Flutter Entertainment plc (NYSE: FLUT)

Sector: Consumer Cyclical Industry: Gambling CIK: 0001635327
Market Cap 29.14 Bn
P/B 3.15
P/E -96.80
P/S 1.89
ROIC (Qtr) 0.25
Div Yield % 0.00
Rev 1y % (Qtr) 16.81
Total Debt (Qtr) 12.68 Bn
Debt/Equity (Qtr) 1.37
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About

Investment thesis

Bull case

  • Healthy cash reserves of 3.73B provide 13.68x coverage of short-term debt 273M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 1.41B provides exceptional 117.33x coverage of minority interest expenses 12M, showing strong core operations.
  • Cash position of 3.73B provides exceptional 311.17x coverage of minority interest expenses 12M, indicating strong liquidity.
  • Cash reserves of 3.73B provide solid 1.82x coverage of other non-current liabilities 2.05B, indicating strong liquidity.
  • Operating cash flow of 1.41B provides strong 2.72x coverage of operating expenses 517M, showing operational efficiency.

Bear case

  • Operating cash flow of 1.41B barely covers its investment activities of (3.30B), with a coverage ratio of -0.43, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (3.30B) provide weak support for R&D spending of 947M, which is -3.48x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 3.73B provide limited coverage of acquisition spending of (2.69B), which is -1.39x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 1.41B provides minimal -25.14x coverage of tax expenses of (56M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 192M show weak coverage of depreciation charges of 1.50B, with a 0.13 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Gambling
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 FLUT Flutter Entertainment plc 29.14 Bn -96.80 1.89 12.68 Bn
2 DKNG DraftKings Inc. 8.38 Bn 2,259.00 1.38 1.89 Bn
3 CHDN Churchill Downs Inc 6.54 Bn 15.85 2.45 5.11 Bn
4 SGHC Super Group (SGHC) Ltd 4.77 Bn 18.81 1.88 0.08 Bn
5 BRSL Brightstar Lottery PLC 2.79 Bn -19.68 0.50 5.13 Bn
6 RSI Rush Street Interactive, Inc. 1.54 Bn 51.33 1.45 0.00 Bn
7 ACEL Accel Entertainment, Inc. 0.92 Bn 21.02 0.70 0.60 Bn
8 CDRO Codere Online Luxembourg, S.A. 0.30 Bn 251.54 1.25 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.23 1.38
EV to Cash from Ops. EV/CFO 25.70 9.12
EV to Debt EV to Debt 2.85 10.53
EV to EBIT EV/EBIT 188.45 41.15
EV to EBITDA EV/EBITDA 23.18 12.35
EV to Free Cash Flow [EV/FCF] EV/FCF 43.13 20.81
EV to Market Cap EV to Market Cap 1.24 -0.89
EV to Revenue EV/Rev 2.34 1.79
Price to Book Value [P/B] P/B 3.15 2.35
Price to Earnings [P/E] P/E -96.80 170.35
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -2.79 0.72
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 20.21
Dividend per Basic Share Div per Share (Qtr) 0.00 0.30
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 45.34
Interest Coverage Int. cover (Qtr) 0.44 -4.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -16.12 -6.60
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 9.50 43.20
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 34.14
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 133.71 339.71
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 21.38 59.74
EBIT Growth (1y) % EBIT 1y % (Qtr) 150.79 40.42
EBT Growth (1y) % EBT 1y % (Qtr) 69.71 9.08
EPS Growth (1y) % EPS 1y % (Qtr) 76.07 463.23
FCF Growth (1y) % FCF 1y % (Qtr) -1.41 -118.03
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 11.16 16.12
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.53 1.01
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.08
Cash Ratio Cash Ratio (Qtr) 0.75 0.74
Current Ratio Curr Ratio (Qtr) 0.96 1.04
Debt to Equity Ratio Debt/Equity (Qtr) 1.37 -2.16
Interest Cover Ratio Int Coverage (Qtr) 0.44 -4.66
Times Interest Earned Times Interest Earned (Qtr) 0.44 -4.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 11.00 -104.37
EBIT Margin % EBIT Margin % (Qtr) 1.24 -142.35
EBT Margin % EBT Margin % (Qtr) -1.61 -146.31
Gross Margin % Gross Margin % (Qtr) 46.10 44.07
Net Profit Margin % Net Margin % (Qtr) -1.90 -145.36