ScoreWhy is Betsson AB ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 19.63%
- Healthy long term growth as Net Sales has grown by an annual rate of 15.69% and Operating profit at 18.39%
- Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 17.20
2
Negative results in Dec 25
- OPERATING CASH FLOW(Y) Lowest at SEK 2,386.37 MM
- ROCE(HY) Lowest at 20.06%
- INTEREST COVERAGE RATIO(Q) Lowest at 885.53
3
With ROE of 23.04%, it has a very attractive valuation with a 2.19 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -38.14%, its profits have risen by 7.7% ; the PEG ratio of the company is 1.6
4
Majority shareholders : FIIs
5
Below par performance in long term as well as near term
- Along with generating -38.14% returns in the last 1 year, the stock has also underperformed OMX Stockholm 30 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Betsson AB should be less than 10%
- Overall Portfolio exposure to Leisure Services should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Betsson AB for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Betsson AB
-38.14%
-0.40
36.33%
OMX Stockholm 30
10.97%
0.59
18.59%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
15.69%
EBIT Growth (5y)
18.39%
EBIT to Interest (avg)
17.20
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.21
Sales to Capital Employed (avg)
1.06
Tax Ratio
21.42%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
27.11%
ROE (avg)
19.63%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
2.19
EV to EBIT
6.30
EV to EBITDA
5.62
EV to Capital Employed
2.44
EV to Sales
1.43
PEG Ratio
1.57
Dividend Yield
0.26%
ROCE (Latest)
38.80%
ROE (Latest)
23.04%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
CASH AND EQV(HY)
Highest at SEK 7,850.18 MM
-19What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at SEK 2,386.37 MM
ROCE(HY)
Lowest at 20.06%
INTEREST COVERAGE RATIO(Q)
Lowest at 885.53
RAW MATERIAL COST(Y)
Grown by 22.57% (YoY
INTEREST(Q)
Highest at SEK 83.21 MM
OPERATING PROFIT(Q)
Lowest at SEK 736.86 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 22.15 %
PRE-TAX PROFIT(Q)
Lowest at SEK 499.27 MM
NET PROFIT(Q)
Lowest at SEK 358.03 MM
EPS(Q)
Lowest at SEK 2.63
Here's what is working for Betsson AB
Cash and Eqv
Highest at SEK 7,850.18 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Depreciation
Highest at SEK 176.28 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (SEK MM)
Depreciation
At SEK 176.28 MM has Grown at 108.54%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (SEK MM)
Here's what is not working for Betsson AB
Interest
At SEK 83.21 MM has Grown at 199.26%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (SEK MM)
Interest Coverage Ratio
Lowest at 885.53
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Pre-Tax Profit
At SEK 499.27 MM has Fallen at -30.19%
over average net sales of the previous four periods of SEK 715.14 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (SEK MM)
Net Profit
At SEK 358.03 MM has Fallen at -35%
over average net sales of the previous four periods of SEK 550.83 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (SEK MM)
Operating Cash Flow
Lowest at SEK 2,386.37 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (SEK MM)
Interest
Highest at SEK 83.21 MM
in the last five periods and Increased by 199.26% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (SEK MM)
Operating Profit
Lowest at SEK 736.86 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (SEK MM)
Operating Profit Margin
Lowest at 22.15 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at SEK 499.27 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (SEK MM)
Net Profit
Lowest at SEK 358.03 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (SEK MM)
EPS
Lowest at SEK 2.63
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (SEK)
Raw Material Cost
Grown by 22.57% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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