The average target price of FUBO is 4.6 and suggests 9% upside potential. Usually, this means a HOLD recommendation among investment firms. This neutral recommendation suggests no significant price movement, up or down, in the next 12 months. The most optimistic analyst has a target price of 5.0. This translates into 20% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 3.0. This is equivalent to 28% downside potential in the worst case. 

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 Inc.

Communication Services

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

FUBO reported revenue of USD 1 637mn in the last 12 months, up 1% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 0% from FY24 to USD -538.14. Market expects EPS to reach USD -0.60 in FY25.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 18ppts over six months and grown 2ppts slower in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is neutral.

The company has reported very poor EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 8.3% in the last 12 months, up from -16.8% in FY23. 

Historically, FUBO has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 4.4%, a growth from -21.0% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to 5.9% in the last 12 months, an increase from -22.9% in FY23. The market analysts predict that RoA will be -12.8% in FY24, again weaker than its peers. 

In the last 12 months, the return on capital employed (RoCE) grew to 10.8%, above the peers. The consensus estimate for FY24 for RoCE is -20.6%, however, this time below its peers. 

fuboTV Inc. reported a return on equity (RoE) of 21.1% in the last 12 months, up from -82.3% in FY23. The market consensus projects an RoE of -53.2% in FY24, however, this time below its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -1.6 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

FUBO has above average trading liquidity. The average private investor can sell his common position in the stock immediately. Liquidity is very unstable and remains extremely favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. 

No other major risks have been identified.

The risk of default is moderate. We note resilient historical revenue growth, solid return on capital, low margin volatility, and solid cash flow generation, among the positive credit factors. Among the negative credit factors and we point to bleak profitability, inadequate interest coverage.

In highly turbulent market conditions, FUBO is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, FUBO is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

Considering past and projected metrics, the stock is slightly 'cheaper' than its peers. Specifically, the stock is fairly valued on P/E, neutral on EV/EBITDA, underpriced on P/FCF. 

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fuboTV Inc.

$ 4.16

3

fuboTV Inc.

$ 4.16

3

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 4.16

About

About

fuboTV Inc.

$ 4.16

3

fuboTV Inc.

$ 4.16

3

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 4.16

About

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