Live Nation Entertainment (LYV) AI Stock Analysis

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Live Nation Entertainment

(NYSE:LYV)

73Outperform

Live Nation Entertainment's strong financial performance, particularly in profitability and cash flow generation, underpins its solid stock score. While the valuation appears high, the company's growth prospects, as highlighted in the earnings call, and positive technical indicators provide a balanced outlook. The high leverage remains a notable risk, but the strategic expansions and concert activity growth suggest resilience and potential for future value creation.

Positive Factors

Regulatory Environment

The recent House passage of the TICKET act is a positive for Live Nation despite aggressive lobbying by secondary market operators.

Technology and Innovation

Ticketmaster's leading technology stack, including anti-bot systems like Verified Fans, is integral to addressing secondary market malfeasance.

Negative Factors

Consumer Perception

Many consumers will blame Ticketmaster for high concert prices, even in the secondary market where it does not participate.

Regulatory Challenges

The executive action is not a full solution for Ticketmaster challenges given the continuing DOJ antitrust lawsuit potentially requiring the separation of Ticketmaster from Live Nation.

Live Nation Entertainment (LYV) vs. S&P 500 (SPY)

Market Cap

$32.96B

Dividend YieldN/A

Average Volume (3M)2.38M

Price to Earnings (P/E)49.8

Beta (1Y)1.15

Revenue Growth-2.92%

EPS Growth166.63%

CountryUS

Employees16,200

SectorCommunication Services

Sector Strength84

IndustryEntertainment

Share Statistics

EPS (TTM)-0.32

Shares Outstanding231,771,790

10 Day Avg. Volume2,135,259

30 Day Avg. Volume2,375,730

Financial Highlights & Ratios

PEG Ratio-8.72

Price to Book (P/B)297.81

Price to Sales (P/S)0.00

P/FCF Ratio23.17

Enterprise Value/Market Cap0.99

Enterprise Value/Revenue0.35

Enterprise Value/Gross Profit5.78

Enterprise Value/Ebitda4.68

Forecast

1Y Price Target

$165.94

Price Target Upside14.11% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering16

Live Nation Entertainment Business Overview & Revenue Model

Company DescriptionLive Nation Entertainment, Inc. is a leading global entertainment company, primarily operating in the live events industry. It is involved in the promotion and management of live concerts, the production and sale of tickets, and the operation of entertainment venues. Live Nation Entertainment is composed of three main sectors: Concerts, Ticketmaster, and Sponsorship & Advertising. Through its extensive portfolio of artists, venues, and partnerships, the company plays a pivotal role in the live music and events market, delivering memorable experiences to millions of fans worldwide.

How the Company Makes MoneyLive Nation Entertainment generates revenue through multiple streams, primarily driven by its Concerts, Ticketmaster, and Sponsorship & Advertising segments. The Concerts segment is a major revenue driver, earning money from the sale of tickets to live events, merchandise, and concessions. This includes hosting and promoting concerts, festivals, and other live performances. Ticketmaster, a subsidiary of Live Nation, acts as a ticketing agent for various events, earning revenue through service fees charged on ticket sales. Additionally, Live Nation capitalizes on its scale and influence through Sponsorship & Advertising, partnering with brands to create marketing opportunities and exclusive sponsorship deals. These partnerships provide an additional revenue stream by leveraging the company's access to large, engaged audiences. The diversified nature of these revenue streams helps Live Nation maintain a robust financial position in the entertainment industry.

Live Nation Entertainment Key Performance Indicators (KPIs)

Any

Tickets Sold

Tickets Sold
Measures the volume of ticket sales, indicating demand for events and the company's ability to attract audiences, which impacts revenue and market position.

Chart InsightsLive Nation's ticket sales have rebounded strongly from the pandemic lows, with a consistent upward trend since 2021. The latest earnings call highlights a 12% increase in concert activity through Ticketmaster, despite a dip in Q1 revenue. The company anticipates significant fan growth in the latter half of the year, supported by international expansion and strategic acquisitions like Hayashi in Japan. Although Ticketmaster faces revenue challenges and FX impacts, deferred revenue growth and a focus on affordability suggest a positive outlook for future performance.

Data provided by:

Main Street Data

Live Nation Entertainment Financial Statement Overview

Summary

Live Nation Entertainment shows strong profitability and robust cash flow generation, despite challenges in revenue growth and a high leverage profile. The efficient use of equity and solid cash flow metrics indicate a strong financial position, albeit with potential risks due to high debt levels.

Income Statement

Positive

Live Nation Entertainment shows strong profitability with a gross profit margin of 34.8% and a net profit margin of 4.3% in TTM (Trailing-Twelve-Months). The company has experienced a revenue decline of 1.8% from the previous year, which indicates some challenges in maintaining growth. However, the EBIT margin of 4.3% and EBITDA margin of 7.5% suggest operational efficiency.

Balance Sheet

Positive

The company's debt-to-equity ratio is high at 22.31, indicating significant leverage which could pose financial risk. However, a positive return on equity of 918.9% reflects efficient use of equity. The equity ratio is low at 0.5%, suggesting reliance on external financing.

Cash Flow

Very Positive

Live Nation's cash flow is robust, with a free cash flow growth rate of 30.0% TTM. The operating cash flow to net income ratio is favorable at 2.11, indicating strong cash generation relative to profits. The free cash flow to net income ratio is 1.40, underscoring healthy cash conversion.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
22.74B	23.16B	22.75B	16.68B	6.27B	1.86B
	Gross Profit
5.67B	5.83B	5.46B	4.34B	1.91B	458.78M
	EBIT
980.67M	824.51M	1.07B	732.12M	-413.62M	-1.65B
	EBITDA
1.72B	1.70B	1.85B	1.21B	45.33M	-1.12B
	Net Income Common Stockholders
973.97M	896.29M	563.28M	409.19M	-608.79M	-1.83B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.16B	6.10B	6.23B	5.61B	4.88B	2.54B
	Total Assets
21.83B	19.64B	19.07B	16.46B	14.40B	10.59B
	Total Debt
8.29B	8.27B	8.44B	7.70B	7.46B	6.46B
	Net Debt
1.14B	2.18B	2.21B	2.09B	2.58B	3.92B
	Total Liabilities
19.72B	17.69B	17.59B	15.70B	14.04B	10.45B
	Stockholders Equity
106.00M	173.26M	-17.15M	-367.57M	-582.65M	-471.77M
Cash Flow		Free Cash Flow
1.37B	1.05B	895.54M	1.48B	1.62B	-1.31B
	Operating Cash Flow
2.06B	1.73B	1.37B	1.83B	1.78B	-1.08B
	Investing Cash Flow
-861.79M	-854.28M	-695.80M	-784.69M	-566.96M	-224.06M
	Financing Cash Flow
-353.38M	-658.55M	-87.28M	-143.34M	1.17B	1.35B

Live Nation Entertainment Technical Analysis

Technical Analysis Sentiment

Positive

Last Price145.42

Price Trends

50DMA

128.91

Positive

100DMA

134.59

Positive

200DMA

123.71

Positive

Market Momentum

MACD

3.52

Negative

RSI

69.97

Neutral

STOCH

92.28

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LYV, the sentiment is Positive. The current price of 145.42 is above the 20-day moving average (MA) of 134.31, above the 50-day MA of 128.91, and above the 200-day MA of 123.71, indicating a bullish trend. The MACD of 3.52 indicates Negative momentum. The RSI at 69.97 is Neutral, neither overbought nor oversold. The STOCH value of 92.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LYV.

Live Nation Entertainment Risk Analysis

Live Nation Entertainment disclosed 25 risk factors in its most recent earnings report. Live Nation Entertainment reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Live Nation Entertainment Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOXA	81 Outperform	$23.60B	13.59	16.89%	0.99%	15.70%	26.73%
DIS	78 Outperform	$203.04B	23.07	8.75%	0.85%	5.33%	431.28%
LYV	73 Outperform	$32.96B	49.79	827.53%	―	-2.92%	166.63%
WMG	66 Neutral	$14.21B	31.68	89.20%	2.58%	-0.91%	-14.87%
Sector *	60 Neutral	$14.09B	6.86	-3.35%	3.70%	2.42%	-36.28%
SIRI	54 Neutral	$7.39B	―	-37.30%	4.79%	-4.08%	-248.39%
WBD	53 Neutral	$22.79B	―	-27.69%	―	-5.58%	-254.85%

* Communication Services Sector Average

Performance Comparison

LYV

Live Nation Entertainment

147.68

51.09

52.89%

SIRI

Sirius XM Holdings

22.73

-6.13

-21.24%

DIS

Walt Disney

113.42

11.10

10.85%

FOXA

Fox Corporation Class A

56.08

23.60

72.66%

WMG

Warner Music Group

27.69

-3.65

-11.65%

WBD

Warner Bros

9.16

1.11

13.79%

Live Nation Entertainment Earnings Call Summary

Earnings Call Date:May 01, 2025

(Q1-2025)

% Change Since: 10.72%|

Next Earnings Date:Aug 05, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a mixed outlook with strong growth in concerts and international expansion but challenges in Ticketmaster's revenue and FX impacts. The deferred revenue and sponsorship growth are positive signs for future performance.

Q1-2025 Updates

Positive Updates

Strong Concert Activity

Live Nation concerts through Ticketmaster were up 12% year-on-year, and overall concerts were up 4%. The company expects two-thirds of the Live Nation concert fan growth to occur in the second half of the year.

Deferred Revenue Growth

Deferred revenue for Ticketmaster increased by 13% for the quarter, indicating strong future revenue potential as events are scheduled for later in the year.

Successful International Expansion

Live Nation completed the acquisition of Hayashi, a key player in Japan, allowing them to directly promote in Japan, a major market.

Venue Nation Growth

Expectations for double-digit growth in fans at Venue Nation venues, with four new venues opening by the end of the year.

Continued Sponsorship Growth

Over 80% of sponsorship business is contracted for the year, showing growth over the previous year.

Negative Updates

Ticketmaster Revenue Decline

Ticketmaster reported a decline in revenue and AOI despite high ticketing activity, due to timing of ticket sales and international market factors.

Foreign Exchange Impact

FX headwinds, particularly in Mexico and Latin America, have impacted Ticketmaster, with a significant portion of the company’s FX headwinds occurring in Q1.

Non-Concert Activity Decline

Non-concert categories such as sports, arts, and family events experienced a 9% decline in activity.

Company Guidance

During Live Nation's First Quarter 2025 Earnings Call, the company provided guidance indicating a robust outlook for the remainder of the year, despite a dip in Ticketmaster's Q1 revenue and AOI. Live Nation's concert activity showed a 12% year-on-year increase in Live Nation concerts through Ticketmaster, although other promoters and non-concert activities saw declines. Deferred revenue for Ticketmaster grew 13%, signaling anticipated future revenue recognition. The company expects a significant portion of fan growth to occur in the second half of the year, with two-thirds of Live Nation concert fan growth expected during this period. Concert margins are projected to remain flat for 2025, leveraging increased volume and scale, particularly through Venue Nation's expansion. The company remains confident in its pricing strategy, which balances maximizing revenue and maintaining affordability, with an 8% decline in the average get-in price for stadiums reflecting efforts to manage affordability. Additionally, Live Nation continues to advocate for better enforcement of the BOTS Act to improve ticketing transparency and reduce the impact of scalpers. Overall, the company remains optimistic about its prospects, buoyed by strong demand trends and strategic developments such as the acquisition of Hayashi in Japan, despite regulatory challenges.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.