Genius Sports Ltd (GENI, Financial), a key player in the interactive media industry, has experienced a notable fluctuation in its stock price recently. Over the past week, the stock has seen a decline of 9.55%, settling at $6.46. However, looking at a broader timeline, GENI has registered a significant increase of 10.37% over the past three months. Currently, the company is considered fairly valued with a GF Value of $6.54, closely aligning with its current market price. This valuation marks a shift from three months ago when it was deemed modestly undervalued with a GF Value of $5.98.
Overview of Genius Sports Ltd
Genius Sports Ltd operates as a B2B provider, offering scalable, technology-led products and services across various sectors within sports, sports betting, and sports media industries. The company's offerings are categorized into three main product areas: Sports Technology and Services; Betting Technology, Content and Services; and Media Technology, Content and Services. With a strong emphasis on proprietary technology and robust data infrastructure, Genius Sports primarily generates its revenue from the Betting Technology, Content, and Services division, with Europe being its largest market. The company's market capitalization currently stands at $1.36 billion.
Assessing Profitability
Despite its innovative offerings, Genius Sports scores low on the Profitability Rank, with a score of 1 out of 10. The company's operating margin is currently at -16.83%, which, while not ideal, fares better than 28% of 575 companies in the industry. Its Return on Equity (ROE) and Return on Assets (ROA) stand at -14.83% and -11.24% respectively, positioning GENI better than approximately one-third of its industry peers. The Return on Invested Capital (ROIC) is also negative at -13.22%, yet this still ranks better than 30.32% of competitors.
Growth Trajectory
Genius Sports exhibits a strong growth profile, particularly in revenue. The company's 3-Year Revenue Growth Rate per Share stands at an impressive 29.70%, outperforming 80.61% of its peers. Looking ahead, the estimated Total Revenue Growth Rate for the next three to five years is projected at 16.23%, which is also higher than 75.68% of its competitors. However, its 3-Year EPS Growth Rate paints a different picture, showing a decline of 25.10%, which still ranks better than 23.76% of its industry counterparts.
Key Stakeholders
Notable investors in Genius Sports include Catherine Wood (Trades, Portfolio), holding 6,260,974 shares (2.97%), Jim Simons with 356,478 shares (0.17%), and Steven Cohen (Trades, Portfolio) who owns 52,300 shares (0.02%). These holdings indicate a level of confidence from some prominent market players, despite the company's current financial metrics.
Competitive Landscape
Genius Sports operates in a competitive landscape with significant players like Taboola.com Ltd (TBLA, Financial) with a market cap of $1.01 billion, Rover Group Inc (ROVR, Financial) valued at $2 billion, and Opera Ltd (OPRA, Financial) with a market cap of $967.686 million. These companies, similar in market capitalization, provide a context for evaluating GENI's market position and growth potential.
Conclusion
In conclusion, Genius Sports Ltd presents a mixed financial picture. While the company shows promising growth in revenue and maintains a competitive stance in its industry, its profitability metrics and EPS growth rate suggest areas needing improvement. The recent stock price rally over the past three months, coupled with its current valuation, reflects a cautiously optimistic outlook from investors, balancing its growth prospects against profitability challenges. As such, GENI remains a noteworthy entity within the interactive media and sports betting sectors, warranting close monitoring for potential opportunities and risks.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
