Last Updated: 08 Nov 2024
Executive Summary
Endeavor Group Holdings Inc. (EDR) is a leading entertainment, sports, and content company. The company's shares are currently trading at $28.99, within their 52-week range of $22.43 to $29.67. Endeavor has a strong financial position, with a market capitalization of $8.93 billion and an EBITDA of $314.3 million. The company's revenue and earnings have grown steadily in recent quarters, and analysts are optimistic about its long-term prospects.
Company Overview
Endeavor Group Holdings is a diversified entertainment company with operations in the United States, the United Kingdom, and internationally. The company's businesses include talent representation, sports management, event production, and content creation. Endeavor represents some of the world's most famous athletes, actors, and musicians, and it produces major sporting events such as the UFC and the Olympics. The company also owns and operates a number of media properties, including the WME talent agency, the IMG sports agency, and the Ultimate Fighting Championship (UFC).
Fundamental Analysis
Endeavor Group Holdings has a strong financial position. The company's revenue grew by 0.341% year-over-year to $6.67 billion in the most recent quarter, and its EBITDA grew by 13.19% to $314.3 million. The company's net income was -$177.6 million in the most recent quarter, but this was due to a one-time charge related to the acquisition of IMG. Excluding this charge, Endeavor's net income would have been $136.7 million.
Endeavor's balance sheet is also strong. The company has $2.2 billion in cash and equivalents and $3.1 billion in debt. This gives the company a net debt-to-equity ratio of 0.63, which is below the industry average.
Technical Analysis
Endeavor's stock price has been trading in a range between $22.43 and $29.67 over the past 52 weeks. The stock is currently trading near the top of this range, and it is above its 50-day and 200-day moving averages. This suggests that the stock is in a bullish trend.
The relative strength index (RSI) is a technical indicator that measures the strength of a stock's price momentum. The RSI is currently at 65, which is above the neutral level of 50. This suggests that the stock is overbought, but it is not yet in overbought territory.
Short Term Outlook
In the short term, Endeavor's stock price is likely to continue to trade in a range between $22.43 and $29.67. The stock is currently overbought, but it is not yet in overbought territory. This suggests that the stock could pull back in the short term, but it is unlikely to experience a major decline.
Long Term Outlook
In the long term, Endeavor's stock price is likely to rise. The company has a strong financial position, and its revenue and earnings are growing steadily. The company is also well-positioned to benefit from the growing demand for entertainment content.
Analyst Recommendations
Analysts are optimistic about Endeavor's long-term prospects. The consensus analyst rating for the stock is "buy," and the average analyst target price is $27.50. This suggests that analysts believe that the stock is undervalued and that it has the potential to generate significant returns for investors.
