eToro (ETOR) AI Stock Analysis

• Market Cap: $3.13B
• Dividend Yield: N/A
• Average Volume (3M): 823.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.78
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 1,414
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.31
• Shares Outstanding: 47,220,867
• 10 Day Avg. Volume: 811,209
• 30 Day Avg. Volume: 823,215
• PEG Ratio: <0.01
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 1.21
• P/FCF Ratio: 3.81
• Enterprise Value/Market Cap: 1.70
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 12.32
• Enterprise Value/Ebitda: 39.38
• 1Y Price Target: $61.73
• Price Target Upside: 65.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 59 Neutral
• Price Target: $61.00 ▲(63.15% Upside)

The overall stock score for eToro is 59. The most significant factor is its strong financial performance, driven by impressive revenue and cash flow growth, as well as a strong balance sheet. However, technical analysis presents a neutral to slightly bearish outlook, and the lack of valuation metrics adds uncertainty, collectively leading to a moderate overall score.

Positive Factors

Revenue Growth

eToro's substantial revenue growth indicates strong market demand and effective business expansion strategies, positioning it well for future growth.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, enabling eToro to invest in growth opportunities and withstand economic fluctuations.

Balance Sheet Health

A strong balance sheet with low leverage provides stability and reduces financial risk, supporting long-term operational resilience.

Negative Factors

Profitability Margins

While profitability margins have improved, they remain modest, indicating potential challenges in cost management and competitive pricing pressures.

Technical Analysis Outlook

The technical analysis suggests potential downward momentum, which could reflect market skepticism about eToro's near-term growth prospects.

Valuation Uncertainty

Lack of comprehensive valuation metrics introduces uncertainty, making it challenging to assess the stock's intrinsic value and investment attractiveness.

eToro Business Overview & Revenue Model

Company Description

eToro (ETOR) is a social trading and investment platform that allows users to trade a wide range of financial assets, including stocks, cryptocurrencies, commodities, and more. Founded in 2007, eToro operates in the fintech sector, focusing on democratizing trading through its unique social trading features that enable users to follow and copy the trades of experienced investors. The platform caters to both novice and professional traders, offering tools for market analysis, portfolio management, and community engagement.

How the Company Makes Money

eToro generates revenue through several key streams, primarily including spreads, which are the differences between the buying and selling prices of assets. The platform charges users a spread when they execute trades, which varies by asset class. Additionally, eToro earns money through withdrawal fees, overnight fees for leveraged positions, and various subscription services for premium features. The company also engages in partnerships with financial institutions and payment processors, which can provide additional revenue opportunities. By leveraging its social trading model, eToro fosters a community of traders, encouraging user engagement and retention, which further contributes to its revenue growth.

eToro Financial Statement Overview

Summary

eToro demonstrates robust financial performance with significant revenue growth of 225.78%, strong cash flow generation with a 138.95% increase in Free Cash Flow, and a stable balance sheet characterized by a low debt-to-equity ratio of 0.06 and high equity ratio of 69.86%. The company has improved its profitability margins, although further enhancement is possible, positioning it well for future growth.

Income Statement

eToro's income statement shows significant revenue growth, with a 225.78% increase from the previous year. The gross profit margin is moderate at 6.11%, but the net profit margin has improved to 1.52% from 0.39%, indicating better cost management. The EBIT margin of 1.95% and EBITDA margin of 2.33% suggest stable operational efficiency, although there's room for improvement in profitability.

Balance Sheet

The balance sheet reflects strong financial health with a low debt-to-equity ratio of 0.06 and a solid equity ratio of 69.86%, indicating a robust capital structure. The return on equity is a modest 23.11%, showing effective use of equity to generate profit. Overall, eToro maintains a stable and strong financial position.

Cash Flow

Cash flow analysis shows a strong Free Cash Flow growth of 138.95%, indicating excellent cash generation capability. The operating cash flow to net income ratio is 1.40, and the free cash flow to net income ratio is 1.38, both reflecting efficient cash conversion from profits. This highlights eToro's strong cash flow management and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2023	Dec 2023	Dec 2022
Income Statement
Total Revenue	5.84B	837.49M	837.49M	3.88B	3.88B	6.33B
Gross Profit	432.08M	12.52B	12.52B	546.32M	546.32M	584.80M
EBITDA	135.14M	293.62M	293.62M	65.27M	65.27M	-193.06M
Net Income	90.14M	192.38M	192.38M	15.26M	15.26M	-214.98M
Balance Sheet
Total Assets	1.75B	1.19B	1.19B	800.16M	800.16M	2.40B
Cash, Cash Equivalents and Short-Term Investments	1.19B	640.39M	640.39M	388.33M	388.33M	358.96M
Total Debt	51.25M	48.30M	48.30M	36.46M	36.46M	45.86M
Total Liabilities	431.19M	358.99M	358.99M	202.60M	202.60M	1.89B
Stockholders Equity	1.32B	832.38M	832.38M	597.56M	597.56M	515.43M
Cash Flow
Free Cash Flow	149.00M	266.21M	266.21M	111.41M	111.41M	343.61M
Operating Cash Flow	150.68M	268.58M	268.58M	111.83M	111.83M	346.98M
Investing Cash Flow	-137.17M	-68.53M	-68.53M	-1.42M	-1.42M	-24.92M
Financing Cash Flow	380.03M	-3.19M	-3.19M	-10.74M	-10.74M	-291.38M

eToro Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBKR	80 Outperform	$29.49B	31.89	19.82%	0.75%	12.42%	28.96%
HOOD	77 Outperform	$115.45B	65.98	23.54%	―	58.58%	508.72%
SOFI	75 Outperform	$31.46B	53.53	8.80%	―	22.60%	―
FUTU	71 Outperform	$22.77B	22.65	26.43%	―	66.97%	86.46%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ETOR	59 Neutral	$3.13B	―	―	―	―	―
BULL	47 Neutral	$5.44B	93.34	-3.09%	―	―	―

eToro Corporate Events

eToro Reports Strong Q2 2025 Results Amid Global Expansion

On August 12, 2025, eToro Group Ltd. reported its financial results for the second quarter of 2025, marking its first quarter as a public company. The company achieved a 26% year-over-year growth in net contribution to $210 million and a 54% increase in assets under administration to $17.5 billion. eToro expanded its product offerings with 24/5 trading for U.S. equities, new long-term portfolios in partnership with Franklin Templeton, and savings products in France. The company also strengthened its presence in Asia with a new hub in Singapore. These developments reflect eToro’s commitment to innovation and global expansion, aiming to enhance user experience and drive sustainable growth.