StubHub Holdings Incorporation Class A (STUB) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: N/A
• Average Volume (3M): 7.23M
• Price to Earnings (P/E): ―
• Beta (1Y): -1.02
• Revenue Growth: 16.55%
• EPS Growth: -675.83%
• Country: US
• Employees: 918
• Sector: Communication Services
• Sector Strength: 97
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 343,064,500
• 10 Day Avg. Volume: 4,094,954
• 30 Day Avg. Volume: 7,234,356
• PEG Ratio: 22.44
• Price to Book (P/B): 5.20
• Price to Sales (P/S): 4.05
• P/FCF Ratio: 28.08
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $24.18
• Price Target Upside: 134.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $11.00 ▲(6.69% Upside)

The overall stock score of 56 reflects a mixed outlook for StubHub Holdings. The company's strong revenue growth and strategic initiatives are positive, but profitability challenges and high leverage pose significant risks. Technical indicators suggest bearish momentum, and the valuation is unattractive due to negative earnings. The earnings call provided some optimism with market share growth and strategic initiatives, but these are offset by operational challenges.

Positive Factors

Strong Market Share Growth

StubHub's significant market share growth in North America indicates a strong competitive position, enhancing long-term revenue potential and customer base.

Adoption of ReachPro Technology

The adoption of ReachPro technology provides a strategic advantage, improving seller engagement and potentially increasing transaction volume on the platform.

Direct Issuance Initiative

The direct issuance initiative with major partners opens new revenue streams and strengthens StubHub's position in the ticketing ecosystem, offering long-term growth potential.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting the company's ability to invest in growth opportunities and impacting its financial flexibility.

Regulatory Challenges

Regulatory scrutiny on pricing practices could affect StubHub's revenue model and operational costs, posing risks to its business strategy and market operations.

Negative Free Cash Flow Growth

Declining free cash flow growth limits the company's ability to reinvest in business expansion or reduce debt, potentially impacting long-term financial health.

StubHub Holdings Incorporation Class A Business Overview & Revenue Model

Company Description

StubHub is a leading global platform for secondary ticket sales for live events, facilitating millions of tickets for sports, concerts, theater, and more across over 200 countries. Founded in 2000, it enables buyers and sellers to connect and transact tickets through its online marketplace, earning primarily through transaction fees. The platform supports various event types and offers a digital marketplace for ticket resale.

How the Company Makes Money

StubHub generates revenue primarily through service fees charged to both buyers and sellers on its platform. When a ticket is sold, StubHub takes a percentage of the sale price as a commission, which constitutes a significant portion of its earnings. Additionally, the company earns money through promotional partnerships and collaborations with event organizers and venues, enhancing ticket visibility and sales through targeted marketing. StubHub also benefits from ancillary revenue streams, such as advertising on its platform and selling ticket-related services, which further contribute to its financial performance.

StubHub Holdings Incorporation Class A Financial Statement Overview

Summary

StubHub Holdings Incorporation Class A demonstrates strong revenue growth, but profitability remains a concern with a negative net profit margin. The balance sheet reveals high leverage, which could be risky if not managed effectively. Cash flow analysis shows a decline in free cash flow, although operational cash generation remains positive. Overall, the company needs to focus on improving profitability and managing debt levels to enhance financial stability.

Income Statement

The company has shown impressive revenue growth of 120.38% in the latest year, indicating strong market demand or successful expansion strategies. However, the net profit margin is negative at -0.16%, suggesting profitability challenges despite the high gross profit margin of 81.13%. The EBIT and EBITDA margins are healthy at 12.26% and 13.64% respectively, but the negative net income highlights potential cost management issues.

Balance Sheet

The debt-to-equity ratio is relatively high at 1.69, indicating significant leverage which could pose financial risks if not managed properly. The return on equity is negative at -0.20%, reflecting the company's struggle to generate profit from shareholders' equity. The equity ratio stands at 27.05%, suggesting a moderate level of equity financing relative to total assets.

Cash Flow

The free cash flow growth rate is negative at -35.44%, indicating a decline in cash available for reinvestment or debt repayment. However, the operating cash flow to net income ratio is positive at 0.24, suggesting that the company is generating cash from its operations despite reporting a net loss. The free cash flow to net income ratio is high at 97.56%, indicating efficient cash conversion from earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.83B	1.77B	1.37B	1.04B	672.79M	35.64M
Gross Profit	1.45B	1.44B	1.14B	851.10M	583.77M	-191.38M
EBITDA	-1.23B	241.57M	264.29M	-43.71M	-251.81M	-617.56M
Net Income	-1.32B	-2.80M	405.20M	-260.99M	-629.95M	-910.71M
Balance Sheet
Total Assets	5.60B	5.09B	4.98B	4.34B	4.41B	4.86B
Cash, Cash Equivalents and Short-Term Investments	1.39B	1.00B	775.71M	372.36M	554.06M	673.08M
Total Debt	1.65B	2.33B	2.41B	2.40B	2.44B	2.48B
Total Liabilities	3.15B	3.72B	3.59B	3.44B	3.27B	3.38B
Stockholders Equity	2.45B	1.38B	1.39B	907.43M	1.14B	1.48B
Cash Flow
Free Cash Flow	164.25M	255.11M	301.95M	-49.83M	-139.64M	-253.47M
Operating Cash Flow	181.44M	261.49M	307.39M	-47.52M	-136.09M	-252.41M
Investing Cash Flow	-25.21M	-6.38M	-5.44M	-710.00K	-49.00M	-4.06B
Financing Cash Flow	224.54M	-46.71M	94.13M	-134.15M	126.13M	4.71B

StubHub Holdings Incorporation Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPT	61 Neutral	$565.45M	―	-26.69%	―	13.09%	32.34%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
STUB	56 Neutral	―	-69.48	-3.97%	―	16.55%	-675.83%
EB	54 Neutral	$253.80M	―	-11.81%	―	-11.54%	-54.32%
ONTF	54 Neutral	$230.02M	―	-20.20%	―	-6.23%	28.57%
GRND	53 Neutral	$2.55B	―	-171.54%	―	28.97%	-4.18%
SMRT	53 Neutral	$266.77M	―	-25.48%	―	-24.30%	-181.62%

StubHub Holdings Incorporation Class A Corporate Events

StubHub’s Earnings Call: Growth Amid Challenges

StubHub Holdings Incorporation Class A’s recent earnings call painted a picture of a company navigating both triumphs and challenges. The sentiment was largely positive, buoyed by significant market share growth and strategic initiatives such as direct issuance and the adoption of ReachPro technology. However, the company faced hurdles, notably the impact of all-in pricing on conversion rates and a strategic reduction in take rates to bolster market share. Despite these challenges, the achievements in growth and strategic initiatives were the highlights of the call.

StubHub Reports Strong Q3 Growth Amid IPO Debut

StubHub Holdings, Inc. is a leading global ticketing marketplace for live events, facilitating transactions for sports, music, comedy, and more across over 200 countries and territories. The company recently completed its initial public offering and is now listed on the New York Stock Exchange.