Morningstar

DraftKings Inc Ordinary Shares - Class A DKNG

Morningstar Rating
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Stock XNAS Rating as of
$40.36 −0.58 (1.42%)
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As of Delayed Price Pre-Open: $40.20 −0.10

Company Report

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DraftKings: We Have Upgraded Our Moat to Narrow and Raised Our Fair Value Estimate by 4%

Dan Wasiolek

We have upgraded DraftKings’ moat rating to narrow on increased confidence that neither competition nor regulatory forces will deter the company’s stout position within the US online gaming market, allowing for economic profits for at least the next 10 years. As a result of this rating change, we have increased our fair value estimate to $49 per share from $47. We see shares as attractive.

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Price vs Fair Value

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DKNG is trading at a 570% premium.
Price
$40.36
Fair Value
$48.00
Uncertainty
Very High
1-Star Price
$98.11
5-Star Price
$41.50
Economic Moat
Lyfyl
Capital Allocation
Lpffqjmx

Bulls Say, Bears Say

Bulls

We see DraftKings’ online platform as well positioned to participate in the $40 billion North American sports betting and iGaming revenue opportunity by 2030.

Bears

Online gaming operators face intense competition, with state licenses amounting to more than two dozen in some states.

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News

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Trading Information

Previous Close Price
$40.94
Day Range
$39.52–41.23
52-Week Range
$25.73–49.57
Bid/Ask
$40.19 / $40.49
Market Cap
$19.60 Bil
Volume/Avg
103 / 9.1 Mil

Key Statistics

Price/Earnings (Normalized)
192.19
Price/Sales
4.43
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Total Yield
0.49%

Company Profile

DraftKings got its start in 2012 as an innovator in daily fantasy sports. Then, following a Supreme Court ruling in 2018 that allowed states to legalize online sports wagering, the company expanded into online sports and casino gambling, where it generally holds the number two or three revenue share position across states in which it competes. DraftKings is now live with online or retail sports betting in 27 states and iGaming in seven states, with both products available to around 40% of Canada's population. The company also operates a non-fungible token commissioned-based marketplace and develops and licenses online gaming products.
Sector
Consumer Cyclical
Industry
Gambling
Stock Style Box
Mid Growth
Total Number of Employees
4,400
Website
https://www.draftkings.com

Competitors

Valuation

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Metric
DKNG
PENN
MGM
Price/Earnings (Normalized)
 192.1916.8212.01
Price/Book Value
 15.090.963.76
Price/Sales
 4.430.470.77
Price/Cash Flow
 128.974.874.76
Price/Earnings
DKNG
PENN
MGM

Financial Strength

Metric
DKNG
PENN
MGM
Quick Ratio
 0.810.871.21
Current Ratio
 1.111.031.47
Interest Coverage
 −198.09−2.133.63
Quick Ratio
DKNG
PENN
MGM

Profitability

Metric
DKNG
PENN
MGM
Return on Assets (Normalized)
 −1.50%−1.54%3.12%
Return on Equity (Normalized)
 −6.10%−7.28%35.04%
Return on Invested Capital (Normalized)
 −4.78%0.84%4.65%
Return on Assets
DKNG
PENN
MGM

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