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DraftKings Inc. (DKNG) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated today

DraftKings Inc.

DKNGMarket cap $9.86BPrice $19.9

Country🇺🇸United States

SectorConsumer

IndustryHotels & Leisure

DraftKings runs online sports betting and daily fantasy sports platforms across the US. It's basically a legal casino in your pocket, capturing a huge share of the multibillion-dollar market that only exists because states started legalizing sports gambling in 2018.

In Bastion Portfolios?

52W Return-42%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+39%10

Revenue Forecast

Rev CAGR (1y)+11%6

Rev CAGR (3y)+12%8

Rev CAGR (5y)+11%8

Earnings Forecast

EPS Growth Y+10%5

EPS Growth Y+2+102%10

EPS Growth Y+3+27%8

Quality

Margins

EBIT Margin-3%1

Net Income Margin-3%2

Free Cash Flow Margin10%6

Debt

Net Debt/EBITDA6.41

Efficiency

ROE-21%1

ROA-4%1

Earnings Stability22

GEAR+WEAK23

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)165

P/E Ratio (Forward 3y)89

P/BV17.31

EV Multiples

EV/EBITDA Fwd144

EV/EBIT Fwd2301

Yield

Free Cash Flow Yield6.6%8

Dividend Yieldna–

Momentum

Short term

1 month return-16%1

3 month return-24%1

YTD return-42%1

Mid term

Price vs 52wHigh54%2

1 year return-44%1

Long term

3 year return-33%1

5 year return-59%1

Risk Shield

Price Risk

Beta1.32

Volatility53%3

Free Cash Flow

Free Cash Flow Margin10%6

Free Cash Flow Yield6.6%8

Quality

ROCE-6%1

Earnings Stability22

Net Debt/EBITDA6.41

02Growth

Is it actually growing, and how fast?

DKNGDraftKings

Revenue FY25$4.8B

GROWTH RATING↗

STRONG79 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+39%10

Revenue, next 1Y+11%6

Revenue, next 3Y, CAGR+12%8

Revenue, next 5Y, CAGR+11%8

EARNINGS FORECAST▾SCORE

EPS growth, FY26E0%5

EPS growth, FY27E+102%10

EPS growth, FY28E+27%8

GROWTH ASSESSMENT

STRENGTHS

It out-grows 79% of companies worldwide.

Revenue grew 39%/yr over the last 3 years, ahead of 90% of companies worldwide.10/10

Revenue is set to grow 12%/yr over the next 3 years, ahead of most of the market.7/10

The runway holds up: revenue is set to grow 11%/yr over five years.8/10

WATCH

Revenue grew 39%/yr over the last 3 years; forecasts see it cooling to 12%/yr.

WEAKNESSES

The company is loss-making, so its revenue growth is not backed by profit yet.

BOTTOM LINE

Top-Line Rocket

A top-tier grower that is slowing. The one thing to watch: the company is not profitable yet.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK1 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-16%1

3-month return-24%1

YTD return-42%1

MID & LONG-TERM▾SCORE

% of 52-week high54%2

1-year return-44%1

3-year return-33%1

5-year return-59%1

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-33% over three years and -59% over five), behind 90% of the market.

It's down 44% over the past year, now 46% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-16%), over three months (-24%) and so far this year (-42%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on DraftKings Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

DKNGDraftKings

Revenue FY25$4.8B

GROWTH RATING↗

STRONG79 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+39%10

Revenue, next 1Y+11%6

Revenue, next 3Y, CAGR+12%8

Revenue, next 5Y, CAGR+11%8

EARNINGS FORECAST▾SCORE

EPS growth, FY26E0%5

EPS growth, FY27E+102%10

EPS growth, FY28E+27%8

GROWTH ASSESSMENT

STRENGTHS

It out-grows 79% of companies worldwide.

Revenue grew 39%/yr over the last 3 years, ahead of 90% of companies worldwide.10/10

Revenue is set to grow 12%/yr over the next 3 years, ahead of most of the market.7/10

The runway holds up: revenue is set to grow 11%/yr over five years.8/10

WATCH

Revenue grew 39%/yr over the last 3 years; forecasts see it cooling to 12%/yr.

WEAKNESSES

The company is loss-making, so its revenue growth is not backed by profit yet.

BOTTOM LINE

Top-Line Rocket

A top-tier grower that is slowing. The one thing to watch: the company is not profitable yet.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK1 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-16%1

3-month return-24%1

YTD return-42%1

MID & LONG-TERM▾SCORE

% of 52-week high54%2

1-year return-44%1

3-year return-33%1

5-year return-59%1

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-33% over three years and -59% over five), behind 90% of the market.

It's down 44% over the past year, now 46% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-16%), over three months (-24%) and so far this year (-42%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on DraftKings Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community