Flutter Entertainment
FLUT
$94.27
-0.50%
Flutter Entertainment plc is a global online gambling operator, offering sports betting, online gaming, fantasy sports, and horse racing through leading brands such as FanDuel, Sky Betting & Gaming, Paddy Power, Sportsbet, and Sisal. As the world's largest online gambling company by revenue, Flutter holds top digital revenue share in the US, UK, Ireland, Australia, and Italy, with a diversified international footprint across over 100 countries. The current investor narrative centers on the company's strategic pivot to a predictive sports betting platform launched in late 2025, which has sparked both excitement and regulatory scrutiny, while the stock has faced severe volatility amid broader market selloffs and concerns over US market competition and regulatory changes. Recent headlines highlight a bipartisan Senate bill that could create a protective moat for licensed sportsbooks, yet the stock has been among the top large-cap losers in recent weeks, reflecting investor anxiety over growth sustainability and margin pressures.…
FLUT
Flutter Entertainment
$94.27
Related headlines
Investment Opinion: Should I buy FLUT Today?
Based on the data, I rate FLUT as a Buy. The consensus analyst rating is Buy with an average target price of $154.28, implying 65.9% upside. The core thesis is that the company's strong revenue growth (17.4% YoY) and market leadership in the US will eventually overcome near-term margin pressures and regulatory uncertainties, leading to a re-rating.
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FLUT 12-Month Price Forecast
The AI assessment is bullish with medium confidence. The strong revenue growth and attractive valuation metrics suggest upside potential, but the negative price momentum and margin pressures warrant caution. If the company can sustain growth and improve margins, the stock is likely to re-rate higher. A downgrade to neutral would occur if revenue growth falls below 10% or if margins continue to deteriorate.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Flutter Entertainment's 12-month outlook, with a consensus price target around $144.10 and implied upside of +52.9% versus the current price.
Average Target
$144.10
0 analysts
Implied Upside
+52.9%
vs. current price
Analyst Count
—
covering this stock
Price Range
$80 - $360
Analyst target range
Analyst coverage is extensive with 30 analysts, and the consensus recommendation is 'Buy' with a mean rating of 1.87 (where 1 is Strong Buy and 5 is Sell). The average target price is $154.28, implying a 65.9% upside from the current price of $93.01. The distribution includes 10 Buy ratings, 15 Overweight/Outperform, and 5 Hold/Equal Weight, with no Sell ratings, indicating a strongly bullish sentiment. The target price range spans from $80 (low) to $360 (high), with the high target implying a 287% upside, likely assuming successful execution of the predictive betting platform and regulatory tailwinds. The low target of $80 suggests a 14% downside, reflecting risks of regulatory crackdowns or competitive pressures. Recent ratings actions have been stable, with Barclays and Citizens reiterating Overweight and Market Outperform in July 2026, and no downgrades in the last three months, signaling analyst conviction in the company's long-term prospects despite near-term volatility.
Bulls vs Bears: FLUT Investment Factors
The bull case rests on strong revenue growth, a favorable regulatory environment, and a deeply discounted valuation (PEG 0.15, forward PE 11.5x) with analyst targets implying 66% upside. The bear case is driven by a 70% price collapse, margin compression, high leverage, and erratic earnings. Currently, the bearish momentum dominates, but the fundamental growth story and analyst sentiment provide a compelling contrarian opportunity. The key tension is whether the company can sustain its growth and improve margins to justify the current valuation, or if competitive pressures and regulatory risks will continue to erode investor confidence.
Bullish
- Strong Revenue Growth: Q1 2026 revenue grew 17.4% YoY to $4.30B, with sequential acceleration from Q4 2025's 24.9% growth. The US segment, led by FanDuel, contributed $1.76B, underscoring market leadership.
- Analyst Consensus Buy: 30 analysts rate FLUT a Buy with a mean rating of 1.87 (1=Strong Buy). Average target price of $154.28 implies 65.9% upside from the current $93.01, with no Sell ratings.
- Undervalued on PEG: PEG ratio of 0.15 (based on forward EPS growth) suggests the stock is deeply undervalued relative to its growth. Forward PE of 11.49x is attractive for a company growing revenue at 17%+.
- Regulatory Tailwind: A bipartisan Senate bill targeting prediction markets could create a protective moat for licensed sportsbooks like FanDuel, potentially reducing competitive threats and enhancing long-term profitability.
Bearish
- Severe Price Decline: Stock is down 69.7% over the past year and 39.0% over six months, currently trading near its 52-week low of $90.73. This reflects deep investor pessimism and a falling knife scenario.
- Margin Compression: Gross margin fell from 46.8% in Q2 2025 to 42.7% in Q1 2026, driven by higher promotional costs and product mix shifts. This trend could persist, pressuring profitability.
- High Leverage: Debt-to-equity ratio of 1.48 indicates elevated leverage. Interest expense of $167M in Q1 2026 consumes a significant portion of operating income, increasing financial risk.
- Inconsistent Earnings: Net income swung from -$760M in Q3 2025 to $216M in Q1 2026, showing high volatility. Trailing EPS is negative (-$0.01), and ROE is -4.2%, reflecting unstable profitability.
FLUT Technical Analysis
Flutter's stock is in a pronounced downtrend, with a 1-year price change of -69.7% and a 6-month change of -39.0%. The current price of $93.01 sits near the 52-week low of $90.73, representing only 7.4% above the low and 70.4% below the 52-week high of $313.69. This positioning near the bottom of the range suggests a falling knife scenario, where value investors might see opportunity but momentum traders remain cautious. The stock's beta of 1.08 indicates slightly higher volatility than the market, but the relative strength versus the S&P 500 is deeply negative, with a 1-year relative strength of -91.2%, underscoring severe underperformance.
Beta
1.08
1.08x market volatility
Max Drawdown
-70.1%
Largest decline past year
52-Week Range
$90-$309
Price range past year
Annual Return
-66.4%
Cumulative gain past year
| Period | FLUT Return | S&P 500 |
|---|---|---|
| 1m | -14.8% | +2.4% |
| 3m | -1.8% | +4.7% |
| 6m | -34.7% | +11.7% |
| 1y | -66.4% | +21.3% |
| ytd | -56.8% | +13.4% |
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FLUT Fundamental Analysis
Revenue growth remains robust, with Q1 2026 revenue of $4.30 billion, up 17.4% year-over-year, and a sequential acceleration from Q4 2025's $4.74 billion (which was up 24.9% YoY). The US segment contributed $1.76 billion and International $2.54 billion, with the US driving growth through FanDuel's market leadership. However, profitability is inconsistent: Q1 2026 net income was $216 million (5.0% net margin), a sharp recovery from Q3 2025's net loss of $760 million, but Q4 2025 net income was only $23 million (0.5% margin). Gross margin has compressed from 46.8% in Q2 2025 to 42.7% in Q1 2026, reflecting higher promotional costs and product mix shifts. The company's balance sheet shows a debt-to-equity ratio of 1.48, and free cash flow for Q1 2026 was $153 million, down from $394 million in Q4 2025, indicating some cash generation but with elevated leverage. ROE is negative at -4.2% on a trailing basis, though Q1 2026 showed positive ROE of 2.4%, suggesting a turnaround in profitability.
Quarterly Revenue
$4.3B
2026-03
Revenue YoY Growth
+17.4%
YoY Comparison
Gross Margin
42.7%
Latest Quarter
Free Cash Flow
$728144930.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is FLUT Overvalued?
Given the negative trailing EPS, I selected the PS ratio as the primary valuation metric. The trailing PS ratio is 2.35x, while the forward PE is 11.49x, implying the market expects significant earnings growth. The EV/Sales ratio of 1.64x is lower than the PS ratio due to net debt adjustments. Compared to the industry average PS ratio of 2.5x (based on available data), Flutter trades at a 6% discount, which is modest given its market leadership. Historically, Flutter's PS ratio has ranged from 4.2x to 13.0x over the past year, with the current 2.35x at the bottom of that range, indicating a potential value opportunity if the company can sustain its growth trajectory. The PEG ratio of 0.15 suggests the stock is undervalued relative to its growth rate, but this is based on forward estimates that may be optimistic.
PE
-124.3x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 21x~144x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
24.2x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks are significant. The company carries a debt-to-equity ratio of 1.48, and interest expense of $167M in Q1 2026 eats into operating income of just $79M, leaving a thin cushion. Free cash flow fell from $394M in Q4 2025 to $153M in Q1 2026, indicating reduced cash generation. Gross margin compression from 46.8% to 42.7% over the past year suggests rising promotional costs and competitive intensity, which could further pressure profitability. The negative trailing EPS and ROE of -4.2% highlight the fragility of earnings, though Q1 2026 showed improvement.