Opera Ltd (NASDAQ: OPRA)

Sector: Communication Services Industry: Internet Content & Information CIK: 0001737450
Market Cap 1.56 Bn
P/B 1.54
P/E -35.39
P/S 6.20
ROIC (Qtr) 7.65
Div Yield % 2.97
Rev 1y % (Qtr) 23.32
Total Debt (Qtr) 8.82 Mn
Debt/Equity (Qtr) 0.01

About

Opera Ltd, a global internet brand with the ticker symbol OPRA, operates in the browser and online services industry. The company has a rich history dating back to 1996, when it launched its first version of the Opera browser software. Over the years, Opera has evolved to become a leader in redefining the web browsing experience, offering personalized content discovery platforms, and providing gaming services to hundreds of millions of global internet users. Opera's main business activities revolve around its browser products, including Opera Mini,...

Read more

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 99.16M provides robust 11.24x coverage of total debt 8.82M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 119.04M provide 28.57x coverage of short-term debt 4.17M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 99.16M provides exceptional 162.03x coverage of interest expenses 612000, showing strong debt service capability.
  • Strong tangible asset base of 530.60M provides 60.13x coverage of total debt 8.82M, indicating robust asset backing and low credit risk.
  • Tangible assets of 530.60M provide exceptional 132.85x coverage of deferred revenue 3.99M, showing strong service capability backing.

Bear case

  • Operating cash flow of 99.16M barely covers its investment activities of (13.13M), with a coverage ratio of -7.55, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 99.16M provides thin coverage of dividend payments of (71.16M) with a -1.39 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 119.04M provide limited coverage of acquisition spending of (3.75M), which is -31.74x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 99.16M shows concerning coverage of stock compensation expenses of 23.23M, with a 4.27 ratio indicating potential earnings quality issues.
  • Long-term investments of 263.67M represent a high 8.13x of fixed assets 32.44M, indicating potential overexposure to financial assets versus operational capabilities.

Geographical areas [axis] Breakdown of Revenue (2024)

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

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 1.41 1.10
EV to Cash from Ops. EV/CFO 56.29 -3.08
EV to Debt EV to Debt 169.47 28.98
EV to EBIT EV/EBIT -40.41 -26.54
EV to EBITDA EV/EBITDA 111.69 9.30
EV to Free Cash Flow [EV/FCF] EV/FCF 72.35 -67.01
EV to Market Cap EV to Market Cap 0.96 0.90
EV to Revenue EV/Rev 5.96 61.25
Price to Book Value [P/B] P/B 1.54 1.56
Price to Earnings [P/E] P/E -35.39 2.92
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.14 0.33
Dividend Payout Ratio % Div Payout % (Qtr) 87.90 -8.92
Dividend per Basic Share Div per Share (Qtr) 0.80 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 83.77 2.58
Interest Coverage Int. cover (Qtr) 156.50 -202.56
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 55.15 -24.06
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 12.30 175.36
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 0.94
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -48.89 31.53
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 7.95 -472.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -45.09 32.66
EBT Growth (1y) % EBT 1y % (Qtr) -45.27 -25.80
EPS Growth (1y) % EPS 1y % (Qtr) -49.16 -18.36
FCF Growth (1y) % FCF 1y % (Qtr) 9.24 20.83
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 14.05 19.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.55 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.63 0.02
Cash Ratio Cash Ratio (Qtr) 1.18 1.54
Current Ratio Curr Ratio (Qtr) 2.31 3.38
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 -0.39
Interest Cover Ratio Int Coverage (Qtr) 156.50 -202.56
Times Interest Earned Times Interest Earned (Qtr) 156.50 -202.56
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 19.50 -4,283.87
EBIT Margin % EBIT Margin % (Qtr) 16.42 -4,786.62
EBT Margin % EBT Margin % (Qtr) 16.31 -5,002.12
Gross Margin % Gross Margin % (Qtr) 65.40 58.65
Net Profit Margin % Net Margin % (Qtr) 13.90 -5,003.08