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FUBO

fuboTV NYSE:FUBO Stock Report

Last Price

US$2.47

Market Cap

US$457.2m

7D

-12.4%

1Y

-91.8%

Updated

04 Jul, 2022

Data

Company Financials +
FUBO fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance0/6
Financial Health5/6
Dividends0/6

FUBO Stock Overview

fuboTV Inc. operates a live TV streaming platform for live sports, news, and entertainment content in the United States and internationally.

fuboTV Competitors

Price History & Performance

Summary of all time highs, changes and price drops for fuboTV
Historical stock prices
Current Share PriceUS$2.47
52 Week HighUS$35.10
52 Week LowUS$2.34
Beta3.72
1 Month Change-26.05%
3 Month Change-64.31%
1 Year Change-91.78%
3 Year Change-67.07%
5 Year Change-91.02%
Change since IPO-100.00%

Recent News & Updates

Jul 01

Streaming Service Clash: Buy Netflix, Short FuboTV Pair Trade

Netflix stock has had nothing short of a rocky ride during 2022, being down over 70% since January 1st. Netflix forecasts weaker growth and a slowdown in subscriptions next Q, however, have investors overreacted? Fundamentals of NFLX have greatly cooled down since pandemic peaks, allowing for prospective investors to swoop in on valuations not seen for nearly a decade. Both fuboTV and Netflix offer services that are far from necessities, so a recession can offer adverse impacts due to consumers cutting down on spending. I will return to my previous fuboTV thesis and add some insightful recommendations on why I think it can continue to experience tailwinds and downgrade it from a Hold --> Sell. Introduction and Investment Thesis In a world of rapidly spreading entertainment services in the form of streaming platforms, the market share of this industry has substantially tightened. It seems that everywhere you look, there is a new streaming service, and every corporation is hopping on this wave. In the case of Netflix, Inc. (NASDAQ:NFLX), this has hindered its growth outlook and performance, and investors wonder if Netflix will ever be back to its consistent double-digit top and bottom-line growth seen since its inception. With market share being eaten up by forces like Amazon (AMZN) (prime video), Disney (DIS) (Disney+), HBO (HBO max), Hulu, and Apple (AAPL) in the form of Apple tv, it has been a tough year for Netlfix's performance. However, being down 70% YTD and much lower than its near 700 print in November of 2021, I believe it is time to pull the trigger on NFLX. Contrarily, fuboTV Inc. (NASDAQ:FUBO) is a stock that I feel has a strong chance of going bankrupt and losing its market value. Although I think the business model is solid and a decent alternative to traditional cable, fuboTV has not proven that it can control its cash burn distress in the slightest and are on a trajectory to go bust by 2024. I recently covered FUBO stock and rated it a hold on June 7th, and since then, the stock has been down 22% compared to the S&P 500's retreat of 8.5%. Nonetheless, I am reconsidering this rating and will downgrade fuboTV as a sell, as thoughts of avoiding a recession have diminished recently. I feel this stock will underperform significantly in a macroeconomic slowdown. Because Netflix continues to generate cash flow on a quarterly basis and churn out a net income with reasonably wide margins, I believe it is a great candidate to outperform the broader market moving forward. FUBO has struggled to control its threatening cash burn, which suggests that they might have to dilute shareholders even more moving forward, which is undesirable. In this pair trade, I will go into depth on fundamental valuations, the entertainment and media service industry, and several risk factors hindering both companies' outlooks. Fundamental Comparison of NFLX and FUBO When viewing Netflix, it is clear that its fundamentals have cooled off substantially since its all-time high in Q4 of 2021. NFLX currently holds a P/E multiple of 15.85x, which is much lower than the Nasdaq average of around 22x and the S&P 500 multiple of roughly 20x. Because of NFLX's recent price collapse, it might offer a great buying opportunity given that the P/E ratio it holds right now is at levels not seen before in the company. Data by (YCharts) With a P/E ratio of 15.85x, they hold a multiple that is very competitive within the entertainment and streaming service industry. Given that the stock has significantly underperformed other names in the industry, I felt it deserved a deeper fundamental dive. Another fundamental multiple that caught my eye was the price-to-sales ratio. Although it is significantly higher than the likes of fuboTV, being at 2.613x for NFLX and 0.477x for FUBO, this ratio is much lower than the traditional multiple of around 8x that it has had over the past five years. Data by (YCharts) In a market that has been entirely risk-off for the past six months, it is understandable for stocks like FUBO and NFLX to underperform the broader markets. On the surface, with a 0.4x P/S multiple, FUBO might look like a great buy; however, they haven't reported a quarter of net profit yet, and continue to burn cash at an alarming rate. FUBO has showcased triple-digit top-line growth for several quarters, which isn't surprising why they have such a low P/S value. FUBO has had hardships converting its rampant sales growth into profit, making me question FUBO as an investment in a potential international recession. Netflix YoY Revenue Growth (Seeking Alpha) From a growth standpoint, Netflix has impressively grown its revenues by an average of 25.1% this past decade. That is an exceptional number that has outpaced most of its competition, and even as NFLX matured, it proved to sustain this growth. On the other hand, FUBO has also done an outstanding job in sales performance/growth. fuboTV YoY Revenue Growth (Seeking Alpha) While I commend FUBO for its robust revenue growth, it has yet to prove any EBIT, EBITDA, or Net Income. FUBO hasn't marginally come close to profitability, and while it continues to expand its business model to things like sports betting, shareholders continue to be diluted. Limited dilution is something that is exceptional at NFLX in that the management has scarcely diluted shareholders in the last five years. From Q1 2021 to Q1 2022, fuboTV diluted its outstanding shares from 118,000,000 to 157,000,000, or by 33%, without any indication of slowing these practices. Contrarily, NFLX has grown its share count at a much slower rate of only 1.38% annually since 2012. NFLX YoY Outstanding Share Growth (Seeking Alpha) Data by (YCharts) Sell FUBO at a loss and Avoid Catching the Falling Knife F UBO offers a streaming service platform that contrasts most of the other services in the industry in that fuboTV replaces traditional cable, offering live sports and everyday channels. Classic cable TV ranges from $60-85 per month from providers like Spectrum and Xfinity. At FUBO, the company offers three different packages ranging from its Pro package ($69.99/month), Elite package ($79.99/month), and the Ultimate package ($99.99/month). With prices similar to regular cable competitors, there is not much incentive to switch over from providers like DirectTV and Xfinity. fuboTV offers most of its business domestically; however, they do have significant markets in Europe, which is another massive marketplace for sports. While fuboTV can increase the prices of its packages, this also threatens the optimization of potential subscriber growth. Because FUBO is doing a fantastic job at growing its platform in subscriber growth, raising prices amidst a recession would be problematic. On fuboTV's Q1 2022 earnings call, David Gandler (co-founder and CEO) said, "In our first quarter, against a challenging macro environment, fuboTV achieved strong growth in subscribers and revenue, with North American subscriber growth of 81% year-over-year." On the surface, this looks great. However, coming from such a low comp in the previous year, an 81% subscriber increase is not too significant in infancy. With around 220 million subscribers, NFLX is much further down the road of maturing, and they once bolstered subscriber growth that rivals that of FUBOs today. Burning cash at nearly $200 million a year is something that concerns me the most here. From a growth standpoint, FUBO has done a fantastic job at growing its top line and even making the bottom line somewhat closer to positive. As seen below, their net loss margin has improved slightly, and not enough to combat losing cash. Operating expenses continue to increase notably, and their net loss inflated by over 100%. The sad truth is that I feel they will have a callous time getting these expenses under control. fuboTV 1Q Shareholders Letter Gandler also stated on their latest earnings call, "Importantly, we strengthened fuboTV's balance sheet, ending the quarter with over $456 million in cash. This increased financial flexibility is expected to take us through 2023, and we are targeting positive cash flow and Adjusted EBITDA (AEBITDA) in 2025, with a relatively modest cash requirement anticipated in 2024." It is important to note that the strengthening of the balance sheet Gandler denoted is accredited to dilutive practices to raise capital and not in the form of FCF from operations. Also, the cash requirement in 2024 that'll be required will likely come from dilution as well, although management can look toward non-dilutive practices in the future. Nonetheless, positive cash flow out to 2025 is a long time from now, and it is very uncertain if FUBO can continue its trajectory. Yes, they can go on with raising capital through shares to combat their cash burn woes, however, this is extremely painful for shareholders and a process I suggest staying away from. In my eyes, I feel that FUBO is acting like a falling knife right now, and it is best to avoid getting stabbed moving forward. Once in a Decade Buying Opportunity for Netflix While looking at the history of a company's valuation can help in investing, it is more important to look into the future, especially with Netflix and the growing competition in the streaming service playing field. The battle of getting subscribers has heated up substantially, likely due to the past two years of streaming services getting more recognition as more people stayed home. It is important to note that with Netflix, we likely will never see revenue and earnings growth like we have seen this past decade, though, with the share price collapse, NFLX doesn't need these numbers to justify its valuation. Netflix recently raised its prices, bringing the basic plan to $9.99/month (from $8.99 or an 11.1% jump), its standard plan to $15.49/month (from $13.99 or a 10.7% jump), and its premium tier to $19.99/month (from $17.99 or an 11.1% jump). Comparative pricing: Disney+ is $7.99/month or $79.99/year Hulu's ad-supported option is $6.99/month, and the ad-free is $12.99/month Peacock's premium membership is $4.99/month or $49.99/year HBO Max with ads is $9.99/month and $14.99 with no ads Streaming Service Market Share 2022 (Cord Cutters News) With Netflix's recent price hikes to combat the inflation of over 8% in the U.S., NFLX is among the more expensive options by a couple of dollars a month. Although the price hike might turn away some subscribers due to recessionary fears, I feel it is unlikely someone would cancel a subscription because of a $1 increase or $12 over a year. When comparing services with competitors, Netflix does not offer an ad-supported membership, so all subscribers get to watch without ads. This provides a seamless experience and prices in line with other ad-free competitor subscriptions. Moreover, management talked about a month ago about potentially releasing an ad-free option as a membership. After years of constantly saying commercials/ads would never be in the program, Reed Hastings ((CEO)) said that Netflix would "figure it out over the next year or two." I believe this would be a great thing to release if we go into a full-swing economic downturn, as people will look towards cheaper alternatives. An ad-free option in line with something like Peacock's $4.99/month membership would be a solid idea, as it will offer the same shows and movies. Still, people will have their experience interrupted a few times by advertisements, but many feel it is worth saving the money. A significant thing to note is that last quarter's 200,000 subscriber loss shock was likely credited to their one-time charge of the impact in Russia. In March, Netflix suspended its services in Russia, accounting for 1,000,000 subscribers. So, in reality, Netflix didn't lose 200,000 subscribers; it gained 800,000 subscribers last quarter. The concerning thing is that management highlighted a projection of a 2 million subscriber loss for the next quarter. This will likely continue as consumers are switching platforms or cutting down on spending amid this economic slump. However, an ad-supported revenue package could grow revenues significantly and compensate for the deprivation in growth.

Jun 07

fuboTV: Cash Burn Woes Continue To Push The Stock To New Lows

fuboTV has not proven that they can control their cash burn problem. The stock has gotten killed this past year as it is a high growth revenue play in a risk-off market. FUBO stock is down around 90% YoY. fuboTV has an interesting growth prospective in the sports betting space, creating their Fubo Sports Book. This can really take off as sports betting restrictions ease. As cash burn remains a problem, they continue to grow their paid subscriber count, which has significantly raised revenue growth. Ultimately, I have a neutral/hold thesis on fuboTV stock over the next few months.

May 31

fuboTV: Cash Burn Is A Problem

fuboTV is one of the SPAC darlings that got caught during the massive high-growth tech stocks sell-off. The stock is now trading at $3.51, down over 90% from its all-time. The company has a huge TAM with both the "online live sports video streaming" and "sports betting" market expanding rapidly. It is growing subscribers and revenue quickly; however, cash burn remains a significant problem in the short term. I rate the stock as a hold at the current price.

Shareholder Returns

FUBOUS Interactive Media and ServicesUS Market
7D-12.4%-5.8%-2.2%
1Y-91.8%-33.0%-19.1%

Return vs Industry: FUBO underperformed the US Interactive Media and Services industry which returned -48.7% over the past year.

Return vs Market: FUBO underperformed the US Market which returned -21.2% over the past year.

Price Volatility

Is FUBO's price volatile compared to industry and market?
FUBO volatility
FUBO Average Weekly Movement15.5%
Interactive Media and Services Industry Average Movement11.1%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.3%

Stable Share Price: FUBO is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 16% a week.

Volatility Over Time: FUBO's weekly volatility (16%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
n/a530David Gandlerhttps://www.fubo.tv

fuboTV Inc. operates a live TV streaming platform for live sports, news, and entertainment content in the United States and internationally. Its fuboTV platform allows customers to access content through streaming devices, as well as on SmartTVs, computers, mobile phones, and tablets. The company is headquartered in New York, New York.

fuboTV Fundamentals Summary

How do fuboTV's earnings and revenue compare to its market cap?
FUBO fundamental statistics
Market CapUS$457.15m
Earnings (TTM)-US$453.45m
Revenue (TTM)US$760.65m

0.6x

P/S Ratio

-1.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FUBO income statement (TTM)
RevenueUS$760.65m
Cost of RevenueUS$790.90m
Gross Profit-US$30.25m
Other ExpensesUS$423.20m
Earnings-US$453.45m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-2.45
Gross Margin-3.98%
Net Profit Margin-59.61%
Debt/Equity Ratio58.3%

How did FUBO perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is FUBO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FUBO?

Other financial metrics that can be useful for relative valuation.

FUBO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA-1.1x
PEG Ration/a

Price to Sales Ratio vs Peers

How does FUBO's PS Ratio compare to its peers?

FUBO PS Ratio vs Peers
The above table shows the PS ratio for FUBO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.9x
LKCO Luokung Technology
1.1x33.9%US$160.7m
AREN Arena Group Holdings
0.8x20.8%US$168.2m
EVER EverQuote
0.7x13.3%US$281.7m
QNST QuinStreet
1x7.7%US$571.6m
FUBO fuboTV
0.6x29.4%US$457.2m

Price-To-Sales vs Peers: FUBO is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (0.9x).


Price to Earnings Ratio vs Industry

How does FUBO's PE Ratio compare vs other companies in the US Interactive Media and Services Industry?

Price-To-Sales vs Industry: FUBO is good value based on its Price-To-Sales Ratio (0.6x) compared to the US Interactive Media and Services industry average (1.8x)


Price to Sales Ratio vs Fair Ratio

What is FUBO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FUBO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.6x
Fair PS Ratio1.5x

Price-To-Sales vs Fair Ratio: FUBO is good value based on its Price-To-Sales Ratio (0.6x) compared to the estimated Fair Price-To-Sales Ratio (1.5x).


Share Price vs Fair Value

What is the Fair Price of FUBO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FUBO ($2.47) is trading below our estimate of fair value ($16.4)

Significantly Below Fair Value: FUBO is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FUBO's PEG Ratio to determine if it is good value.


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Future Growth

How is fuboTV forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


29.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FUBO is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: FUBO is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: FUBO is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: FUBO's revenue (29.4% per year) is forecast to grow faster than the US market (8.2% per year).

High Growth Revenue: FUBO's revenue (29.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FUBO's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has fuboTV performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-69.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FUBO is currently unprofitable.

Growing Profit Margin: FUBO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FUBO is unprofitable, and losses have increased over the past 5 years at a rate of 69.8% per year.

Accelerating Growth: Unable to compare FUBO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FUBO is unprofitable, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (-37.6%).


Return on Equity

High ROE: FUBO has a negative Return on Equity (-65.91%), as it is currently unprofitable.


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Financial Health

How is fuboTV's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: FUBO's short term assets ($520.6M) exceed its short term liabilities ($327.6M).

Long Term Liabilities: FUBO's short term assets ($520.6M) exceed its long term liabilities ($440.0M).


Debt to Equity History and Analysis

Debt Level: FUBO has more cash than its total debt.

Reducing Debt: FUBO had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet


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: FUBO has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if FUBO has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


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Dividend

What is fuboTV current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as FUBO has not reported any payouts.


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Management

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

1.5yrs

Average management tenure


CEO

David Gandler (47 yo)

2.25yrs

Tenure

US$6,479,897

Compensation

Mr. David Gandler serves as an Independent Director at Waverley Capital Acquisition Corp. 1 since August 19, 2021. He has been the Chief Executive Officer and Director of fuboTV Inc. (formerly, FaceBank Gr...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD6.48M) is above average for companies of similar size in the US market ($USD2.92M).

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


Leadership Team

Experienced Management: FUBO's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: FUBO's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: FUBO insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 31.8%.


Top Shareholders

Company Information

fuboTV Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: fuboTV Inc.
  • Ticker: FUBO
  • Exchange: NYSE
  • Founded: NaN
  • Industry: Interactive Media and Services
  • Sector: Media
  • Implied Market Cap: US$457.153m
  • Shares outstanding: 185.08m
  • Website: https://www.fubo.tv

Number of Employees


Location

  • fuboTV Inc.
  • 1290 Avenue of the Americas
  • New York
  • New York
  • 10104
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/04 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.