One-glance verdict
Within fair range
$123.71 our estimate vs market $97.56
Wall Street consensus: $139.13 (12.5% higher than our fair-value estimate)
21% below our estimate
Fundamentals snapshot
Flutter Entertainment plc
FLUT · NYQ · Consumer Cyclical · Gambling
Current price
$97.56
52-week range
$89.71 - $287.44
Market cap
$16.93B
Balance sheet
Distressed
0.94x Concerning
Net debt $10.96B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Revenue grew 16.6% last year.
- Reward Free cash flow was positive in 4/10 years.
- Risk Net debt grew 121.5% over 3 years.
- Risk Return on equity was -7.9% last year — the company lost money on shareholders' equity.
What this company does
Flutter Entertainment plc
Flutter Entertainment is a global company that owns popular online betting brands like FanDuel, PokerStars, and Paddy Power, where people can bet on sports or play digital casino games. It makes money by taking a small percentage of every wager placed on its many websites and apps. This matters because the company's growth depends on more regions legalizing online gambling and its ability to attract new customers to its platforms.
How the company got here
Flutter Entertainment was formed through a series of major deals, not by starting as a single company. It began with the 2016 merger of two rivals: Paddy Power, an Irish bookmaker known for its quirky marketing, and Betfair, a British company that pioneered an online betting exchange (a platform where people can bet against each other). To reflect its growing portfolio of brands, the company renamed itself Flutter Entertainment in 2019. Key acquisitions, like FanDuel in the U.S. and The Stars Group (owner of PokerStars), have since transformed it into the world's largest online betting and gaming company.
What it actually does
Flutter is in the entertainment business, offering millions of customers the chance to bet on sports and play online games like casino slots, poker, and bingo. Most of its business happens online through popular apps and websites, but it also operates hundreds of physical betting shops in the UK and Ireland. The company owns a collection of well-known brands that are tailored to specific countries, such as FanDuel in the United States and Paddy Power in the UK. Flutter's goal is to be the leader in markets where gambling is legal and regulated.
U.S.
This is Flutter's largest and most strategically important division, primarily driven by its FanDuel brand. Customers in states with legalized online gambling use FanDuel to place bets on sports like football and basketball, play daily fantasy sports contests, and gamble in online casinos. This segment has been the company's main growth engine, turning the large existing audience for fantasy sports into customers for real-money sports betting. The U.S. business has become so significant that Flutter moved its primary stock listing to the New York Stock Exchange to be closer to this key market.
UK & Ireland
This is a more mature but still very important part of the company, featuring well-known brands like Sky Betting & Gaming, Paddy Power, Betfair, and the bingo operator Tombola. Customers use these services for online sports betting, casino games, and bingo, and also place bets in hundreds of Paddy Power retail shops. This segment provides a steady stream of cash for the company, which has helped fund growth in other areas like the U.S. It represents a large, established customer base in a region with a long history of legal sports betting.
Australia
In Australia, the business is centered around a single, powerful brand: Sportsbet. Sportsbet is the market leader, offering online sports betting services to Australian customers who wager on a variety of local and international sports. This segment is a strong and profitable part of Flutter's portfolio, demonstrating the company's strategy of owning a leading local brand in a specific market. The focus here is almost entirely on sports wagering, as it is the main legal form of online betting in the country.
International
This division covers a wide range of other countries where Flutter operates, showcasing its global reach. It includes the massive global online poker brand, PokerStars, as well as strong local brands in markets like Italy (Sisal), Serbia (MaxBet), and Georgia (Adjarabet). Customers in these regions use Flutter's brands for everything from sports betting and casino games to online poker tournaments and lotteries. This segment is a collection of diverse businesses that gives the company a foothold in many different regulated markets around the world.
What management is betting on now
The company's main focus is on continuing to grow its highly successful U.S. business, led by FanDuel, as more states legalize online betting and gaming. A key part of their strategy is what they call the "Flutter Edge," which involves using the company's global scale to share technology, expertise, and product ideas across all its different brands to give them a competitive advantage. They also continue to acquire leading local brands in other regulated markets to expand their international footprint. Finally, Flutter is heavily investing in technology and product development to create new and engaging betting experiences for customers, while also emphasizing tools to promote responsible gambling.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$253.00M
FY2024 Q4
$595.00M
FY2025 Q1
$169.00M
FY2025 Q2
$322.00M
FY2025 Q3
$196.00M
FY2025 Q4
$392.00M
FY2026 Q1
$305.00M
FY2026 Q2
$349.00M
Revenue
—
Net income
—
Diluted EPS
-1.57
Operating cash flow
$363.00M
Free cash flow
$349.00M
Fetching…
Sources
Revenue
—
Net income
—
Diluted EPS
1.23
Operating cash flow
$330.00M
Free cash flow
$305.00M
Fetching…
Sources
Revenue
—
Net income
—
Diluted EPS
0.00
Operating cash flow
$428.00M
Free cash flow
$392.00M
Fetching…
Sources
Revenue
—
Net income
—
Diluted EPS
-3.91
Operating cash flow
$209.00M
Free cash flow
$196.00M
Fetching…
Sources
Revenue
—
Net income
—
Diluted EPS
0.59
Operating cash flow
$359.00M
Free cash flow
$322.00M
Fetching…
Sources
Revenue
—
Net income
—
Diluted EPS
1.57
Operating cash flow
$188.00M
Free cash flow
$169.00M
Fetching…
Sources
Revenue
—
Net income
—
Diluted EPS
0.47
Operating cash flow
$652.00M
Free cash flow
$595.00M
Fetching…
Sources
Revenue
—
Net income
—
Diluted EPS
-0.58
Operating cash flow
$290.00M
Free cash flow
$253.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $123.71 vs current price $97.56
Wall Street consensus is the average analyst price target: $139.13 (12.5% higher than our fair-value estimate).
Our most-likely fair value is $123.71 a share — about 26.8% away from today's price of $97.56, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $11.0B. Interest coverage 0.9x.
Net debt
$10.96B
Interest coverage
0.94x
Flutter Entertainment plc's profit covers its interest bill about 0.9 times over. which is stronger than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
FLUT
BASELINE
Flutter Entertainment plc
Total debt $12.58B Interest coverage 0.94x This is the baseline the peer rows are being compared against.
Total debt $1.92B Interest coverage -5.35x -100% vs FLUT This peer has almost no interest-payment cushion compared with FLUT.
Total debt $30.16B Interest coverage 3.19x +239% vs FLUT Carries about 3.4x more debt cushion than FLUT.
Total debt $25.92B Interest coverage 0.89x -5% vs FLUT Has roughly the same debt cushion as FLUT.
Total debt $11.06B Interest coverage 0.67x -29% vs FLUT Carries about 1.4x less debt cushion than FLUT.
What you should know
The case for and against FLUT
2 Rewards
3 Risks
Rewards
-
Revenue grew 16.6% last year.
-
Free cash flow was positive in 4/10 years.
Risks
-
Net debt grew 121.5% over 3 years.
-
Return on equity was -7.9% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from -0.9% to -3.3% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
13.14x
P/B
1.93x
P/S
0.99x
EV/EBITDA
17.96x
PEG ratio
0.19x
Profitability
How much profit each dollar creates
Gross margin
42.5%
Operating margin
-3.3%
Net margin
-4.4%
ROE
-7.9%
ROA
-0.2%
Health
Liquidity and balance-sheet strength
Debt / equity
1.34x
Current ratio
0.89x
Quick ratio
0.42x
Total debt
$12.58B
Total cash
$1.62B
Growth
How the business has been compounding
Revenue TTM
$17.16B
Revenue 5Y CAGR
20.1%
EPS TTM
-4.26
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$1.33B
Free CF TTM
$1.08B
FCF margin
6.3%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2019-09-05