Education
About Us
Working with TipRanks
Follow Us
Codere Online (CDRO)
:CDRO
Top Page
Codere Online
(NASDAQ:CDRO)
Rating:60Neutral
Price Target:
$8.50
▲(4.42% Upside)
Positive Factors
Customer Acquisition
Customer acquisition momentum remained strong with 91K first-time deposits, up 21% YoY, and average cost per acquisition fell to €198.
Revenue Performance
Codere Online reported Q1 2025 net gaming revenue of €57M, exceeding the consensus estimate of €52.8M and reflecting growth of 8% YoY or 17% in constant currency.
Negative Factors
Profitability Challenges
AEBITDA was €1.8M, below the consensus forecast of €2.3M, as higher marketing and platform investments weighed on profitability.
Regulatory Risks
Colombia imposed a 19% tax on online deposits, effective through 2025, posing a risk of black-market growth.
Codere Online (CDRO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$371.52M
Dividend YieldN/A
Average Volume (3M)29.12K
Price to Earnings (P/E)594.2
Beta (1Y)0.83
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees297
SectorConsumer Cyclical
Sector Strength71
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)-0.06
Shares Outstanding45,640,816
10 Day Avg. Volume25,855
30 Day Avg. Volume29,121
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue3.21
Enterprise Value/Gross Profit3.53
Enterprise Value/Ebitda192.65
Forecast
1Y Price Target
$10.83Price Target Upside33.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Codere Online Business Overview & Revenue Model
Company DescriptionCodere Online Luxembourg, S.A. operates as an online casino gaming and sports betting company. The company also offers online casino wagering products and services. It primarily operates in Spain, Italy, Mexico, Colombia, Panama, and Argentina. The company is based in Luxembourg, Luxembourg.
How the Company Makes MoneyCodere Online generates revenue through various streams primarily centered around its online gaming and sports betting services. The company earns money by taking a percentage of the bets placed on its platform, known as the 'house edge' in casino games, and through the 'vig' or 'juice' in sports betting, which is a commission charged on bets. Additionally, Codere Online benefits from partnerships with gaming content providers and payment processors, which enhance its offerings and operational efficiency. The company also invests in marketing and promotional activities to attract and retain users, contributing to its revenue growth.
Codere Online Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: -3.44%|
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call presents a balanced picture with both positive and negative aspects. While the company shows resilience through compliance with NASDAQ requirements, increases in active customers, and cost management, it faces challenges such as currency devaluation impacts and competitive pressures in key markets.Q2-2025 Updates
Positive Updates
Regained NASDAQ Compliance
Codere Online confirmed compliance with all applicable NASDAQ listing requirements following the filing of their 2023 and 2024 annual reports, eliminating uncertainty around their continuity as a publicly traded company.
Increased Net Gaming Revenue (NGR) in Constant Currency
Despite a flat EUR 55 million in NGR, constant currency terms would have shown nearly EUR 61 million, a 12% increase over the prior year period.
Growth in Active Customers and First-Time Depositors
The average monthly active customers increased by 7%, and the company acquired 78,000 first-time depositors, a 7% increase from the previous year.
Positive Adjusted EBITDA
Adjusted EBITDA was positive EUR 2.3 million, with a notable contribution from the Spanish market, showing a 5% increase over the prior year.
Successful Cost Management
Overall cost control contributed to a EUR 1 million increase in adjusted EBITDA compared to Q2 2024.
Improved Cash Flow Position
The company generated over EUR 5 million in cash flow for the first half of 2025, despite a negative FX impact.
Negative Updates
Impact of Mexican Peso Devaluation
A significant 19% devaluation of the Mexican peso led to a EUR 5.7 million negative impact on net gaming revenue.
Challenges in Colombia
The introduction of a value-added tax on player deposits led to a EUR 1.6 million drop in net gaming revenue in Colombia.
Competitive Pressures in Spain
A more competitive landscape in Spain, with the reintroduction of welcome bonuses, led to flat net gaming revenue and a 3% decline in active customers.
Lower Average Monthly Spend Per Active Customer
There was a 5% decrease in average monthly spend per active customer, primarily due to the weaker Mexican peso.
Company Guidance
During Codere Online's second quarter 2025 earnings call, the company provided key guidance metrics, including expectations for net gaming revenue and adjusted EBITDA for the full year. They anticipate net gaming revenue between EUR 220 million and EUR 230 million and adjusted EBITDA in the range of EUR 10 million to EUR 15 million. The company reported EUR 55 million in net gaming revenue for Q2, which would have been EUR 61 million in constant currency terms. A 7% increase in average monthly active customers was partially offset by a 5% decrease in average monthly spend per customer. The casino segment contributed 61% to net gaming revenue. Additionally, Codere Online highlighted the acquisition of 78,000 first-time depositors with an average cost per acquisition (CPA) of EUR 218. The company also repurchased 106,000 shares for EUR 700,000.Codere Online Financial Statement Overview
Summary
Codere Online shows promising financial health with strong revenue growth and a positive net profit margin. The company also has a solid cash flow and low leverage, although profitability margins like EBIT and EBITDA still need improvement.Income Statement
Codere Online has shown a significant improvement in its income statement over the past year. The gross profit margin is strong at approximately 96.14%, and the net profit margin has turned positive to 1.95% from a previous negative position, highlighting improved operational efficiency. Revenue growth was robust, with a 24.1% increase from the previous year, indicating a successful expansion strategy. However, EBIT and EBITDA margins remain low at 2.16% and 2.35% respectively, suggesting room for improvement in operational leverage.60
Neutral
Balance Sheet
The balance sheet of Codere Online indicates a moderate financial position with a debt-to-equity ratio of 0.22, reflecting a relatively low level of leverage, which is positive. The equity ratio stands at 32.29%, showing a fair proportion of equity financing. Return on equity is healthy at 16.23%, but the overall equity base is small, which could limit growth opportunities. The company has improved its net debt position, with significant cash reserves, which enhances financial stability.55
Neutral
Cash Flow
Codere Online's cash flow statement reveals strong free cash flow growth from the previous year. The operating cash flow to net income ratio is 1.01, indicating that the company efficiently converts its net income into cash. Free cash flow to net income ratio is 0.94, showing strong cash generation relative to earnings. With positive free cash flow, the company is well-positioned to reinvest in its operations or reduce debt.65
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 200.70M | 161.65M | 115.75M | 80.25M | 70.50M |
| Gross Profit | 192.97M | 155.37M | 110.90M | 76.23M | 66.24M |
| EBITDA | 4.72M | -14.64M | -30.22M | -65.77M | -13.15M |
| Net Income | 3.91M | -2.42M | -46.38M | -68.01M | -16.28M |
Balance Sheet | |||||
| Total Assets | 74.54M | 73.80M | 69.31M | 105.28M | 18.55M |
| Cash, Cash Equivalents and Short-Term Investments | 53.80M | 51.68M | 53.81M | 98.81M | 15.66M |
| Total Debt | 5.37M | 5.11M | 4.95M | 2.98M | 39.23M |
| Total Liabilities | 50.32M | 52.51M | 44.76M | 37.12M | 58.47M |
| Stockholders Equity | 24.07M | 21.14M | 24.40M | 68.01M | -40.02M |
Cash Flow | |||||
| Free Cash Flow | 3.69M | -11.82M | -42.52M | -5.27M | 3.80M |
| Operating Cash Flow | 3.94M | -11.58M | -42.36M | -5.19M | 3.86M |
| Investing Cash Flow | -256.00K | -245.00K | -164.00K | -83.00K | -72.00K |
| Financing Cash Flow | -2.04M | 1.33M | 0.00 | 89.33M | -175.00K |
Codere Online Technical Analysis
Neutral
8.14
Price Trends
8.10
Positive
7.72
Positive
7.48
Positive
Market Momentum
0.01
Positive
45.23
Neutral
44.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CDRO, the sentiment is Neutral. The current price of 8.14 is below the 20-day moving average (MA) of 8.35, above the 50-day MA of 8.10, and above the 200-day MA of 7.48, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 45.23 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CDRO.
Codere Online Risk Analysis
Codere Online disclosed 1 risk factors in its most recent earnings report. Codere Online reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Codere Online Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $378.11M | 11.12 | 25.73% | ― | 24.67% | 91.06% | |
73 Outperform | $4.42B | 95.19 | 27.07% | ― | 26.99% | ― | |
73 Outperform | $5.50B | 39.67 | 21.19% | 1.99% | 22.80% | 281.38% | |
61 Neutral | $17.22B | 11.53 | -5.99% | 3.08% | 1.40% | -15.51% | |
60 Neutral | $371.52M | 594.16 | 2.77% | ― | ― | ― | |
57 Neutral | $38.34B | ― | -26.38% | ― | 25.80% | 27.64% | |
51 Neutral | $91.53M | ― | 229.13% | ― | 7.02% | 74.19% |
* Consumer Cyclical Sector Average
Performance Comparison
CDRO
Codere Online
8.14
0.31
3.96%
DKNG
DraftKings
43.16
9.02
26.42%
GAN
GAN
1.97
0.27
15.88%
RSI
Rush Street Interactive
19.19
9.89
106.34%
SGHC
Super Group (SGHC)
11.56
8.44
270.51%
GAMB
Gambling.com
10.81
-0.09
-0.83%
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.