DB:4CD1

Stock Analysis Report

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Executive Summary

Codere, S.A., together with its subsidiaries, engages in the private gaming business in Spain, Italy, Argentina, Brazil, Colombia, Mexico, Panama, and Uruguay.


Snowflake Analysis

Slightly overvalued with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 4CD1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.3%

4CD1

-1.7%

DE Hospitality

0.2%

DE Market


1 Year Return

-58.0%

4CD1

-34.4%

DE Hospitality

4.5%

DE Market

Return vs Industry: 4CD1 underperformed the German Hospitality industry which returned -34.4% over the past year.

Return vs Market: 4CD1 underperformed the German Market which returned 4.5% over the past year.


Shareholder returns

4CD1IndustryMarket
7 Day-4.3%-1.7%0.2%
30 Day-21.9%-7.9%6.4%
90 Day-3.6%9.7%16.9%
1 Year-58.0%-58.0%-31.5%-34.4%6.8%4.5%
3 Year-86.4%-86.4%-48.8%-55.8%3.0%-5.0%
5 Year-94.8%-94.8%-50.9%-61.2%9.9%-4.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Codere 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: 4CD1 (€1.46) is trading below our estimate of fair value (€14.39)

Significantly Below Fair Value: 4CD1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 4CD1 is unprofitable, so we can't compare its PE Ratio to the DE Hospitality industry average.

PE vs Market: 4CD1 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 4CD1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 4CD1 has negative assets, so we can't compare its PB Ratio to the DE Hospitality industry average.


Next Steps

Future Growth

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

142.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4CD1 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 4CD1 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 4CD1 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 4CD1's revenue (9.6% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: 4CD1's revenue (9.6% 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 4CD1's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Codere performed over the past 5 years?

35.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 4CD1 is currently unprofitable.

Growing Profit Margin: 4CD1 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 4CD1 is unprofitable, but has reduced losses over the past 5 years at a rate of 35% per year.

Accelerating Growth: Unable to compare 4CD1's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 4CD1 is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-15.6%).


Return on Equity

High ROE: 4CD1's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Codere's financial position?


Financial Position Analysis

Short Term Liabilities: 4CD1 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 4CD1 has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: 4CD1 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: 4CD1's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


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: Whilst unprofitable 4CD1 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 4CD1 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 17.5% per year.


Next Steps

Dividend

What is Codere current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 4CD1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 4CD1's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 4CD1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 4CD1'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 4CD1'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?

4.3yrs

Average board tenure


CEO

Vicente Gabriel Di Loreto (54yo)

no data

Tenure

Mr. Vicente Gabriel di Loreto has been the Chief Executive Officer of Codere, S.A. He served as Operations Manager of Latin America at Codere, S.A. Mr. Di Loreto was with Grupo Clarín since 1998. He has he ...


Board Members

NamePositionTenureCompensationOwnership
Matthew Turner
Independent Director4.25yrs€252.00k0.020% 37.0k
Norman Raúl Sorensen Valdez
Non-Executive Chairman & Independent Lead Directorno data€350.00k0.070% 129.4k
Pío Cabanillas Alonso
Director12.17yrs€200.00kno data
David Anthony Reganato
Director4.25yrs€150.00kno data
Timothy Lavelle
Director4.25yrs€150.00kno data
Manuel Martínez-Fidalgo Vázquez
Director4.25yrs€150.00k0.010% 18.5k

4.3yrs

Average Tenure

48yo

Average Age

Experienced Board: 4CD1's board of directors are considered experienced (4.3 years average tenure).


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

Codere, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Codere, S.A.
  • Ticker: 4CD1
  • Exchange: DB
  • Founded: 1980
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: €184.624m
  • Shares outstanding: 118.35m
  • Website: https://www.grupocodere.com

Number of Employees


Location

  • Codere, S.A.
  • Avenida Bruselas, 26
  • Alcobendas
  • Madrid
  • 28108
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CDRBME (Bolsas y Mercados Espanoles)YesBearer SharesESEUROct 2007
4CD1DB (Deutsche Boerse AG)YesBearer SharesDEEUROct 2007
CODE.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDOct 2007
0SYQLSE (London Stock Exchange)YesBearer SharesGBEUROct 2007
CDREBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEUROct 2007

Biography

Codere, S.A., together with its subsidiaries, engages in the private gaming business in Spain, Italy, Argentina, Brazil, Colombia, Mexico, Panama, and Uruguay. It operates amusement and gaming machines, bookmakers, bingo halls, casinos, and racetracks. The company is also involved in the distribution and sale of gaming machines; television and telephone gaming, online gaming, portfolio management, and network concession activities; operation, administration, and development of horse and greyhound race tracks and sports shows; and operation, administration, and management of hotels, gaming rooms, slot machine rooms, and related activities. In addition, it provides real estate advisory, intermediation, development, and management services, as well as financial, advisory, other business support services; and staff administration, hiring, labour advisory and assistance, and payroll services. The company operates approximately 57,000 machines, 29,537 bingo stations, and 7,700 sports betting terminals in 148 gaming halls, as well as 1,119 salons, 10,000 bars, 602 sports betting shops, and 4 racetracks; and develops online gaming. Codere, S.A. was founded in 1980 and is headquartered in Alcobendas, Spain. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 21:52
End of Day Share Price2020/07/14 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.