DB:LO24

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with concerning outlook.

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.3%

LO24

-3.0%

DE Hospitality

0.05%

DE Market


1 Year Return

48.5%

LO24

-38.5%

DE Hospitality

3.4%

DE Market

Return vs Industry: LO24 exceeded the German Hospitality industry which returned -34.4% over the past year.

Return vs Market: LO24 exceeded the German Market which returned 4.5% over the past year.


Shareholder returns

LO24IndustryMarket
7 Day5.3%-3.0%0.05%
30 Day15.7%-11.5%5.5%
90 Day33.6%13.3%19.9%
1 Year48.5%48.5%-35.9%-38.5%5.7%3.4%
3 Year107.4%107.4%-51.0%-57.7%3.4%-4.7%
5 Year452.2%452.2%-52.1%-62.2%10.4%-4.5%

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

Valuation

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

96.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LO24 (€19.9) is trading above our estimate of fair value (€10.23)

Significantly Below Fair Value: LO24 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LO24 is poor value based on its PE Ratio (96.9x) compared to the DE Hospitality industry average (20.2x).

PE vs Market: LO24 is poor value based on its PE Ratio (96.9x) compared to the German market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LO24's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LO24 is overvalued based on its PB Ratio (12.9x) compared to the DE Hospitality industry average (2x).


Next Steps

Future Growth

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

10.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if LO24's forecast earnings growth is above the savings rate (0.2%).

Earnings vs Market: Insufficient data to determine if LO24's earnings are forecast to grow faster than the German market

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

Revenue vs Market: LO24's revenue (10% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: LO24's revenue (10% 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

  • Explore growth companies in the Consumer Services industry.

Past Performance

How has Lotto24 performed over the past 5 years?

74.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LO24 has a large one-off loss of €1.7M impacting its December 31 2019 financial results.

Growing Profit Margin: LO24's current net profit margins (11.3%) are lower than last year (20.1%).


Past Earnings Growth Analysis

Earnings Trend: LO24 has become profitable over the past 5 years, growing earnings by 74.6% 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 (-35.5%) over the past year, making it difficult to compare to the Hospitality industry average (-15.6%).


Return on Equity

High ROE: LO24's Return on Equity (13.3%) is considered low.


Next Steps

Financial Health

How is Lotto24's financial position?


Financial Position Analysis

Short Term Liabilities: LO24's short term assets (€37.5M) exceed its short term liabilities (€34.7M).

Long Term Liabilities: LO24's short term assets (€37.5M) exceed its long term liabilities (€3.6M).


Debt to Equity History and Analysis

Debt Level: LO24 is debt free.

Reducing Debt: LO24 had no debt 5 years ago.

Debt Coverage: LO24 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: LO24 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Lotto24 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 recent payouts.

High Dividend: Unable to evaluate LO24'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 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?

0.8yrs

Average board tenure


CEO

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


Board Members

NamePositionTenureCompensationOwnership
Jens Schumann
Chairman of Supervisory Boardno data€38.00kno data
Sebastian Blohm
Member of Supervisory Board0.083yrno datano data
Thorsten Hehl
Member of Supervisory Board8.17yrs€25.00kno data
Otto Lose
Deputy Chairperson0.083yr€8.00kno data
Andreas Meyer-Landrut
Member of Supervisory Board0.83yr€8.00kno data
Stefan Mäger
Member of Supervisory Board0.83yr€8.00kno data

0.8yrs

Average Tenure

48.5yo

Average Age

Experienced Board: LO24's board of directors are not considered experienced ( 0.8 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: DB
  • Founded: 2010
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: €483.098m
  • 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. The company offers its customers the possibility to participate in the lottery products, including Lotto 6aus49, Spiel 77, Super 6, EuroJackpot, GlücksSpirale, Keno, lotto clubs, instant lotteries, and Deutsche Fernsehlotterie. It brokers lottery products through Lotto24.de and Tipp24.com websites. The company was founded in 2010 and is based in Hamburg, Germany. Lotto24 AG is 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 Analysis2020/07/14 21:55
End of Day Share Price2020/07/14 00:00
Earnings2019/12/31
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.