📊 FLUT Key Takeaways
Is Flutter Entertainment plc (FLUT) a Good Investment?
Flutter demonstrates strong revenue growth of 16.6% YoY with solid free cash flow generation, but is critically constrained by an operating margin of only 1.8%, interest coverage of 0.5x (unable to service debt from operations), and a current ratio of 0.90x indicating liquidity stress. The combination of high leverage (1.32x debt/equity with $12B debt), poor capital efficiency (2.4% ROE), and thin profitability creates significant financial risk that outweighs growth momentum.
Flutter Entertainment is delivering strong top-line growth and solid free cash flow generation, which suggests the core business has scale and healthy customer demand. However, profitability remains very weak, with near-breakeven operating margins, negative net income, and extremely thin interest coverage, which materially weakens the quality of that growth. The fundamentals support a neutral stance until earnings conversion and balance-sheet resilience improve.
Why Buy Flutter Entertainment plc Stock? FLUT Key Strengths
- Strong revenue growth of 16.6% YoY demonstrating market demand
- Healthy free cash flow of $305M with 7.1% FCF margin
- Operating cash flow of $330M providing cash generation for debt service
- Revenue growth of 16.6% YoY indicates strong operating momentum
- Free cash flow of $1.08B and low capex needs support internal funding capacity
- Gross margin of 45.2% shows the business retains meaningful gross profitability at scale
FLUT Stock Risks: Flutter Entertainment plc Investment Risks
- Interest coverage of 0.5x is unsustainable—operating income cannot cover debt interest obligations
- Current ratio of 0.90x indicates potential short-term liquidity stress and working capital deficiency
- Operating margin of only 1.8% shows severe operational inefficiency or competitive margin pressure
- Debt/Equity ratio of 1.32x with $12B long-term debt creates elevated financial leverage risk
- ROE of 2.4% and ROA of 0.8% indicate extremely poor capital efficiency and value destruction
- 41 Form 4 insider filings in 90 days suggest potential insider concern about company trajectory
- Operating margin of 0.2% and net margin of -1.9% show poor earnings conversion
- High leverage with $12.27B long-term debt and 1.36x debt-to-equity increases financial risk
- Interest coverage of 0.1x and current ratio of 0.95x point to limited financial cushion
Key Metrics to Watch
- Operating margin expansion (must improve from current 1.8% level)
- Interest coverage ratio recovery (critical at 0.5x; must reach minimum 2.0x)
- Current ratio improvement back above 1.0x for liquidity stabilization
- Debt reduction progress and net debt trajectory
- Return on Equity trend (currently 2.4% is far below cost of capital)
- Operating margin and net income trend
- Interest coverage and debt reduction progress
Flutter Entertainment plc (FLUT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
FLUT Profit Margin, ROE & Profitability Analysis
FLUT vs Technology Sector: How Flutter Entertainment plc Compares
How Flutter Entertainment plc compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Flutter Entertainment plc Stock Overvalued? FLUT Valuation Analysis 2026
Based on fundamental analysis, Flutter Entertainment plc shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Flutter Entertainment plc Balance Sheet: FLUT Debt, Cash & Liquidity
FLUT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Flutter Entertainment plc's revenue has grown significantly by 17% over the 5-year period, indicating strong business expansion. The most recent EPS of $-6.89 indicates the company is currently unprofitable.
FLUT Revenue Growth, EPS Growth & YoY Performance
FLUT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $3.7B | N/A | $1.23 |
| Q3 2025 | $3.2B | N/A | $-0.21 |
| Q2 2025 | $3.6B | N/A | $0.36 |
| Q1 2025 | $3.4B | N/A | $-1.10 |
| Q3 2024 | $2.6B | N/A | $-0.21 |
| Q2 2024 | $3.0B | N/A | $-0.20 |
| Q1 2024 | $2.9B | -$111.0M | $-0.58 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Flutter Entertainment plc Dividends, Buybacks & Capital Allocation
FLUT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Flutter Entertainment plc (CIK: 0001635327)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FLUT
What is the AI rating for FLUT?
Flutter Entertainment plc (FLUT) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FLUT's key strengths?
Claude: Strong revenue growth of 16.6% YoY demonstrating market demand. Healthy free cash flow of $305M with 7.1% FCF margin. ChatGPT: Revenue growth of 16.6% YoY indicates strong operating momentum. Free cash flow of $1.08B and low capex needs support internal funding capacity.
What are the risks of investing in FLUT?
Claude: Interest coverage of 0.5x is unsustainable—operating income cannot cover debt interest obligations. Current ratio of 0.90x indicates potential short-term liquidity stress and working capital deficiency. ChatGPT: Operating margin of 0.2% and net margin of -1.9% show poor earnings conversion. High leverage with $12.27B long-term debt and 1.36x debt-to-equity increases financial risk.
What is FLUT's revenue and growth?
Flutter Entertainment plc reported revenue of $4.3B.
Does FLUT pay dividends?
Flutter Entertainment plc does not currently pay dividends.
Where can I find FLUT SEC filings?
Official SEC filings for Flutter Entertainment plc (CIK: 0001635327) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FLUT's EPS?
Flutter Entertainment plc has a diluted EPS of $1.23.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FLUT a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Flutter Entertainment plc has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FLUT stock overvalued or undervalued?
Valuation metrics for FLUT: ROE of 2.4% (sector avg: 22%), net margin of 5.1% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy FLUT stock in 2026?
Our dual AI analysis gives Flutter Entertainment plc a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FLUT's free cash flow?
Flutter Entertainment plc's operating cash flow is $330.0M, with capital expenditures of $25.0M. FCF margin is 7.1%.
How does FLUT compare to other Technology stocks?
Vs Technology sector averages: Net margin 5.1% (avg: 18%), ROE 2.4% (avg: 22%), current ratio 0.90 (avg: 2.5).