AIM:GAN

Stock Analysis Report

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Executive Summary

GAN Limited provides enterprise Software-as-a-Service solutions for online casino gaming and online sports betting applications.


Snowflake Analysis

High growth potential with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.4%

GAN

1.1%

GB Hospitality

2.2%

GB Market


1 Year Return

294.7%

GAN

-26.9%

GB Hospitality

-10.0%

GB Market

Return vs Industry: GAN exceeded the UK Hospitality industry which returned -18% over the past year.

Return vs Market: GAN exceeded the UK Market which returned -17.2% over the past year.


Shareholder returns

GANIndustryMarket
7 Day1.4%1.1%2.2%
30 Day57.3%4.6%9.6%
90 Day25.0%-16.0%-2.6%
1 Year294.7%294.7%-24.4%-26.9%-5.7%-10.0%
3 Year643.8%643.8%-17.7%-26.7%-1.8%-13.8%
5 Year251.6%251.6%2.4%-15.9%15.5%-10.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

89.58x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: GAN (£2.25) is trading above our estimate of fair value (£0.56)

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


Price To Earnings Ratio

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

PE vs Market: GAN is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GAN is overvalued based on its PB Ratio (89.6x) compared to the GB Hospitality industry average (1x).


Next Steps

Future Growth

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

107.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GAN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.5%).

Earnings vs Market: GAN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GAN's is expected to become profitable in the next 3 years.

Revenue vs Market: GAN's revenue (25.5% per year) is forecast to grow faster than the UK market (3.3% per year).

High Growth Revenue: GAN's revenue (25.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has GAN performed over the past 5 years?

-2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GAN is currently unprofitable.

Growing Profit Margin: GAN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GAN is unprofitable, and losses have increased over the past 5 years at a rate of -2.5% per year.

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

Earnings vs Industry: GAN is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-10.9%).


Return on Equity

High ROE: GAN has a negative Return on Equity (-22.46%), as it is currently unprofitable.


Next Steps

Financial Health

How is GAN's financial position?


Financial Position Analysis

Short Term Liabilities: GAN's short term assets (£17.0M) exceed its short term liabilities (£12.3M).

Long Term Liabilities: GAN's short term assets (£17.0M) exceed its long term liabilities (£572.0K).


Debt to Equity History and Analysis

Debt Level: GAN is debt free.

Reducing Debt: GAN had no debt 5 years ago.


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: Insufficient data to determine if GAN has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if GAN has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate GAN'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 GAN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GAN'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 GAN's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Dermot Smurfit (44yo)

no data

Tenure

UK£525,000

Compensation

Mr. Dermot Stopford Smurfit, Jr. serves as the Chief Executive Officer at GAN plc (formerly known as GameAccount Network Plc) (formerly, GameAccount Global Limited). Mr. Smurfit joined GameAccount Network  ...


CEO Compensation Analysis

Compensation vs Market: Dermot's total compensation ($USD648.44K) is below average for companies of similar size in the UK market ($USD1.21M).

Compensation vs Earnings: Dermot's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Dermot Smurfit
CEO & Directorno dataUK£525.00k9.44% £87.3m
Karen Flores
Chief Financial Officer0.33yrno datano data
Simon Knock
Chief Information Officerno datano datano data
Jameson Wang
Vice President of Analytics & Investor Relations1.33yrsno datano data
Jack Wielebinski
Head of Investor Relations0.67yrno datano data
Martin Smith
Chief Games Officer8.33yrsno datano data
Karen Ashcroft
Head of Financeno datano datano data
Meir Deutsch
Managing Director of Digital2.08yrsno datano data
Jeff Berman
Chief Commercial Officer2.25yrsno datano data

1.7yrs

Average Tenure

44yo

Average Age

Experienced Management: GAN's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Dermot Smurfit
CEO & Directorno dataUK£525.00k9.44% £87.3m
Michael W. Smurfit
Non Executive Director11.92yrsUK£34.00k1.4% £13.0m
David Goldberg
Non-Executive Director1.42yrsUK£3.00kno data
Seamus McGill
Non-Executive Chairman3.17yrsUK£97.00k0.11% £1.0m

3.2yrs

Average Tenure

52.5yo

Average Age

Experienced Board: GAN's board of directors are considered experienced (3.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GAN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.7%.


Top Shareholders

Company Information

GAN Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GAN Limited
  • Ticker: GAN
  • Exchange: AIM
  • Founded:
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: US$1.142b
  • Listing Market Cap: US$924.760m
  • Shares outstanding: 86.20m
  • Website: https://www.gan.com

Number of Employees


Location

  • GAN Limited
  • Axe & Bottle Court
  • 70 Newcomen Street
  • London
  • Greater London
  • SE1 1YT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GANAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPNov 2013
GANNasdaqCM (Nasdaq Capital Market)YesOrdinary SharesUSUSDNov 2013
GAMEDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2013

Biography

GAN Limited provides enterprise Software-as-a-Service solutions for online casino gaming and online sports betting applications. It offers a proprietary internet gambling enterprise software system, GameSTACK, which it licenses principally to the land-based U.S. casino operators as a turnkey technology solution for regulated real-money internet gambling, encompassing internet gaming, internet sports gaming, and virtual simulated gaming. It also offer a range of professional and managed services designed to deploy and provide ongoing operational support for its software systems. The company is based in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/06 21:55
End of Day Share Price2020/05/05 00:00
Earnings2019/06/30
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.