DB:V72G

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Executive Summary

Betsson AB (publ), through its subsidiaries, engages in the online gaming business primarily in the Nordic countries, Western Europe, Central and Easter Europe, Central Asia, and internationally.


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: V72G's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.3%

V72G

10.4%

DE Hospitality

2.0%

DE Market


1 Year Return

n/a

V72G

-39.2%

DE Hospitality

-2.6%

DE Market

Return vs Industry: Insufficient data to determine how V72G performed against the German Hospitality industry.

Return vs Market: Insufficient data to determine how V72G performed against the German Market.


Shareholder returns

V72GIndustryMarket
7 Day9.3%10.4%2.0%
30 Day24.0%16.4%8.4%
90 Day28.7%-38.2%-7.3%
1 Yearn/a-37.0%-39.2%-1.0%-2.6%
3 Year-22.9%-22.9%-55.4%-61.4%-6.6%-13.9%
5 Year-54.1%-54.1%-54.3%-63.9%1.1%-11.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

30.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: V72G (€6.11) is trading below our estimate of fair value (€8.82)

Significantly Below Fair Value: V72G is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: V72G is good value based on its PE Ratio (11.6x) compared to the Hospitality industry average (22.3x).

PE vs Market: V72G is good value based on its PE Ratio (11.6x) compared to the German market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: V72G is poor value based on its PEG Ratio (4.9x)


Price to Book Ratio

PB vs Industry: V72G is good value based on its PB Ratio (1.7x) compared to the DE Hospitality industry average (1.8x).


Next Steps

Future Growth

How is Betsson forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

2.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: V72G's forecast earnings growth (2.3% per year) is above the savings rate (0.2%).

Earnings vs Market: V72G's earnings (2.3% per year) are forecast to grow slower than the German market (22.1% per year).

High Growth Earnings: V72G's earnings are forecast to grow, but not significantly.

Revenue vs Market: V72G's revenue (10.7% per year) is forecast to grow faster than the German market (5.7% per year).

High Growth Revenue: V72G's revenue (10.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: V72G's Return on Equity is forecast to be low in 3 years time (15.1%).


Next Steps

Past Performance

How has Betsson performed over the past 5 years?

2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: V72G has high quality earnings.

Growing Profit Margin: V72G's current net profit margins (15%) are lower than last year (20.2%).


Past Earnings Growth Analysis

Earnings Trend: V72G's earnings have grown by 2% per year over the past 5 years.

Accelerating Growth: V72G's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: V72G had negative earnings growth (-29.6%) over the past year, making it difficult to compare to the Hospitality industry average (-36.2%).


Return on Equity

High ROE: V72G's Return on Equity (14.5%) is considered low.


Next Steps

Financial Health

How is Betsson's financial position?


Financial Position Analysis

Short Term Liabilities: V72G's short term assets (SEK2.3B) exceed its short term liabilities (SEK1.5B).

Long Term Liabilities: V72G's short term assets (SEK2.3B) exceed its long term liabilities (SEK1.2B).


Debt to Equity History and Analysis

Debt Level: V72G's debt to equity ratio (19.6%) is considered satisfactory.

Reducing Debt: V72G's debt to equity ratio has increased from 16% to 19.6% over the past 5 years.

Debt Coverage: V72G's debt is well covered by operating cash flow (118.1%).

Interest Coverage: V72G's interest payments on its debt are well covered by EBIT (14.3x coverage).


Balance Sheet


Next Steps

Dividend

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

4.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: V72G's dividend (4.31%) is higher than the bottom 25% of dividend payers in the German market (1.33%).

High Dividend: V72G's dividend (4.31%) is in the top 25% of dividend payers in the German market (4.04%)


Stability and Growth of Payments

Stable Dividend: V72G's dividend payments have been volatile in the past 10 years.

Growing Dividend: V72G's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.4%), V72G's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: V72G's dividends in 3 years are forecast to be covered by earnings (50% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Pontus Lindwall (54yo)

4.83yrs

Tenure

kr7,605,000

Compensation

Mr. Pontus Lindwall has been Board Member at Infrea AB since 2014. Mr. Lindwall has been the Chief Executive Officer and President of Betsson AB since September 4, 2017. Mr. Lindwall serves as the Chief Ex ...


CEO Compensation Analysis

Compensation vs Market: Pontus's total compensation ($USD789.30K) is below average for companies of similar size in the German market ($USD1.25M).

Compensation vs Earnings: Pontus's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Pontus Lindwall
CEO & President4.83yrskr7.61m0.93% SEK7.9m
Martin Öhman
Chief Financial Officer0.67yrno datano data
Anna-Lena Astrom
Head of Investor Relations0.083yrno datano data
Fredric Lundén
Vice President of Governance2.67yrsno datano data
Triin Toomemets-Krasnitski
Vice President of Legal1.83yrsno data0.0026% SEK21.8k
Lars-Gunnar Persson
Head of Maritime Gaming and Acting Chief Executive Officer of Cherry Maritime Gaming ABno datano datano data
Per-Anders Persson
Chief Executive Officer of Cherry Casino ABno datano datano data
Ulf Bergström
Chief Executive Officer of Cherry Casino Syd Abno datano datano data
Jesper Svensson
CEO of Betsson's operational Subsidiariesno datakr6.61mno data
Johan Berg
Group Business Controllerno datano datano data

1.8yrs

Average Tenure

53yo

Average Age

Experienced Management: V72G's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Patrick Svensk
Independent Chairman2.67yrskr966.00k0.012% SEK102.8k
Kicki Wallje-Lund
Independent Director14.33yrskr509.00k0.0021% SEK17.8k
Fredrik Carlsson
Independent Director2.75yrskr572.00k0.0073% SEK62.3k
Jan Nord
Independent Director5.33yrskr520.00kno data
Eva Leach
Independent Director1yrkr263.00kno data
Mathias Hedlund
Independent Director2yrskr520.00kno data
Johan Lundberg
Independent Director2yrskr509.00k0.0029% SEK24.9k

2.7yrs

Average Tenure

49yo

Average Age

Experienced Board: V72G's board of directors are not considered experienced ( 2.7 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: V72G insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Betsson AB's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Betsson AB
  • Ticker: V72G
  • Exchange: DB
  • Founded: 1963
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: kr9.012b
  • Listing Market Cap: kr851.447m
  • Shares outstanding: 136.65m
  • Website: https://www.betssonab.com

Number of Employees


Location

  • Betsson AB
  • Regeringsgatan 28
  • Stockholm
  • Stockholm County
  • 111 53
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BETS BOM (OMX Nordic Exchange Stockholm)SER'B'NPV (POST SPLIT)SESEKNo data
V72EDB (Deutsche Boerse AG)SER'B'NPV (POST SPLIT)DEEURNo data
BETS BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKJan 1998
0A37LSE (London Stock Exchange)YesClass B SharesGBSEKJan 1998
V72GDB (Deutsche Boerse AG)YesClass B SharesDEEURJan 1998
BSTB.FOTCPK (Pink Sheets LLC)YesClass B SharesUSUSDJan 1998
V72FBST (Boerse-Stuttgart)YesClass B SharesDEEURJan 1998

Biography

Betsson AB (publ), through its subsidiaries, engages in the online gaming business primarily in the Nordic countries, Western Europe, Central and Easter Europe, Central Asia, and internationally. It offers poker, casino, sportsbook, Scratch cards, Bingo, and other games. The company serves its customers under Betsafe, Betsson, Casino DK, Casino Euro, Casino Winner, Europe-bet.com, Jackpot 247, Jalla Casino, Live Roulette, Loyal Casino, NordicBet, Norges Automaten, RaceBets, Star Casino, Supercasino.com, and Suomiarvat brand names. It also offers systems solutions to other gaming operators. Betsson AB was founded in 1963 and is based in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/27 05:28
End of Day Share Price2020/05/26 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.