FuboTV Inc. (NYSE: FUBO)

Sector: Communication Services Industry: Broadcasting CIK: 0001484769
Market Cap 459.95 Mn
P/B 1.67
P/E 2.96
P/S 0.17
ROIC (Qtr) -9.55
Div Yield % 0.00
Rev 1y % (Qtr) 40.03
Total Debt (Qtr) 413.52 Mn
Debt/Equity (Qtr) 1.50
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About

FuboTV Inc. (FUBO), a sports-first pay TV replacement product, operates in the highly competitive streaming industry. The company's primary business activity involves offering subscribers access to tens of thousands of live sporting events annually, along with leading news and entertainment content, both live and on-demand. FuboTV operates in the United States, Canada, Spain, and France, with a mission to aggregate the best in TV, including premium sports, news, and entertainment content, through a single app. FuboTV's revenue generation is primarily...

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Investment thesis

Bull case

  • Healthy cash reserves of 458.56M provide 3.09x coverage of short-term debt 148.17M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 1.05B provides 2.53x coverage of total debt 413.52M, indicating robust asset backing and low credit risk.
  • Tangible assets of 1.05B provide exceptional 11.11x coverage of deferred revenue 94.09M, showing strong service capability backing.
  • Operating cash flow of (80.04M) fully covers other non-current liabilities (79.19M) by 1.01x, showing strong long-term stability.
  • R&D investment of 72.50M represents healthy 0.77x of deferred revenue 94.09M, indicating strong future innovation pipeline.

Bear case

  • Operating cash flow of (80.04M) barely covers its investment activities of 254.48M, with a coverage ratio of -0.31, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (80.04M) provides insufficient coverage of deferred revenue obligations of 94.09M, which is -0.85x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (80.04M) shows concerning coverage of stock compensation expenses of 33.52M, with a -2.39 ratio indicating potential earnings quality issues.
  • Free cash flow of (93.57M) provides weak coverage of capital expenditures of 13.53M, with a -6.92 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (80.04M) provides minimal -40.59x coverage of tax expenses of 1.97M, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Product and Service Breakdown of Revenue (2023)

Product and Service Breakdown of Revenue (2023)

Peer comparison

Companies in the Broadcasting
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NXST Nexstar Media Group, Inc. 8.26 Bn 23.87 1.67 6.40 Bn
2 TGNA Tegna Inc 4.06 Bn 7.22 1.41 2.59 Bn
3 SBGI Sinclair, Inc. 1.07 Bn 0.49 0.18 4.24 Bn
4 SSP E.W. SCRIPPS Co 0.81 Bn -7.98 0.35 2.74 Bn
5 IHRT iHeartMedia, Inc. 0.53 Bn -1.32 0.14 5.87 Bn
6 FUBO FuboTV Inc. 0.46 Bn 2.96 0.17 0.41 Bn
7 GTN Gray Media, Inc 0.23 Bn -7.34 0.80 5.68 Bn
8 NMAX Newsmax Inc. 0.20 Bn -2.81 1.18 0.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.14 0.87
EV to Cash from Ops. EV/CFO -6.91 -0.15
EV to Debt EV to Debt 1.34 6.39
EV to EBIT EV/EBIT 3.19 3.66
EV to EBITDA EV/EBITDA -40.67 3.24
EV to Free Cash Flow [EV/FCF] EV/FCF -5.91 7.40
EV to Market Cap EV to Market Cap 1.20 6.46
EV to Revenue EV/Rev 0.20 1.70
Price to Book Value [P/B] P/B 1.67 614.59
Price to Earnings [P/E] P/E 2.96 -1.43
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -21.94
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 114.41
Dividend per Basic Share Div per Share (Qtr) 0.00 0.74
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 23.53
Interest Coverage Int. cover (Qtr) 11.06 -1.29
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 4.68 19.60
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 173.65 18.99
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 17.54
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 213.07 546.44
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 91.14 -17.28
EBIT Growth (1y) % EBIT 1y % (Qtr) 214.94 266.27
EBT Growth (1y) % EBT 1y % (Qtr) 191.84 -496.56
EPS Growth (1y) % EPS 1y % (Qtr) 183.33 -40.46
FCF Growth (1y) % FCF 1y % (Qtr) 0.11 25.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 65.44 3.01
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.66 0.48
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.20
Cash Ratio Cash Ratio (Qtr) 0.39 0.41
Current Ratio Curr Ratio (Qtr) 0.85 1.64
Debt to Equity Ratio Debt/Equity (Qtr) 1.50 2.17
Interest Cover Ratio Int Coverage (Qtr) 11.06 -1.29
Times Interest Earned Times Interest Earned (Qtr) 11.06 -1.29
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 8.50 -11.99
EBIT Margin % EBIT Margin % (Qtr) 6.36 -20.47
EBT Margin % EBT Margin % (Qtr) 5.79 -27.40
Gross Margin % Gross Margin % (Qtr) 12.40 34.96
Net Profit Margin % Net Margin % (Qtr) 5.70 -28.49