TKO Group Holdings, Inc.

Wide-moat premium sports/entertainment franchise (UFC, WWE, PBR, IMG) with top-decile growth and best-in-class operating and cash-flow margins.

Strengths

• Operating margin 17.6% and OCF margin 27% both ~94th pct; revenue and net-income growth at the 100th pct post-Endeavor acquisition
• Irreplaceable IP and global media-rights distribution create durable pricing power and switching costs
• Strong liquidity ($963M cash, 86th pct current ratio) and interest coverage 4.1x

Risks

• Debt/equity ~1.0 (70th pct) leaves a substantial leverage load
• Low reported ROA/ROE (1.3%/5.2%) reflect a large goodwill/equity base from acquisitions
• Silver Lake/Endeavor control and dependence on key media-rights renewals

Notable findings

• Strong balance sheetStrong balance sheet — $963M cash & investments