Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin-0.3%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin0.1%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
D
Years to Pay Off Debt509.4 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$1.8B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$60M
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
C
Free Cash Flow$508M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income4163.4%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$434M
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit41.3%
Operating Margin-0.3%
Net Margin0.1%
Company Info
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
2021
Gross Profit %
41.3%▲
38.1%▲
37.5%▲
33.8%•
N/A
Operating Margin %
-0.3%▲
-12.8%▲
-21.5%▲
-67.5%•
N/A
Net Income %
0.1%▲
-10.6%▲
-21.9%▲
-61.5%•
N/A
Diluted EPS
0.01▲
-1.05▲
-1.73▲
-3.16•
N/A
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$4.5B
$4.3B
$3.9B
$4.0B
N/A
Total Debt
$1.9B▲
$1.3B▼
$1.3B▲
$1.3B•
N/A
Working Capital
$60M▲
-$121M▼
$522M▼
$838M•
N/A
Years to Pay Debt
509.39
-2.63
-1.68
-0.96
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$508M▲
$297M▲
-$115M▲
-$729M•
N/A
Owner Earnings
$434M
-$116M
-$487M
-$1.1B
N/A
CapEx % of Net Income
4,163.4%
N/A
N/A
N/A
N/A
Income Statement
2025
2024
2023
2022
2021
Tax Effect Of Unusual Items
997
-720
-12,084
1,383
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
254,924
-333,200
-529,762
-1,300,451
Total Unusual Items
4,747
-4,945
-57,543
29,396
Total Unusual Items Excluding Goodwill
4,747
-4,945
-57,543
29,396
Net Income From Continuing Operation Net Minority Interest
3,710
-507,285
-802,142
-1,377,987
Reconciled Depreciation
275,488
270,854
201,920
169,252
Reconciled Cost Of Revenue
3,556,947
2,950,561
2,292,175
1,484,273
EBITDA
259,671
-338,145
-587,305
-1,271,055
EBIT
-15,817
-608,999
-789,225
-1,440,307
Net Interest Income
-19,941
44,300
55,739
18,702
Interest Expense
2,959
2,679
2,651
2,109
Interest Income
47,259
58,418
21,353
4,066
Normalized Income
-40
-503,060
-756,683
-1,406,000
Net Income From Continuing And Discontinued Operation
3,710
-507,285
-802,142
-1,377,987
Total Expenses
6,070,342
5,376,698
4,454,618
3,752,217
Total Operating Income As Reported
-15,817
-608,999
-789,225
-1,511,756
Diluted Average Shares
495,900
482,000
462,600
436,072
Basic Average Shares
495,900
482,000
462,600
436,072
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
-4,033
-507,285
-802,142
-1,377,987
Net Income Common Stockholders
-4,033
-507,285
-802,142
-1,377,987
Otherunder Preferred Stock Dividend
7,743
0
0
Net Income
3,710
-507,285
-802,142
-1,377,987
Net Income Including Noncontrolling Interests
3,710
-507,285
-802,142
-1,377,987
Net Income Continuous Operations
3,710
-507,285
-802,142
-1,377,987
Earnings From Equity Interest Net Of Tax
971
-468
-719
-2,895
Tax Provision
4,274
-86,341
10,170
-67,866
Pretax Income
7,013
-593,158
-791,253
-1,442,958
Other Income Expense
42,771
-28,459
-57,767
50,096
Other Non Operating Income Expenses
38,024
-23,514
-224
20,700
Gain On Sale Of Security
4,747
-4,945
-57,543
29,396
Net Non Operating Interest Income Expense
-19,941
44,300
55,739
18,702
Total Other Finance Cost
19,941
-44,300
-55,739
-18,702
Interest Expense Non Operating
2,959
2,679
2,651
2,109
Interest Income Non Operating
47,259
58,418
21,353
4,066
Operating Income
-15,817
-608,999
-789,225
-1,511,756
Operating Expense
2,513,395
2,426,137
2,162,443
2,267,944
Research And Development
459,912
397,114
355,156
318,247
Selling General And Administration
2,053,483
2,029,023
1,807,287
1,949,697
Selling And Marketing Expense
1,379,880
1,264,920
1,200,718
1,185,977
General And Administrative Expense
673,603
764,103
606,569
763,720
Other Gand A
673,603
764,103
606,569
763,720
Gross Profit
2,497,578
1,817,138
1,373,218
756,188
Cost Of Revenue
3,556,947
2,950,561
2,292,175
1,484,273
Total Revenue
6,054,525
4,767,699
3,665,393
2,240,461
Operating Revenue
5,631,704
4,410,665
3,323,152
1,854,632
Balance Sheet
2025
2024
2023
2022
2021
Treasury Shares Number
38,243
15,651
11,901
8,690
Ordinary Shares Number
495,053
489,071
472,697
450,575
Share Issued
533,296
504,722
484,598
459,265
Net Debt
708,095
468,142
Total Debt
1,889,826
1,335,082
1,346,086
1,324,688
Tangible Book Value
-1,855,387
-1,477,611
-736,687
-340,614
Invested Capital
2,467,101
2,267,055
2,094,066
2,573,796
Working Capital
59,538
-121,230
521,747
838,384
Net Tangible Assets
-1,855,387
-1,477,611
-736,687
-340,614
Capital Lease Obligations
54,186
78,653
92,326
73,585
Common Stock Equity
631,461
1,010,626
840,306
1,322,693
Total Capitalization
2,467,101
2,267,055
2,094,066
2,573,796
Total Equity Gross Minority Interest
631,461
1,010,626
840,306
1,322,693
Stockholders Equity
631,461
1,010,626
840,306
1,322,693
Gains Losses Not Affecting Retained Earnings
36,488
36,488
36,488
36,488
Other Equity Adjustments
36,488
36,488
36,488
36,488
Treasury Stock
1,392,433
563,146
412,182
332,133
Retained Earnings
-6,437,518
-6,441,228
-5,933,943
-5,131,801
Additional Paid In Capital
8,424,833
7,978,425
7,149,858
6,750,055
Capital Stock
91
87
85
84
Common Stock
91
87
85
84
Total Liabilities Net Minority Interest
3,899,323
3,273,099
3,104,560
2,717,459
Total Non Current Liabilities Net Minority Interest
2,143,852
1,618,108
1,554,940
1,471,002
Other Non Current Liabilities
172,203
195,611
83,975
70,029
Derivative Product Liabilities
0
22,033
63,568
10,680
Tradeand Other Payables Non Current
91,618
76,375
72,810
69,858
Long Term Debt And Capital Lease Obligation
1,880,031
1,324,089
1,334,587
1,320,435
Long Term Capital Lease Obligation
44,391
67,660
80,827
69,332
Long Term Debt
1,835,640
1,256,429
1,253,760
1,251,103
Current Liabilities
1,755,471
1,654,991
1,549,620
1,246,457
Other Current Liabilities
960,235
982,753
898,522
724,617
Current Deferred Liabilities
56,433
46,390
43,634
40,520
Current Deferred Revenue
56,433
46,390
43,634
40,520
Current Debt And Capital Lease Obligation
9,795
10,993
11,499
4,253
Current Capital Lease Obligation
9,795
10,993
11,499
4,253
Pensionand Other Post Retirement Benefit Plans Current
101,849
87,192
94,830
78,819
Payables And Accrued Expenses
627,159
527,663
501,135
398,248
Current Accrued Expenses
388,103
343,600
350,507
317,209
Payables
239,056
184,063
150,628
81,039
Total Tax Payable
171,196
130,401
116,501
70,891
Accounts Payable
67,860
53,662
34,127
10,148
Total Assets
4,530,784
4,283,725
3,944,866
4,040,152
Total Non Current Assets
2,715,775
2,749,964
1,873,499
1,955,311
Other Non Current Assets
109,098
123,060
131,546
155,865
Non Current Prepaid Assets
45,377
Investments And Advances
18,938
13,200
10,280
10,080
Long Term Equity Investment
18,938
13,200
10,280
10,080
Goodwill And Other Intangible Assets
2,486,848
2,488,237
1,576,993
1,663,307
Other Intangible Assets
889,201
933,121
690,620
776,934
Goodwill
1,597,647
1,555,116
886,373
886,373
Net PPE
100,891
125,467
154,680
126,059
Accumulated Depreciation
-104,801
-88,367
-75,451
-55,603
Gross PPE
205,692
213,834
230,131
181,662
Leases
61,517
56,346
57,309
43,046
Other Properties
49,810
74,917
93,985
65,957
Machinery Furniture Equipment
94,365
82,571
78,837
72,659
Current Assets
1,815,009
1,533,761
2,071,367
2,084,841
Other Current Assets
104,837
145,729
98,565
94,836
Restricted Cash
477,050
541,906
352,990
469,653
Prepaid Assets
25,675
Receivables
105,577
57,839
349,309
211,180
Accounts Receivable
105,577
57,839
349,309
211,180
Cash Cash Equivalents And Short Term Investments
1,127,545
788,287
1,270,503
1,309,172
Cash And Cash Equivalents
1,127,545
788,287
1,270,503
1,309,172
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
508,393
296,910
-115,136
-729,164
Repurchase Of Capital Stock
-829,287
-150,964
-80,049
-25,519
Repayment Of Debt
-4,500
0
0
0
Issuance Of Debt
588,116
0
0
0
Issuance Of Capital Stock
15,243
0
0
0
Capital Expenditure
-154,462
-120,857
-113,385
-103,645
Interest Paid Supplemental Data
27,881
0
0
0
Income Tax Paid Supplemental Data
8,236
5,268
8,341
10,366
End Cash Position
1,604,595
1,330,193
1,623,493
1,778,825
Beginning Cash Position
1,330,193
1,623,493
1,778,825
2,629,842
Effect Of Exchange Rate Changes
0
0
583
Changes In Cash
274,402
-293,300
-155,332
-851,017
Financing Cash Flow
-222,456
-144,466
-63,221
-16,732
Cash Flow From Continuing Financing Activities
-222,456
-144,466
-63,221
-16,732
Net Other Financing Charges
-2,601
-2,667
416
Proceeds From Stock Option Exercised
10,573
9,165
16,828
8,787
Net Common Stock Issuance
-814,044
-150,964
-80,049
-25,519
Common Stock Payments
-829,287
-150,964
-80,049
-25,519
Common Stock Issuance
15,243
0
0
0
Net Issuance Payments Of Debt
583,616
0
0
0
Net Long Term Debt Issuance
583,616
0
0
0
Long Term Debt Payments
-4,500
0
0
0
Long Term Debt Issuance
588,116
0
0
0
Investing Cash Flow
-165,997
-566,601
-90,360
-208,766
Cash Flow From Continuing Investing Activities
-165,997
-566,601
-90,360
-208,766
Net Other Investing Changes
4,846
-4,257
-1,400
-8,614
Net Investment Purchase And Sale
0
0
24,425
0
Sale Of Investment
0
0
24,425
0
Purchase Of Investment
0
-25,000
Net Business Purchase And Sale
-16,381
-441,487
0
-96,507
Purchase Of Business
-16,381
-441,487
0
-96,507
Net Intangibles Purchase And Sale
-139,110
-110,681
-92,483
-71,243
Purchase Of Intangibles
-139,110
-110,681
-92,483
-71,243
Net PPE Purchase And Sale
-15,352
-10,176
-20,902
-32,402
Purchase Of PPE
-15,352
-10,176
-20,902
-32,402
Operating Cash Flow
662,855
417,767
-1,751
-625,519
Cash Flow From Continuing Operating Activities
662,855
417,767
-1,751
-625,519
Change In Working Capital
97,348
335,081
134,882
121,722
Change In Other Working Capital
130
6,558
1,304
-1,059
Change In Other Current Liabilities
-38,597
135,947
176,812
168,368
Change In Payables And Accrued Expense
147,425
-14,635
106,545
86,002
Change In Payable
147,425
-14,635
106,545
86,002
Change In Account Payable
132,182
-18,200
103,593
95,269
Change In Tax Payable
15,243
3,565
2,952
-9,267
Change In Income Tax Payable
15,243
3,565
2,952
-9,267
Change In Prepaid Assets
-14,473
-24,565
-16,904
-31,138
Change In Receivables
2,993
238,204
-138,129
-102,814
Changes In Account Receivables
-57,695
-10,116
3,558
2,506
Other Non Cash Items
-33,465
6,265
940
-6,398
Stock Based Compensation
339,311
381,367
398,463
578,799
Deferred Tax
-18,225
-92,733
5,849
-73,407
Deferred Income Tax
-18,225
-92,733
5,849
-73,407
Depreciation Amortization Depletion
275,488
270,854
201,920
169,252
Depreciation And Amortization
275,488
270,854
201,920
169,252
Amortization Cash Flow
180,900
Amortization Of Intangibles
180,900
Depreciation
20,400
Operating Gains Losses
-1,312
24,218
58,337
-37,500
Earnings Losses From Equity Investments
-971
468
719
2,895
Gain Loss On Investment Securities
-341
17,885
57,618
-40,395
Gain Loss On Sale Of Business
0
5,865
0
0
Net Income From Continuing Operations
3,710
-507,285
-802,142
-1,377,987
1/4
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A
N/A — requires
positive EPS and positive book value per share. Check the Financials tab for earnings history.
Margin of Safety
—
Market Cap / Net Assets
N/A
Net Assets: $631M
Warren's Owner Earnings
$434M
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
1/4 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$6.1B
vs > $1.5B revenue
❌
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
1.03x
vs Current Ratio > 2.0x
❌
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
3 loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $6.1Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 1.03xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
❌ Earnings Stability — 3 loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
These metrics estimate what DKNG is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
-0.5%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
4,163.4%
N/A
N/A
N/A
N/A
Repurchase of Capital Stock
-$829M
-$151M
-$80M
-$26M
N/A
Free Cash Flow
$508M▲
$297M▲
-$115M▲
-$729M•
N/A•
Warren's Owner Earnings
$434M
-$116M
-$487M
-$1.1B
N/A
Peers & Industry
No auto-detected peers for this industry. You can manually compare DKNG against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
No management data available.
Risk Analysis
DKNG (DKNG) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 41.3%. Operating margin: -0.3%. Net margin: 0.1%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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