DraftKings, Inc. (DKNG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

DraftKings, Inc.

Liberty Media Corp.

The Walt Disney Co.

Churchill Downs, Inc.

Live Nation Entertainment, Inc.

Cedar Fair LP

Cinemark Holdings, Inc.

PENN Entertainment, Inc.

Madison Square Garden Sports Corp.

United Parks & Resorts, Inc.

Six Flags Entertainment Corp.

Why is DraftKings, Inc. ?

With a growth in Net Sales of 42.82%, the company declared Very Positive results in Dec 25

OPERATING CASH FLOW(Y) Highest at USD 662.85 MM
PRE-TAX PROFIT(Q) At USD 149.51 MM has Grown at 240.85%
NET PROFIT(Q) At USD 138.74 MM has Grown at 245.33%

With ROE of 0.75%, it has a attractive valuation with a 36.44 Price to Book Value

Over the past year, while the stock has generated a return of -35.87%, its profits have risen by 101% ; the PEG ratio of the company is 48.1

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 1.84% over the previous quarter.

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to DraftKings, Inc. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is DraftKings, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

DraftKings, Inc.

-35.87%

-0.79

47.92%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

63.01%

EBIT Growth (5y)

14.73%

EBIT to Interest (avg)

-773.96

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.82

Sales to Capital Employed (avg)

1.93

Tax Ratio

18.72%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

4856

Industry P/E

Price to Book Value

36.44

EV to EBIT

-2506.28

EV to EBITDA

89.16

EV to Capital Employed

17.68

EV to Sales

3.92

PEG Ratio

48.07

Dividend Yield

ROCE (Latest)

-0.71%

ROE (Latest)

0.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

28What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 662.85 MM

PRE-TAX PROFIT(Q)

At USD 149.51 MM has Grown at 240.85%

NET PROFIT(Q)

At USD 138.74 MM has Grown at 245.33%

ROCE(HY)

Highest at 0.45%

DEBTORS TURNOVER RATIO(HY)

Highest at 53.59 times

RAW MATERIAL COST(Y)

Fallen by -15.13% (YoY

NET SALES(Q)

Highest at USD 1,989.19 MM

OPERATING PROFIT(Q)

Highest at USD 232.12 MM

-10What is not working for the Company

INTEREST(HY)

At USD 25 MM has Grown at 1,431.92%

DEBT-EQUITY RATIO (HY)

Highest at 119.51 %

Here's what is working for DraftKings, Inc.

Pre-Tax Profit

At USD 149.51 MM has Grown at 240.85%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 138.74 MM has Grown at 245.33%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Operating Cash Flow

Highest at USD 662.85 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debtors Turnover Ratio

Highest at 53.59 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Sales

Highest at USD 1,989.19 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Net Sales

At USD 1,989.19 MM has Grown at 42.82%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 232.12 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Raw Material Cost

Fallen by -15.13% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 74 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for DraftKings, Inc.

Interest

At USD 25 MM has Grown at 1,431.92%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 119.51 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio