July 19, 2025 a 11:31 am
📊 TKO: Dividend Analysis - TKO Group Holdings, Inc.
TKO Group Holdings, Inc., a prominent player in its sector, demonstrates a solid dividend history with 22 years of consistent payouts. Despite a relatively lower dividend yield of 0.47%, the company's prudent management and moderate payout ratios reflect a stable financial position. This stability, coupled with its strategic growth prospects, makes TKO a potential consideration for dividend-focused investors.
Overview
The overview section provides a snapshot of TKO's dividend profile, highlighting key metrics that are essential for assessing dividend attractiveness.
| Metric | Detail |
|---|---|
| Sector | TBD |
| Dividend Yield | 0.47% |
| Current Dividend per Share | 0.83 USD |
| Dividend History | 22 years |
| Last Cut or Suspension | None |
Dividend History
Examining the dividend history is crucial for understanding the company's reliability in returning wealth to its shareholders. A long history of uncut dividends indicates resilient financial health.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.76 |
| 2023 | 4.10 |
| 2022 | 0.48 |
| 2021 | 0.48 |
| 2020 | 0.48 |
Dividend Growth
Dividend growth showcases the company's ability to enhance shareholder returns over time. It's a critical metric for potential investment as it reflects the company's growth and profitability trends.
| Time | Growth |
|---|---|
| 3 years | 1.04% |
| 5 years | 0.54% |
The average dividend growth is 0.54% over 5 years. This shows moderate but steady dividend growth despite market fluctuations.
Payout Ratio
Payout ratios provide insights into how sustainable the dividend payouts are based on earnings and free cash flow. A lower ratio typically signifies stability.
| Key figure ratio | Percentage |
|---|---|
| EPS-based | 39.29% |
| Free cash flow-based | 10.08% |
The payout ratios indicate a healthy dividend sustainability with an EPS-based payout at 39.29% and a more conservative FCF-based payout at 10.08%, reflecting effective cash flow management.
Cashflow & Capital Efficiency
Evaluating cash flow and capital efficiency sheds light on the company's ability to generate cash and its effectiveness in using that capital to foster growth and cover dividend payments.
| Year / Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 4.40% | 6.21% | 8.59% |
| Earnings Yield | 0.08% | -0.52% | 6.80% |
| CAPEX to Operating Cash Flow | 12.85% | 10.38% | 2.47% |
| Stock-based Compensation to Revenue | 3.37% | 3.41% | 2.08% |
| FCF / Operating Cash Flow Ratio | 87.15% | 89.62% | 97.53% |
The cash flow analysis demonstrates a strong cash generation ability, reflecting robust operational efficiency necessary for sustained dividend coverage.
Balance Sheet & Leverage Analysis
Analyzing the balance sheet and leverage ratios provides insights into TKO's financial stability and its capability to meet short and long-term obligations.
| Year / Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.74 | 0.74 | 4.89 |
| Debt-to-Assets | 0.24 | 0.24 | 0.78 |
| Debt-to-Capital | 0.43 | 0.42 | 0.83 |
| Net Debt to EBITDA | 2.32 | 4.57 | 4.32 |
| Current Ratio | 1.25 | 1.04 | 1.17 |
| Quick Ratio | 1.30 | 1.04 | 1.16 |
| Financial Leverage | 3.10 | 3.09 | 6.29 |
Overall, TKO maintains a reasoned leverage position, suggesting adept management of debt to optimize capital structure while safeguarding liquidity.
Fundamental Strength & Profitability
Assessment of fundamental ratios highlights TKO's profitability, operational efficiency, and capacity to generate returns, thus affirming its growth potential.
| Year / Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 0.23% | -0.86% | 68.07% |
| Return on Assets | 0.07% | -0.28% | 10.82% |
| Return on Invested Capital | 0.59% | 3.09% | 15.56% |
| Net Margin | 0.34% | -2.10% | 34.00% |
| EBIT Margin | 10.11% | 26.66% | 47.64% |
| EBITDA Margin | 24.12% | 36.48% | 52.90% |
| Gross Margin | 67.91% | 69.28% | 71.44% |
| R&D to Revenue | 0.00% | 0.00% | 0.00% |
TKO showcases substantial profitability as evidenced by robust margins and return figures, indicating effective capital and resource utilization.
Price Development
Dividend Scoring System
| Criterion | Score (1-5) | Visual Representation |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 4 | |
| Dividend Growth | 2 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 3 |
Overall Score: 28/40
Rating
✅ In conclusion, TKO Group Holdings, Inc. maintains a balanced dividend profile with consistent payouts and manageable leverage. Despite its modest growth rates, the company's financial solidity and divident continuity rate it as a viable option for conservative dividend investors seeking stability over aggressive growth.