Codere Online (CDRO) AI Stock Analysis

• Market Cap: $318.57M
• Dividend Yield: N/A
• Average Volume (3M): 53.45K
• Price to Earnings (P/E): 509.5
• Beta (1Y): 0.81
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 297
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): -0.06
• Shares Outstanding: 45,640,816
• 10 Day Avg. Volume: 109,164
• 30 Day Avg. Volume: 53,450
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 3.21
• Enterprise Value/Gross Profit: 3.53
• Enterprise Value/Ebitda: 192.65
• 1Y Price Target: $14.00
• Price Target Upside: 100.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 55 Neutral
• Price Target: $8.50 ▲(21.78% Upside)

Codere Online's overall stock score reflects a mix of positive financial performance and significant external challenges. Strong revenue growth and improved profitability are offset by high valuation concerns and technical indicators suggesting bearish momentum. The earnings call provided a balanced view of growth potential and risks, particularly in key markets like Mexico and Colombia.

Positive Factors

Revenue Growth

Strong revenue growth reflects successful market expansion and increased user engagement, supporting long-term business sustainability.

Customer Acquisition

Successful customer acquisition strategies indicate effective marketing and brand strength, crucial for sustained growth in competitive markets.

Cash Generation

Strong cash generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction.

Negative Factors

Currency Devaluation Impact

Currency devaluation in key markets like Mexico poses a risk to revenue stability, affecting profitability and financial projections.

Increased Competition

Increased competition in Spain could pressure margins and customer retention, challenging market share and growth prospects.

Leadership Transition

Leadership changes can create uncertainty and disrupt strategic continuity, impacting long-term planning and execution.

Codere Online Business Overview & Revenue Model

Company Description

Codere 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 Money

Codere Online generates revenue primarily through its online sports betting and casino gaming platforms. The company earns money by taking a percentage of the bets placed on its platform, known as the 'hold,' which can vary depending on the type of game or wager. Additionally, Codere Online benefits from player deposits and ongoing play, as they charge fees for transactions and offer premium features. The company also engages in strategic partnerships with payment providers and other technology firms to enhance its services, which can help attract more users and increase earnings. Furthermore, marketing initiatives aimed at acquiring new customers play a crucial role in driving revenue growth.

Codere Online Financial Statement Overview

Summary

Codere Online shows a positive trajectory with strong revenue growth and improved profitability metrics. The balance sheet is stable with low leverage and strong cash reserves, although profitability margins 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	102.11M	200.70M	161.65M	115.75M	80.25M	70.50M
Gross Profit	92.67M	192.97M	155.37M	110.90M	76.23M	66.24M
EBITDA	1.70M	4.72M	-14.64M	-30.22M	-65.77M	-13.15M
Net Income	-252.00K	3.91M	-2.42M	-46.38M	-68.01M	-16.28M
Balance Sheet
Total Assets	71.78M	74.54M	73.80M	69.31M	105.28M	18.55M
Cash, Cash Equivalents and Short-Term Investments	40.43M	53.80M	51.68M	53.81M	98.81M	15.66M
Total Debt	5.17M	5.37M	5.11M	4.95M	2.98M	39.23M
Total Liabilities	52.85M	50.32M	52.51M	44.76M	37.12M	58.47M
Stockholders Equity	18.78M	24.07M	21.14M	24.40M	68.01M	-40.02M
Cash Flow
Free Cash Flow	-439.00K	3.69M	-11.82M	-42.52M	-5.27M	3.80M
Operating Cash Flow	-237.00K	3.94M	-11.58M	-42.36M	-5.19M	3.86M
Investing Cash Flow	-202.00K	-256.00K	-245.00K	-164.00K	-83.00K	-72.00K
Financing Cash Flow	-222.00K	-2.04M	1.33M	0.00	89.33M	-175.00K

Codere Online Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CDRO, the sentiment is Negative. The current price of 6.98 is below the 20-day moving average (MA) of 7.58, below the 50-day MA of 8.04, and below the 200-day MA of 7.50, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 32.83 is Neutral, neither overbought nor oversold. The STOCH value of 26.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CDRO.

Codere Online Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RSI	75 Outperform	$4.96B	107.74	3.04%	―	26.99%	―
SGHC	71 Outperform	$6.67B	50.36	20.29%	2.03%	26.85%	1963.28%
GAMB	66 Neutral	$290.88M	20.06	10.21%	―	27.57%	-40.98%
CDRO	55 Neutral	$318.57M	509.49	2.77%	―	―	―
DKNG	52 Neutral	$37.64B	-64.85	-30.16%	―	25.80%	27.64%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Codere Online Corporate Events

Codere Online CFO Transition Announced Amid Strategic Continuity

On August 28, 2025, Codere Online’s Chief Financial Officer, Oscar Iglesias, announced his decision to step down for personal reasons, effective by December 31, 2025, or upon the appointment of his successor. Despite stepping down, Iglesias will remain involved with the company as a board member, continuing to influence its strategic direction. His departure is not due to any disagreements with the company, and he has been a key figure in Codere Online’s growth, notably leading its public listing in 2021. The company has initiated a search for a new CFO to ensure a smooth transition.

Codere Online Reports Q2 2025 Financial Results and Growth in Mexico

On July 31, 2025, Codere Online released its preliminary unaudited financial results for the second quarter of 2025, reporting a net gaming revenue of €54.8 million, a slight increase from the previous year despite currency challenges. The company saw significant growth in Mexico, with a 23% increase in net gaming revenue in constant currency terms, and a 36% rise in active customers. Despite a net loss of €3.1 million in the first half of 2025, Codere Online remains optimistic about meeting its annual financial outlook. Additionally, the company repurchased $0.7 million of its shares under its buyback plan and regained compliance with Nasdaq listing requirements.

Codere Online to Announce Q2 2025 Financial Results on July 31

On July 10, 2025, Codere Online announced its intention to release its financial results for the second quarter of 2025 on July 31, 2025. The company plans to host a conference call on the same day to discuss these results and provide a business update. This announcement highlights Codere Online’s commitment to transparency and its strategic focus on maintaining its position as a leading player in the online gaming industry in Spain and Latin America.

Codere Online Announces AGM Success and New Compliance Chair

On June 30, 2025, Codere Online announced the successful resolution of all 24 agenda items at its Annual General Meeting, including the renewal of its Board members. Additionally, A.G. Burnett was appointed as the new Chairman of the Compliance Committee, effective July 1, 2025, bringing extensive experience in gaming regulation and law. This strategic appointment and the AGM outcomes are expected to strengthen Codere Online’s governance and compliance framework, reinforcing its position in the competitive online gaming industry.