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OB

Outbrain NasdaqGS:OB Stock Report

Last Price

US$6.14

Market Cap

US$354.5m

7D

9.6%

1Y

-68.4%

Updated

06 Aug, 2022

Data

Company Financials +
OB fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance0/6
Financial Health5/6
Dividends0/6

OB Stock Overview

Outbrain Inc., together with its subsidiaries, operates an online content recommendation platform worldwide.

Outbrain Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Outbrain
Historical stock prices
Current Share PriceUS$6.14
52 Week HighUS$20.29
52 Week LowUS$4.60
Beta0
1 Month Change18.08%
3 Month Change-31.09%
1 Year Change-68.38%
3 Year Changen/a
5 Year Changen/a
Change since IPO-69.30%

Recent News & Updates

Jul 22
An Intrinsic Calculation For Outbrain Inc. (NASDAQ:OB) Suggests It's 32% Undervalued

An Intrinsic Calculation For Outbrain Inc. (NASDAQ:OB) Suggests It's 32% Undervalued

Does the July share price for Outbrain Inc. ( NASDAQ:OB ) reflect what it's really worth? Today, we will estimate the...

Shareholder Returns

OBUS Interactive Media and ServicesUS Market
7D9.6%2.2%1.0%
1Y-68.4%-31.3%-12.9%

Return vs Industry: OB underperformed the US Interactive Media and Services industry which returned -31.3% over the past year.

Return vs Market: OB underperformed the US Market which returned -12.8% over the past year.

Price Volatility

Is OB's price volatile compared to industry and market?
OB volatility
OB Average Weekly Movement11.0%
Interactive Media and Services Industry Average Movement11.0%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: OB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: OB's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20061,016Yaron Galaihttps://www.outbrain.com

Outbrain Inc., together with its subsidiaries, operates an online content recommendation platform worldwide. It offers Outbrain Engage, a product suite for media partners that provides personalized feeds and data-driven recommendations, as well as a solution to maximize user engagement. The company’s Outbrain Engage solution also includes a web-based dashboard to manage and control various aspects of the platform, including content, formats, sources, frequency, and categories of ads delivered on their properties, as well as monetizes the content through customized data-driven advertising.

Outbrain Fundamentals Summary

How do Outbrain's earnings and revenue compare to its market cap?
OB fundamental statistics
Market CapUS$354.46m
Earnings (TTM)US$4.99m
Revenue (TTM)US$1.04b

71.0x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OB income statement (TTM)
RevenueUS$1.04b
Cost of RevenueUS$801.10m
Gross ProfitUS$240.72m
Other ExpensesUS$235.73m
EarningsUS$4.99m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 11, 2022

Earnings per share (EPS)0.086
Gross Margin23.11%
Net Profit Margin0.48%
Debt/Equity Ratio90.2%

How did OB perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is OB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for OB?

Other financial metrics that can be useful for relative valuation.

OB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.2x
Enterprise Value/EBITDA6.1x
PEG Ratio2.3x

Price to Earnings Ratio vs Peers

How does OB's PE Ratio compare to its peers?

OB PE Ratio vs Peers
The above table shows the PE ratio for OB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average-2.7x
TRVG trivago
86.6x44.3%US$593.5m
SOHU Sohu.com
15.8x17.7%US$638.3m
YALA Yalla Group
8.2x21.8%US$662.8m
CARS Cars.com
138.6x30.9%US$881.6m
OB Outbrain
71x31.5%US$354.5m

Price-To-Earnings vs Peers: OB is expensive based on its Price-To-Earnings Ratio (71x) compared to the peer average (-2.7x).


Price to Earnings Ratio vs Industry

How does OB's PE Ratio compare vs other companies in the US Interactive Media and Services Industry?

Price-To-Earnings vs Industry: OB is expensive based on its Price-To-Earnings Ratio (71x) compared to the US Interactive Media and Services industry average (64.9x)


Price to Earnings Ratio vs Fair Ratio

What is OB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

OB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio71x
Fair PE Ratio23.1x

Price-To-Earnings vs Fair Ratio: OB is expensive based on its Price-To-Earnings Ratio (71x) compared to the estimated Fair Price-To-Earnings Ratio (23.1x).


Share Price vs Fair Value

What is the Fair Price of OB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: OB ($6.14) is trading below our estimate of fair value ($8.77)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


31.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OB's forecast earnings growth (31.5% per year) is above the savings rate (1.9%).

Earnings vs Market: OB's earnings (31.5% per year) are forecast to grow faster than the US market (12.8% per year).

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

Revenue vs Market: OB's revenue (10.4% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: OB's revenue (10.4% 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 OB's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Outbrain performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-67.5%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: OB has a large one-off loss of $42.3M impacting its March 31 2022 financial results.

Growing Profit Margin: OB's current net profit margins (0.5%) are lower than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if OB's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: OB had negative earnings growth (-67.5%) over the past year, making it difficult to compare to the Interactive Media and Services industry average (-6.9%).


Return on Equity

High ROE: OB's Return on Equity (-0.6%) is considered low.


Discover strong past performing companies

Financial Health

How is Outbrain's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: OB's short term assets ($616.4M) exceed its short term liabilities ($276.9M).

Long Term Liabilities: OB's short term assets ($616.4M) exceed its long term liabilities ($265.6M).


Debt to Equity History and Analysis

Debt Level: OB has more cash than its total debt.

Reducing Debt: Insufficient data to determine if OB's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: OB's debt is well covered by operating cash flow (20.6%).

Interest Coverage: OB's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as OB has not reported any payouts.


Discover strong dividend paying companies

Management

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

3.0yrs

Average management tenure


CEO

Yaron Galai (50 yo)

16.17yrs

Tenure

US$1,583,202

Compensation

Mr. Yaron Galai is a Co-Founder of Ad4ever and serves as its Vice President of Business Development. Mr. Galai Co-founded Outbrain Inc. in June 2006 and serves as its Chairman since June 2006 and served as...


CEO Compensation Analysis

Compensation vs Market: Yaron's total compensation ($USD1.58M) is below average for companies of similar size in the US market ($USD2.70M).

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


Leadership Team

Experienced Management: OB's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: OB's board of directors are considered experienced (8.1 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 been diluted in the past year, with total shares outstanding growing by 8.1%.


Top Shareholders

Company Information

Outbrain Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Outbrain Inc.
  • Ticker: OB
  • Exchange: NasdaqGS
  • Founded: 2006
  • Industry: Interactive Media and Services
  • Sector: Media
  • Implied Market Cap: US$354.459m
  • Shares outstanding: 57.73m
  • Website: https://www.outbrain.com

Number of Employees


Location

  • Outbrain Inc.
  • 111 West 19th Street
  • New York
  • New York
  • 10011
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/06 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.