High Roller Technologies, Inc. (NYSE: ROLR)

Sector: Consumer Cyclical Industry: Gambling CIK: 0001947210
Market Cap 30.49 Mn
P/B 4.63
P/E -13.43
P/S 1.09
ROIC (Qtr) -15,080.37
Div Yield % 0.00
Rev 1y % (Qtr) -16.43
Total Debt (Qtr) 869,000.00
Debt/Equity (Qtr) 0.13
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About

Investment thesis

Bull case

  • Healthy cash reserves of 3.50M provide 18.81x coverage of short-term debt 186000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 10.24M provides 11.78x coverage of total debt 869000, indicating robust asset backing and low credit risk.
  • Cash reserves of 3.50M provide solid 57.34x coverage of other non-current liabilities 61000, indicating strong liquidity.
  • Strong R&D investment of 1.36M at 2.18x of capex 626000 shows balanced investment in innovation and infrastructure.
  • Operating cash flow of (7.08M) exceeds working capital of (4.83M) by 1.47x, showing strong operational efficiency.

Bear case

  • Investment activities of (626000) provide weak support for R&D spending of 1.36M, which is -0.46x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (7.08M) shows concerning coverage of stock compensation expenses of 1.44M, with a -4.91 ratio indicating potential earnings quality issues.
  • Free cash flow of (7.70M) provides weak coverage of capital expenditures of 626000, with a -12.31 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (7.08M) provides minimal 1.98x coverage of tax expenses of (3.58M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (5.65M) show weak coverage of depreciation charges of 607000, with a -9.31 ratio indicating high capital intensity and potential reinvestment needs.

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 1.73 1.38
EV to Cash from Ops. EV/CFO -3.93 9.12
EV to Debt EV to Debt 31.98 10.53
EV to EBIT EV/EBIT -4.92 41.15
EV to EBITDA EV/EBITDA -5.51 12.35
EV to Free Cash Flow [EV/FCF] EV/FCF -3.61 20.81
EV to Market Cap EV to Market Cap 0.91 -0.89
EV to Revenue EV/Rev 0.99 1.79
Price to Book Value [P/B] P/B 4.63 2.35
Price to Earnings [P/E] P/E -13.43 170.35
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) -27.97 -4.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -11.79 -6.60
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 19.75 43.20
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 34.14
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 59.98 339.71
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 3.39 59.74
EBIT Growth (1y) % EBIT 1y % (Qtr) -3.23 40.42
EBT Growth (1y) % EBT 1y % (Qtr) -5.01 9.08
EPS Growth (1y) % EPS 1y % (Qtr) 62.03 463.23
FCF Growth (1y) % FCF 1y % (Qtr) -344.75 -118.03
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 23.41 16.12
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.75 1.01
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.08
Cash Ratio Cash Ratio (Qtr) 0.40 0.74
Current Ratio Curr Ratio (Qtr) 0.45 1.04
Debt to Equity Ratio Debt/Equity (Qtr) 0.13 -2.16
Interest Cover Ratio Int Coverage (Qtr) -27.97 -4.66
Times Interest Earned Times Interest Earned (Qtr) -27.97 -4.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -18.00 -104.37
EBIT Margin % EBIT Margin % (Qtr) -20.14 -142.35
EBT Margin % EBT Margin % (Qtr) -20.86 -146.31
Gross Margin % Gross Margin % (Qtr) 58.90 44.07
Net Profit Margin % Net Margin % (Qtr) -8.10 -145.36