Better Collective A/S (BETCO) AI Stock Analysis

• Market Cap: kr7.58B
• Dividend Yield: N/A
• Average Volume (3M): 93.80K
• Price to Earnings (P/E): 26.8
• Beta (1Y): 0.47
• Revenue Growth: -5.42%
• EPS Growth: -17.95%
• Country: SE
• Employees: 1,556
• Sector: Services
• Sector Strength: N/A
• Industry: Software - Application
• EPS (TTM): 0.88
• Shares Outstanding: 61,958,870
• 10 Day Avg. Volume: 53,224
• 30 Day Avg. Volume: 93,804
• 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: kr125.00
• Price Target Upside: 2.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 62 Neutral
• Price Target: kr130.00 ▲(6.56% Upside)

Better Collective A/S has a solid financial foundation with strong profitability margins, but faces challenges with declining revenue growth and free cash flow. Technical indicators suggest a neutral trend, and the valuation is moderate. The absence of a dividend yield and lack of earnings call data limit additional insights.

Positive Factors

Profitability Margins

Strong profitability margins indicate efficient cost management and pricing strategies, supporting long-term financial stability and competitiveness.

Operational Efficiency

High EBIT and EBITDA margins reflect effective operational management, enhancing the company's ability to generate profits and sustain growth.

Stable Balance Sheet

A stable balance sheet with a strong equity ratio provides financial resilience and the capacity to invest in growth opportunities.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth can hinder the company's ability to expand market share and invest in new initiatives, impacting long-term prospects.

Free Cash Flow Challenges

Decreased free cash flow limits the company's ability to fund operations, invest in growth, and return capital to shareholders, affecting financial flexibility.

Low Return on Equity

Low ROE suggests inefficiencies in generating returns for shareholders, which may deter investment and affect long-term shareholder value.

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 exhibits strong profitability margins and a stable balance sheet. However, challenges include a decline in revenue growth and free cash flow, which need addressing to sustain financial health.

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	341.47M	371.49M	326.69M	269.30M	177.05M	91.19M
Gross Profit	135.33M	151.32M	138.47M	116.87M	71.38M	46.56M
EBITDA	96.63M	109.83M	115.12M	83.62M	55.46M	38.11M
Net Income	25.09M	34.01M	39.84M	48.08M	17.29M	21.93M
Balance Sheet
Total Assets	1.09B	1.17B	937.86M	785.23M	597.38M	315.06M
Cash, Cash Equivalents and Short-Term Investments	22.39M	37.67M	50.36M	31.50M	28.60M	21.13M
Total Debt	272.56M	276.63M	264.69M	209.38M	123.89M	72.68M
Total Liabilities	444.26M	486.19M	502.59M	372.31M	252.53M	152.52M
Stockholders Equity	641.16M	685.93M	435.27M	412.92M	344.85M	162.54M
Cash Flow
Free Cash Flow	13.35M	12.02M	56.40M	-50.06M	19.28M	24.41M
Operating Cash Flow	52.24M	49.50M	89.01M	48.20M	31.56M	26.68M
Investing Cash Flow	-49.69M	-154.83M	-106.25M	-112.63M	-219.22M	-68.09M
Financing Cash Flow	-28.71M	99.15M	29.33M	65.74M	188.76M	46.79M

Better Collective A/S Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 122.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 122 is above the 20-day moving average (MA) of 121.33, below the 50-day MA of 123.44, and below the 200-day MA of 122.35, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 50.50 is Neutral, neither overbought nor oversold. The STOCH value of 49.22 is Neutral, 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
VIT.B	72 Outperform	€14.62B	36.73	8.26%	0.95%	14.41%	-4.45%
ENEA	67 Neutral	kr1.73B	21.95	―	―	1.38%	-5.29%
FPIP	65 Neutral	kr1.45B	115.57	―	1.87%	6.08%	-66.50%
BETCO	62 Neutral	kr7.58B	26.76	―	―	-5.42%	-17.95%
LIME	61 Neutral	kr4.05B	40.60	33.21%	1.25%	12.88%	16.11%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SEYE	54 Neutral	kr3.24B	―	―	―	4.86%	-513.15%