Better Collective A/S (BETCO) AI Stock Analysis

• Market Cap: kr7.30B
• Dividend Yield: N/A
• Average Volume (3M): 114.47K
• Price to Earnings (P/E): 25.9
• Beta (1Y): 0.47
• Revenue Growth: -5.42%
• EPS Growth: -17.95%
• Country: SE
• Employees: 1,556
• Sector: Services
• Sector Strength: N/A
• Industry: Software - Application
• EPS (TTM): 0.88
• Shares Outstanding: 61,958,870
• 10 Day Avg. Volume: 89,055
• 30 Day Avg. Volume: 114,467
• PEG Ratio: -0.82
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 1.61
• P/FCF Ratio: 49.79
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: kr120.00
• Price Target Upside: 1.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: kr121.00 ▲(2.63% Upside)

The overall stock score of 58 reflects a combination of strong financial performance but significant technical weakness. The bearish technical indicators and lack of dividend yield weigh heavily against the stock, despite its solid profitability margins.

Positive Factors

Strong Profitability Margins

Strong profitability margins indicate efficient cost management and operational effectiveness, providing a cushion against revenue fluctuations and supporting long-term financial stability.

Stable Balance Sheet

A stable balance sheet with moderate leverage and a strong equity ratio suggests financial resilience, enabling the company to withstand economic downturns and invest in growth opportunities.

Cash Generation Ability

Strong cash generation from operations supports financial flexibility, allowing the company to reinvest in its business, pay down debt, and pursue strategic initiatives.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth can signal challenges in market expansion or competitive pressures, potentially impacting future profitability and market positioning.

Decline in Free Cash Flow

A decline in free cash flow limits the company's ability to fund new projects, reduce debt, and return capital to shareholders, affecting long-term financial health.

Low Return on Equity

Low return on equity suggests inefficiencies in using shareholder capital to generate profits, which may deter investment and hinder growth potential.

Better Collective A/S Business Overview & Revenue Model

Company Description

Better Collective A/S (BETCO) is a leading global sports betting media group specializing in digital platforms that provide content, tips, and tools for betting enthusiasts. The company operates across various sectors, including sports media and affiliate marketing, focusing on enhancing user experiences through its comprehensive suite of products and services.

How the Company Makes Money

Better Collective makes money primarily through affiliate marketing and advertising. The company generates revenue by directing traffic to online betting operators through its network of websites and platforms, earning commissions based on user activity such as clicks, registrations, and deposits. Additionally, Better Collective collaborates with sports media and gaming companies to enhance its product offerings and expand its market reach. Key revenue streams include pay-per-click, pay-per-acquisition, and revenue share agreements with betting operators. Strategic partnerships with major players in the online gambling industry also contribute significantly to its earnings.

Better Collective A/S Financial Statement Overview

Summary

Better Collective A/S exhibits strong profitability margins and a stable balance sheet. However, challenges include a decline in revenue growth and free cash flow, which need addressing to sustain financial health.

Income Statement

Better Collective A/S has shown a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate by 4.89%, which is a concern. However, the company maintains a healthy gross profit margin of 40.02% and a net profit margin of 8.38%. The EBIT and EBITDA margins are also strong at 17.23% and 28.89% respectively, indicating efficient operational management. Despite the recent revenue decline, the company has demonstrated solid profitability metrics over the years.

Balance Sheet

The balance sheet of Better Collective A/S reflects moderate leverage with a debt-to-equity ratio of 0.41, which is manageable. The return on equity (ROE) is relatively low at 4.48%, suggesting limited returns on shareholder investments. The equity ratio stands at 59.07%, indicating a stable capital structure. Overall, the balance sheet shows a balanced approach to debt and equity, but there is room for improvement in generating higher returns for equity holders.

Cash Flow

The cash flow statement reveals challenges in free cash flow growth, which declined by 34.99% in the TTM period. The operating cash flow to net income ratio is strong at 0.90, indicating good cash generation from operations. However, the free cash flow to net income ratio is moderate at 0.34, reflecting constraints in converting income into free cash flow. The company needs to focus on improving cash flow efficiency to enhance financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	341.47M	371.49M	326.69M	269.30M	177.05M	91.19M
Gross Profit	135.33M	151.32M	138.47M	116.87M	71.38M	46.56M
EBITDA	96.63M	109.83M	115.12M	83.62M	55.46M	38.11M
Net Income	25.09M	34.01M	39.84M	48.08M	17.29M	21.93M
Balance Sheet
Total Assets	1.09B	1.17B	937.86M	785.23M	597.38M	315.06M
Cash, Cash Equivalents and Short-Term Investments	22.39M	37.67M	50.36M	31.50M	28.60M	21.13M
Total Debt	272.56M	276.63M	264.69M	209.38M	123.89M	72.68M
Total Liabilities	444.26M	486.19M	502.59M	372.31M	252.53M	152.52M
Stockholders Equity	641.16M	685.93M	435.27M	412.92M	344.85M	162.54M
Cash Flow
Free Cash Flow	13.35M	12.02M	56.40M	-50.06M	19.28M	24.41M
Operating Cash Flow	52.24M	49.50M	89.01M	48.20M	31.56M	26.68M
Investing Cash Flow	-49.69M	-154.83M	-106.25M	-112.63M	-219.22M	-68.09M
Financing Cash Flow	-28.71M	99.15M	29.33M	65.74M	188.76M	46.79M

Better Collective A/S Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 117.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:BETCO, the sentiment is Negative. The current price of 117.9 is below the 20-day moving average (MA) of 119.41, below the 50-day MA of 131.04, and below the 200-day MA of 121.70, indicating a bearish trend. The MACD of -4.07 indicates Negative momentum. The RSI at 40.99 is Neutral, neither overbought nor oversold. The STOCH value of 50.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:BETCO.

Better Collective A/S Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FPIP	65 Neutral	1.50B	119.02	2.69%	1.81%	6.08%	-66.50%
LIME	61 Neutral	4.24B	42.53	32.11%	1.17%	12.88%	16.11%
VIT.B	61 Neutral	13.50B	33.84	8.27%	0.93%	16.99%	1.34%
ENEA	61 Neutral	1.63B	21.47	4.29%	―	1.38%	-5.29%
BETCO	58 Neutral	kr7.30B	25.86		―	-5.42%	-17.95%
SEYE	54 Neutral	3.05B	-14.27	-15.27%	―	4.86%	-513.15%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%