Live Nation Entertainment Inc
Live Nation Entertainment Inc Fundamental Analysis
Live Nation Entertainment Inc (3LN.DE) shows weak financial fundamentals with a PE ratio of 75.28, profit margin of 1.97%, and ROE of 1.58%. The company generates $24.9B in annual revenue with weak year-over-year growth of 1.89%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 30.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 3LN.DE's fundamental strength across five key dimensions:
Efficiency Score
Weak3LN.DE struggles to generate sufficient returns from assets.
Valuation Score
Moderate3LN.DE shows balanced valuation metrics.
Growth Score
Weak3LN.DE faces weak or negative growth trends.
Financial Health Score
Weak3LN.DE carries high financial risk with limited liquidity.
Profitability Score
Moderate3LN.DE maintains healthy but balanced margins.
Key Financial Metrics
Is 3LN.DE Expensive or Cheap?
P/E Ratio
3LN.DE trades at 75.28 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 3LN.DE's PEG of -0.53 indicates potential undervaluation.
Price to Book
The market values Live Nation Entertainment Inc at 137.76 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.39 times EBITDA. This signals the market has high growth expectations.
How Well Does 3LN.DE Make Money?
Net Profit Margin
For every $100 in sales, Live Nation Entertainment Inc keeps $1.97 as profit after all expenses.
Operating Margin
Core operations generate 5.43 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.58 in profit for every $100 of shareholder equity.
ROA
Live Nation Entertainment Inc generates $2.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Live Nation Entertainment Inc generates limited operating cash flow of $1.38B, signaling weaker underlying cash strength.
Free Cash Flow
Live Nation Entertainment Inc generates weak or negative free cash flow of $349.79M, restricting financial flexibility.
FCF Per Share
Each share generates $1.51 in free cash annually.
FCF Yield
3LN.DE converts 0.96% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
75.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.53
vs 25 benchmark
P/B Ratio
Price to book value ratio
137.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
45.91
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.58
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How 3LN.DE Stacks Against Its Sector Peers
| Metric | 3LN.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 75.28 | 35.53 | Worse (Expensive) |
| ROE | 157.64% | 1178.00% | Weak |
| Net Margin | 1.97% | -135605.00% (disorted) | Weak |
| Debt/Equity | 45.91 | 0.46 | Weak (High Leverage) |
| Current Ratio | 1.00 | 4.85 | Weak Liquidity |
| ROA | 2.16% | -313408.00% (disorted) | Weak |
3LN.DE outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Live Nation Entertainment Inc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
83.05%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
1070.76%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
235.25%
Industry Style: Growth, Innovation, High Beta
High Growth