Sportradar Group AG (SRAD) AI Stock Analysis

• Market Cap: $6.72B
• Dividend Yield: N/A
• Average Volume (3M): 1.39M
• Price to Earnings (P/E): 179.7
• Beta (1Y): 1.27
• Revenue Growth: 26.10%
• EPS Growth: 0.16%
• Country: US
• Employees: 4,582
• Sector: Technology
• Sector Strength: 40
• Industry: Software - Application
• EPS (TTM): 0.12
• Shares Outstanding: 209,092,850
• 10 Day Avg. Volume: 1,777,681
• 30 Day Avg. Volume: 1,387,547
• PEG Ratio: 1120.70
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.95
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• 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: $27.18
• Price Target Upside: 21.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

Sportradar Group AG is positioned strongly with robust financial performance and positive technical analysis. The earnings call further supports growth prospects with strategic expansions and acquisitions. However, a high P/E ratio indicates potential overvaluation concerns.

Positive Factors

Financial Performance

Sportradar is positioned for substantial margin expansion and improving free cash flow conversion, supporting a reasonable valuation and potential stock growth.

Market Expansion

Sportradar has a strong 3-year outlook with expected revenue growth driven by global market expansion and increased content consumption.

Technological Advancements

The integration of IMG rights and the use of AI and computer vision technology are expected to bring cost efficiencies and enhance revenue opportunities.

Negative Factors

Market Competition

SRAD's positioning in the OSB ecosystem has considerable durability and expansion potential.

Operational Costs

A favorable setup for margin expansion is expected as the company comes out of the most recent rights renewal cycle and into a multi-year period of continued top-line momentum and lower operating costs.

Revenue Challenges

SRAD introduced 2027 targets for revenue, Adj. EBITDA, and FCF, which all fell ahead of consensus estimates.

Sportradar Group AG Business Overview & Revenue Model

Company Description

Sportradar Group AG, together with its subsidiaries, provides sports data services for the sports betting and media industries in the United Kingdom, the United States, Malta, Switzerland, and internationally. Its sports data services to the bookmaking under the Betradar brand name, and to the international media industry under the Sportradar Media Services brand name. The company offers mission-critical software, data, and content to sports leagues, betting operators, and media companies. In addition, the company provides sports entertainment, gaming solution, and sports solutions, as well as live streaming solution for online, mobile, and retail sports betting. Further, its software solutions address the entire sports betting value chain from traffic generation and advertising technology to the collection, processing, and extrapolation of data and odds, as well as to visualization solutions, risk management, and platform services. Sportradar Group AG was incorporated in 2001 and is headquartered in St. Gallen, Switzerland.

How the Company Makes Money

Sportradar Group AG generates revenue primarily through its data and content solutions sold to bookmakers, media companies, and sports organizations. The company's key revenue streams include licensing fees for real-time sports data and analytics, subscription fees for access to its sports intelligence platforms, and service fees for providing integrity and compliance solutions. Additionally, Sportradar partners with sports leagues and federations to distribute official sports data, often sharing revenue from betting and media rights. The company's strategic partnerships with major sports entities and technology investments also play a significant role in driving its earnings.

Sportradar Group AG Financial Statement Overview

Summary

Sportradar Group AG demonstrates strong financial performance with significant revenue and free cash flow growth. The company maintains healthy gross and net profit margins, although operational profitability could improve. A solid balance sheet with low leverage enhances financial stability, while robust cash flow supports strategic initiatives.

Income Statement

Sportradar Group AG shows strong revenue growth with a significant increase from the previous periods, particularly evident in the TTM with a 20% increase from 2023. The company maintains healthy gross and net profit margins at 66% and 6% respectively for the TTM, indicating efficient cost management and profitability. However, EBIT and EBITDA margins have room for improvement, with EBIT margin at 4% and EBITDA margin at 41% for the TTM.

Balance Sheet

The balance sheet reflects a solid equity position with an equity ratio of 40% for the TTM, showcasing financial stability. The debt-to-equity ratio is low at 0.05, indicating conservative leverage. Return on equity is moderate at 6%, suggesting decent return generation from the shareholders' equity. The overall debt levels are minimal, enhancing the company's financial resilience.

Cash Flow

Sportradar exhibits a robust free cash flow growth, with a significant increase in TTM compared to previous periods. The operating cash flow to net income ratio stands at a healthy 5.43, indicating strong cash conversion from earnings. The free cash flow to net income ratio is at 2.2, demonstrating efficient cash flow management. Overall, cash flow generation and management are strong, supporting operational and strategic initiatives.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
1.05B	877.62M	730.19M	561.20M	404.92M	380.40M
	Gross Profit
696.58M	700.05M	571.92M	453.57M	321.71M	326.87M
	EBIT
46.25M	78.21M	34.10M	56.88M	60.38M	52.34M
	EBITDA
430.85M	285.01M	242.64M	180.98M	171.20M	155.48M
	Net Income Common Stockholders
58.65M	34.66M	10.89M	12.57M	15.24M	11.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
59.17M	277.17M	243.76M	742.77M	385.54M	57.02M
	Total Assets
0.00	2.25B	1.39B	1.77B	957.02M	709.90M
	Total Debt
0.00	50.15M	22.84M	435.35M	438.68M	160.02M
	Net Debt
59.17M	-227.03M	-220.91M	-307.42M	53.14M	103.00M
	Total Liabilities
0.00	1.37B	631.63M	1.04B	792.88M	555.85M
	Stockholders Equity
154.04M	867.79M	751.59M	738.82M	167.28M	157.03M
Cash Flow		Free Cash Flow
129.11M	58.37M	5.52M	1.47M	57.31M	47.70M
	Operating Cash Flow
318.72M	258.64M	168.08M	132.22M	151.26M	145.97M
	Investing Cash Flow
-199.58M	-202.09M	-246.57M	-333.77M	-98.14M	-114.30M
	Financing Cash Flow
-30.86M	-17.63M	-459.85M	539.77M	274.54M	-4.69M

Sportradar Group AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRAD, the sentiment is Positive. The current price of 22.45 is above the 20-day moving average (MA) of 21.68, above the 50-day MA of 21.43, and above the 200-day MA of 15.83, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 51.93 is Neutral, neither overbought nor oversold. The STOCH value of 52.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SRAD.

Sportradar Group AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRAD	84 Outperform	$6.72B	179.74	3.92%	―	26.10%	0.16%
BILL	65 Neutral	$4.08B	403.52	2.11%	―	16.42%	―
GRND	64 Neutral	$3.73B	―	-966.61%	―	32.71%	-131.68%
ZETA	62 Neutral	$3.06B	―	-16.28%	―	38.02%	66.18%
Sector *	57 Neutral	$20.31B	10.03	-14.49%	2.79%	5.15%	-23.76%
KC	56 Neutral	$3.22B	―	-32.59%	―	8.56%	13.34%
U	53 Neutral	$8.19B	―	-20.84%	―	-17.10%	21.82%