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Flutter Entertainment's Ratings Highlight Mixed Fundamentals

A report analyzes Flutter Entertainment PLC's performance, revealing a mixed rating of 55% based on fundamental metrics. While the company has strong profit margins and cash flow, it fails in several critical areas, indicating potential risks for investors.

Date: 
AI Rating:   5

According to the report, Flutter Entertainment PLC received a rating of 55% from the Small-Cap Growth Investor model, based on its underlying fundamentals and valuation. A score of 80% or higher in this model would suggest more favorable sentiment towards the stock, leaving FLUT below this threshold.

Profit Margins: Flutter has successfully passed the profit margin test, indicating that the company maintains a healthy profitability level. This is a positive indicator for investors, suggesting good cost control and the ability to generate profit relative to revenue.

Cash Flow: The report also highlights that cash flow from operations has passed, indicating strong operational efficiency and the ability to generate cash to fund business activities, which is essential for ongoing operations and the potential for growth.

Failures: Despite the positive indicators, the report cites several tests that Flutter failed. These include:

  • Relative Strength: This indicates weaker stock performance compared to peers.
  • Sales Growth and EPS Growth: Flutter did not meet growth expectations in sales compared to the same period last year, suggesting potential stagnation.
  • Long-Term Debt/Equity Ratio: A failure here could signal risks related to debt management.
  • Income Tax Percentage: This is noted as a failure and could indicate challenges in tax management or higher tax liabilities.
  • Daily Dollar Volume: This failure indicates low trading activity, which could affect liquidity for investors.

Overall, key areas like profit margins and cash flow offer positive insights into operational stability. However, weaknesses in growth drivers and stock performance present concerns. Investors should weigh these factors as they assess Flutter's stock for future investment.

Stocks:  FLUT