Raketech Group Holding Plc (RAKE) AI Stock Analysis

• Market Cap: kr84.30M
• Dividend Yield: N/A
• Average Volume (3M): 73.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: kr2.00 ▲(5.26% Upside)

Raketech Group Holding Plc is facing significant financial challenges with declining revenues and profitability, which are the most impactful factors. The technical analysis indicates a bearish trend, further weighing on the stock's outlook. The negative P/E ratio and lack of dividend yield make the stock unattractive from a valuation standpoint.

Positive Factors

Gross Margin

A 60.2% gross margin highlights structurally attractive unit economics for Raketech’s content-driven affiliate model. High gross margins indicate that core content monetization yields substantial revenue per visitor before overhead, offering durable profitability potential if traffic and conversion quality are preserved.

Low Leverage

A very low debt-to-equity ratio (0.108) gives Raketech durable financial flexibility, lowering interest burden and insolvency risk. This balance sheet strength supports investment in content, SEO, or market expansion and provides a buffer against cyclical iGaming demand shocks over the medium term.

Operating Cash Conversion

Positive operating cash flow and an operating cash flow to net income ratio of 0.812 show strong cash conversion despite accounting losses. Reliable cash generation from operations is a durable strength, enabling ongoing content funding and partner payouts without immediate refinancing in normal conditions.

Negative Factors

Revenue Decline

A steep decline in reported revenue growth signals weakening top-line traction for Raketech’s affiliate model. Sustained revenue contraction undermines fixed-cost absorption, reduces bargaining power with operators, and suggests structural issues in traffic acquisition or conversion that could impair medium-term profitability recovery.

Negative Return on Equity

An ROE of -86.6% indicates the business is destroying shareholder capital, pointing to persistent losses relative to equity. This level of inefficiency suggests material operating or commercial problems that, if not addressed, will erode investor value and constrain the company’s ability to sustainably fund growth without external capital.

Negative Free Cash Flow

Negative free cash flow despite positive operating cash flow implies capital expenditures or working capital needs exceed operating cash generation. Over months, this pressures liquidity and may force financing, limit investment in SEO/content, and weaken ability to compete in acquiring durable traffic and conversions.

Raketech Group Holding Plc Business Overview & Revenue Model

Company Description

Raketech Group Holding PLC operates as an online affiliate and performance marketing company worldwide. The company offers comparison services, online guides, communities, and social media products for the online casino, sports betting, TV sports, and cryptocurrency industries. It operates CasinoGuide.se, a casino review website; TurtleBet.com that provides casino content, bonus offers, and sports betting news; Casinoer.com, an online guide; CasinoBonusar.nu that offers promotions, bonus spin offers, and campaigns; and CasinoFeber.se that offers casino-related content, including casino news, reviews, and latest promotions. In addition, the company operates Norgecasino.com, a complete casino guide covering all aspects of gambling and betting; Casinobonukset.com that focuses on bonus opportunities; and Casimaru, a casino community site dedicated to Japanese players; CasinoFever.ca, a comparison portal for casinos and betting in Canada; and CasinoTop5 which offers reviews of new and old games and operators in Japan. Further, it operates BetXpert.com that offers sports betting content, expert betting advice, and live match data from sports; Betting.se, a sports betting Website; Urheiluveikkaus.com that provides a hub of sports betting content, including industry news, the latest campaigns; operator reviews; and TVMatchen which offers real time listings, live scores, and match information, as well as latest sports news, game previews, match statistics, and live results for all the sports. The company also operates Cryptimi.com, a digital currency and block chain review site. It serves sports streaming providers, game studios, and international betting and casino operators. Raketech Group Holding PLC was founded in 2010 and is headquartered in Gzira, Malta.

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 facing challenges with declining revenues and profitability, as reflected in the negative margins and net losses. The balance sheet is stable with low leverage, but the negative return on equity highlights inefficiencies. Cash flow from operations remains positive, but the negative free cash flow warrants attention.

Income Statement

Raketech Group Holding Plc has experienced declining revenue growth, with a significant drop of 15.7% in the TTM period. The company is facing profitability challenges, as evidenced by negative net profit and EBIT margins. Despite a strong gross profit margin of 60.2% in the TTM, the overall profitability is hindered by high operating expenses.

Balance Sheet

The company's balance sheet shows a low debt-to-equity ratio of 0.108, indicating low leverage and financial stability. However, the negative return on equity of -86.6% in the TTM suggests inefficiencies in generating returns for shareholders. The equity ratio remains healthy, reflecting a solid capital structure.

Cash Flow

Raketech's cash flow statement reveals a positive operating cash flow, but the free cash flow is negative in the TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is strong at 0.812, suggesting good cash conversion from operations despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.11M	61.18M	77.69M	52.64M	38.51M	29.39M
Gross Profit	22.01M	34.78M	44.93M	37.94M	27.03M	21.47M
EBITDA	-40.34M	-45.89M	23.03M	18.71M	14.87M	12.39M
Net Income	-59.75M	-56.55M	6.61M	8.33M	7.13M	5.62M
Balance Sheet
Total Assets	63.62M	83.57M	166.00M	148.32M	131.97M	91.32M
Cash, Cash Equivalents and Short-Term Investments	2.68M	4.53M	13.46M	8.06M	3.21M	4.97M
Total Debt	4.43M	2.31M	9.94M	15.03M	15.07M	1.93M
Total Liabilities	31.21M	37.86M	66.70M	51.66M	46.91M	20.50M
Stockholders Equity	32.41M	45.70M	99.30M	96.67M	85.07M	70.83M
Cash Flow
Free Cash Flow	-3.12M	-205.00K	15.46M	5.61M	29.67K	-808.23K
Operating Cash Flow	7.89M	16.48M	21.02M	18.82M	14.63M	12.41M
Investing Cash Flow	-10.73M	-16.37M	-5.56M	-13.21M	-28.65M	-9.81M
Financing Cash Flow	48.00K	-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: Positive

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 above the 20-day moving average (MA) of 1.90, above the 50-day MA of 1.90, and below the 200-day MA of 2.46, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 39.19 is Neutral, neither overbought nor oversold. The STOCH value of 7.98 is Positive, 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	56 Neutral	kr424.33M	416.57	4.37%	―	6.67%	-7.93%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
TOURN	50 Neutral	kr47.11M	-7.37	―	―	―	―
BUSER	48 Neutral	kr98.17M	-0.84	―	―	―	―
SCOUT	43 Neutral	kr28.60M	-3.32	―	―	―	―
RAKE	40 Underperform	kr84.30M	-0.14	―	―	-47.47%	-524.00%