eToro Group Ltd. (NASDAQ: ETOR)

Sector: Financial Services Industry: Capital Markets CIK: 0001493318
Market Cap 707.22 Mn
P/B 0.51
P/E 3.68
P/S 0.06
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 163.46
Total Debt (Qtr) 51.01 Mn
Debt/Equity (Qtr) 0.04

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 1.09B provide 192.33x coverage of short-term debt 5.69M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 1.76B provides 34.43x coverage of total debt 51.01M, indicating robust asset backing and low credit risk.
  • Retained earnings of 99.51M provide full 2.20x coverage of long-term debt 45.33M, indicating strong internal capital position.
  • Tangible assets of 1.76B provide robust 8.40x coverage of other current liabilities 209.19M, indicating strong asset backing.
  • Strong cash position of 1.09B provides 5.23x coverage of other current liabilities 209.19M, indicating excellent liquidity.

Bear case

  • Short-term investments of 224.78M exceed receivables of 74.07M by 3.03x, indicating potentially inefficient capital allocation given collection cycle needs.
  • Tangible assets of 1.76B provide limited backing for working capital of 1.32B, which is 1.33x, suggesting increased operational risk in market downturns.
  • Current liabilities of 364.57M significantly exceed receivables of 74.07M, which is 4.92x, indicating potential working capital stress.
  • Other current liabilities of 209.19M represent a high 2.82x of receivables 74.07M, suggesting potential short-term liquidity pressure.

Peer comparison

Companies in the Capital Markets
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GS Goldman Sachs Group Inc 284.23 Bn 17.94 4.84 911.32 Bn
2 MS Morgan Stanley 279.63 Bn 17.97 4.05 353.12 Bn
3 SCHW Schwab Charles Corp 179.33 Bn 23.09 7.83 27.59 Bn
4 HOOD Robinhood Markets, Inc. 106.92 Bn 48.73 25.43 0.00 Bn
5 CRCL Circle Internet Group, Inc. 40.97 Bn 261.00 24.22 0.15 Bn
6 IBKR Interactive Brokers Group, Inc. 28.23 Bn 30.79 4.75 28.43 Bn
7 LPLA LPL Financial Holdings Inc. 27.60 Bn 33.13 1.77 7.52 Bn
8 FUTU Futu Holdings Ltd 22.89 Bn 18.13 8.54 1.75 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.00 1.07
EV to Cash from Ops. EV to Cash from Ops. 0.00 15.33
EV to Debt EV to Debt 0.00 21.89
EV to EBIT EV to EBIT 0.00 -0.80
EV to EBITDA EV to EBITDA 0.00 11.20
EV to Free Cash Flow [EV/FCF] EV to Free Cash Flow [EV/FCF] 0.00 43.08
EV to Market Cap EV to Market Cap 0.00 -0.05
EV to Revenue EV to Revenue 0.00 12.82
Price to Book Value [P/B] P/B 0.51 3.09
Price to Earnings [P/E] P/E 3.68 6.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 4.22
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 10.37
Dividend per Basic Share Div per Share (Qtr) 0.00 0.70
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -8.68
Interest Coverage Int. cover (Qtr) 0.00 37.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -12,429.64
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 0.00 1,588.78
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 0.00 270.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 333.57
EBIT Growth (1y) % EBIT 1y % (Qtr) 0.00 3,103.22
EBT Growth (1y) % EBT 1y % (Qtr) 0.00 3,039.53
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 24.25
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 -80.08
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.00 51.33
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.42
Cash Payout Ratio Cash Payout Ratio 0.00 -0.08
Cash Ratio Cash Ratio (Qtr) 3.00 2.01
Current Ratio Curr Ratio (Qtr) 4.63 3.47
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 1.46
Interest Cover Ratio Int Coverage (Qtr) 0.00 37.53
Times Interest Earned Times Interest Earned (Qtr) 0.00 37.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 76.68
EBIT Margin % EBIT Margin % (Qtr) 0.00 46.81
EBT Margin % EBT Margin % (Qtr) 0.00 58.57
Gross Margin % Gross Margin % (Qtr) 0.00 53.60
Net Profit Margin % Net Margin % (Qtr) 0.00 29.41