BETSSON AB B Equity | A2P60Z | SE0014186532 | Share Price

I wrote this as practice for my VIC application. Posting this here to try and get some feedback and spread the word on a decent idea. I'm fairly new to this. I have no business education and I don't work in the finance industry thus my experience is limited.

Betsson AB (BETS B) is a Swedish company that operates online casinos and sportsbooks in regulated European markets. Their business model consists of acquiring and conducting business through locally recognized strong brands as opposed to a single global brand. To support this the company operates a single technological platform that hosts all brands and subsidiary casinos, which allows for cost-effective and scalable operations.

Low CapEx requirements and their cost model is among the lowest in the industry. Currently sporting a 76% ROIC to after-tax FCF and very modest leverage both at present and historically.
Rough FY 2019 has investor expectations at an all-time low. Revenues from nordic markets, the company's biggest markets, declined -30% due to new regulation, mainly new gambling taxes and restrictions on customer loyalty/marketing incentives. Thanks to growth in other markets total revenues declined only -5% and EBIT margin dropped from ~22% to ~16,5% as gambling tax is booked under operational expenses. The new regulation has been in effect the entire FY of 2019, thus I believe we've seen the worst, if not all, of the impact from the new regulation and that revenues will normalize from here on. The company is increasingly diversifying across geographical markets to combat this and potential future new regulation.
Growing customer base. Annual cash deposits by customers have grown 13,5% CAGR the last 5 years and grew 6% in 2019 The number of active customers per annum has grown at 11,9% 5-year CAGR and grew 2,7% in 2019.
Sportsbetting is 24% of the company's revenue. They have developed an in house sportsbook which they are looking to license to other operators. First B2B agreement was signed early Q1 2020 and there is possibility of growth in this segment. I don't model this in my valuation due to uncertainty.
Satisfactory capital allocation. Very selective M&A where low price and strong brands are the main focus. The company repurchased around 2 million shares in march but unfortunately, the program is fully exhausted and a new program needs AGM permission.
Attractive valuation. The share is trading at 9x EV/FCF (after-tax) and 8,1x EV/EBIT whereas valuations for the industry are crazy high with an average of 37,5x EV/FCF. The closest comparable trades at 14,6x EV/FCF meaning about a 40% relative discount. Assuming a modest 2% growth per annum in FCF, with CapEx and debt staying at 2019 levels, FCF at year 2023 sits at around 832 million SEK. Given the ROIC and modest growth potential an EV/FCF multiple of 15 (6,66% FCF yield) seems reasonable given the risky business, but you might want to be more conservative.

That means upside of around 90% to the current price in 2-3 years time with a very limited downside already baked into the price. Even if nordic revenues should drop further or additional surprise regulation strikes in another market you would not lose money.

Betsson's AGM 2018 resolved that approximately SEK 393.1 million, corresponding to SEK 2.84 per share, will be distributed to the shareholders of the Company through an automatic redemption process. Shares in Betsson AB are currently priced at SEK81.25. At that level they are trading at 10.15% discount to the analyst consensus target price of 0.00. Analysts covering Betsson AB currently have a consensus Earnings Per Share (EPS) forecast of 7.155 for the next financial year. Betsson AB-Chart Der Chart dieses Marktes. Dies ist eine visuelle Darstellung der Kursbewegung in dem Markt über einen bestimmten Zeitraum. Sie hilft Ihnen, die Entwicklung eines Marktes abzuschätzen. Vollständige Charts freischalten - kostenloses Demokonto eröffnen . Verkauf. 82.85. Kauf. 82.95. 1.6 Pkts (1.97 %) Hoch: 83.5. Tief: 81.2. 100% der IG Kunden sind long in diesem Markt Der BETSSON AB B share price in real-time (A2P60Z / SE0014186532), charts and analyses, news, key data, turnovers, company data. Stock analysis for Betsson AB (BETSB:Stockholm) including stock price, stock chart, company news, key statistics, fundamentals and company profile. 87 Media Asia Group Holdings Ltd. Registered Shares HD -0,1-14,25%. 88 Deutsche Cannabis-15,80%. Kennzahlen & Unternehmensdaten zu Betsson AB Namn-Aktier B. Dividende & Dividendenrendite pro Aktie Good shares at cheap prices are what the very best investors look for. At this time of economic turmoil and market volatility, could Betsson Ab (STO:BETS B) be one of them? When it comes to the proven drivers of stock market profits, a blend of "good" and "cheap" is seen as highly desirable by some successful investors. BETSSON AB 0A37 Overview - Search stock, chart, recent trades, company information, trading information, company news, fundamentals Details for Betsson AB -Minimum size 1. Margin 35%. Minimum stop distance 47. Minimum guaranteed stop distance 10.0%. 08:00 - 16:25 (UK - London Local Time) Your aggregate position in this market will be margined in the following tiers: Tier: Position size: Margin : 1: 0 - 15000 Shares: 35%: 2: 15000 - 90000 Shares: 35%: 3: 90000 - 300000 Shares: 40.04%: 4: 300000 + Shares: 75%: If your Betsson AB 20.05.2015 09:12 Dissemination of a Adhoc News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. According to the decision during Annual General Meeting 8 May 2015, a share split is implemented, whereby one share in Betsson (irrespective of what class of shares) is converted into four shares, of which three

BETSSON AB B Equity | A2P60Z | SE0014186532 | Share Price

betsson ab shares

betsson ab shares - win

Betsson AB (BETS B) - VIC Application Practice

betsson ab shares video

betsson ab shares top