XTRA:LO24

Stock Analysis Report

Executive Summary

Lotto24 AG engages in the online brokerage of state-licensed lottery products in Germany.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.

Share Price & News

How has Lotto24's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LO24 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.9%

LO24

-4.8%

DE Hospitality

-0.9%

DE Market


1 Year Return

6.1%

LO24

3.3%

DE Hospitality

12.8%

DE Market

Return vs Industry: LO24 exceeded the German Hospitality industry which returned 3.3% over the past year.

Return vs Market: LO24 underperformed the German Market which returned 12.8% over the past year.


Shareholder returns

LO24IndustryMarket
7 Day-3.9%-4.8%-0.9%
30 Day-0.3%1.6%-0.4%
90 Day-3.6%-15.2%2.3%
1 Year6.1%6.1%7.8%3.3%16.3%12.8%
3 Year70.9%70.9%-9.6%-22.0%15.8%5.7%
5 Year465.6%465.6%-12.3%-30.9%19.7%3.3%

Price Volatility Vs. Market

How volatile is Lotto24's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Lotto24 undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LO24 (€14.7) is trading below our estimate of fair value (€29.45)

Significantly Below Fair Value: LO24 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LO24 is poor value based on its PE Ratio (108.6x) compared to the Hospitality industry average (25.5x).

PE vs Market: LO24 is poor value based on its PE Ratio (108.6x) compared to the German market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: LO24 is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: LO24 is overvalued based on its PB Ratio (9.9x) compared to the DE Hospitality industry average (2.3x).


Next Steps

Future Growth

How is Lotto24 forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

66.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LO24's forecast earnings growth (66% per year) is above the savings rate (-0.4%).

Earnings vs Market: LO24's earnings (66% per year) are forecast to grow faster than the German market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LO24's revenue (11.6% per year) is forecast to grow faster than the German market (5.2% per year).

High Growth Revenue: LO24's revenue (11.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LO24's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Lotto24 performed over the past 5 years?

74.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LO24 has a large one-off loss of €2.0M impacting its September 30 2019 financial results.

Growing Profit Margin: LO24's current net profit margins (8.7%) are lower than last year (26.2%).


Past Earnings Growth Analysis

Earnings Trend: LO24 has become profitable over the past 5 years, growing earnings by 74% per year.

Accelerating Growth: LO24's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LO24 had negative earnings growth (-63.8%) over the past year, making it difficult to compare to the Hospitality industry average (-36.8%).


Return on Equity

High ROE: LO24's Return on Equity (9.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lotto24's financial position?


Financial Position Analysis

Short Term Liabilities: LO24's short term assets (€21.9M) exceed its short term liabilities (€19.9M).

Long Term Liabilities: LO24's short term assets (€21.9M) exceed its long term liabilities (€2.8M).


Debt to Equity History and Analysis

Debt Level: LO24 is debt free.

Reducing Debt: LO24 had no debt 5 years ago.


Balance Sheet

Inventory Level: LO24 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if LO24's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: LO24 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: LO24 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Lotto24's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LO24's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LO24's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LO24's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LO24's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LO24's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.5yrs

Average board tenure


CEO

Lotto24 has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Peter Steiner
Chairman of the Supervisory Board0.7yrsno datano data
Jens Schumann
Deputy Chairman of Supervisory Board7.8yrsno datano data
Thorsten Hehl
Member of Supervisory Board7.8yrsno datano data
Otto Lose
Member of Supervisory Board0.4yrsno datano data
Andreas Meyer-Landrut
Member of Supervisory Board0.4yrsno datano data
Stefan Mäger
Member of Supervisory Board0.4yrsno datano data

0.5yrs

Average Tenure

49yo

Average Age

Experienced Board: LO24's board of directors are not considered experienced ( 0.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lotto24 AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lotto24 AG
  • Ticker: LO24
  • Exchange: XTRA
  • Founded: 2010
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: €355.077m
  • Shares outstanding: 24.15m
  • Website: https://www.lotto24-ag.de

Number of Employees


Location

  • Lotto24 AG
  • Strassenbahnring 11
  • Hamburg
  • Hamburg
  • 20251
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LO24DB (Deutsche Boerse AG)YesRegistered SharesDEEURJul 2012
LO24XTRA (XETRA Trading Platform)YesRegistered SharesDEEURJul 2012
0Q8QLSE (London Stock Exchange)YesRegistered SharesGBEURJul 2012
LO24dBATS-CHIXE (BATS 'Chi-X Europe')YesRegistered SharesGBEURJul 2012

Biography

Lotto24 AG engages in the online brokerage of state-licensed lottery products in Germany. It offers its customers the possibility to participate in the state-licensed lottery products, including Lotto 6aus49, Spiel 77, Super 6, EuroJackpot, GlücksSpirale, Keno, lotto clubs, and Deutsche Fernsehlotterie. The company was founded in 2010 and is based in Hamburg, Germany. As of May 14, 2019, Lotto24 AG operates as a subsidiary of ZEAL Network SE. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 22:51
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.