Gambling.com Group Ltd (NASDAQ: GAMB)

Sector: Consumer Cyclical Industry: Gambling CIK: 0001839799
Market Cap 131.32 Mn
P/B 0.98
P/E 69.33
P/S 0.85
ROIC (Qtr) 1.99
Div Yield % 0.00
Rev 1y % (Qtr) 21.37
Total Debt (Qtr) 88.20 Mn
Debt/Equity (Qtr) 0.66
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About

Gambling.com Group Ltd (GAMB) is a multi-award-winning performance marketing company that operates in the online gambling industry. The company's primary business activities involve providing digital marketing services to online gambling operators through a portfolio of premier branded websites, including Gambling.com, Bookies.com, Casinos.com, and RotoWire.com, among others. GAMB has a presence in over 50 local websites and attracts online gamblers through industry-leading content produced by award-winning journalists. This content is distributed...

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Investment thesis

Bull case

  • Strong operating cash flow of 42.75M provides robust 0.48x coverage of total debt 88.20M, indicating excellent debt servicing capability and financial flexibility.
  • Robust free cash flow of 38.61M exceeds capital expenditure of 4.14M by 9.31x, indicating strong organic growth funding capability.
  • Tangible assets of 43.20M provide exceptional 7.97x coverage of deferred revenue 5.42M, showing strong service capability backing.
  • Operating cash flow of 42.75M provides strong 7.89x coverage of deferred revenue 5.42M, indicating service delivery capability.
  • Operating cash flow of 42.75M provides solid 0.63x coverage of current liabilities 67.67M, showing strong operational health.

Bear case

  • Operating cash flow of 42.75M barely covers its investment activities of (94.85M), with a coverage ratio of -0.45, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (94.85M) provide weak support for R&D spending of 21.29M, which is -4.46x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 7.36M provide limited coverage of acquisition spending of (90.83M), which is -0.08x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of 12.76M show weak coverage of depreciation charges of 12.48M, with a 1.02 ratio indicating high capital intensity and potential reinvestment needs.
  • Other non-current liabilities of 21.36M represent a high 0.49x of tangible assets 43.20M, suggesting significant long-term obligations without clear asset backing.

Geographical areas [axis] Breakdown of Revenue (2024)

Products and services [axis] Breakdown of Revenue (2024)

Peer comparison

Companies in the Gambling
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 FLUT Flutter Entertainment plc 29.14 Bn -96.80 1.89 12.68 Bn
2 DKNG DraftKings Inc. 8.38 Bn 2,259.00 1.38 1.89 Bn
3 CHDN Churchill Downs Inc 6.54 Bn 15.85 2.45 5.11 Bn
4 SGHC Super Group (SGHC) Ltd 4.77 Bn 18.81 1.88 0.08 Bn
5 BRSL Brightstar Lottery PLC 2.79 Bn -19.68 0.50 5.13 Bn
6 RSI Rush Street Interactive, Inc. 1.54 Bn 51.33 1.45 0.00 Bn
7 ACEL Accel Entertainment, Inc. 0.92 Bn 21.02 0.70 0.60 Bn
8 CDRO Codere Online Luxembourg, S.A. 0.30 Bn 251.54 1.25 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.68 1.38
EV to Cash from Ops. EV/CFO 4.87 9.12
EV to Debt EV to Debt 2.36 10.53
EV to EBIT EV/EBIT 16.32 41.15
EV to EBITDA EV/EBITDA 12.57 12.35
EV to Free Cash Flow [EV/FCF] EV/FCF 5.39 20.81
EV to Market Cap EV to Market Cap 1.59 -0.89
EV to Revenue EV/Rev 1.35 1.79
Price to Book Value [P/B] P/B 0.98 2.35
Price to Earnings [P/E] P/E 69.33 170.35
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.72
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 20.21
Dividend per Basic Share Div per Share (Qtr) 0.00 0.30
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 45.34
Interest Coverage Int. cover (Qtr) 1.50 -4.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -24.51 -6.60
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -53.22 43.20
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 34.14
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -82.29 339.71
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -57.10 59.74
EBIT Growth (1y) % EBIT 1y % (Qtr) -63.20 40.42
EBT Growth (1y) % EBT 1y % (Qtr) -86.49 9.08
EPS Growth (1y) % EPS 1y % (Qtr) -92.50 463.23
FCF Growth (1y) % FCF 1y % (Qtr) 40.05 -118.03
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 26.33 16.12
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.51 1.01
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.08
Cash Ratio Cash Ratio (Qtr) 0.11 0.74
Current Ratio Curr Ratio (Qtr) 0.46 1.04
Debt to Equity Ratio Debt/Equity (Qtr) 0.66 -2.16
Interest Cover Ratio Int Coverage (Qtr) 1.50 -4.66
Times Interest Earned Times Interest Earned (Qtr) 1.50 -4.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 16.30 -104.37
EBIT Margin % EBIT Margin % (Qtr) 8.26 -142.35
EBT Margin % EBT Margin % (Qtr) 2.74 -146.31
Gross Margin % Gross Margin % (Qtr) 93.20 44.07
Net Profit Margin % Net Margin % (Qtr) 1.20 -145.36