Live Nation Entertainment, Inc. (NYSE: LYV)

Sector: Communication Services Industry: Entertainment CIK: 0001335258
Market Cap 33.40 Bn
P/B 64.07
P/E 103.67
P/S 1.36
ROIC (Qtr) 7.40
Div Yield % 0.00
Rev 1y % (Qtr) 11.08
Total Debt (Qtr) 9.39 Bn
Debt/Equity (Qtr) 18.01

About

Live Nation Entertainment, Inc., often recognized by its stock symbol LYV, is a prominent player in the live entertainment industry. The company operates on a global scale, with its main business activities encompassing concert promotion, ticketing, and sponsorship and advertising services. The company's Concerts segment is its primary business, contributing significantly to its total revenue. This segment involves the promotion of live music events and festivals, as well as the management of music venues. Live Nation's Ticketing segment, while...

Read more

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 6.76B provide 4.79x coverage of short-term debt 1.41B, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 2.49B provides strong 16.43x coverage of stock compensation 151.81M, indicating sustainable incentive practices.
  • Robust free cash flow of 1.59B exceeds capital expenditure of 905.48M by 1.75x, indicating strong organic growth funding capability.
  • Cash position of 6.76B provides exceptional 32.22x coverage of minority interest expenses 209.88M, indicating strong liquidity.
  • Operating cash flow of 2.49B provides strong 3.82x coverage of operating expenses 652.47M, showing operational efficiency.

Bear case

  • Operating cash flow of 2.49B barely covers its investment activities of (1.04B), with a coverage ratio of -2.39, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 6.76B provide limited coverage of acquisition spending of (112.79M), which is -59.96x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 2.49B provides insufficient coverage of deferred revenue obligations of 4.06B, which is 0.61x, raising concerns about future service delivery capabilities.
  • Operating cash flow of 2.49B provides minimal -12.86x coverage of tax expenses of (193.91M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 1.02B show weak coverage of depreciation charges of 423.72M, with a 2.40 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Entertainment
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NFLX Netflix Inc 398.09 Bn 38.16 9.18 14.46 Bn
2 DIS Walt Disney Co 204.13 Bn 16.46 2.16 42.03 Bn
3 WBD Warner Bros. Discovery, Inc. 70.69 Bn 145.75 1.87 33.52 Bn
4 FWONA Liberty Media Corp 53.12 Bn -399.43 13.15 7.04 Bn
5 LYV Live Nation Entertainment, Inc. 33.40 Bn 103.67 1.36 9.39 Bn
6 FOXA Fox Corp 33.26 Bn 16.34 2.02 6.60 Bn
7 PSKY Paramount Skydance Corp 18.94 Bn -1,353.00 0.66 14.73 Bn
8 TKO TKO Group Holdings, Inc. 17.56 Bn 76.76 4.05 4.04 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.52 1.53
EV to Cash from Ops. EV/CFO 13.93 25.10
EV to Debt EV to Debt 3.70 5.03
EV to EBIT EV/EBIT 34.23 165.24
EV to EBITDA EV/EBITDA 22.88 -156.71
EV to Free Cash Flow [EV/FCF] EV/FCF 21.88 72.07
EV to Market Cap EV to Market Cap 1.04 2.12
EV to Revenue EV/Rev 1.41 6.42
Price to Book Value [P/B] P/B 64.07 2.40
Price to Earnings [P/E] P/E 103.67 -114.33
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.56 1.03
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -17.28
Dividend per Basic Share Div per Share (Qtr) 0.00 0.14
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 7.73
Interest Coverage Int. cover (Qtr) 3.27 -38.17
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -44.77 -33.75
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 22.95 248.04
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.52
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 91.24 -100.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 5.64 -28.24
EBIT Growth (1y) % EBIT 1y % (Qtr) -5.79 -85.91
EBT Growth (1y) % EBT 1y % (Qtr) -4.22 24.10
EPS Growth (1y) % EPS 1y % (Qtr) 61.63 18.31
FCF Growth (1y) % FCF 1y % (Qtr) 139.65 118.70
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 6.66 30.85
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.07 0.60
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 0.55 0.45
Current Ratio Curr Ratio (Qtr) 0.92 1.09
Debt to Equity Ratio Debt/Equity (Qtr) 18.01 1.01
Interest Cover Ratio Int Coverage (Qtr) 3.27 -38.17
Times Interest Earned Times Interest Earned (Qtr) 3.27 -38.17
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 5.90 -65.26
EBIT Margin % EBIT Margin % (Qtr) 4.13 -79.53
EBT Margin % EBT Margin % (Qtr) 2.87 -82.47
Gross Margin % Gross Margin % (Qtr) 25.10 35.56
Net Profit Margin % Net Margin % (Qtr) 1.30 -83.18