Kambi Group (KAMBI) AI Stock Analysis

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Kambi Group

(OTC:KAMBI)

Rating:78Outperform

Price Target:

kr145.00

▲(13.55%Upside)

Kambi Group's stock is rated positively due to its strong financial performance characterized by consistent revenue growth and robust cash flow management. Technical indicators signal a bullish trend, supporting a positive outlook, though technical caution is advised due to near-overbought conditions. Valuation metrics suggest the stock is fairly priced, aligning with industry norms.

Positive Factors

Financial Performance

Kambi's 4Q revenues are 4% ahead of consensus, with EBIT materially ahead.

New Partnerships

Kambi's 4Qs highlight further customer sign-up momentum, with new partnerships in Brazil, the US, and the Ontario lottery.

Strategic Expansion

Kambi has raised its long-term sports margin guidance, driven by automated pricing.

Negative Factors

Earnings Guidance

New EBITA guidance for FY25E is approximately 15% behind current consensus expectations.

Market Exits

Headwinds from Kindred market exits.

Tax and Regulatory Challenges

The benefits in FY25E are largely offset by customer migration, gaming tax increases, and a temporary VAT hit in Colombia.

Kambi Group (KAMBI) vs. iShares MSCI Sweden ETF (EWD)

Market Cap

kr3.63B

Dividend YieldN/A

Average Volume (3M)112.91K

Price to Earnings (P/E)21.2

Beta (1Y)0.51

Revenue Growth-4.66%

EPS Growth-32.21%

CountrySE

Employees1,043

SectorConsumer Cyclical

Sector Strength59

IndustryGambling, Resorts & Casinos

Share Statistics

EPS (TTM)0.33

Shares Outstanding29,878,567

10 Day Avg. Volume45,896

30 Day Avg. Volume112,907

Financial Highlights & Ratios

PEG Ratio-0.46

Price to Book (P/B)3.18

Price to Sales (P/S)0.00

P/FCF Ratio25.26

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

kr154.99

Price Target Upside21.37% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Kambi Group Business Overview & Revenue Model

Company DescriptionKambi Group plc operates as a business-to-business supplier of managed sports betting services to business-to-consumer gaming operators in Europe, the Americas, and internationally. The company's services include compliance, odds-compiling, customer intelligence, and risk management services built on an in-house developed software platform. Kambi Group plc was founded in 2010 and is headquartered in Ta' Xbiex, Malta.

How the Company Makes MoneyKambi Group generates revenue primarily through its business-to-business (B2B) model by providing sports betting services to gaming operators. The company earns money by entering into revenue-sharing agreements with its partners, where it receives a percentage of the net gaming revenue generated from its sportsbook platform. Kambi's earnings are influenced by factors such as the volume of bets placed, the number of active users on its platform, and the overall performance of sporting events. Additionally, the company's strategic partnerships with prominent gaming operators contribute significantly to its revenue, allowing Kambi to expand its market presence and enhance its service offerings.

Kambi Group Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q3-2024)

% Change Since: 8.31%|

Next Earnings Date:Jul 23, 2025

Earnings Call Sentiment Positive

The earnings call highlighted Kambi's solid growth, strategic partnerships, and strong financial position, while acknowledging challenges such as losing key partners and the need for cost efficiency improvements.

Q3-2024 Updates

Positive Updates

Solid Underlying Growth and Revenue Increase

Kambi reported a 14% increase in operator turnover and a 16% rise in revenue year-on-year, excluding non-recurring items.

New Partnerships and Product Launches

Kambi signed key deals with Hard Rock Digital and Rei do Pitaco for their new Odds Feed+ product and a long-term contract extension with Rush Street Interactive.

Financial Strength and Share Buyback Program

Kambi announced a EUR 12 million share buyback program and reported a strong cash balance of EUR 60.5 million.

Successful Partner Launches

Kambi completed 9 partner launches, including LiveScore's Virgin Bet in the U.K. and Ireland.

Strategic Development in Emerging Markets

Kambi positioned for growth in the Brazilian market with new partnerships and a market-leading product.

Negative Updates

Kindred and LeoVegas Transition

Kindred and LeoVegas are moving away from Kambi's turnkey sportsbook, indicating potential revenue challenges.

Cost Base Reduction and Efficiency Focus

Kambi is working to reduce its cost base and improve operational efficiency, indicating current inefficiencies.

Marginal Revenue Guidance Adjustment

Kambi adjusted its full-year revenue guidance slightly downward, reflecting potential headwinds.

Company Guidance

During the Kambi Q3 2024 earnings call, the company provided several key metrics and guidance for the financial year. Kambi reported a revenue of EUR 43 million for the quarter, marking a 16% increase year-on-year when excluding last year's non-recurring revenues. The operator turnover rose by 14% to 687 from the previous year's 602. Kambi also saw an increase in their cash balance, ending September with EUR 60.5 million, bolstered by strong cash flow and an operating profit of EUR 3.6 million. The company announced a new EUR 12 million share buyback program, demonstrating confidence in their financial position. Kambi adjusted its revenue guidance for the full year to between EUR 170 million and EUR 180 million, narrowing it down towards the center of the initial range, and also indicated that costs are expected to be at the low end of their guided range, emphasizing operational efficiency. The company remains focused on expanding its addressable market through new product offerings like Odds Feed+, despite facing some near-term headwinds from existing partner transitions.

Kambi Group Financial Statement Overview

Summary

Kambi Group exhibits a strong financial position with consistent revenue growth and robust cash flow generation. The company maintains high operational efficiency with solid profitability margins. The balance sheet reflects low leverage and high financial stability, essential for enduring market volatility in the gambling industry. While the income statement highlights some margin fluctuations, overall financial health remains sound.

Income Statement

Positive

Kambi Group has shown consistent revenue growth, increasing from $92.3 million in 2019 to $176.4 million in 2024, with a notable revenue growth rate of 1.80% from 2023 to 2024. The company maintains a robust gross profit margin near 100% due to its business model. While the net profit margin slightly improved to 8.76% in 2024, it was affected by fluctuating EBIT margins, which rebounded to 11.38% in 2024 after a negative margin in 2023. EBITDA margin remains strong, indicating healthy operational efficiency.

Balance Sheet

Positive

The company's balance sheet is solid, with a low debt-to-equity ratio of 0.05 in 2024, reflecting conservative leverage. Return on Equity stands at a reasonable 8.56%, showing the company's ability to generate profits from shareholders' investments. The equity ratio is healthy at 81.90%, highlighting financial stability with a significant proportion of assets financed by equity.

Cash Flow

Very Positive

Kambi Group demonstrates strong cash flow management. Free cash flow increased by 29.80% from 2023 to 2024, showcasing effective capital management. The operating cash flow to net income ratio is robust at 3.48, indicating efficient cash generation relative to profits. Free cash flow to net income ratio at 1.57 further underscores strong cash conversion capabilities.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
176.41M	173.30M	166.01M	162.42M	117.69M
	Gross Profit
176.41M	173.30M	166.01M	162.42M	117.69M
	EBIT
20.08M	-1.68M	34.87M	57.05M	32.27M
	EBITDA
59.47M	57.51M	63.51M	79.21M	49.13M
	Net Income Common Stockholders
15.45M	14.90M	26.45M	46.43M	24.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
61.28M	55.05M	60.70M	79.66M	60.83M
	Total Assets
220.13M	214.89M	242.89M	196.86M	136.56M
	Total Debt
9.49M	12.99M	20.68M	24.77M	13.21M
	Net Debt
-51.79M	-37.55M	-40.02M	-54.89M	-47.62M
	Total Liabilities
39.80M	42.74M	79.50M	61.48M	38.55M
	Stockholders Equity
180.32M	172.15M	163.39M	135.38M	98.02M
Cash Flow		Free Cash Flow
24.24M	18.67M	20.58M	47.46M	19.55M
	Operating Cash Flow
53.70M	49.84M	49.00M	72.33M	38.59M
	Investing Cash Flow
-29.66M	-42.73M	-64.78M	-39.62M	-19.03M
	Financing Cash Flow
-13.07M	-17.35M	-1.86M	-14.25M	-3.18M

Kambi Group Technical Analysis

Technical Analysis Sentiment

Positive

Last Price127.70

Price Trends

50DMA

113.36

Positive

100DMA

113.05

Positive

200DMA

115.25

Positive

Market Momentum

MACD

3.38

Negative

RSI

68.95

Neutral

STOCH

81.11

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:KAMBI, the sentiment is Positive. The current price of 127.7 is above the 20-day moving average (MA) of 118.73, above the 50-day MA of 113.36, and above the 200-day MA of 115.25, indicating a bullish trend. The MACD of 3.38 indicates Negative momentum. The RSI at 68.95 is Neutral, neither overbought nor oversold. The STOCH value of 81.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:KAMBI.

Kambi Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KAMBI	78 Outperform	kr3.63B	21.19	9.13%	―	-4.66%	-32.21%
BETS.B	77 Outperform	kr26.38B	12.24	22.34%	1.90%	17.47%	18.78%
EVO	75 Outperform	kr135.39B	9.80		50.73%	10.67%	14.97%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%
CTM	38 Underperform	$138.10M	―	-42.17%	―	-31.61%	26.26%

* Consumer Cyclical Sector Average

Performance Comparison

SE:KAMBI

Kambi Group

127.70

29.60

30.17%

SE:EVO

Evolution Gaming Group AB

675.00

-344.68

-33.80%

SE:BETS.B

Betsson AB

193.40

84.58

77.72%

SE:CTM

Catena Media

1.76

-3.76

-68.12%

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.