One-glance verdict
Undervalued
$4.81 our estimate vs market $0.72
Wall Street consensus: $5.81 (20.8% higher than our fair-value estimate)
85% below our estimate, below the bear case
Fundamentals snapshot
Bragg Gaming Group Inc.
BRAG · NMS · Consumer Cyclical · Gambling
Current price
$0.72
52-week range
$0.63 - $2.74
Market cap
$22.37M
Balance sheet
Distressed
-3.59x Concerning
Net debt $3.30M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 4.0% last year.
- Reward Free cash flow was positive in 2/10 years.
- Risk Return on equity was -12.2% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from -0.2% to -8.5% over 3 years.
What this company does
Bragg Gaming Group Inc.
Bragg Gaming Group makes the behind-the-scenes technology and games that online casinos use to operate, sort of like the software that powers your favorite apps. Their main money comes from providing these iGaming solutions (services and technology for online gambling) to other companies. This is important because it means their success is tied to how well the online gambling industry grows and how many casinos choose their products.
How the company got here
Bragg Gaming Group, originally founded as Rockies Financial Corporation in 2004, has evolved significantly over the years. The company rebranded to Bragg Gaming Group in 2018, marking a strategic shift towards the iGaming industry. This transformation involved acquiring and integrating various gaming technology and content providers, such as Oryx Gaming, Wild Streak Gaming, and Spin Games. These acquisitions have helped Bragg build a diverse portfolio of casino games and technology solutions, positioning it as a content-driven B2B (business-to-business) iGaming provider. The company's journey reflects a deliberate strategy to consolidate expertise and expand its market reach within the regulated online gaming sector.
What it actually does
Bragg Gaming Group provides technology and content for online gaming operators. Think of them as a behind-the-scenes partner for online casinos and sports betting platforms. They offer a suite of products that help these operators run their businesses smoothly and offer a wide variety of games to their customers. This includes the technology that manages player accounts, delivers games, and tools to keep players engaged. Essentially, Bragg helps power the online gaming experience for other companies.
Casino Content
This is a core part of Bragg's business, where they create and distribute casino games. They have in-house studios, like Wild Streak Gaming and Atomic Slot Lab, that develop unique, data-driven slot games and other casino titles. Bragg also partners with other game developers to offer a wider selection of games through their platform. These games are the actual products that players interact with on online casino sites, and they are a primary way Bragg makes money by licensing them to operators.
Bragg PAM (Player Account Management)
Bragg PAM is like the central nervous system for an online gaming operator's business. It's a technology platform that manages everything related to a player's account, including registration, deposits, withdrawals, and game history. This system is crucial for operators to understand their customers, manage risks, and ensure a smooth gaming experience. Bragg PAM powers many leading online casino and sports betting brands, providing the essential infrastructure for their operations.
Bragg HUB (iGaming Product Delivery)
The Bragg HUB acts as a gateway for online gaming operators to access a vast library of casino games. It's a single integration point that allows operators to easily add games from Bragg's own studios and its many third-party partners to their platforms. This simplifies the process for operators, as they don't need to integrate with each game provider individually. The HUB ensures that a wide variety of high-quality games are readily available to the operators' players.
Fuze™ (Gamification and Engagement Tools)
Fuze™ is Bragg's suite of tools designed to make the online gaming experience more exciting and keep players engaged. It uses real-time data to understand player behavior and then offers personalized promotions, tournaments, and rewards. The goal is to reduce the likelihood of players leaving (known as 'churn') and increase how long they stay active and spend money over time (their 'lifetime value'). This helps operators create a more dynamic and sticky environment for their customers.
What management is betting on now
Bragg's management is focused on capitalizing on its existing technology and content to drive profitable growth, particularly in regulated markets like Brazil and North America. They are prioritizing the expansion of their proprietary content, which tends to have higher profit margins (the percentage of revenue left after costs), to improve overall profitability. Bragg is also investing in technology, including artificial intelligence (AI), to enhance operational efficiency and player experience. Recent strategic moves, like acquisitions and workforce restructuring, indicate a push towards a leaner, more focused business model aimed at achieving sustained profitability and cash generation.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $4.81 vs current price $0.72
Wall Street consensus is the average analyst price target: $5.81 (20.8% higher than our fair-value estimate).
Our most-likely fair value is $4.81 a share — about 567.7% above today's price of $0.72, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $3.3M. Interest coverage -3.6x.
Net debt
$3.30M
Interest coverage
-3.59x
Bragg Gaming Group Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
BRAG
BASELINE
Bragg Gaming Group Inc.
Total debt $7.00M Interest coverage -3.59x This is the baseline the peer rows are being compared against.
Total debt $349.50M Interest coverage 0.91x This peer still has a real interest-payment cushion, while BRAG does not.
Total debt $821.56M Interest coverage -95.08x Neither company has much profit cushion over interest right now.
Total debt $66.14M Interest coverage 1.46x This peer still has a real interest-payment cushion, while BRAG does not.
What you should know
The case for and against BRAG
2 Rewards
2 Risks
Rewards
-
Revenue grew 4.0% last year.
-
Free cash flow was positive in 2/10 years.
Risks
-
Return on equity was -12.2% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from -0.2% to -8.5% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-9.16x
P/B
0.28x
P/S
0.22x
EV/EBITDA
-8.87x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
54.7%
Operating margin
-8.5%
Net margin
-7.5%
ROE
-12.2%
ROA
-2.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.11x
Current ratio
0.89x
Quick ratio
0.74x
Total debt
$7.00M
Total cash
$3.70M
Growth
How the business has been compounding
Revenue TTM
$115.12M
Revenue 5Y CAGR
7.8%
EPS TTM
-0.35
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$20.04M
Free CF TTM
$3.44M
FCF margin
3.0%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
—
Last ex-div date
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