Sportradar Group AG (SRAD) AI Stock Analysis

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Sportradar Group AG

(NASDAQ:SRAD)

Rating:75Outperform

Price Target:

$27.00

▲(10.97%Upside)

Sportradar Group AG's strong financial performance, marked by consistent revenue growth and robust cash flows, forms the foundation of its positive outlook. The earnings call further supports this with record revenue and strategic market expansion. However, the stock's high P/E ratio suggests valuation concerns, and while technical indicators are generally positive, the valuation could limit upside potential. Overall, the company is positioned well for growth, with some caution advised regarding its valuation.

Positive Factors

Financial Performance

Sportradar delivered above-consensus results, with revenue and adjusted EBITDA beating expectations and margin expanding.

Strategic Positioning

Sportradar is well positioned to deliver multiyear expansion in revenue, margins, and cash generation, supported by its scalable platform and exclusive content rights.

Negative Factors

Foreign Exchange Impact

Management noted that underlying growth trends have exceeded expectations and it would have raised its outlook had it not been for recent FX headwinds.

Growth Challenges

The growth of core Betting Tech revenue came in below expectations.

Sportradar Group AG (SRAD) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$7.64B

Dividend YieldN/A

Average Volume (3M)1.77M

Price to Earnings (P/E)119.7

Beta (1Y)1.13

Revenue Growth21.75%

EPS Growth116.24%

CountryUS

Employees4,582

SectorTechnology

Sector Strength79

IndustrySoftware - Application

Share Statistics

EPS (TTM)0.08

Shares Outstanding220,584,600

10 Day Avg. Volume1,766,045

30 Day Avg. Volume1,772,611

Financial Highlights & Ratios

PEG Ratio-10.69

Price to Book (P/B)3.67

Price to Sales (P/S)0.00

P/FCF Ratio500.05

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$27.64

Price Target Upside13.60% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering13

Sportradar Group AG Business Overview & Revenue Model

Company DescriptionSportradar Group AG, together with its subsidiaries, provides sports data services for the sports betting and media industries in the United Kingdom, the United States, Malta, Switzerland, and internationally. Its sports data services to the bookmaking under the Betradar brand name, and to the international media industry under the Sportradar Media Services brand name. The company offers mission-critical software, data, and content to sports leagues, betting operators, and media companies. In addition, the company provides sports entertainment, gaming solution, and sports solutions, as well as live streaming solution for online, mobile, and retail sports betting. Further, its software solutions address the entire sports betting value chain from traffic generation and advertising technology to the collection, processing, and extrapolation of data and odds, as well as to visualization solutions, risk management, and platform services. Sportradar Group AG was incorporated in 2001 and is headquartered in St. Gallen, Switzerland.

How the Company Makes MoneySportradar Group AG generates revenue primarily through its data and content solutions sold to bookmakers, media companies, and sports organizations. The company's key revenue streams include licensing fees for real-time sports data and analytics, subscription fees for access to its sports intelligence platforms, and service fees for providing integrity and compliance solutions. Additionally, Sportradar partners with sports leagues and federations to distribute official sports data, often sharing revenue from betting and media rights. The company's strategic partnerships with major sports entities and technology investments also play a significant role in driving its earnings.

Sportradar Group AG Earnings Call Summary

Earnings Call Date:May 12, 2025

(Q1-2025)

% Change Since: 5.46%|

Next Earnings Date:Aug 13, 2025

Earnings Call Sentiment Positive

Sportradar's first quarter performance was marked by record revenue, strong market growth, particularly in the U.S., and significant gains in adjusted EBITDA. Strategic initiatives, such as the acquisition of IMG Arena and successful share repurchases, further highlight the company's positive trajectory. However, challenges remain with foreign currency impacts and market adaptation in the U.S. Despite these issues, the overall sentiment is positive due to the substantial achievements and growth potential.

Q1-2025 Updates

Positive Updates

Record-Breaking Quarterly Revenue

Sportradar achieved its highest-ever quarterly revenue of €311 million, marking a 17% year-over-year increase.

Strong U.S. Market Growth

U.S. revenue grew by 31% and now represents 28% of Sportradar's total company revenues.

Adjusted EBITDA Growth

Adjusted EBITDA increased by 25% year-over-year, showcasing strong operating leverage and financial performance.

Broad-Based Product Growth

Significant growth across the product portfolio, including Betting Technology and Solutions revenue growth of 14% and Sports Content, Technology and Services growth of 33%.

Strategic Acquisition of IMG Arena

Proposed acquisition of IMG Arena's portfolio of sports rights expected to be margin accretive and cash accretive upon closing.

Successful Share Repurchase

Repurchased $65 million worth of shares under the existing $200 million share repurchase program, demonstrating confidence in shareholder value.

Innovative Product Expansion

Continued innovation with new products like 4Sight Streaming and enhanced NBA player markets, contributing to increased fan engagement.

Negative Updates

Foreign Currency Impact

Adverse foreign currency movements, primarily related to the U.S. dollar versus the euro, created a €10 million headwind for the full year 2025 expectations.

Dependency on Market Adaptation

The U.S. market's adaptation to live betting trends is slower compared to international markets, requiring prolonged education and marketing efforts.

Company Guidance

During the Sportradar First Quarter 2025 Earnings Conference Call, the company reported a record quarterly revenue of €311 million, marking a 17% year-over-year increase. This robust growth was attributed to their diverse product suite and global reach, with U.S. revenue rising by 31%, now constituting 28% of total company revenues. Adjusted EBITDA also saw a 25% increase, highlighting their operational leverage. With a customer net retention rate of 122%, Sportradar continues expanding its product adoption and global market presence, particularly in the sports betting sector. The company's growth strategy is driven by a projected 11% CAGR in the global sports betting market through 2027, and they anticipate further revenue and margin expansion, supported by their €2 billion contractual revenue commitments over the next two years.

Sportradar Group AG Financial Statement Overview

Summary

Sportradar Group AG demonstrates strong financial health with consistent revenue growth and profitability. The company maintains a prudent balance sheet with low leverage, ensuring financial stability. Cash flow generation is strong, supporting operational and strategic flexibility. While some areas like operating margins and equity funding can be improved, the overall financial position remains solid and supportive of future growth.

Income Statement

Very Positive

Sportradar Group AG has shown consistent revenue growth, with a notable increase of 13.91% in the most recent period. The gross profit margin stands strong at 62.42% TTM, reflecting efficient cost management. Net profit margin also improved to 5.11% TTM, showcasing enhanced profitability. However, EBIT margin decreased to 10.79% TTM compared to the previous year, indicating a need to manage operating expenses effectively.

Balance Sheet

Positive

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.05 TTM, indicating minimal leverage and reduced financial risk. Return on equity is relatively stable at 6.05% TTM, suggesting decent returns for shareholders. However, the equity ratio of 38.32% TTM indicates room for improvement in asset funding through equity.

Cash Flow

Positive

Sportradar exhibits strong cash flow generation with a significant increase in free cash flow by 25.53% TTM. The operating cash flow to net income ratio is robust at 6.58 TTM, indicating effective cash conversion from profits. However, the free cash flow to net income ratio of 2.67 TTM shows potential for better free cash flow generation relative to net income.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.15B	1.11B	877.62M	730.19M	561.20M	404.92M
	Gross Profit
719.09M	280.50M	700.05M	571.92M	453.57M	321.71M
	EBIT
124.30M	273.87M	78.21M	34.10M	56.88M	60.38M
	EBITDA
464.65M	418.59M	285.01M	242.64M	180.98M	171.20M
	Net Income Common Stockholders
58.93M	34.15M	34.66M	10.89M	12.57M	15.24M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
357.82M	348.36M	277.17M	243.76M	742.77M	385.54M
	Total Assets
2.54B	2.29B	2.25B	1.39B	1.77B	957.02M
	Total Debt
51.40M	46.72M	50.15M	22.84M	435.35M	438.68M
	Net Debt
-306.43M	-301.64M	-227.03M	-220.91M	-307.42M	53.14M
	Total Liabilities
1.56B	1.36B	1.37B	631.63M	1.04B	792.88M
	Stockholders Equity
974.67M	925.15M	867.79M	751.59M	738.82M	167.28M
Cash Flow		Free Cash Flow
157.34M	125.36M	58.37M	5.52M	1.47M	57.31M
	Operating Cash Flow
388.08M	353.01M	258.64M	168.08M	132.22M	151.26M
	Investing Cash Flow
-254.81M	-254.88M	-202.09M	-246.57M	-333.77M	-98.14M
	Financing Cash Flow
-47.77M	-36.75M	-17.63M	-459.85M	539.77M	274.54M

Sportradar Group AG Technical Analysis

Technical Analysis Sentiment

Positive

Last Price24.33

Price Trends

50DMA

23.30

Positive

100DMA

22.33

Positive

200DMA

18.57

Positive

Market Momentum

MACD

0.36

Negative

RSI

55.08

Neutral

STOCH

71.73

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRAD, the sentiment is Positive. The current price of 24.33 is above the 20-day moving average (MA) of 24.02, above the 50-day MA of 23.30, and above the 200-day MA of 18.57, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 55.08 is Neutral, neither overbought nor oversold. The STOCH value of 71.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SRAD.

Sportradar Group AG Risk Analysis

Sportradar Group AG disclosed 60 risk factors in its most recent earnings report. Sportradar Group AG reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 1 New Risks

The requirements of being a public company may strain our resources and divert management's attention, and additional legal, accounting and compliance expenses may be greater than we anticipate. Q4, 2023

Sportradar Group AG Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRAD	75 Outperform	$7.64B	119.65	6.40%	―	21.75%	116.24%
GRND	73 Outperform	$4.53B	―	-63.52%	―	30.08%	-196.62%
U	68 Neutral	$10.38B	―	-14.15%	―	-16.74%	49.75%
BILL	68 Neutral	$4.52B	482.28	0.97%	―	14.52%	―
ZETA	66 Neutral	$3.00B	―	-11.93%	―	40.36%	73.68%
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
KC	51 Neutral	$3.69B	―	-33.09%	―	13.85%	3.47%

* Technology Sector Average

Performance Comparison

SRAD

Sportradar Group AG

24.33

13.39

122.39%

BILL

Bill.com Holdings

41.40

-7.23

-14.87%

Kingsoft Cloud Holdings

12.43

9.61

340.78%

Unity Software

23.66

7.20

43.74%

GRND

Grindr

23.01

13.09

131.96%

ZETA

Zeta Global Holdings Corp

12.16

-3.91

-24.33%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.