Now trading at a price of $87.73, Live Nation Entertainment has moved 0.8% so far today.
Live Nation Entertainment returned gains of 28.0% last year, with its stock price reaching a high of $101.74 and a low of $64.25. Over the same period, the stock outperformed the S&P 500 index by 14.0%. More recently, the company's 50-day average price was $83.72. Live Nation Entertainment, Inc. operates as a live entertainment company. Based in Beverly Hills, CA, the large-cap Consumer Discretionary company has 12,800 full time employees. Live Nation Entertainment has not offered a dividend during the last year.
Growing Revenues With Increasing Reinvestment in the Business:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $10,788 | $11,548 | $1,861 | $6,268 | $16,681 | $19,202 |
| Gross Margins | 26.0% | 27.0% | 25.0% | 31.0% | 26.0% | 26.0% |
| Operating Margins | 3.0% | 3.0% | -89.0% | -7.0% | 4.0% | 5.0% |
| Net Margins | 1.0% | 1.0% | -6.0% | 1.0% | 2.0% | 3.0% |
| Net Income (MM) | $90 | $118 | -$103 | $42 | $409 | $605 |
| Net Interest Expense (MM) | $141 | $158 | $227 | $282 | $278 | $314 |
| Depreciation & Amort. (MM) | $387 | $444 | $485 | $416 | $450 | $485 |
| Free Cash Flow (MM) | $702 | $146 | -$1,297 | $1,628 | $1,485 | $1,512 |
| Capital Expenditures (MM) | $240 | $324 | $214 | $153 | $347 | $419 |
| Net Current Assets (MM) | -$113 | -$65 | -$532 | -$609 | -$619 | $172 |
| Long Term Debt (MM) | $2,733 | $3,271 | $4,855 | $5,145 | $5,283 | $6,555 |
| Net Debt / EBITDA | 2.48 | 2.64 | -2.45 | -1593.12 | 1.89 | 2.52 |
Live Nation Entertainment has positive expected EPS Growth, irregular cash flows, and significant leverage. We also note that the company has growing revenues and increasing reinvestment in the business working in its favor. However, the firm suffers from slimmer gross margins than its peers and consistently negative margins with a positive growth rate.
Live Nation Entertainment's P/B and P/E Ratios Are Higher Than Average:
Live Nation Entertainment has a trailing twelve month P/E ratio of 55.8, compared to an average of 22.33 for the Consumer Discretionary sector. Based on its EPS guidance of $2.24, the company has a forward P/E ratio of 37.4. Furthermore, Live Nation Entertainment is likely overvalued compared to the book value of its equity, since its P/B ratio of 90.35 is higher than the sector average of 3.12.
There's an Analyst Consensus of Strong Upside Potential for Live Nation Entertainment:
The 18 analysts following Live Nation Entertainment have set target prices ranging from $85.0 to $128.0 per share, for an average of $110.61 with a buy rating. As of April 2023, the company is trading -24.3% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Live Nation Entertainment has an average amount of shares sold short because 7.6% of the company's shares are sold short. Institutions own 71.6% of the company's shares, and the insider ownership rate stands at 32.26%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 8% stake in the company is worth $1,576,582,379.
