TKO Group Holdings, Inc. (TKO) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E above the industry

TKO's P/E of 53.8 is above the Amusement and Recreation Services median of 35.3.

EV/EBITDA below its 5-year median

TKO's EV/EBITDA of 24.6 is below its 5-year median of 28.4.

P/B above the industry

TKO's price-to-book of 11.22 is above the Amusement and Recreation Services median of 2.76.

Trading above fair value

The share price of $199.50 is above our fair value estimate of $112.21.

Margin of safety under 20%

The price is 77.8% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 60.7% a year over the last three fiscal years.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 19.8% over the last twelve months; the Amusement and Recreation Services median is 5.5%.

Guidance raised

TKO raised its full year 2026 revenue outlook on Aug 3, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 15.4%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

TKO's return on equity of 8.0% is above the Amusement and Recreation Services median of -40.9%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin against its history

Needs five years of revenue and net income.

Net margin above the industry

TKO's net margin of 5.2% is above the Amusement and Recreation Services median of -1.4%.

High debt

Debt is 137% of shareholders' equity, above the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 40.1% of total debt.

Interest not well covered

Operating income covers interest expense 4.6 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.35 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.41; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

TKO paid dividends worth 1.6% of the share price over the last twelve months.

Yield below Treasuries

The 1.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; TKO yields 1.6%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 82.0% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.