Sports Entertainment Gaming Global Corp (NASDAQ: SEGG)

Sector: Consumer Cyclical Industry: Gambling CIK: 0001673481
Market Cap 5.52 Mn
P/B 0.17
P/E -0.28
P/S 6.12
ROIC (Qtr) -47.11
Div Yield % 0.00
Rev 1y % (Qtr) -31.38
Total Debt (Qtr) 5.74 Mn
Debt/Equity (Qtr) 0.17
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About

Lottery.com Inc., also known as LTRY, operates in the lottery industry, providing both domestic and international lottery products and services. The company was established in 2016 and has seen significant changes, including a business combination with AutoLotto, Inc. in 2021 and a name change to Lottery.com Inc. The company's main business activities involve offering a platform for the remote purchase of legally sanctioned lottery games in the U.S. and abroad. Lottery.com Inc. generates revenue through its B2C Platform, which allows users to purchase...

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Investment thesis

Bull case

  • Strong tangible asset base of 33.87M provides 5.90x coverage of total debt 5.74M, indicating robust asset backing and low credit risk.
  • Tangible assets of 33.87M provide exceptional 199.63x coverage of deferred revenue 169643, showing strong service capability backing.
  • Operating cash flow of (8.86M) fully covers other non-current liabilities (169643) by 52.25x, showing strong long-term stability.
  • Strong free cash flow of (8.86M) provides 2.28x coverage of acquisition spending (3.89M), indicating disciplined M&A strategy.
  • Cash position of 320636 provides strong 1.89x coverage of deferred revenue 169643, ensuring service delivery capability.

Bear case

  • Cash reserves of 320636 provide limited coverage of acquisition spending of (3.89M), which is -0.08x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (8.86M) provides insufficient coverage of deferred revenue obligations of 169643, which is -52.25x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (8.86M) shows concerning coverage of stock compensation expenses of (4.68M), with a 1.89 ratio indicating potential earnings quality issues.
  • Operating cash flow of (8.86M) provides minimal -496.14x coverage of tax expenses of 17866, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (19.89M) show weak coverage of depreciation charges of 4.48M, with a -4.44 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 0.14 1.38
EV to Cash from Ops. EV/CFO -1.19 9.12
EV to Debt EV to Debt 1.84 10.53
EV to EBIT EV/EBIT -0.53 41.15
EV to EBITDA EV/EBITDA -1.00 12.35
EV to Free Cash Flow [EV/FCF] EV/FCF -1.19 20.81
EV to Market Cap EV to Market Cap 1.91 -0.89
EV to Revenue EV/Rev 11.69 1.79
Price to Book Value [P/B] P/B 0.17 2.35
Price to Earnings [P/E] P/E -0.28 170.35
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) -120.19 -4.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -6.60
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 430.27 43.20
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 34.14
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 40.84 339.71
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 40.42 59.74
EBIT Growth (1y) % EBIT 1y % (Qtr) 40.75 40.42
EBT Growth (1y) % EBT 1y % (Qtr) 41.09 9.08
EPS Growth (1y) % EPS 1y % (Qtr) 110.65 463.23
FCF Growth (1y) % FCF 1y % (Qtr) -2,173.21 -118.03
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -46.65 16.12
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.01 1.01
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.08
Cash Ratio Cash Ratio (Qtr) 0.01 0.74
Current Ratio Curr Ratio (Qtr) 0.63 1.04
Debt to Equity Ratio Debt/Equity (Qtr) 0.17 -2.16
Interest Cover Ratio Int Coverage (Qtr) -120.19 -4.66
Times Interest Earned Times Interest Earned (Qtr) -120.19 -4.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -1,707.90 -104.37
EBIT Margin % EBIT Margin % (Qtr) -2,205.02 -142.35
EBT Margin % EBT Margin % (Qtr) -2,223.37 -146.31
Gross Margin % Gross Margin % (Qtr) 29.30 44.07
Net Profit Margin % Net Margin % (Qtr) -2,225.40 -145.36