Endeavor Group Holdings Inc (EDR, Financial) has experienced a notable fluctuation in its stock price recently. With a current market capitalization of $7.24 billion, the stock is trading at $24.1. Over the past week, EDR's stock has seen a decline of 4.83%, yet when zooming out to the past three months, the stock has impressively surged by 26.99%. According to GuruFocus's GF Value, which is currently at $30.28, EDR is considered Modestly Undervalued. This is a significant observation as the GF Value three months ago was not applicable, indicating a recent development in the stock's valuation.
Introduction to Endeavor Group Holdings Inc
Endeavor Group Holdings Inc, operating in the Media - Diversified industry, is a multifaceted entertainment, sports, and content company. It provides a range of services including talent representation, content development and distribution, event management, marketing, licensing, and direct-to-consumer offerings. The company's operations are segmented into Owned Sports Properties; Events, Experiences & Rights; and Representation. This diversified business model allows Endeavor to leverage its unique assets and relationships across various entertainment verticals.
Assessing Endeavor's Profitability
Endeavor's Profitability Rank stands at 4/10, reflecting moderate profitability. The company's Operating Margin is 7.98%, which is competitive within its industry, surpassing 66.7% of 1030 companies. Its ROE is 5.16%, better than 59.1% of its peers, while the ROA at 0.94% is higher than 51.28% of the industry. Notably, the ROIC is an impressive 63.70%, outperforming 98% of companies in the sector. However, it's important to note that Endeavor has only been profitable for 2 of the past 10 years, which is better than just 15.81% of 968 companies.
Growth Trajectory of Endeavor
Endeavor's Growth Rank is a robust 7/10. The company's 3-Year Revenue Growth Rate per Share is 0.50%, which is higher than 50.26% of 955 companies in the industry. Over a 5-year period, the Revenue Growth Rate per Share has been 8.30%, surpassing 77.6% of 835 companies. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 14.79%, which is more optimistic than 81.95% of 133 companies. The 3-Year EPS without NRI Growth Rate is an impressive 113.70%, better than 97.2% of 715 companies, indicating strong earnings potential.
Investor Confidence in Endeavor
Notable investors have taken positions in Endeavor, signaling confidence in the company's prospects. Jim Simons (Trades, Portfolio) holds 771,600 shares, representing 0.26% of the shares outstanding. Paul Tudor Jones (Trades, Portfolio) owns 351,732 shares, accounting for 0.12% of the company, and Joel Greenblatt (Trades, Portfolio) has a stake of 39,525 shares, which translates to 0.01% ownership. These investments by prominent market players underscore a level of investor confidence in Endeavor's future performance.
Competitive Landscape
When compared to its competitors, Endeavor holds its ground with a market cap of $7.24 billion. TKO Group Holdings Inc (TKO, Financial) has a slightly lower market cap at $6.35 billion, while Paramount Global (PARA, Financial) and Roku Inc (ROKU, Financial) have higher market capitalizations of $8.71 billion and $12.23 billion, respectively. This positioning within the industry highlights Endeavor's significant presence and competitive stance in the diversified media landscape.
Conclusion
In summary, Endeavor Group Holdings Inc's recent stock performance has been impressive, with a 27% increase over the past three months, and the stock is currently considered modestly undervalued according to GF Value. The company's profitability metrics, although moderate, show promise when compared to industry peers, particularly in terms of ROIC. Growth prospects appear strong, with solid revenue and EPS growth rates. The confidence shown by significant holders like Jim Simons (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), and Joel Greenblatt (Trades, Portfolio) adds to the positive outlook for EDR. Finally, when benchmarked against key competitors, Endeavor's market cap suggests it is a formidable player in the media-diversified industry. Investors may find Endeavor's current valuation and growth trajectory to be an attractive opportunity in the entertainment and media sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
