Draftkings Stock Operating Margin
| DKNG Stock | USD 43.65 0.62 1.44% |
DraftKings fundamentals help investors to digest information that contributes to DraftKings' financial success or failures. It also enables traders to predict the movement of DraftKings Stock. The fundamental analysis module provides a way to measure DraftKings' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to DraftKings stock.
| Last Reported | Projected for Next Year | ||
| Operating Profit Margin | (0.22) | (0.23) |
DraftKings | Operating Margin |
DraftKings Company Operating Margin Analysis
DraftKings' Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Current DraftKings Operating Margin | (0.25) % |
Most of DraftKings' fundamental indicators, such as Operating Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, DraftKings is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
DraftKings Operating Margin Driver Correlations
Understanding the fundamental principles of building solid financial models for DraftKings is extremely important. It helps to project a fair market value of DraftKings Stock properly, considering its historical fundamentals such as Operating Margin. Since DraftKings' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of DraftKings' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of DraftKings' interrelated accounts and indicators.
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A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
| Competition |
DraftKings Pretax Profit Margin
Pretax Profit Margin |
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Based on the recorded statements, DraftKings has an Operating Margin of -0.2476%. This is 103.87% lower than that of the Hotels, Restaurants & Leisure sector and 96.58% lower than that of the Consumer Discretionary industry. The operating margin for all United States stocks is 95.51% lower than that of the firm.
DraftKings Operating Margin Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses DraftKings' direct or indirect competition against its Operating Margin to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of DraftKings could also be used in its relative valuation, which is a method of valuing DraftKings by comparing valuation metrics of similar companies.DraftKings is currently under evaluation in operating margin category among its peers.
DraftKings ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, DraftKings' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to DraftKings' managers, analysts, and investors.Environmental | Governance | Social |
DraftKings Fundamentals
| Return On Equity | -0.44 | ||||
| Return On Asset | -0.0693 | ||||
| Profit Margin | (0.09) % | ||||
| Operating Margin | (0.25) % | ||||
| Current Valuation | 21.75 B | ||||
| Shares Outstanding | 487.63 M | ||||
| Shares Owned By Insiders | 2.00 % | ||||
| Shares Owned By Institutions | 77.07 % | ||||
| Number Of Shares Shorted | 22.56 M | ||||
| Price To Earning | 106.37 X | ||||
| Price To Book | 19.78 X | ||||
| Price To Sales | 4.62 X | ||||
| Revenue | 3.67 B | ||||
| Gross Profit | 756.19 M | ||||
| EBITDA | (586.65 M) | ||||
| Net Income | (802.14 M) | ||||
| Cash And Equivalents | 1.51 B | ||||
| Cash Per Share | 3.38 X | ||||
| Total Debt | 1.35 B | ||||
| Debt To Equity | 0.76 % | ||||
| Current Ratio | 2.32 X | ||||
| Book Value Per Share | 2.21 X | ||||
| Cash Flow From Operations | (1.75 M) | ||||
| Short Ratio | 2.30 X | ||||
| Earnings Per Share | (0.87) X | ||||
| Price To Earnings To Growth | 0.67 X | ||||
| Target Price | 50.71 | ||||
| Number Of Employees | 4.4 K | ||||
| Beta | 1.82 | ||||
| Market Capitalization | 21.28 B | ||||
| Total Asset | 3.94 B | ||||
| Retained Earnings | (5.93 B) | ||||
| Working Capital | 521.75 M | ||||
| Current Asset | 831.79 K | ||||
| Current Liabilities | 1.53 M | ||||
| Net Asset | 3.94 B |
About DraftKings Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze DraftKings's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of DraftKings using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of DraftKings based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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When determining whether DraftKings is a strong investment it is important to analyze DraftKings' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact DraftKings' future performance. For an informed investment choice regarding DraftKings Stock, refer to the following important reports:Check out DraftKings Piotroski F Score and DraftKings Altman Z Score analysis. For more detail on how to invest in DraftKings Stock please use our How to Invest in DraftKings guide.You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of DraftKings. If investors know DraftKings will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about DraftKings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.87) | Revenue Per Share 9.655 | Quarterly Revenue Growth 0.387 | Return On Assets (0.07) | Return On Equity (0.44) |
The market value of DraftKings is measured differently than its book value, which is the value of DraftKings that is recorded on the company's balance sheet. Investors also form their own opinion of DraftKings' value that differs from its market value or its book value, called intrinsic value, which is DraftKings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because DraftKings' market value can be influenced by many factors that don't directly affect DraftKings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between DraftKings' value and its price as these two are different measures arrived at by different means. Investors typically determine if DraftKings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, DraftKings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.