Better Collective A/S (BETCO) AI Stock Analysis

• Market Cap: kr7.11B
• Dividend Yield: N/A
• Average Volume (3M): 94.34K
• Price to Earnings (P/E): 25.2
• Beta (1Y): 0.47
• Revenue Growth: -7.81%
• EPS Growth: -8.76%
• Country: SE
• Employees: 1,556
• Sector: Services
• Sector Strength: N/A
• Industry: Software - Application
• EPS (TTM): 0.99
• Shares Outstanding: 61,958,870
• 10 Day Avg. Volume: 54,708
• 30 Day Avg. Volume: 94,342
• PEG Ratio: -0.82
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 1.61
• P/FCF Ratio: 49.79
• 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: kr120.00
• Price Target Upside: 4.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: kr118.00 ▲(2.79% Upside)

Better Collective A/S has a solid financial foundation with strong profitability and cash flow management. However, technical indicators suggest a bearish trend, and valuation metrics indicate the stock is fairly valued. The absence of a dividend yield and challenges in revenue growth due to external factors weigh on the overall score.

Positive Factors

North American Revenue Growth

The significant increase in North American revenue share strengthens Better Collective's recurring revenue base, enhancing long-term market position and stability in a key growth region.

Launch of Playbook

The launch of Playbook, an AI-powered solution, represents a strategic innovation, potentially increasing user engagement and expanding market reach, supporting future revenue growth.

Cost Efficiency

Successful cost efficiency measures enhance profitability and financial resilience, allowing Better Collective to allocate resources towards strategic growth initiatives.

Negative Factors

Revenue Decline

The decline in revenue highlights challenges in maintaining growth momentum, potentially impacting long-term financial performance if not addressed.

Brazil Regulatory Challenges

Regulatory challenges in Brazil pose a risk to revenue stability, requiring strategic adjustments to mitigate impact and ensure compliance.

Decline in Free Cash Flow

The significant decline in free cash flow limits financial flexibility, affecting the company's ability to invest in growth opportunities and manage debt efficiently.

Better Collective A/S Business Overview & Revenue Model

Company Description

Better Collective A/S is a leading sports betting and gaming affiliate company based in Denmark, primarily operating within the iGaming sector. The company focuses on providing digital platforms that enhance the betting experience for sports enthusiasts and gamblers. Its core products include affiliate websites, content creation, and marketing services that connect users with various online betting operators. Better Collective aims to educate users on betting practices while driving traffic and generating leads for its partners.

How the Company Makes Money

Better Collective primarily generates revenue through affiliate marketing, where it earns commission fees from online gambling operators for directing traffic and potential customers to their platforms. This revenue model includes various key components, such as cost-per-action (CPA) agreements, where Better Collective receives payments based on specific user actions, like registrations or deposits made by referred customers. Additionally, the company earns money through advertising revenues generated on its platforms. Significant partnerships with established betting operators further enhance its revenue, as these collaborations often lead to exclusive deals and higher commission rates. The company's performance is also bolstered by its strong focus on SEO and content marketing, which attracts a large audience to its affiliate sites, resulting in increased conversion rates and overall earnings.

Better Collective A/S Financial Statement Overview

Summary

Better Collective A/S has a solid financial foundation with strong profitability margins and a stable balance sheet. However, recent declines in revenue growth and free cash flow pose challenges that need addressing. The company should focus on revitalizing growth and enhancing cash flow efficiency to sustain its financial health and support future expansion.

Income Statement

Better Collective A/S has shown a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate by 4.89%, which is a concern. However, the company maintains a healthy gross profit margin of 40.02% and a net profit margin of 8.38%. The EBIT and EBITDA margins are also strong at 17.23% and 28.89% respectively, indicating efficient operational management. Despite the recent revenue decline, the company has demonstrated solid profitability metrics over the years.

Balance Sheet

The balance sheet of Better Collective A/S reflects moderate leverage with a debt-to-equity ratio of 0.41, which is manageable. The return on equity (ROE) is relatively low at 4.48%, suggesting limited returns on shareholder investments. The equity ratio stands at 59.07%, indicating a stable capital structure. Overall, the balance sheet shows a balanced approach to debt and equity, but there is room for improvement in generating higher returns for equity holders.

Cash Flow

The cash flow statement reveals challenges in free cash flow growth, which declined by 34.99% in the TTM period. The operating cash flow to net income ratio is strong at 0.90, indicating good cash generation from operations. However, the free cash flow to net income ratio is moderate at 0.34, reflecting constraints in converting income into free cash flow. The company needs to focus on improving cash flow efficiency to enhance financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	338.58M	371.49M	326.69M	269.30M	177.05M	91.19M
Gross Profit	132.93M	151.32M	138.47M	116.87M	71.38M	46.56M
EBITDA	92.58M	109.83M	115.12M	83.62M	55.46M	38.11M
Net Income	25.61M	34.01M	39.84M	48.08M	17.29M	21.93M
Balance Sheet
Total Assets	1.07B	1.17B	937.86M	785.23M	597.38M	315.06M
Cash, Cash Equivalents and Short-Term Investments	23.40M	37.67M	50.36M	31.50M	28.60M	21.13M
Total Debt	271.54M	276.63M	264.69M	236.24M	123.89M	72.68M
Total Liabilities	440.73M	486.19M	502.59M	372.31M	252.53M	152.52M
Stockholders Equity	627.26M	685.93M	435.27M	412.92M	344.85M	162.54M
Cash Flow
Free Cash Flow	26.76M	12.02M	56.40M	-50.06M	19.28M	24.41M
Operating Cash Flow	46.74M	49.50M	89.01M	48.20M	31.56M	26.68M
Investing Cash Flow	-30.88M	-154.83M	-106.25M	-112.63M	-219.22M	-68.09M
Financing Cash Flow	-35.84M	99.15M	29.33M	65.74M	188.76M	46.79M

Better Collective A/S Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 114.80
• 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 SE:BETCO, the sentiment is Neutral. The current price of 114.8 is above the 20-day moving average (MA) of 110.51, below the 50-day MA of 116.98, and below the 200-day MA of 122.96, indicating a neutral trend. The MACD of -1.61 indicates Negative momentum. The RSI at 49.54 is Neutral, neither overbought nor oversold. The STOCH value of 88.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:BETCO.

Better Collective A/S Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FPIP	68 Neutral	kr1.46B	72.78	―	1.87%	-8.38%	-38.17%
ENEA	66 Neutral	kr1.45B	13.19	―	―	0.86%	73.68%
BETCO	62 Neutral	kr7.11B	25.18	―	―	-7.81%	-8.76%
VIT.B	62 Neutral	kr12.31B	30.91	8.26%	1.07%	14.41%	-4.45%
LIME	59 Neutral	€4.74B	45.65	32.28%	1.25%	11.23%	16.24%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SEYE	44 Neutral	kr2.69B	―	―	―	10.25%	-698.93%