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-4.7%
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-4.7%
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 Debt-28.3 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$26M
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
F
Price-to-Book19.15x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
A
Free Cash Flow$68M
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.
Owner Earnings$56M
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.
About DraftKings Inc.
DraftKings Inc. operates as a digital sports entertainment and gaming company in the United States and internationally. The company offers online and retail sports betting, daily fantasy sports, digital lottery couriers, prediction markets, and other products, as well as retails sportsbooks. It also provides iGaming, or online casino products, which includes blackjack, roulette, baccarat and slot machines. In addition, the company engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators. DraftKings Inc. was founded in 2011 and is headquartered in Boston, Massachusetts.
DraftKings Inc. operates as a digital sports entertainment and gaming company in the United States and internationally. The company offers online and retail sports betting, daily fantasy sports, digital lottery couriers, prediction markets, and other products, as well as retails sportsbooks. It also provides iGaming, or online casino products, which includes blackjack, roulette, baccarat and slot machines. In addition, the company engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators. DraftKings Inc. was founded in 2011 and is headquartered in Boston, Massachusetts.
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.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
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.
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.
Net Income From Continuing Operation Net Minority Interest
-67,610
136,426
Reconciled Depreciation
80,342
74,002
Reconciled Cost Of Revenue
891,782
1,074,506
EBITDA
12,168
225,762
EBIT
-68,174
151,760
Net Interest Income
-7,434
-5,428
Interest Expense
760
Interest Income
8,780
Normalized Income
-67,610
132,823
Net Income From Continuing And Discontinued Operation
-67,610
136,426
Total Expenses
1,511,409
1,837,433
Total Operating Income As Reported
-68,174
151,760
Diluted Average Shares
496,100
545,704
Basic Average Shares
482,929
532,000
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
-67,610
128,683
Average Dilution Earnings
Net Income Common Stockholders
-67,610
128,683
Net Income
-67,610
136,426
Net Income Including Noncontrolling Interests
-67,610
136,426
Net Income Continuous Operations
-67,610
136,426
Earnings From Equity Interest Net Of Tax
2,451
-450
Tax Provision
-1,797
10,149
Pretax Income
-71,858
147,025
Other Income Expense
3,750
693
Other Non Operating Income Expenses
3,750
-3,177
Gain On Sale Of Security
3,870
3,337
Net Non Operating Interest Income Expense
-7,434
-5,428
Total Other Finance Cost
7,434
5,428
Interest Expense Non Operating
760
Interest Income Non Operating
8,780
Operating Income
-68,174
151,760
Operating Expense
619,627
762,927
Research And Development
127,649
133,555
Selling General And Administration
491,978
629,372
Selling And Marketing Expense
322,536
442,643
General And Administrative Expense
169,442
186,729
Other Gand A
169,442
186,729
Gross Profit
551,453
914,687
Cost Of Revenue
891,782
1,074,506
Total Revenue
1,443,235
1,989,193
Operating Revenue
1,353,813
1,851,325
Balance Sheet
2026
2025
2024
Treasury Shares Number
38,243
Ordinary Shares Number
495,978
495,053
Share Issued
495,978
533,296
Net Debt
851,113
708,095
Total Debt
1,916,009
1,889,826
Tangible Book Value
-1,865,660
-1,855,387
Invested Capital
2,404,423
2,467,101
Working Capital
26,335
59,538
Net Tangible Assets
-1,865,660
-1,855,387
Capital Lease Obligations
81,014
54,186
Common Stock Equity
569,428
631,461
Total Capitalization
2,404,423
2,467,101
Total Equity Gross Minority Interest
569,428
631,461
Stockholders Equity
569,428
631,461
Gains Losses Not Affecting Retained Earnings
36,488
36,488
Other Equity Adjustments
36,488
36,488
Treasury Stock
1,590,131
1,392,433
Retained Earnings
-6,484,058
-6,437,518
Additional Paid In Capital
8,607,037
8,424,833
Capital Stock
92
91
Common Stock
92
91
Total Liabilities Net Minority Interest
3,707,951
3,899,323
Total Non Current Liabilities Net Minority Interest
2,157,263
2,143,852
Other Non Current Liabilities
150,030
172,203
Derivative Product Liabilities
0
22,033
Tradeand Other Payables Non Current
100,959
91,618
Long Term Debt And Capital Lease Obligation
1,906,274
1,880,031
Long Term Capital Lease Obligation
71,279
44,391
Long Term Debt
1,834,995
1,835,640
Current Liabilities
1,550,688
1,755,471
Other Current Liabilities
851,706
960,235
Current Deferred Liabilities
56,433
46,390
Current Deferred Revenue
56,433
46,390
Current Debt And Capital Lease Obligation
9,735
9,795
Current Capital Lease Obligation
9,735
9,795
Pensionand Other Post Retirement Benefit Plans Current
101,849
87,192
Payables And Accrued Expenses
689,247
627,159
Current Accrued Expenses
388,103
343,600
Payables
239,056
184,063
Total Tax Payable
171,196
130,401
Accounts Payable
67,860
53,662
Total Assets
4,277,379
4,530,784
Total Non Current Assets
2,700,356
2,715,775
Other Non Current Assets
105,470
109,098
Investments And Advances
30,312
18,938
Long Term Equity Investment
30,312
18,938
Goodwill And Other Intangible Assets
2,435,088
2,486,848
Other Intangible Assets
837,441
889,201
Goodwill
1,597,647
1,597,647
Net PPE
129,486
100,891
Accumulated Depreciation
-104,801
-88,367
Gross PPE
129,486
205,692
Leases
61,517
56,346
Other Properties
129,486
49,810
Machinery Furniture Equipment
94,365
82,571
Current Assets
1,577,023
1,815,009
Other Current Assets
107,436
104,837
Restricted Cash
403,626
477,050
Receivables
82,079
105,577
Accounts Receivable
82,079
105,577
Cash Cash Equivalents And Short Term Investments
983,882
1,127,545
Cash And Cash Equivalents
983,882
1,127,545
Cash Flow
2026
2025
2024
Free Cash Flow
67,926
275,182
Repurchase Of Capital Stock
-74,755
-381,854
Repayment Of Debt
-1,500
-1,500
Capital Expenditure
-43,512
-45,291
Interest Paid Supplemental Data
9,400
9,251
Income Tax Paid Supplemental Data
2,028
End Cash Position
1,387,508
1,604,595
Beginning Cash Position
1,386,820
1,708,187
Changes In Cash
688
-103,592
Financing Cash Flow
-65,516
-374,177
Cash Flow From Continuing Financing Activities
-65,516
-374,177
Net Other Financing Charges
-508
Proceeds From Stock Option Exercised
752
-5,558
Net Common Stock Issuance
-64,768
-366,611
Common Stock Payments
-74,755
-381,854
Net Issuance Payments Of Debt
-1,500
-1,500
Net Long Term Debt Issuance
-1,500
-1,500
Long Term Debt Payments
-1,500
-1,500
Investing Cash Flow
-45,234
-49,888
Cash Flow From Continuing Investing Activities
-45,234
-49,888
Net Other Investing Changes
-1,722
11,784
Net Business Purchase And Sale
-16,381
-48,986
Purchase Of Business
-16,381
-48,986
Net Intangibles Purchase And Sale
-38,926
-41,335
Purchase Of Intangibles
-38,926
-41,335
Net PPE Purchase And Sale
-4,586
-3,956
Purchase Of PPE
-4,586
-3,956
Operating Cash Flow
111,438
320,473
Cash Flow From Continuing Operating Activities
111,438
320,473
Change In Working Capital
21,102
20,687
Change In Other Working Capital
-15
Change In Other Current Liabilities
26,731
-87,883
Change In Payables And Accrued Expense
-6,691
80,769
Change In Payable
-6,691
80,769
Change In Account Payable
-14,747
77,194
Change In Tax Payable
8,056
3,575
Change In Income Tax Payable
8,056
3,575
Change In Prepaid Assets
-2,978
13,760
Change In Receivables
4,040
14,041
Changes In Account Receivables
4,040
-40,022
Other Non Cash Items
-2,499
-215
Stock Based Compensation
82,554
103,291
Deferred Tax
0
-14,704
Deferred Income Tax
0
-14,704
Depreciation Amortization Depletion
80,342
74,002
Depreciation And Amortization
80,342
74,002
Operating Gains Losses
-2,451
986
Earnings Losses From Equity Investments
-2,451
450
Gain Loss On Investment Securities
536
9,603
Gain Loss On Sale Of Business
0
48
Net Income From Continuing Operations
-67,610
136,426
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $1.5B▼ $1.4B-4.6%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 43.5%▼ 38.2%-5.3pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: -4.5%▼ -4.7%-0.2pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 10.4%▼ -4.7%-15.1pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$1.4B/qtr (≈$5.8B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
1.02x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$68M
vs Positive
Operating Cash Flow
$111M
Latest quarter · Buffett's cash reality check
ROIC
-2.0%
Based on latest annual operating income
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.
Market Cap / Net Assets
19.2x
Net Assets: $569M
⚠️Net margin compressed 15.1pp vs same quarter last year. Common causes: one-time charges (restructuring, write-downs, legal settlements), tax rate changes, or rising interest expense. Check the income statement notes before drawing conclusions about operating health.
Peers & Industry
No auto-detected peers for Gambling. 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
Capital Allocation & Alignment
Insider Ownership
8.62%
Moderate — some alignment with shareholders
Return on Equity (ROE)
-11.9%
Weak — poor returns on equity
Return on Assets (ROA)
-1.6%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$829M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
-0.1% YoY
Debt is declining — management is deleveraging
Leadership Team
Jason Robins
Co-Founder, Chairman & CEO
Age 44
Pay: $3,418,269
Paul Liberman
Co-Founder, President of Operations and Director
Age 41
Pay: $1,055,605
Matthew Kalish
Co-Founder & Director
Age 43
Pay: $925,657
Alan Ellingson
CFO, Principal Financial Officer & Principal Accounting Officer
Age 45
Pay: $425,925
Top Institutional Holders
Institution
% Owned
Shares
CIBC Bancorp USA Inc.
7.52%
37,316,338
AQR Capital Management, LLC
5.98%
29,668,081
Jupiter Topco LLC
5.09%
25,274,243
Capital World Investors
5.00%
24,798,304
Blackrock Inc.
4.62%
22,955,769
Vanguard Capital Management LLC
4.35%
21,574,923
Vanguard Portfolio Management LLC
3.87%
19,194,063
NORGES BANK
2.39%
11,848,138
⚠️Very high debt-to-equity — leverage risk
Risk Analysis
Beta (Market Risk)
1.63
High volatility — moves more than the market
Short Interest
7.9% of float
Moderate short interest
Debt-to-Equity
3.36x
High leverage — significant financial risk
Current Ratio
1.02x
Adequate liquidity
52-Week Price Range
Low: $20.46Current: $21.97High: $44.22
Currently at 6% of 52-week range
DraftKings Inc. (DKNG) fundamental analysis — Overall grade F based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A (negative EPS). Gross profit margin: 38.2%. Operating margin: -4.7%. Net margin: -4.7%. Market cap: $10.9B. Sector: Consumer Cyclical. Industry: Gambling. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
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