DraftKings Inc.DKNG
NASDAQ • Consumer Cyclical
$25.03
P/E
203.17
PEG
1.25
FCF Yield
—
Rev Growth YoY
+16.8% YoY
Gross Margin
42.3%
Health Score
6/10
D/E Ratio
3.06
Confidence
LOW
Business Snapshot
DraftKings operates a leading sports-betting and iGaming platform in the United States, generating the bulk of its revenue from online sports wagering and casino-style games. The company competes in a duopolistic market alongside FanDuel, holding a top-two market share supported by strong brand recognition and state-level licensing agreements. With $6.29 billion in trailing twelve-month revenue, it qualifies as a large-revenue-scale enterprise even though its market capitalisation is not reported in this dataset. Its defining characteristic is a regulatory moat—entry to each state requires a specific license, and DraftKings has secured access to most legalised jurisdictions, creating high barriers for new competitors.
Financial Health
TTM gross margin stands at 42.3%, down from 46.0% a year earlier, while net margin has improved to 6.0%, reflecting the transition from heavy losses to profitability. The balance sheet is stretched, with a debt-to-equity ratio of 3.06x and a current ratio of just 1.03x, indicating limited short-term liquidity cushion...
Risk Assessment
- VALUATION — P/E of 203.17x is roughly 8.5 times the sector average of 24x, leaving almost no room for earnings misses.
- DEBT — Debt/equity of 3.06x indicates heavy leverage, increasing interest expense risk and limiting financial flexibility.
- REVENUE DECELERATION — Quarterly revenue fell 17.2% sequentially against a 16.8% annual gain, pointing to potential seasonal weakness or competitive pressure in the most recent period.
- 52-WEEK POSITION — The current price of $25.03 sits near the bottom of the 52-week range ($20.46 – $48.78), 48.7% below the high, signalling persistent downward price momentum.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
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