Rush Street Interactive, Inc. (NYSE: RSI)

Sector: Consumer Cyclical Industry: Gambling CIK: 0001793659
Market Cap 1.54 Bn
P/B 11.61
P/E 51.33
P/S 1.45
ROIC (Qtr) 25.20
Div Yield % 0.00
Rev 1y % (Qtr) 19.73
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
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About

Rush Street Interactive, Inc. (RSI) is a prominent player in the online gaming and entertainment industry, with its stock symbol widely recognized in the market. The company operates in the United States, Canada, and Latin America, offering a variety of services that include online casino, online sports betting, and retail sports betting. RSI's primary products and services include real-money online casino, online sports betting, and social gaming, which involves free-to-play games that use virtual credits. The company leverages its proprietary...

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Investment thesis

Bull case

  • Robust free cash flow of 91.18M exceeds capital expenditure of 30.63M by 2.98x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 515.58M provides 3.14x coverage of working capital 164.29M, indicating strong operational backing.
  • Operating cash flow of 121.81M provides solid 0.68x coverage of current liabilities 179.90M, showing strong operational health.
  • Cash reserves of 277.55M provide robust 1.54x coverage of current liabilities 179.90M, indicating strong short-term solvency.
  • Strong cash position of 277.55M provides 1.81x coverage of other current liabilities 153.04M, indicating excellent liquidity.

Bear case

  • Operating cash flow of 121.81M barely covers its investment activities of (36.02M), with a coverage ratio of -3.38, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • The company's operating cash flow of 121.81M shows concerning coverage of stock compensation expenses of 30M, with a 4.06 ratio indicating potential earnings quality issues.
  • Operating cash flow of 121.81M provides minimal -1.28x coverage of tax expenses of (95.18M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (72.58M) show weak coverage of depreciation charges of 39.54M, with a -1.84 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 91.18M represents just -28.68x of debt issuance (3.18M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Product and Service Breakdown of Revenue (2024)

Geographical 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 2.20 1.38
EV to Cash from Ops. EV/CFO 10.69 9.12
EV to Debt EV to Debt 0.00 10.53
EV to EBIT EV/EBIT -17.94 41.15
EV to EBITDA EV/EBITDA 11.84 12.35
EV to Free Cash Flow [EV/FCF] EV/FCF 14.29 20.81
EV to Market Cap EV to Market Cap 0.84 -0.89
EV to Revenue EV/Rev 1.22 1.79
Price to Book Value [P/B] P/B 11.61 2.35
Price to Earnings [P/E] P/E 51.33 170.35
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 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) 9.69 -4.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -15.43 -6.60
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 25.95 43.20
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 34.14
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 2,982.03 339.71
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 173.23 59.74
EBIT Growth (1y) % EBIT 1y % (Qtr) -550.73 40.42
EBT Growth (1y) % EBT 1y % (Qtr) -444.97 9.08
EPS Growth (1y) % EPS 1y % (Qtr) 1,750.00 463.23
FCF Growth (1y) % FCF 1y % (Qtr) 66.26 -118.03
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 28.16 16.12
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.79 1.01
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.08
Cash Ratio Cash Ratio (Qtr) 1.54 0.74
Current Ratio Curr Ratio (Qtr) 1.91 1.04
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 -2.16
Interest Cover Ratio Int Coverage (Qtr) 9.69 -4.66
Times Interest Earned Times Interest Earned (Qtr) 9.69 -4.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -3.10 -104.37
EBIT Margin % EBIT Margin % (Qtr) -6.82 -142.35
EBT Margin % EBT Margin % (Qtr) -6.12 -146.31
Gross Margin % Gross Margin % (Qtr) 35.10 44.07
Net Profit Margin % Net Margin % (Qtr) 2.80 -145.36