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Flutter Entertainment PLC (FLUT)
NYSE:FLUT
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Flutter Entertainment PLC
(NYSE:FLUT)
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Rating:59Neutral
Price Target:
$265.00
▲(5.56% Upside)
Flutter Entertainment PLC's overall stock score is driven by solid financial performance and positive earnings call highlights, including strong revenue growth and strategic expansions. However, the stock's high valuation and bearish technical indicators significantly weigh down the score. The company faces challenges in net income reduction and tax impacts, which further contribute to a cautious outlook.
Positive Factors
U.S. Market Leadership
Dominance in the U.S. market, especially in iGaming and sportsbook, ensures a strong competitive position and growth potential in a lucrative market.
International Expansion
Strategic acquisitions in Italy and Brazil enhance Flutter's international footprint, providing access to new markets and revenue streams.
New Strategic Partnership
The partnership with Amazon enhances brand visibility and engagement, leveraging Prime Video's reach to expand FanDuel's audience and market influence.
Negative Factors
Significant Net Income Reduction
A sharp decline in net income impacts financial health, limiting reinvestment capacity and potentially affecting shareholder returns.
Challenges with U.S. Tax Changes
New tax changes increase operational costs, potentially reducing profitability and affecting competitive pricing strategies in key markets.
Illinois Wager Fee Impact
The new wager fee in Illinois raises operational expenses, which could pressure margins and affect market competitiveness in the state.
Flutter Entertainment PLC (FLUT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
£44.35B
Dividend YieldN/A
Average Volume (3M)2.52M
Price to Earnings (P/E)124.1
Beta (1Y)1.27
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees27,345
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)2.95
Shares Outstanding176,099,560
10 Day Avg. Volume3,134,316
30 Day Avg. Volume2,517,801
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£336.92Price Target Upside34.21% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering23
Flutter Entertainment PLC Business Overview & Revenue Model
Company DescriptionFlutter Entertainment plc operates as a sports betting and gaming company in the United Kingdom, Ireland, Australia, the United States, and internationally. The company operates through four segments: UK & Ireland, Australia, International, and US. It offers sportsbooks and exchange sports betting products, daily fantasy sports products, and pari-mutuel betting products; fixed odds games betting products; online games and casinos; lottery; peer-to-peer games, including online bingo, rummy, and poker; and business-to-business services. In addition, the company operates HRTV, a horseracing television network. Further, it provides sports betting and gaming services through paddypower.com, betfair.com, sportsbet.com.au, tvg.com, us.betfair.com, fanduel.com, adjarabet.com, pokerstars.com, Skybet.com, tombola.com, and sisal.com websites under the FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, Paddy Power, Sisal, tombola, Betfair, FOX Bet, TVG, Stardust, Junglee Games, and Adjarabet brands, as well as live poker tours and events. The company was formerly known as Paddy Power Betfair plc and changed its name to Flutter Entertainment plc in 2019. The company was incorporated in 1958 and is headquartered in Dublin, Ireland.
How the Company Makes MoneyFlutter Entertainment PLC generates revenue primarily through its diversified portfolio of betting and gaming brands. The company's revenue streams include online sports betting, where customers place bets on sports events through its platforms like FanDuel and Betfair. Another significant source of income is online gaming, which includes casino games and poker through brands such as PokerStars. Additionally, Flutter earns from retail betting shops, mainly under the Paddy Power brand, where customers can place bets in physical locations. The company also benefits from partnerships, such as the collaboration with FOX Corporation for FOX Bet, which helps it expand its reach in the competitive U.S. market. These diverse revenue streams are bolstered by strategic marketing, technology investments, and a commitment to responsible gambling, which collectively enhance customer engagement and loyalty.
Flutter Entertainment PLC Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and strategic achievements, particularly in the U.S. and International markets, as well as successful cost efficiency measures. However, significant challenges were noted in terms of net income reduction and adverse impacts from new U.S. tax changes.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Group revenue increased by 16% and adjusted EBITDA grew 25%, driven by the U.S. business's growth, NSX and Snai acquisitions, and continued International growth. Adjusted earnings per share grew 45%.
U.S. Market Leadership
Flutter maintained its position as the #1 online operator in both sportsbook and iGaming in the U.S., with revenue growth of 17% and exceptional iGaming growth of 42%.
International Expansion Success
Completed Snai and NSX transactions, creating a leadership position in Italy and establishing a scale position in Brazil, with International revenue growing by 15%.
Cost Efficiency Achievements
Successful migrations of PokerStars and Sky Betting & Gaming customers onto shared platforms; expected $300 million savings by 2027.
Positive Strategic Developments
Extended U.S. market access partnership with Boyd, increasing ownership of FanDuel to 100% and securing U.S. state market access on favorable terms.
Negative Updates
Significant Net Income Reduction
Net income reduced by 88% year-over-year due to increased noncash charges, largely related to the Fox Option valuation and amortization of acquired intangibles.
Illinois Wager Fee Impact
Introduction of a $0.50 fee on each bet placed in Illinois due to a new wager fee, significantly increasing operating costs in the state.
Challenges with U.S. Tax Changes
A $40 million adverse impact from U.S. tax changes in Illinois, Louisiana, and New Jersey expected, partially mitigated by Boyd market access savings.
Company Guidance
During Flutter Entertainment's Q2 2025 update call, the company provided an optimistic outlook for the remainder of the year, raising its full-year adjusted EBITDA guidance to $3.295 billion, reflecting a 40% year-over-year growth. The group reported a 16% increase in revenue and a 25% rise in adjusted EBITDA for the quarter. Despite an 88% year-over-year reduction in net income due to increased noncash charges, cash from operating activities increased by $36 million. Notable developments included a U.S. market access agreement extension with Boyd, securing 100% ownership of FanDuel, and entry into Italy and Brazil through Snai and NSX acquisitions. The U.S. market saw revenue grow by 17%, with iGaming revenue up 42% and sportsbook growth of 11%, while internationally, revenue grew by 15% supported by recent acquisitions. Flutter also highlighted its strategic focus on cost efficiency, expecting $300 million in savings by 2027, and maintained its commitment to returning up to $5 billion to shareholders over 3-4 years.Flutter Entertainment PLC Financial Statement Overview
Summary
Flutter Entertainment PLC demonstrates solid revenue growth and operational efficiency, with improving profitability metrics. The balance sheet shows moderate leverage and improving return on equity, while cash flow generation remains strong despite a recent decline in free cash flow growth. Overall, the company is on a positive trajectory but should focus on enhancing net profitability and managing leverage.Income Statement
Flutter Entertainment PLC has shown consistent revenue growth, with a 4.02% increase in the TTM period. The gross profit margin is stable at 47.55%, indicating efficient cost management. However, the net profit margin remains low at 4.33%, suggesting challenges in translating revenue growth into net income. The EBIT and EBITDA margins have improved, reflecting better operational efficiency.72
Positive
Balance Sheet
The company's debt-to-equity ratio of 0.75 indicates moderate leverage, which is manageable but should be monitored. Return on equity has improved to 6.31%, showing better utilization of equity. The equity ratio stands at 34.21%, suggesting a balanced capital structure with room for improvement in equity financing.65
Positive
Cash Flow
Operating cash flow to net income ratio is healthy at 0.33, indicating strong cash generation relative to net income. However, free cash flow growth has declined by 1.51% in the TTM period, which could impact future investments. The free cash flow to net income ratio of 0.58 suggests adequate cash flow coverage.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.89B | 14.05B | 11.79B | 9.46B | 8.31B | 6.04B |
| Gross Profit | 6.99B | 6.70B | 5.59B | 4.65B | 4.43B | 3.93B |
| EBITDA | 2.01B | 1.61B | 653.00M | 987.00M | 561.00M | 1.18B |
| Net Income | 335.00M | 109.00M | -1.22B | -432.00M | -923.00M | 51.83M |
Balance Sheet | ||||||
| Total Assets | 29.87B | 24.51B | 24.64B | 24.77B | 22.68B | 23.23B |
| Cash, Cash Equivalents and Short-Term Investments | 3.47B | 3.59B | 3.42B | 2.70B | 2.31B | 1.74B |
| Total Debt | 10.56B | 7.28B | 7.53B | 7.24B | 5.19B | 4.52B |
| Total Liabilities | 17.23B | 13.24B | 13.27B | 12.27B | 8.77B | 8.20B |
| Stockholders Equity | 10.21B | 9.29B | 10.04B | 12.35B | 13.86B | 14.99B |
Cash Flow | ||||||
| Free Cash Flow | 970.00M | 941.00M | 344.10M | 558.14M | 339.44M | 920.64M |
| Operating Cash Flow | 1.49B | 1.60B | 937.00M | 1.03B | 736.87M | 1.21B |
| Investing Cash Flow | -3.34B | -811.00M | -602.00M | -2.76B | -324.97M | -1.79B |
| Financing Cash Flow | 2.02B | -469.00M | -113.00M | 1.87B | 79.35M | 1.24B |
Flutter Entertainment PLC Technical Analysis
Negative
251.04
Price Trends
277.33
Negative
280.10
Negative
264.81
Negative
Market Momentum
-8.36
Negative
39.88
Neutral
78.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLUT, the sentiment is Negative. The current price of 251.04 is below the 20-day moving average (MA) of 255.41, below the 50-day MA of 277.33, and below the 200-day MA of 264.81, indicating a bearish trend. The MACD of -8.36 indicates Negative momentum. The RSI at 39.88 is Neutral, neither overbought nor oversold. The STOCH value of 78.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLUT.
Flutter Entertainment PLC Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $6.27B | 47.33 | 21.44% | 2.25% | 26.85% | 1963.28% | |
69 Neutral | $6.27B | 22.63 | 97.52% | 3.33% | 7.47% | 2.58% | |
65 Neutral | $4.30B | 93.35 | 27.07% | ― | 26.99% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | £44.35B | 124.06 | 3.76% | ― | ― | ― | |
50 Neutral | $29.89B | ― | -26.38% | ― | 25.80% | 27.64% | |
45 Neutral | $2.49B | ― | -2.50% | ― | 7.34% | 93.83% |
* Consumer Cyclical Sector Average
FLUT
Flutter Entertainment PLC
251.04
22.04
9.62%
PENN
PENN Entertainment
17.46
-1.16
-6.23%
RRR
Red Rock Resorts
60.12
11.86
24.58%
DKNG
DraftKings
33.62
-2.98
-8.14%
RSI
Rush Street Interactive
18.77
8.03
74.77%
SGHC
Super Group (SGHC)
11.99
8.01
201.26%
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.