Genius Sports Ltd (NYSE: GENI)

Sector: Communication Services Industry: Internet Content & Information CIK: 0001834489
Market Cap 2.47 Bn
P/B 3.41
P/E -20.70
P/S 4.08
ROIC (Qtr) -16.35
Div Yield % 0.00
Rev 1y % (Qtr) 38.34
Total Debt (Qtr) 30.18 Mn
Debt/Equity (Qtr) 0.04

About

Genius Sports Ltd, trading under the symbol GENI, is a company that operates within the sports, sports betting, and sports media industries. Its primary business activities involve providing scalable technology-led products and services to these sectors. The company is based in the global sports betting industry, which is projected to grow from $80 billion in 2023 to $127 billion by 2028. Genius Sports generates revenue through a variety of products and services. These include live sports data, in-game oddsmaking, risk management, and player marketing....

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 84.08M provides robust 2.79x coverage of total debt 30.18M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 207.79M provide 50.93x coverage of short-term debt 4.08M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 561.44M provides 18.61x coverage of total debt 30.18M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 84.08M provides exceptional 385.67x coverage of interest expenses 218000, showing strong debt service capability.
  • Tangible assets of 561.44M provide exceptional 5.68x coverage of deferred revenue 98.78M, showing strong service capability backing.

Bear case

  • Operating cash flow of 84.08M barely covers its investment activities of (90.29M), with a coverage ratio of -0.93, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (90.29M) provide weak support for R&D spending of 27.51M, which is -3.28x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 84.08M provides insufficient coverage of deferred revenue obligations of 98.78M, which is 0.85x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 84.08M shows concerning coverage of stock compensation expenses of 144.54M, with a 0.58 ratio indicating potential earnings quality issues.
  • Operating earnings of (123.15M) show weak coverage of depreciation charges of 70.47M, with a -1.75 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Internet Content & Information
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GOOGL Alphabet Inc. 4,538.16 Bn 131.46 27.23 33.71 Bn
2 META Meta Platforms, Inc. 1,747.49 Bn 74.30 23.25 51.06 Bn
3 SPOT Spotify Technology S.A. 103.00 Bn 62.32 5.18 2.57 Bn
4 BIDU Baidu, Inc. 62.73 Bn 49.63 3.42 13.66 Bn
5 RDDT Reddit, Inc. 32.18 Bn 92.16 16.90 0.03 Bn
6 NBIS Nebius Group N.V. 27.81 Bn 127.53 81.80 4.51 Bn
7 TME Tencent Music Entertainment Group 24.66 Bn 15.77 5.54 0.54 Bn
8 PINS Pinterest, Inc. 16.95 Bn 8.53 4.18 0.21 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.17 1.10
EV to Cash from Ops. EV/CFO 27.07 -3.08
EV to Debt EV to Debt 75.43 28.98
EV to EBIT EV/EBIT -18.48 -26.54
EV to EBITDA EV/EBITDA -35.87 9.30
EV to Free Cash Flow [EV/FCF] EV/FCF 320.67 -67.01
EV to Market Cap EV to Market Cap 0.92 0.90
EV to Revenue EV/Rev 3.77 61.25
Price to Book Value [P/B] P/B 3.41 1.56
Price to Earnings [P/E] P/E -20.70 2.92
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.33
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -8.92
Dividend per Basic Share Div per Share (Qtr) 0.00 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.58
Interest Coverage Int. cover (Qtr) -564.91 -202.56
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -28.68 -24.06
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 200.82 175.36
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.94
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -61.02 31.53
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -35,948.02 -472.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -76.27 32.66
EBT Growth (1y) % EBT 1y % (Qtr) -78.02 -25.80
EPS Growth (1y) % EPS 1y % (Qtr) -46.87 -18.36
FCF Growth (1y) % FCF 1y % (Qtr) 117.49 20.83
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 44.77 19.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.58 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.77 1.54
Current Ratio Curr Ratio (Qtr) 1.73 3.38
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 -0.39
Interest Cover Ratio Int Coverage (Qtr) -564.91 -202.56
Times Interest Earned Times Interest Earned (Qtr) -564.91 -202.56
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -8.70 -4,283.87
EBIT Margin % EBIT Margin % (Qtr) -20.37 -4,786.62
EBT Margin % EBT Margin % (Qtr) -20.41 -5,002.12
Gross Margin % Gross Margin % (Qtr) 22.00 58.65
Net Profit Margin % Net Margin % (Qtr) -19.70 -5,003.08