Raketech Group Holding Plc (RAKE) AI Stock Analysis

• Market Cap: kr110.80M
• Dividend Yield: N/A
• Average Volume (3M): 73.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: -47.47%
• EPS Growth: -524.00%
• Country: SE
• Employees: 131
• Sector: Services
• Sector Strength: N/A
• Industry: Advertising Agencies
• EPS (TTM): N/A
• Shares Outstanding: 45,224,228
• 10 Day Avg. Volume: 88,696
• 30 Day Avg. Volume: 73,522
• PEG Ratio: <0.01
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.27
• P/FCF Ratio: -79.26
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: kr2.00 ▲(5.26% Upside)

Raketech Group Holding Plc's overall stock score is primarily impacted by its poor financial performance and bearish technical indicators. The company's negative profitability and cash flow issues are significant concerns, compounded by a negative P/E ratio and lack of dividend yield. These factors suggest a high-risk investment with limited near-term upside potential.

Positive Factors

Low Leverage

Raketech's low leverage position suggests a conservative capital structure, providing financial stability and flexibility to navigate market challenges.

Operational Efficiency

A strong gross profit margin indicates operational efficiency, which can help the company maintain profitability even amid revenue challenges.

Strategic Partnerships

Partnerships with top gaming operators enhance Raketech's market position, providing a steady revenue stream and potential for growth through collaborative opportunities.

Negative Factors

Declining Revenue Growth

The decline in revenue growth reflects challenges in market demand or competitive pressures, potentially impacting long-term financial performance and strategic initiatives.

Profitability Challenges

Negative profitability metrics highlight operational and market challenges, which could affect the company's ability to reinvest in growth and maintain competitive positioning.

Cash Flow Difficulties

Significant declines in free cash flow growth indicate potential liquidity issues, limiting the company's capacity to fund operations and strategic investments.

Raketech Group Holding Plc Business Overview & Revenue Model

Company Description

Raketech Group Holding Plc (RAKE) is a prominent player in the online gaming and affiliate marketing industry, specializing in the provision of digital marketing services for the gaming sector. The company operates across various jurisdictions, focusing on delivering high-quality content and innovative solutions that connect operators with players. Its core offerings include affiliate marketing services, lead generation, and comprehensive marketing strategies that enhance user engagement and drive traffic to gaming operators' platforms.

How the Company Makes Money

Raketech generates revenue primarily through affiliate marketing, whereby it earns commissions for directing traffic and new customers to online gaming operators. The company partners with various gaming brands and receives payments based on performance metrics, such as the number of leads generated or revenue share agreements. Key revenue streams include player acquisition, where Raketech leverages its digital platforms to attract new players for its partners, and content monetization, which involves producing engaging content that drives user interaction and conversions. Additionally, strategic partnerships with leading gaming operators and continuous investment in technology and marketing capabilities further bolster its earnings potential.

Raketech Group Holding Plc Financial Statement Overview

Summary

Raketech Group Holding Plc is experiencing significant financial challenges, with declining revenues and profitability issues. Despite a low leverage position, negative return on equity and cash flow difficulties pose risks to financial stability.

Income Statement

Raketech Group Holding Plc has experienced a significant decline in revenue growth, with a negative growth rate of -17.57% in the TTM period. The company is facing profitability challenges, as evidenced by negative net profit and EBIT margins. The gross profit margin remains relatively healthy at 60.20%, indicating some operational efficiency. However, the overall negative profitability metrics suggest financial instability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.11, indicating low leverage and a conservative capital structure. However, the return on equity is negative, reflecting poor profitability and potential challenges in generating returns for shareholders. The equity ratio is not calculated, but the low debt levels suggest a stable financial position.

Cash Flow

The cash flow statement reveals a concerning decline in free cash flow growth, with a significant drop of -172.62% in the TTM period. The operating cash flow to net income ratio is 0.81, indicating that operating cash flows are not fully covering net losses. The negative free cash flow to net income ratio further highlights cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.84M	61.18M	77.69M	52.64M	38.51M	29.39M
Gross Profit	25.79M	34.78M	44.93M	37.94M	27.03M	21.47M
EBITDA	-39.80M	-45.89M	23.03M	18.71M	14.87M	12.39M
Net Income	-48.74M	-56.55M	6.61M	8.33M	7.13M	5.62M
Balance Sheet
Total Assets	75.40M	83.57M	166.00M	148.32M	131.97M	91.32M
Cash, Cash Equivalents and Short-Term Investments	2.77M	4.53M	13.46M	8.06M	3.21M	4.97M
Total Debt	4.69M	2.31M	9.94M	15.03M	15.07M	1.93M
Total Liabilities	31.93M	37.86M	66.70M	51.66M	46.91M	20.50M
Stockholders Equity	43.47M	45.70M	99.30M	96.67M	85.07M	70.83M
Cash Flow
Free Cash Flow	-1.24M	-205.00K	15.46M	5.61M	29.67K	-808.23K
Operating Cash Flow	10.54M	16.48M	21.02M	18.82M	14.63M	12.41M
Investing Cash Flow	-11.18M	-16.37M	-5.56M	-13.21M	-28.65M	-9.81M
Financing Cash Flow	-6.36M	-9.09M	-10.00M	-761.53K	12.26M	-1.83M

Raketech Group Holding Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.90
• 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 SE:RAKE, the sentiment is Negative. The current price of 1.9 is below the 20-day moving average (MA) of 2.11, below the 50-day MA of 2.39, and below the 200-day MA of 2.86, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 31.50 is Neutral, neither overbought nor oversold. The STOCH value of 35.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:RAKE.

Raketech Group Holding Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRAD	59 Neutral	kr378.39M	23.43	4.37%	―	6.67%	-7.93%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
RAKE	42 Neutral	kr110.80M	-0.19	―	―	-47.47%	-524.00%