Flutter Entertainment PLC (FLUT) AI Stock Analysis

Compare

543 Followers

Top Page

Flutter Entertainment PLC

(LSE:FLUT)

Rating:69Neutral

Price Target:

$273.00

▲(3.17%Upside)

Flutter Entertainment PLC shows strong growth indicators, particularly in revenue and EBITDA, supported by a positive earnings call sentiment. However, profitability challenges and high valuation metrics weigh on the overall score. Technical analysis suggests a moderately bullish outlook.

Positive Factors

Growth Potential

FanDuel’s strong positioning in an increasingly promising market demonstrates leaps of progress and the resilience of the business model, which should drive further upside potential for the shares.

Market Position

Flutter Entertainment continues to demonstrate strong operational momentum, particularly in the U.S., where underlying engagement and structural margin trends remain healthy.

Strategic Acquisitions

The Snai/NSX acquisitions, while initially dilutive, are strategically positive and expected to become beneficial by 2026/27 as synergies are realized.

Negative Factors

Growth Concerns

Investors' concerns on US handle will likely persist as growth decelerated QoQ, and further deceleration is expected in 2Q given the NC launch comparison.

Revenue Performance

Q1 results missed expectations, with revenue and AEBITDA coming in below consensus due to softer U.S. sports outcomes and FX headwinds.

Tax Impact

The new transaction tax will push DKNG and FLUT's effective tax rate in the state over 50%, which materially hurts their margin in the state.

Flutter Entertainment PLC (FLUT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$47.95B

Dividend YieldN/A

Average Volume (3M)1.78M

Price to Earnings (P/E)91.4

Beta (1Y)1.42

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees27,345

SectorConsumer Cyclical

Sector Strength57

IndustryGambling, Resorts & Casinos

Share Statistics

EPS (TTM)1.59

Shares Outstanding176,687,870

10 Day Avg. Volume2,096,272

30 Day Avg. Volume1,781,351

Financial Highlights & Ratios

PEG Ratio1.03

Price to Book (P/B)1.93

Price to Sales (P/S)0.00

P/FCF Ratio42.73

Enterprise Value/Market Cap0.20

Enterprise Value/Revenue0.18

Enterprise Value/Gross Profit1.41

Enterprise Value/Ebitda1.45

Forecast

1Y Price Target

$307.78

Price Target Upside16.32% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering15

Flutter Entertainment PLC Business Overview & Revenue Model

Company DescriptionFlutter Entertainment PLC is a global sports betting, gaming, and entertainment provider, operating across various international markets. The company offers a diverse range of products, including sports betting, online gaming, and interactive entertainment through its well-known brands such as Paddy Power, Betfair, FanDuel, Sky Betting & Gaming, and PokerStars. Flutter Entertainment is committed to delivering innovative and engaging experiences for its customers while maintaining a strong focus on responsible gaming practices.

How the Company Makes MoneyFlutter Entertainment PLC generates revenue primarily through its sports betting and gaming operations. The company's key revenue streams include online and retail sports betting, online gaming services such as casino and poker, and daily fantasy sports. Flutter leverages its portfolio of popular brands to attract a wide customer base, providing them with betting options on a variety of sports and gaming events. The company's strategic partnerships and acquisitions, such as the merger with The Stars Group, have expanded its market reach and product offerings, further enhancing its revenue potential. Flutter also benefits from its strong presence in regulated markets, ensuring compliance and sustainable growth across its global operations.

Flutter Entertainment PLC Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q1-2025)

% Change Since: 9.18%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Positive

The earnings call exhibited a largely positive outlook with significant growth in net income, strong international performance, and successful strategic acquisitions. However, challenges in the basketball handle and adverse sports results in the U.S. were noted as concerns. Overall, the highlights outweigh the lowlights, indicating a positive sentiment.

Q1-2025 Updates

Positive Updates

Strong U.S. Business Performance

The scaling of the U.S. business drove a step change in the earnings profile with AMPs growing to more than 4.3 million in the quarter and sportsbook handle growth in line with expectations.

Significant International Growth

International business showed strong performance, especially in SEA and India, with year-over-year revenue growth of 3% constant currency and strong growth in Turkey.

Record Net Income and Adjusted EBITDA Growth

Net income and adjusted EBITDA increased by 289% and 20% year-over-year, respectively, driven by U.S. business transformation and international diversification.

Successful Acquisition of Snai

Completed acquisition of Snai, significantly adding to scale in Italy with expected rapid realization of operational and financial benefits.

iGaming Milestone

FanDuel iGaming proposition hit 1 million AMPs for the first time, supporting a strong leadership position with a 48% net gaming revenue sportsbook share.

Negative Updates

Basketball Handle Softness

Basketball handle growth was lower than anticipated, attributed to less competitive matchups and larger spreads.

Challenges in Brazil

Growth in Brazil was materially negative due to regulatory changes impacting customer sign-ups, although some improvement in ARPU was noted.

Adverse U.S. Sports Results Impact

Unfavorable U.S. sports results, particularly during March Madness, impacted financials with year-to-date adverse results affecting $280 million in revenue and $180 million in adjusted EBITDA.

Company Guidance

In the first quarter of 2025, Flutter Entertainment reported a robust performance with significant year-over-year growth in key financial metrics. The company achieved a 289% increase in net income and a 20% rise in adjusted EBITDA. Group revenue grew by 8%, driven by strong performances in the U.S. and international markets, particularly in SEA and India. In the U.S., revenue was up 18%, with a notable 32% growth in iGaming. The company's adjusted EBITDA reached $161 million, marking a more than fivefold increase from the previous year, demonstrating significant operating leverage. Flutter's proprietary pricing capability has enabled a structural gross revenue margin progression to 14.1%. Despite some challenges in basketball handle growth, other areas like NFL and MLB showed encouraging trends. The company maintained its full-year guidance for 2025, with expectations of $17.08 billion in revenue and $3.18 billion in adjusted EBITDA, reflecting 22% and 35% growth, respectively. Additionally, Flutter's strategic initiatives, such as the acquisition of Snai and advancements in their Your Way pricing technology, are expected to drive long-term innovation and value creation across their U.S. and international markets.

Flutter Entertainment PLC Financial Statement Overview

Summary

Flutter Entertainment PLC demonstrates strong revenue growth and cash generation capabilities, but struggles with profitability and increasing leverage. The company has made operational improvements, as seen in its EBIT and EBITDA margins, and maintains a strong equity base. Future focus should be on turning revenue growth into sustainable profitability and managing debt levels.

Income Statement

Neutral

Flutter Entertainment PLC has shown impressive revenue growth, increasing from $2.83 billion in 2019 to $14.05 billion in 2024. However, the company has faced challenges with profitability, recording net losses over the past few years, including a $130 million loss in 2024. While gross profit margins have improved, net profit margins remain negative. The company has improved its EBIT and EBITDA margins in 2024, which reflects operational improvements.

Balance Sheet

Positive

The company's financial position shows a stable equity base with stockholders' equity at $9.29 billion in 2024. The debt-to-equity ratio has increased over the years, indicating rising leverage, which poses potential risks. However, the equity ratio remains strong, reflecting a solid asset base relative to equity. Return on equity is currently negative due to net losses.

Cash Flow

Positive

Operating cash flow has been consistently positive, reflecting strong cash generation capabilities, with $1.6 billion in 2024. Free cash flow has also shown significant growth, indicating improved cash management. The ratio of operating cash flow to net income highlights operational efficiency, despite net losses.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
14.32B	14.05B	11.79B	9.46B	8.31B	6.04B
	Gross Profit
6.81B	6.70B	5.59B	4.65B	4.43B	3.93B
	EBIT
968.00M	869.00M	-549.00M	-88.00M	-449.00M	141.54M
	EBITDA
2.00B	1.61B	653.00M	987.00M	561.00M	1.18B
	Net Income Common Stockholders
620.00M	109.00M	-1.22B	-432.00M	-923.00M	51.83M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.47B	3.59B	3.42B	2.70B	2.31B	1.74B
	Total Assets
24.82B	24.51B	24.64B	24.77B	22.68B	23.23B
	Total Debt
7.39B	7.28B	7.53B	7.24B	5.19B	4.52B
	Net Debt
4.05B	3.82B	4.28B	4.71B	2.98B	2.89B
	Total Liabilities
13.05B	13.24B	13.27B	12.27B	8.77B	8.20B
	Stockholders Equity
9.86B	9.29B	10.04B	12.35B	13.86B	14.99B
Cash Flow		Free Cash Flow
843.83M	941.00M	344.10M	558.14M	339.44M	920.64M
	Operating Cash Flow
1.45B	1.60B	937.00M	1.03B	736.87M	1.21B
	Investing Cash Flow
-652.00M	-811.00M	-602.00M	-2.76B	-324.97M	-1.79B
	Financing Cash Flow
-559.00M	-469.00M	-113.00M	1.87B	79.35M	1.24B

Flutter Entertainment PLC Technical Analysis

Technical Analysis Sentiment

Positive

Last Price264.61

Price Trends

50DMA

240.65

Positive

100DMA

249.36

Positive

200DMA

247.68

Positive

Market Momentum

MACD

6.69

Negative

RSI

61.99

Neutral

STOCH

84.87

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLUT, the sentiment is Positive. The current price of 264.61 is above the 20-day moving average (MA) of 251.18, above the 50-day MA of 240.65, and above the 200-day MA of 247.68, indicating a bullish trend. The MACD of 6.69 indicates Negative momentum. The RSI at 61.99 is Neutral, neither overbought nor oversold. The STOCH value of 84.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLUT.

Flutter Entertainment PLC Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LNW	77 Outperform	$7.30B	21.98	46.19%	―	7.26%	54.83%
SGHC	77 Outperform	$4.82B	34.36	21.19%	1.66%	22.80%	281.38%
RSI	71 Outperform	$3.16B	171.06	11.87%	―	29.86%	―
FLUT	69 Neutral	$47.95B	91.45	5.48%	―	―	―
Sector *	62 Neutral	$6.90B	11.05	2.80%	4.27%	2.67%	-24.92%
PENN	61 Neutral	$2.53B	―	-2.81%	―	5.51%	92.46%
DKNG	59 Neutral	$33.69B	―	-46.78%	―	22.86%	30.40%

* Consumer Cyclical Sector Average

Performance Comparison

FLUT

Flutter Entertainment PLC

264.61

75.80

40.15%

PENN

Penn National Gaming

15.61

-2.91

-15.71%

LNW

Light & Wonder

82.14

-11.61

-12.38%

DKNG

DraftKings

36.50

-5.45

-12.99%

RSI

Rush Street Interactive

13.24

3.57

36.92%

SGHC

Super Group (SGHC)

9.50

6.31

197.81%

Flutter Entertainment PLC Corporate Events

Delistings and Listing ChangesRegulatory Filings and Compliance

Flutter Entertainment Aligns Shares with UK Regulations

Neutral

Oct 30, 2024

Flutter Entertainment plc announced a block listing application for its ordinary shares to align with UK regulatory requirements. This move involves their Deferred Share Incentive Plan and other schemes, adjusting the balance of unissued shares through a regular update. Key figures include an increase and allotment of shares under various incentive plans, showcasing active management of their equity incentives.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.