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US • —
$25.97
P/E
267.73
PEG
—
FCF Yield
—
Rev Growth YoY
+25.8% YoY
Gross Margin
41.8%
Health Score
5/10
D/E Ratio
2.91
Confidence
MEDIUM
Business Snapshot
DraftKings operates a digital sports entertainment and gaming platform, primarily generating revenue through online sports betting and iGaming (online casino) products in the United States. It holds a strong competitive position as one of the two dominant players in the U.S. online sports betting market, alongside FanDuel, leveraging a first-mover advantage and extensive brand recognition across its legalized-state footprint. While specific market cap and revenue figures are unavailable in this data set, the company's scale is substantial, operating in a duopolistic market structure with significant regulatory moats tied to state-level licensing. A defining characteristic for DraftKings is its high growth trajectory and current lack of profitability on a net income basis, typical of a company investing heavily to capture market share in a rapidly expanding addressable market.
Financial Health
DraftKings reports a gross margin of 41.8% for the most recent period, while its net margin stands at a razor-thin 0.9%, indicating that the company is only just achieving profitability after years of heavy investment. The balance sheet is significantly stretched, with a Debt/Equity ratio of 2.91x and a current ratio of 1.03x, pointing to high leverage and only adequate short-term liquidity coverage...
Risk Assessment
- VALUATION — P/E of 267.73x is massively elevated versus the sector average of 22x, leaving the stock highly vulnerable to multiple compression if growth slows.
- DEBT / LIQUIDITY — Debt/Equity of 2.91x indicates a highly leveraged balance sheet that increases financial risk and interest expense sensitivity.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- INSIDER SELLING — Insiders have recorded 0 buys versus 2 sells over the last 90 days, a net selling signal that can indicate a lack of confidence among executives at current price levels....
DraftKings reports a gross margin of 41.8% for the most recent period, while its net margin stands at a razor-thin 0.9%, indicating that the company is only just achieving profitability after years of heavy investment. The balance sheet is significantly stretched, with a Debt/Equity ratio of 2.91x and a current ratio of 1.03x, pointing to high leverage and only adequate short-term liquidity coverage. Free cash flow data is unavailable for analysis, preventing a direct cash-flow assessment, though a Return on Equity of 7.9% is positive. Overall, the financial health is a mixed picture: the company has reached a break-even point on net income, but its high debt leverage and tight liquidity position limit financial flexibility and increase vulnerability to operational setbacks.
- VALUATION — P/E of 267.73x is massively elevated versus the sector average of 22x, leaving the stock highly vulnerable to multiple compression if growth slows. - DEBT / LIQUIDITY — Debt/Equity of 2.91x indicates a highly leveraged balance sheet that increases financial risk and interest expense sensitivity. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - INSIDER SELLING — Insiders have recorded 0 buys versus 2 sells over the last 90 days, a net selling signal that can indicate a lack of confidence among executives at current price levels.
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