Draftkings Inc.

Consumer Discretionary
Services-Misc. Amusement & Recreation
www.draftkings.com

Moat Score
Safety Score

Market Cap $20.49B
PE -49
Debt $1.26B
Cash $1.16B
EV $20.59B
FCF $155.48M

Earnings

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Sales & Net Margins

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Earnings	-$417.06M
EBIT	-$512.98M
ROE	-39%
ROA	-12%
FCF	$155.48M
Equity	$1.08B
Growth Stability	1
PE	-49.13
PB	19.04
P/FCF	131.77
P/S	4.45
Price/Cash	0.06
Debt/Equity	1.17
Debt/FCF	8.08
Net Margins	-11%
Gross Margins	38%
Op. Margins	-11%
Sales Growth YoY	39%
Sales Growth QoQ	-1%
Sales CAGR	61%
Equity CAGR	-24%
Earnings Growth YoY	4%

Earnings Growth QoQ	-560%
Sales CAGR 5Y	61%
Equity CAGR 5Y	-24%
Earnings CAGR 3Y	64%
Sales CAGR 3Y	64%
Equity CAGR 3Y	-19%
Market Cap	$20.49B
Revenue	$4.61B
Assets	$4.27B
Total Debt	$1.26B
Cash	$1.16B
Shares Outstanding	479.98M
EV	20.59B
Moat Score	4%
Safety Score	77%
Working Capital	-2.84M
Current Ratio	1
Gross Profit	$1.77B
Shares Growth 3y	7%
Equity Growth QoQ	-17%
Equity Growth YoY	34%

Assets & ROA

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Stockholders Equity & ROE

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DraftKings Inc is a digital sports entertainment and gaming company. The company provides users with daily fantasy sports (DFS), sports betting, and iGaming opportunities and is also involved in the design & development of sports betting and casino gaming platform software for online and retail sportsbook and casino gaming products. It operates in two segments: Business-to-consumer(B2C) and Business-to-Business(B2B), of which the vast majority of its revenue comes from the B2C segment. Geographically, it derives most of its revenue from the United States.

SEC Filings

Direct access to Draftkings Inc. (DKNG) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Draftkings Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Draftkings Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

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Draftkings Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Draftkings Inc..

Years

Calculation mode

= $1.6B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$155M	$155M	$155M	$155M	$155M	$155M	$155M	$155M	$155M	$155M	$155M	$1.6B
DCF		$141M	$128M	$117M	$106M	$97M	$88M	$80M	$73M	$66M	$60M	$599M
Value	$1.6B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-200%	-118%	-62%	-22%	-11%
ROA	-	-37%	-36%	-20%	-12%
ROE	-	-91%	-104%	-95%	-39%

Bad Net Margins (-11.04%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-2.87	-1.9	-55.35	8.08
Debt over Equity	-	0.74	0.95	1.49	1.17
Growth Stability	-	-	-	-	1

Bad Debt/FCF ratio (8.08)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Neutral Debt/Equity ratio (1.17)

The company has a balance between equity and debt that is not too good nor too bad.

Good Graham’s Stability (1)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	111%	73%	64%	61%
Earnings YoY growth	-	24%	-10%	-42%	-
Equity YoY growth	-	-36%	-21%	-36%	-24%
FCF YoY growth	-	111%	51%	-97%	-