FuboTV Inc. (FUBO) Stock Analysis
FuboTV Inc. (FUBO) Stock Analysis
Overall Grade: F (Concerning)
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FuboTV Inc. faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | 23.4% | Above industry average |
| FCF Margin | -3.0% | Cash flow pressure |
Investment Thesis: Strong return on invested capital of 23.4% suggests durable competitive advantages and efficient capital allocation.
What is FuboTV Inc.'s Profitability and ROIC?
FuboTV Inc. generates strong returns on invested capital at 23.4%, indicating efficient capital allocation and competitive advantages. Gross margin of 100.0% with operating margin at -2.6% reflects the company's strong market position.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 23.4% | Excellent | Strong capital efficiency |
| Gross Margin | 100.0% | Excellent | Strong pricing power |
| Operating Margin | -2.6% | Warning | Moderate operational efficiency |
How Strong is FuboTV Inc.'s Cash Flow Quality?
FuboTV Inc. generated $-81.3M in free cash flow over the trailing twelve months, representing a -3.0% margin. FCF was positive in N/A of the last 8 quarters, indicating variable cash generation.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | -3.0% | Red flag | Thin cash margins |
| Free Cash Flow (TTM) | $-81.3M | Red flag | Cash burn |
| OCF/Net Income | -0.5x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is FuboTV Inc.'s Financial Health?
Is FuboTV Inc. Stock Overvalued or Undervalued?
FuboTV Inc. trades at a P/E of 5.6x, representing a premium to the sector median of N/A. Free cash flow yield of -9.4% reflects market expectations for growth.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| P/E Ratio | 5.6x | Adequate | Reasonable valuation |
| EV/Sales | 0.3x | Excellent | Attractive revenue multiple |
| FCF Yield | -9.4% | Warning | Lower cash yield |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 23.4% | Top 25% | 2.4x above |
| Free Cash Flow Margin | -3.0% | Bottom 10% | -0.9x below |
| Gross Margin | 100.0% | Top 10% | 2.4x above |
| Operating Margin | -2.6% | Bottom 10% | -0.5x below |
| P/E Ratio | 5.6x | N/A | - |
Rating Thresholds
Return on Invested Capital (ROIC)
Measures how efficiently a company uses its debt and equity capital to generate profits. ROIC above 15% typically indicates a competitive moat.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Exceptional capital efficiency, strong competitive moat |
| Good | 12% - 20% | Above-average returns, sustainable competitive position |
| Adequate | 8% - 12% | Around cost of capital, moderate competitive position |
| Warning | 4% - 8% | Below cost of capital, value may be eroding |
| Red flag | < 4% | Significant capital destruction, fundamental issues |
Current: 23.4% (Excellent - Top 25% of sector (median: 9.8%))
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: -3.0% (Red flag)
Gross Margin
Revenue minus cost of goods sold as a percentage. Higher gross margins indicate pricing power and competitive advantage.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 50% | Strong pricing power and competitive moat |
| Good | 30% - 50% | Healthy margins, differentiated product |
| Adequate | 20% - 30% | Moderate margins, competitive industry |
| Warning | 10% - 20% | Thin margins, commodity-like business |
| Red flag | < 10% | Very thin margins, structural challenges |
Current: 100.0% (Excellent - Top 10% of sector (median: 40.9%))
P/E Ratio (Price-to-Earnings)
Stock price divided by earnings per share. Lower P/E may indicate undervaluation, while higher P/E suggests growth expectations.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 15x | Attractively valued, potential opportunity |
| Good | 15x - 25x | Fair value for quality company |
| Adequate | 25x - 35x | Growth premium, justify with earnings growth |
| Warning | 35x - 50x | High expectations priced in |
| Red flag | > 50x or negative | Speculative valuation or losses |
Current: 560.0% (Adequate)
Free Cash Flow Yield
Free cash flow per share divided by stock price. Higher FCF yield indicates better cash return relative to valuation.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 8% | High cash return, potential value opportunity |
| Good | 5% - 8% | Solid cash yield |
| Adequate | 3% - 5% | Moderate cash return |
| Warning | 1% - 3% | Low cash yield, growth expectations |
| Red flag | < 1% | Minimal cash return to shareholders |
Current: -9.4% (Red flag)
Frequently Asked Questions
Q: What is FuboTV Inc.'s Return on Invested Capital (ROIC)?
FuboTV Inc. (FUBO) has a trailing twelve-month Return on Invested Capital (ROIC) of 23.4%. This compares above the sector median of 9.8%. An ROIC above 20% indicates exceptional capital efficiency and strong competitive advantages.
Q: What is FuboTV Inc.'s Free Cash Flow Margin?
FuboTV Inc. (FUBO) has a free cash flow margin of -3.0%, generating $-81.3 million in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.
Q: Is FuboTV Inc. stock overvalued or undervalued?
FuboTV Inc. (FUBO) trades at a P/E ratio of 5.6x, which is above the sector median of N/A. The EV/Sales multiple is 0.3x.
Q: What is FuboTV Inc.'s revenue and earnings growth?
FuboTV Inc. (FUBO) grew revenue by 146.1% year-over-year. Double-digit revenue growth indicates strong demand and market share gains.
Q: How does FuboTV Inc. compare to competitors in Consumer Discretionary?
Compared to other companies in Consumer Discretionary, FuboTV Inc. (FUBO) shows: ROIC of 23.4% is above the sector median of 9.8% (Top 24%). FCF margin of -3.0% trails the sector median of 3.2%. Gross margin at 100.0% is 59.1 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.
Q: What warning signs should I watch for with FuboTV Inc.?
Investors in FuboTV Inc. (FUBO) should monitor these potential warning signs: 1) FCF margin is thin at -3.0%, leaving limited buffer for economic downturns. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-03. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.