Endeavor Group Holdings, Inc.
Endeavor Group Holdings, Inc. Fundamental Analysis
Endeavor Group Holdings, Inc. (EDR) shows moderate financial fundamentals with a PE ratio of -11.42, profit margin of -11.00%, and ROE of -17.78%. The company generates $7.6B in annual revenue with strong year-over-year growth of 19.31%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 3.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EDR's fundamental strength across five key dimensions:
Efficiency Score
WeakEDR struggles to generate sufficient returns from assets.
Valuation Score
ExcellentEDR trades at attractive valuation levels.
Growth Score
ModerateEDR shows steady but slowing expansion.
Financial Health Score
WeakEDR carries high financial risk with limited liquidity.
Profitability Score
WeakEDR struggles to sustain strong margins.
Key Financial Metrics
Is EDR Expensive or Cheap?
P/E Ratio
EDR trades at -11.42 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EDR's PEG of -0.04 indicates potential undervaluation.
Price to Book
The market values Endeavor Group Holdings, Inc. at 2.23 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.27 times EBITDA. This signals the market has high growth expectations.
How Well Does EDR Make Money?
Net Profit Margin
For every $100 in sales, Endeavor Group Holdings, Inc. keeps $-11.00 as profit after all expenses.
Operating Margin
Core operations generate -2.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-17.78 in profit for every $100 of shareholder equity.
ROA
Endeavor Group Holdings, Inc. generates $-3.80 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Endeavor Group Holdings, Inc. generates limited operating cash flow of $498.35M, signaling weaker underlying cash strength.
Free Cash Flow
Endeavor Group Holdings, Inc. produces free cash flow of $294.85M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.91 in free cash annually.
FCF Yield
EDR converts 2.90% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-11.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.23
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.34
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.52
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.81
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.18
vs 25 benchmark
ROA
Return on assets percentage
-0.04
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How EDR Stacks Against Its Sector Peers
| Metric | EDR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -11.42 | 22.85 | Better (Cheaper) |
| ROE | -17.78% | 996.00% | Weak |
| Net Margin | -11.00% | -61402.00% (disorted) | Weak |
| Debt/Equity | 1.52 | 1.12 | Weak (High Leverage) |
| Current Ratio | 0.81 | 1.65 | Weak Liquidity |
| ROA | -3.80% | -583089.00% (disorted) | Weak |
EDR outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Endeavor Group Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
29.26%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
-388.77%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-1.14%
Industry Style: Growth, Technology, Streaming
Declining