Y12.62%
Revenue Next 3Y10.98%
Revenue Next 5Y6.92%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 32.79, which means the current valuation is very expensive for TKO.
TKO's Price/Earnings ratio is a bit cheaper when compared to the industry. TKO is cheaper than 69.70% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.34. TKO is around the same levels.
TKO is valuated quite expensively with a Price/Forward Earnings ratio of 43.40.
Based on the Price/Forward Earnings ratio, TKO is valued a bit cheaper than 65.15% of the companies in the same industry.
TKO's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.61.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.79 | ||
| Fwd PE | 43.4 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TKO.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TKO indicates a somewhat cheap valuation: TKO is cheaper than 69.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.89 | ||
| EV/EBITDA | 27.14 |
4.3 Compensation for Growth
The decent profitability rating of TKO may justify a higher PE ratio.
TKO's earnings are expected to grow with 26.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.96
EPS Next 2Y14.49%
EPS Next 3Y26.44%
5. Dividend
5.1 Amount
TKO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TKO GROUP HOLDINGS INC
NYSE:TKO (1/10/2025, 2:59:56 PM)
141.67
-0.67 (-0.47%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners97.17%
Inst Owner Change0%
Ins Owners4.52%
Ins Owner Change1.48%
Market Cap24.19B
Analysts83.48
Price Target147.7 (4.26%)
Short Float %8.57%
Short Ratio5.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DP23.38%
Div Incr Years1
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)276.51%
Min EPS beat(2)-17.78%
Max EPS beat(2)570.8%
EPS beat(4)2
Avg EPS beat(4)134.95%
Min EPS beat(4)-51.56%
Max EPS beat(4)570.8%
EPS beat(8)4
Avg EPS beat(8)71.47%
EPS beat(12)8
Avg EPS beat(12)55.98%
EPS beat(16)11
Avg EPS beat(16)54.37%
Revenue beat(2)2
Avg Revenue beat(2)5.6%
Min Revenue beat(2)1.93%
Max Revenue beat(2)9.26%
Revenue beat(4)2
Avg Revenue beat(4)-4.67%
Min Revenue beat(4)-27.06%
Max Revenue beat(4)9.26%
Revenue beat(8)5
Avg Revenue beat(8)-1.57%
Revenue beat(12)7
Avg Revenue beat(12)-1.42%
Revenue beat(16)9
Avg Revenue beat(16)-1.02%
PT rev (1m)7.55%
PT rev (3m)8.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.6%
EPS NY rev (1m)91.67%
EPS NY rev (3m)-100.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.79 | ||
| Fwd PE | 43.4 | ||
| P/S | 9.51 | ||
| P/FCF | 36.89 | ||
| P/OCF | 36.17 | ||
| P/B | 6.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.14 |
EPS(TTM)4.32
EY3.05%
EPS(NY)3.26
Fwd EY2.3%
FCF(TTM)3.84
FCFY2.71%
OCF(TTM)3.92
OCFY2.76%
SpS14.9
BVpS23.37
TBVpS-41.43
PEG (NY)N/A
PEG (5Y)1.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.63% | ||
| ROE | -2% | ||
| ROCE | 5.5% | ||
| ROIC | 4.37% | ||
| ROICexc | 4.47% | ||
| ROICexgc | 84.04% | ||
| OM | 25.88% | ||
| PM (TTM) | N/A | ||
| GM | 68.42% | ||
| FCFM | 25.78% |
ROA(3y)9.63%
ROA(5y)9.36%
ROE(3y)28.1%
ROE(5y)29.24%
ROIC(3y)14.73%
ROIC(5y)14.52%
ROICexc(3y)24.53%
ROICexc(5y)26.42%
ROICexgc(3y)44.43%
ROICexgc(5y)38.81%
ROCE(3y)22.69%
ROCE(5y)22.64%
ROICexcg growth 3Y11.84%
ROICexcg growth 5Y-0.18%
ROICexc growth 3Y-54.96%
ROICexc growth 5Y-41.05%
OM growth 3Y16.54%
OM growth 5Y23.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 4.52 | ||
| Debt/EBITDA | 2.94 | ||
| Cap/Depr | 3.88% | ||
| Cap/Sales | 0.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.26% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 2 |
F-Score4
WACC9.36%
ROIC/WACC0.47
Cap/Depr(3y)96.87%
Cap/Depr(5y)79.58%
Cap/Sales(3y)7.32%
Cap/Sales(5y)6.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)57.66%
EPS 3Y16.87%
EPS 5Y16.71%
EPS Q2Q%-65.43%
EPS Next Y-100.08%
EPS Next 2Y14.49%
EPS Next 3Y26.44%
EPS Next 5Y18.12%
Revenue 1Y (TTM)29.69%
Revenue growth 3Y19.8%
Revenue growth 5Y12.48%
Sales Q2Q%51.68%
Revenue Next Year7.63%
Revenue Next 2Y12.62%
Revenue Next 3Y10.98%
Revenue Next 5Y6.92%
EBIT growth 1Y151.25%
EBIT growth 3Y39.61%
EBIT growth 5Y38.63%
EBIT Next Year55%
EBIT Next 3Y31.12%
EBIT Next 5Y15.67%
FCF growth 1Y309.81%
FCF growth 3Y12.83%
FCF growth 5Y22.14%
OCF growth 1Y161.37%
OCF growth 3Y13.55%
OCF growth 5Y20.2%