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Endeavor Group Holdings Inc (EDR)
NYSE:EDR
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Endeavor Group Holdings Inc
(NYSE:EDR)
48Neutral
Positive Factors
Subsidiary Performance
TKO, which is majority owned by EDR, has seen its equity rise ~40%.
Target Price Increase
Analyst increases target price for EDR from $27.50 to $32.00.
Negative Factors
Privatization Offer
Endeavor Holdings shares are trading far above the $27.50/sh cash privatization offer.
Rating Downgrade
Reducing the rating to Sell from Neutral.
Endeavor Group Holdings Inc (EDR) vs. S&P 500 (SPY)
Market Cap
$20.08B
Dividend Yield0.82%
Average Volume (3M)2.40M
Price to Earnings (P/E)―
Beta (1Y)0.28
Revenue Growth20.83%
EPS Growth-314.31%
CountryUS
Employees10,000
SectorCommunication Services
Sector Strength80
IndustryEntertainment
Share Statistics
EPS (TTM)-2.56
Shares Outstanding325,544,000
10 Day Avg. Volume4,694,495
30 Day Avg. Volume2,399,292
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.79
Price to Cash Flow (P/CF)-85.60
P/FCF Ratio78.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.00Price Target Upside-28.21% Downside
Rating ConsensusHold
Number of Analyst Covering3
Endeavor Group Holdings Inc Business Overview & Revenue Model
Company DescriptionEndeavor Group Holdings, Inc. operates as an entertainment, sports, and content company in the United States, the United Kingdom, and internationally. It operates in three segments: Owned Sports Properties, Events, Experiences & Rights, and Representation. The Owned Sports Properties segment operates a portfolio of sports properties, including Ultimate Fighting Championship, Professional Bull Rider, Euroleague, and Diamond Baseball Holdings, that license broadcast and other intellectual property rights and operate exclusive live events. The Events, Experiences & Rights segment provides services to a portfolio of live events, including sporting events, fashion, art fairs and music, culinary, and lifestyle festivals. This segment also owns and operates the IMG Academy, an academic and sports training institution; and produces and distributes sports video programming. The Representation segment offers services to a diverse group of talent across entertainment, sports, and fashion, such as actors, directors, writers, athletes, models, musicians, and other artists in various mediums comprising film, television, art, books, and live events. This segment provides brand strategy, marketing, advertising, public relations, analytics, digital, activation, and experiential services to corporate and other clients; intellectual property licensing services to a portfolio of entertainment, sports, and consumer product brands; and content development, production, financing, sales, and advisory services for television properties, documentaries, feature films, and podcasts. The company was founded in 1898 and is based in Beverly Hills, California.
How the Company Makes MoneyEndeavor Group Holdings makes money through a diversified revenue model that includes talent representation, media rights, live events, and sponsorships. Key revenue streams include fees and commissions earned from representing talent in various industries, such as film, television, music, and sports. The company also generates significant income from owning and operating live events, with UFC being a major contributor through pay-per-view sales, ticket sales, and broadcasting rights. Additionally, Endeavor benefits from media production and distribution, leveraging its extensive portfolio of content and intellectual property. Strategic partnerships and licensing deals further contribute to its earnings, along with brand endorsements and sponsorship agreements.
Endeavor Group Holdings Inc Financial Statement Overview
Summary
Endeavor Group Holdings Inc. faces challenges in profitability, with negative net income and declining margins impacting its financial health. While the company maintains a balanced leverage position and generates positive cash flow, inconsistency in free cash flow growth and low equity ratios pose risks. Strategic improvements in profitability and equity strengthening are crucial moving forward.Income Statement
Endeavor Group Holdings Inc. has shown a fluctuating revenue trend with some growth over the years, but the recent decline in EBIT and negative net income highlights profitability issues. The gross profit margin remains high due to the nature of the industry, but the negative net profit margin and declining EBITDA margin are concerning.45
Neutral
Balance Sheet
The company's balance sheet reveals a moderate debt-to-equity ratio, indicating a balanced leverage position. However, the equity ratio is relatively low, suggesting potential risks in financial stability. The return on equity has been negative recently, reflecting the challenges in generating returns from equity investments.50
Neutral
Cash Flow
Endeavor Group Holdings Inc. has maintained positive operating cash flow, but the free cash flow growth has been inconsistent. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to net earnings. However, the free cash flow to net income ratio is impacted by negative net income.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 7.11B | 5.96B | 5.27B | 5.08B | 3.48B | Gross Profit |
| 7.11B | 3.52B | 3.20B | 2.48B | 1.73B | EBIT |
| -152.91M | 319.56M | 178.61M | -183.38M | 61.36M | EBITDA |
| 376.52M | 1.51B | 445.79M | 134.54M | 238.75M | Net Income Common Stockholders |
| -782.41M | 356.52M | 545.27M | -394.75M | -365.22M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.20B | 1.17B | 767.83M | 1.56B | 1.01B | Total Assets |
| 20.57B | 21.54B | 12.50B | 11.43B | 9.63B | Total Debt |
| 6.10B | 5.39B | 5.56B | 6.14B | 6.38B | Net Debt |
| 4.90B | 4.23B | 4.79B | 4.58B | 5.37B | Total Liabilities |
| 10.48B | 9.82B | 9.20B | 9.10B | 8.50B | Stockholders Equity |
| 4.01B | 4.78B | 1.88B | 1.25B | 277.85M |
| Cash Flow | Free Cash Flow | |||
| 276.60M | 156.10M | 354.97M | 233.80M | 89.57M | Operating Cash Flow |
| 467.51M | 393.60M | 502.93M | 333.60M | 161.22M | Investing Cash Flow |
| -53.99M | 730.45M | -704.53M | -659.08M | -315.79M | Financing Cash Flow |
| -15.38M | -734.16M | -549.91M | 960.17M | 453.99M |
Endeavor Group Holdings Inc Technical Analysis
Positive
29.25
Price Trends
30.53
Negative
30.31
Negative
28.95
Positive
Market Momentum
-0.44
Negative
45.34
Neutral
69.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDR, the sentiment is Positive. The current price of 29.25 is above the 20-day moving average (MA) of 29.19, below the 50-day MA of 30.53, and above the 200-day MA of 28.95, indicating a neutral trend. The MACD of -0.44 indicates Negative momentum. The RSI at 45.34 is Neutral, neither overbought nor oversold. The STOCH value of 69.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EDR.
Endeavor Group Holdings Inc Risk Analysis
Endeavor Group Holdings Inc disclosed 69 risk factors in its most recent earnings report. Endeavor Group Holdings Inc reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Endeavor Group Holdings Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $23.95B | 10.88 | 20.09% | 1.04% | 4.29% | 177.70% | |
77 Outperform | $141.30B | 8.92 | 19.24% | 3.36% | 1.78% | 11.62% | |
76 Outperform | $182.19B | 32.99 | 5.54% | 0.93% | 3.97% | 89.53% | |
68 Neutral | $29.36B | 46.81 | 827.53% | ― | 1.79% | 99.46% | |
59 Neutral | $30.02B | 0.85 | -18.80% | 4.01% | 2.14% | -50.70% | |
55 Neutral | $4.77B | 84.16 | -20.85% | ― | 21.45% | 47.50% | |
48 Neutral | $20.08B | ― | -3.29% | 0.82% | 20.83% | -314.31% |
* Communication Services Sector Average
Performance Comparison
EDR
Endeavor Group Holdings Inc
29.25
3.73
14.62%
CMCSA
Comcast
37.37
-4.64
-11.04%
LYV
Live Nation Entertainment
126.75
20.98
19.84%
DIS
Walt Disney
100.78
-20.48
-16.89%
MSGS
Madison Square Garden Sports
198.51
13.99
7.58%
FOX
Fox
51.16
22.89
80.97%
Endeavor Group Holdings Inc Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -4.88% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements in the sports segment, strategic acquisitions, and partnerships that drove strong financial performance. However, challenges in the Events, Experiences & Rights segment and the impact of industry strikes on the representation segment were notable lowlights.Highlights
Record Financial Performance in Sports Segment
UFC delivered record financial performance in 2023, and WWE had its highest revenue year ever for live events. TKO marked a strong start with record viewership and attendance.
Significant Revenue and EBITDA Growth
Fourth-quarter revenue increased by 26% to $1.58 billion, and adjusted EBITDA rose by 22% to $292.8 million. For the full year, revenue was up by 13% to $5.96 billion.
Successful Strategic Acquisitions and Partnerships
Endeavor closed its acquisition of WWE, launched TKO, and secured significant partnerships and media rights deals, including a new deal with Netflix for WWE content.
PBR and IMG Achievements
PBR events drew 1.25 million fans setting over 50 revenue records in 2023, and IMG secured landmark partnerships for the National Women's Soccer League and NCAA.
Expansion in Sports Data and Technology
OpenBet and IMG Arena secured significant new partnerships and expanded their data and streaming rights portfolio.
Lowlights
Decline in Events, Experiences & Rights Segment
Revenue decreased by 8% in the fourth quarter, primarily due to the sale of IMG Academy and a decrease in the music touring business.
Impact of Industry Strikes on Representation Segment
The WGA and SAG-AFTRA strikes adversely impacted revenue growth in the representation segment, contributing to a 17% decline in adjusted EBITDA for the year.
Increased Costs in Representation Segment
Higher agent headcount in strategic growth areas led to increased costs, affecting the adjusted EBITDA negatively.
Company Guidance
During the Endeavor Fourth Quarter and Full Year 2023 Earnings Call, key guidance metrics highlighted included a strong revenue performance with consolidated revenue reaching $1.58 billion in Q4, marking a 26% increase, and $5.96 billion for the full year, up 13% year-over-year. Adjusted EBITDA rose by 22% to $292.8 million in Q4, and by 5% to $1.216 billion for the full year. The Owned Sports Property segment, bolstered by the acquisition of WWE, saw a 113% revenue increase in Q4 to $642.8 million, while the Representation segment managed a 5% revenue increase to $427.4 million in Q4 despite industry strikes. The Sports Data and Technology segment grew its annual revenue by 80% to $469.8 million, supported by OpenBet's full-year inclusion. Endeavor also maintained a net leverage of approximately 3.2x, with net debt standing at $3.89 billion by year-end. The company did not provide annual guidance estimates for 2024 due to an ongoing strategic alternatives review.Endeavor Group Holdings Inc Corporate Events
M&A Transactions
Endeavor Group Holdings Completes Asset Disposition to TKO
Positive
Feb 28, 2025
On February 28, 2025, TKO Group Holdings announced the completion of its acquisition of IMG, On Location, and PBR from Endeavor Group Holdings. This acquisition aims to enhance TKO’s portfolio in sports rights, production, and premium events, positioning it to leverage the growing sports and entertainment ecosystem. The transaction involved the exchange of businesses for TKO Common Units valued at $3.25 billion, with a purchase price adjustment of $50 million.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.