DB:3LN

Stock Analysis Report

Live Nation Entertainment

Executive Summary

Live Nation Entertainment, Inc. operates as a live entertainment company.


Snowflake Analysis

High growth potential with acceptable track record.


Similar Companies

Share Price & News

How has Live Nation Entertainment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3LN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.8%

3LN

2.5%

DE Entertainment

1.7%

DE Market


1 Year Return

38.6%

3LN

38.3%

DE Entertainment

15.0%

DE Market

Return vs Industry: 3LN matched the German Entertainment industry which returned 38.3% over the past year.

Return vs Market: 3LN exceeded the German Market which returned 15% over the past year.


Shareholder returns

3LNIndustryMarket
7 Day3.8%2.5%1.7%
30 Day-1.5%1.4%0.8%
90 Day14.4%9.8%3.7%
1 Year38.6%38.6%40.1%38.3%18.5%15.0%
3 Year147.9%147.9%45.1%38.6%17.1%6.9%
5 Year200.6%200.6%109.5%92.8%24.3%7.3%

Price Volatility Vs. Market

How volatile is Live Nation Entertainment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Live Nation Entertainment undervalued compared to its fair value and its price relative to the market?

1724.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 3LN (€67.5) is trading above our estimate of fair value (€50.2)

Significantly Below Fair Value: 3LN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3LN is poor value based on its PE Ratio (1724.4x) compared to the Entertainment industry average (44.6x).

PE vs Market: 3LN is poor value based on its PE Ratio (1724.4x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: 3LN is poor value based on its PEG Ratio (36.4x)


Price to Book Ratio

PB vs Industry: 3LN is overvalued based on its PB Ratio (12.1x) compared to the DE Entertainment industry average (1.5x).


Next Steps

Future Growth

How is Live Nation Entertainment forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

47.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3LN's forecast earnings growth (47.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: 3LN's earnings (47.3% per year) are forecast to grow faster than the German market (13.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 3LN's revenue (8.7% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 3LN's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3LN's Return on Equity is forecast to be high in 3 years time (26.1%)


Next Steps

Past Performance

How has Live Nation Entertainment performed over the past 5 years?

21.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3LN has high quality earnings.

Growing Profit Margin: 3LN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 3LN has become profitable over the past 5 years, growing earnings by 21.8% per year.

Accelerating Growth: 3LN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 3LN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Entertainment industry (26.4%).


Return on Equity

High ROE: 3LN's Return on Equity (6.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Live Nation Entertainment's financial position?


Financial Position Analysis

Short Term Liabilities: 3LN's short term assets ($3.8B) do not cover its short term liabilities ($4.0B).

Long Term Liabilities: 3LN's short term assets ($3.8B) do not cover its long term liabilities ($4.1B).


Debt to Equity History and Analysis

Debt Level: 3LN's debt to equity ratio (142.1%) is considered high.

Reducing Debt: 3LN's debt to equity ratio has increased from 118.3% to 142.1% over the past 5 years.


Balance Sheet

Inventory Level: 3LN has a high level of physical assets or inventory.

Debt Coverage by Assets: 3LN's debt is covered by short term assets (assets are 1.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 3LN is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 3LN is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Live Nation Entertainment's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage1.1%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 3LN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 3LN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 3LN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3LN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 3LN's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

12.2yrs

Average management tenure


CEO

Michael Rapino (53yo)

14.5yrs

Tenure

US$11,591,603

Compensation

Mr. Michael Rapino has been the Chief Executive Officer and President of Live Nation Entertainment, Inc. since August 2005. Mr. Rapino serves as Chief Executive Officer and President at Live Nation Merchan ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD11.59M) is above average for companies of similar size in the German market ($USD4.37M).

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Rapino
President14.5yrsUS$11.59m1.12% $161.6m
Joe Berchtold
President2.2yrsUS$4.01m0.40% $56.9m
Elizabeth Willard
Chief Financial Officer12.4yrsUS$2.92m0.11% $16.0m
Brian Capo
Chief Accounting Officer & Senior VP12.2yrsUS$582.08k0.0039% $563.9k
Michael Rowles
Executive VP13.9yrsUS$2.03m0.089% $12.7m
Maili Bergman
Senior Vice President of Investor Relations0yrsno datano data
Carrie Davis
Chief Communications Officer4.4yrsno datano data
Amy Marks
Executive VP & Head of Integrated Marketing1.5yrsno datano data
Mark Campana
Chief Operating Officer of US Concerts0yrsno datano data
Michelle St. John
Senior Vice President of Field Services - Los Angeles0yrsno datano data

12.2yrs

Average Tenure

53yo

Average Age

Experienced Management: 3LN's management team is seasoned and experienced (12.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Rapino
President14.5yrsUS$11.59m1.12% $161.6m
Randall Mays
Independent Director15.1yrsUS$262.70k0.064% $9.2m
James Kahan
Independent Director12.4yrsUS$265.70k0.041% $6.0m
Jeffrey Hinson
Independent Director14.2yrsUS$283.70k0.032% $4.5m
Gregory Maffei
Non-Executive Chairman of the Board6.9yrsUS$393.25k0.042% $6.1m
Robert Enloe
Independent Director13.2yrsUS$274.70k0.0059% $848.8k
Ariel Emanuel
Independent Director12.4yrsUS$253.70k0.035% $5.0m
Mark Carleton
Director10.1yrsUS$244.70k0.023% $3.4m
Mark Shapiro
Independent Director11.3yrsUS$259.70k0.019% $2.7m
James Iovine
Independent Director5.2yrsUS$252.20k0.012% $1.7m

12.4yrs

Average Tenure

59yo

Average Age

Experienced Board: 3LN's board of directors are seasoned and experienced ( 12.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Live Nation Entertainment, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Live Nation Entertainment, Inc.
  • Ticker: 3LN
  • Exchange: DB
  • Founded: 2005
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: US$15.598b
  • Listing Market Cap: US$14.386b
  • Shares outstanding: 210.73m
  • Website: https://www.livenationentertainment.com

Number of Employees


Location

  • Live Nation Entertainment, Inc.
  • 9348 Civic Center Drive
  • Beverly Hills
  • California
  • 90210
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LYVNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2005
3LNDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2005
0JVDLSE (London Stock Exchange)YesCommon StockGBUSDDec 2005
LYV *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 2005

Biography

Live Nation Entertainment, Inc. operates as a live entertainment company. It operates through Concerts, Sponsorship & Advertising, and Ticketing segments. The Concerts segment promotes live music events in its owned or operated venues, and in rented third-party venues; operates and manages music venues; and produces music festivals and creates associated content. This segment also provides management and other services to artists. The Sponsorship & Advertising segment sells sponsorships and placement of advertising, including signage, online advertising, and promotional programs, as well as live streaming and music-related content; and ads across its distribution network of venues, events, and Websites. This segment also manages the development of strategic sponsorship programs, as well as develops, books, and produces custom events for specific brands. The Ticketing segment manages the ticketing operations, including the provision of ticketing software and services to clients, as well as ticket resale services; and offers online access for customers relating to ticket and event information through its primary Websites, livenation.com and ticketmaster.com. This segment sells tickets for its events, as well as for third-party clients in various live event categories, such as arenas, stadiums, amphitheaters, music clubs, concert promoters, professional sports franchises and leagues, college sports teams, performing arts venues, museums, and theaters. It sells tickets through Websites, mobile apps, ticket outlets, and telephone call centers. As of December 31, 2018, it owned, operated, or leased 120 entertainment venues and 144 other facilities in North America; and 37 entertainment venues and 118 other facilities internationally. The company was formerly known as Live Nation, Inc. and changed its name to Live Nation Entertainment, Inc. in January 2010. Live Nation Entertainment, Inc. was incorporated in 2005 and is headquartered in Beverly Hills, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 21:46
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.