FuboTV Inc (FUBO, Financial) has experienced a notable shift in its stock performance recently. With a market capitalization of $1.03 billion and a current price of $3.53, the company has seen a 7.79% gain over the past week. However, the past three months have painted a different picture, with a 25.28% loss in stock value. This volatility in stock price is reflected in the company's GF Value, which currently stands at $3.95, indicating that the stock is modestly undervalued. This is a significant change from the past GF Value of $10.53, which suggested that investors should think twice as the stock might have been a possible value trap.
Introduction to FuboTV Inc
FuboTV Inc operates within the diversified media industry, focusing on sports-first live TV streaming. The company's platform, FuboTV, offers subscribers a vast array of live sporting events, news, and entertainment content. It caters to a diverse audience by providing customizable features and additional content options. FuboTV's streaming services are accessible on various devices, including SmartTVs, mobile phones, tablets, and computers. The company's primary operating segment is Streaming, with a business presence in the U.S. and internationally.
Assessing FuboTV's Profitability
FuboTV's Profitability Rank is currently at 1/10, which is quite low and suggests challenges in maintaining profitability. The company's Operating Margin stands at -24.36%, which, while not ideal, is better than 17.74% of 1,037 companies in the same industry. Its ROE is at a concerning -87.93%, although it is still better than 4.67% of 985 companies. The ROA of -29.29% and ROIC of -32.70% also indicate that the company is struggling to generate cash flow relative to the capital invested. Over the past 10 years, FuboTV has only managed to be profitable for one year, which is better than 7.59% of 975 companies.
Growth Trajectory of FuboTV
Despite the profitability concerns, FuboTV's growth metrics are impressive. The company's 3-Year Revenue Growth Rate per Share is an astounding 206.50%, outperforming 99.48% of 955 companies in the industry. The estimated Total Revenue Growth Rate for the next 3 to 5 years is 23.82%, which is also higher than 97.78% of 135 companies. However, the 3-Year EPS without NRI Growth Rate is at -27.40%, and the 5-Year EPS without NRI Growth Rate is at 7.30%, indicating some inconsistency in earnings growth.
Key Shareholders in FuboTV
Notable investors have taken an interest in FuboTV. Jim Simons (Trades, Portfolio) holds 1,090,351 shares, representing 0.37% of the company, while Paul Tudor Jones (Trades, Portfolio) owns 526,236 shares, accounting for 0.18%. Jefferies Group (Trades, Portfolio) holds a smaller stake with 35,154 shares, equating to 0.01% of FuboTV.
Competitive Landscape
When compared to its competitors, FuboTV stands out with its $1.03 billion market cap. Gray Television Inc (GTN.A, Financial) has a market cap of $817.615 million, The E W Scripps Co (SSP, Financial) at $652.424 million, and iHeartMedia Inc (IHRT, Financial) at $419.983 million. These figures highlight FuboTV's stronger market position relative to these specific competitors within the media industry.
Conclusion
In summary, FuboTV Inc's current market performance and valuation suggest a company that is modestly undervalued with significant growth potential. However, its profitability remains a concern, with several key financial metrics indicating that the company is not yet generating sustainable profits. The company's impressive revenue growth and the interest of significant shareholders like Jim Simons (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) may provide some optimism for the future. When compared to its competitors, FuboTV's higher market capitalization suggests a competitive edge in the media industry. Investors should weigh these factors carefully when considering FuboTV as a potential addition to their portfolios.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
