Bragg Gaming Group Inc (BRAG) AI Stock Analysis

• Market Cap: C$144.89M
• Dividend Yield: N/A
• Average Volume (3M): 13.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: 10.79%
• EPS Growth: -30.99%
• Country: CA
• Employees: 502
• Sector: Communication Services
• Sector Strength: 83
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.03
• Shares Outstanding: 25,067,982
• 10 Day Avg. Volume: 5,210
• 30 Day Avg. Volume: 13,570
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: C$10.21
• Price Target Upside: 73.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Bragg Gaming Group Inc's overall stock score reflects strong revenue growth and strategic expansions, supported by positive earnings call and corporate events. However, consistent net losses and lack of profitability are significant concerns. The technical analysis indicates bearish momentum, and valuation metrics highlight current unprofitability. Despite these challenges, the positive outlook for future growth offers potential upside if profitability and cash flow can be improved.

Positive Factors

Market Expansion

The expansion of Bragg’s U.S. footprint through elite operator partnerships enables access to over 90% of the country’s iGaming market, positioning the company for sustained revenue growth.

Partnership and Market Strategy

Bragg's exclusive partnership and equity investment in RapidPlay strengthens its broader Brazilian market strategy, which is expected to contribute up to 10% of total revenue in 2025.

Revenue and Profitability

Bragg delivered record Q4 2024 revenue of €27.2M, reflecting a 16.3% YoY increase, with gross profit increasing 30.9%, marking the fourth consecutive quarter of sequential revenue and AEBITDA growth.

Negative Factors

Regional Revenue Decline

Continued headwinds in the Dutch market contributed to a decline in revenue from this region.

Bragg Gaming Group Inc Business Overview & Revenue Model

Company Description

Bragg Gaming Group Inc. operates as a technology and content supplier to the gaming industry worldwide. The company provides business-to-business online gaming solutions. It offers a range of games, including slot, table, card, video bingo, scratch card, and live dealer games, as well as virtual sports. The company also provides managed operational and marketing services to its iGaming operator customers to complete its turnkey gaming solution. It offers proprietary third-party gaming content, which delivers through a single integrated platform. The company also holds various content distribution rights through partnerships with selected third-party studios. Bragg Gaming Group Inc. is headquartered in Toronto, Canada.

How the Company Makes Money

Bragg Gaming Group Inc primarily generates revenue through the provision of online gaming content and technology solutions to casino operators. The company earns money by licensing its proprietary and third-party gaming content to online casinos, ensuring these operators have access to a wide array of popular and engaging games. Additionally, Bragg Gaming Group provides managed services, platform solutions, and software support, which contribute to its revenue streams. The company also benefits from strategic partnerships and collaborations with other gaming technology providers and content creators, enhancing its market presence and expanding its portfolio of offerings. These partnerships often help Bragg Gaming Group to access new markets and attract a larger customer base, further driving its revenue growth.

Bragg Gaming Group Inc Financial Statement Overview

Summary

Bragg Gaming Group Inc demonstrates growth in revenue and operational cash flow, indicating a positive trajectory. However, profitability challenges persist with continued net losses affecting net profit margins and return on equity. The balance sheet remains robust with low leverage and strong equity ratios, mitigating some financial risks.

Income Statement

The company shows consistent revenue growth, with a 5% increase in TTM. Gross profit margin remains stable at around 51%, indicating strong cost management. However, the net profit margin is negative, reflecting continued net losses, which is a concern despite improving EBITDA margin to 14.2%. EBIT margin is negative, which affects overall profitability.

Balance Sheet

The company has a solid equity position with a high equity ratio of 68.2%, indicating strong financial stability. The debt-to-equity ratio is low at 0.13, suggesting manageable leverage. However, consistent net losses impact return on equity, which remains negative.

Cash Flow

Operating cash flow has improved significantly, with a strong cash flow to net income ratio of -2.66, indicating better cash generation relative to net losses. Free cash flow remains modest but stable. However, the free cash flow growth rate is slightly negative from the previous year.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
93.52M	84.73M	58.32M	46.42M	26.59M
	Gross Profit
49.94M	45.08M	28.32M	20.19M	12.03M
	EBIT
-777.00K	-115.00K	-4.50M	655.00K	-2.29M
	EBITDA
12.36M	8.34M	-1.64M	-9.02M	-201.00K
	Net Income Common Stockholders
-3.84M	-3.48M	-7.51M	-14.48M	-10.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.80M	11.29M	16.01M	26.10M	682.00K
	Total Assets
103.37M	104.39M	83.39M	72.09M	43.88M
	Total Debt
3.28M	7.39M	600.00K	726.00K	859.00K
	Net Debt
-5.52M	-3.89M	-15.41M	-25.38M	177.00K
	Total Liabilities
33.12M	34.85M	17.20M	32.20M	37.26M
	Stockholders Equity
70.25M	69.53M	66.19M	39.90M	6.62M
Cash Flow		Free Cash Flow
2.02M	-2.17M	-3.31M	4.22M	-1.77M
	Operating Cash Flow
11.74M	5.75M	-41.00K	6.73M	-98.00K
	Investing Cash Flow
-9.72M	-16.87M	-23.88M	-2.78M	-2.30M
	Financing Cash Flow
-4.17M	7.01M	12.41M	22.26M	-521.00K

Bragg Gaming Group Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BRAG, the sentiment is Neutral. The current price of 5.9 is above the 20-day moving average (MA) of 5.36, below the 50-day MA of 5.91, and below the 200-day MA of 6.24, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 56.65 is Neutral, neither overbought nor oversold. The STOCH value of 89.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:BRAG.

Bragg Gaming Group Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBRD	72 Outperform	C$64.13M	14.99	6.93%	―	17.54%	―
BRAG	70 Outperform	C$144.89M	―	-7.16%	―	10.79%	-30.99%
Sector *	59 Neutral	$13.78B	7.66	-2.74%	3.86%	2.20%	-37.62%
BRMI	55 Neutral	C$51.44M	―	-34.78%	―	-57.56%	-122.33%
VRTS	36 Underperform	C$12.94M	―	-251.82%	―	0.32%	95.60%

Bragg Gaming Group Inc Corporate Events

Bragg Gaming Group Strengthens Financial Position with Promissory Note Repayment

Bragg Gaming Group Inc has reached an agreement to repay USD 5 million of its USD 7 million secured promissory note and extend the maturity of the remaining USD 2 million until June 6, 2025. This move is part of the company’s strategy to strengthen its balance sheet and secure a new revolving credit facility with more favorable terms, which will enhance financial flexibility and support strategic growth opportunities.

Spark’s Take on TSE:BRAG Stock

According to Spark, TipRanks’ AI Analyst, TSE:BRAG is a Neutral.

Bragg Gaming Group shows strong revenue growth and strategic expansions into North America and Brazil, supported by positive earnings call and corporate events. However, consistent net losses and lack of profitability remain significant concerns. Technical analysis indicates bearish momentum, and valuation metrics highlight current unprofitability. Despite these challenges, the positive outlook for future growth offers potential upside if profitability and cash flow can be improved.

To see Spark’s full report on TSE:BRAG stock, click here.

Bragg Gaming Strengthens Brazilian Market Position with RapidPlay Partnership

Bragg Gaming Group has acquired a strategic equity stake in Brazilian game development studio RapidPlay, enhancing its position in Brazil’s burgeoning online casino market. This exclusive partnership allows Bragg to integrate RapidPlay’s localized content, leveraging its efficient cost development model to support rapid scalability and margin efficiency. The collaboration is expected to significantly contribute to Bragg’s revenue, with Brazil’s market projected to grow substantially in the coming years.

Spark’s Take on TSE:BRAG Stock

According to Spark, TipRanks’ AI Analyst, TSE:BRAG is a Neutral.

Bragg Gaming Group Inc’s stock score of 64 reflects strong revenue growth and strategic expansions into North America and Brazil. The company’s low leverage and increasing equity are positive signs of financial health. However, consistent net losses and the lack of profitability are significant concerns. The technical analysis points to a bearish trend, and the negative P/E ratio suggests current unprofitability. Despite these challenges, the positive outlook from the earnings call and corporate events indicate potential for future growth, particularly if profitability can be improved.

To see Spark’s full report on TSE:BRAG stock, click here.

Bragg Gaming Group Expands Canadian Presence with Loto-Québec Deal

Bragg Gaming Group has expanded its presence in Canada by entering into an agreement with Loto-Québec to provide exclusive online casino content. This expansion into their second Canadian province is part of Bragg’s strategy to grow its footprint in North America and diversify its revenue streams. The agreement will allow Loto-Québec to access Bragg’s proprietary content, including games from Atomic Slot Lab and Indigo Magic, and offer additional titles through partners under the Powered By Bragg program. This move is expected to enhance Bragg’s strategic goals by increasing content utilization and strengthening its market position.