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GAN LTD (GAN) Stock Fundamental Analysis

NASDAQ:GAN - Nasdaq - BMG3728V1090 - Common Stock - Currency: USD

1.75  0 (0%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to GAN. GAN was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and financial health of GAN have multiple concerns. GAN is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

GAN had negative earnings in the past year.
GAN had a positive operating cash flow in the past year.
GAN had negative earnings in 4 of the past 5 years.
In the past 5 years GAN reported 4 times negative operating cash flow.
GAN Yearly Net Income VS EBIT VS OCF VS FCFGAN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -50M -100M -150M

1.2 Ratios

The Return On Assets of GAN (-15.96%) is worse than 93.89% of its industry peers.
Industry RankSector Rank
ROA -15.96%
ROE N/A
ROIC N/A
ROA(3y)-80.88%
ROA(5y)-49.34%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
GAN Yearly ROA, ROE, ROICGAN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500 -500

1.3 Margins

GAN's Gross Margin of 70.68% is amongst the best of the industry. GAN outperforms 86.26% of its industry peers.
In the last couple of years the Gross Margin of GAN has grown nicely.
GAN does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 70.68%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.03%
GM growth 5Y36.12%
GAN Yearly Profit, Operating, Gross MarginsGAN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100

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2

2. Health

2.1 Basic Checks

GAN does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, GAN has more shares outstanding
The number of shares outstanding for GAN has been increased compared to 5 years ago.
GAN has a worse debt/assets ratio than last year.
GAN Yearly Shares OutstandingGAN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M
GAN Yearly Total Debt VS Total AssetsGAN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M

2.2 Solvency

Based on the Altman-Z score of -3.18, we must say that GAN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -3.18, GAN is doing worse than 95.42% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z -3.18
ROIC/WACCN/A
WACC8.51%
GAN Yearly LT Debt VS Equity VS FCFGAN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M 100M 150M 200M

2.3 Liquidity

A Current Ratio of 1.74 indicates that GAN should not have too much problems paying its short term obligations.
GAN has a Current ratio of 1.74. This is in the better half of the industry: GAN outperforms 79.39% of its industry peers.
GAN has a Quick Ratio of 1.74. This is a normal value and indicates that GAN is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.74, GAN belongs to the best of the industry, outperforming 82.44% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.74
Quick Ratio 1.74
GAN Yearly Current Assets VS Current LiabilitesGAN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M

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5

3. Growth

3.1 Past

GAN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 93.05%, which is quite impressive.
Looking at the last year, GAN shows a decrease in Revenue. The Revenue has decreased by -1.21% in the last year.
The Revenue has been growing by 56.02% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)93.05%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%122.22%
Revenue 1Y (TTM)-1.21%
Revenue growth 3Y54.34%
Revenue growth 5Y56.02%
Sales Q2Q%24.42%

3.2 Future

The Earnings Per Share is expected to grow by 24.53% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 8.20% on average over the next years. This is quite good.
EPS Next Y89.25%
EPS Next 2Y39.62%
EPS Next 3Y24.53%
EPS Next 5YN/A
Revenue Next Year7.13%
Revenue Next 2Y8.89%
Revenue Next 3Y8.2%
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
GAN Yearly Revenue VS EstimatesGAN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M
GAN Yearly EPS VS EstimatesGAN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 -1 -2 -3 -4

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1

4. Valuation

4.1 Price/Earnings Ratio

GAN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year GAN is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
GAN Price Earnings VS Forward Price EarningsGAN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40 -40

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GAN indicates a rather expensive valuation: GAN more expensive than 86.26% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 158.33
GAN Per share dataGAN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2

4.3 Compensation for Growth

GAN's earnings are expected to grow with 24.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y39.62%
EPS Next 3Y24.53%

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0

5. Dividend

5.1 Amount

GAN does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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GAN LTD

NASDAQ:GAN (2/21/2025, 8:22:58 PM)

1.75

0 (0%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)11-08 2024-11-08/amc
Earnings (Next)03-19 2025-03-19/amc
Inst Owners31.54%
Inst Owner Change-83.42%
Ins Owners7.71%
Ins Owner Change1.02%
Market Cap79.75M
Analysts46.67
Price Target2.01 (14.86%)
Short Float %0.12%
Short Ratio0.2
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)106.89%
Min EPS beat(2)36.12%
Max EPS beat(2)177.66%
EPS beat(4)2
Avg EPS beat(4)36.85%
Min EPS beat(4)-39.08%
Max EPS beat(4)177.66%
EPS beat(8)4
Avg EPS beat(8)-315.6%
EPS beat(12)6
Avg EPS beat(12)-269.01%
EPS beat(16)6
Avg EPS beat(16)-302.52%
Revenue beat(2)2
Avg Revenue beat(2)3.62%
Min Revenue beat(2)1.32%
Max Revenue beat(2)5.93%
Revenue beat(4)2
Avg Revenue beat(4)-7.11%
Min Revenue beat(4)-24.04%
Max Revenue beat(4)5.93%
Revenue beat(8)3
Avg Revenue beat(8)-5.62%
Revenue beat(12)4
Avg Revenue beat(12)-5.38%
Revenue beat(16)6
Avg Revenue beat(16)-5.21%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)105.06%
EPS NQ rev (3m)105.06%
EPS NY rev (1m)68.2%
EPS NY rev (3m)68.2%
Revenue NQ rev (1m)17.8%
Revenue NQ rev (3m)17.8%
Revenue NY rev (1m)6.36%
Revenue NY rev (3m)6.36%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.6
P/FCF N/A
P/OCF 374.4
P/B N/A
P/tB N/A
EV/EBITDA 158.33
EPS(TTM)-0.28
EYN/A
EPS(NY)-0.04
Fwd EYN/A
FCF(TTM)-0.09
FCFYN/A
OCF(TTM)0
OCFY0.27%
SpS2.94
BVpS-0.13
TBVpS-0.53
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -15.96%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 70.68%
FCFM N/A
ROA(3y)-80.88%
ROA(5y)-49.34%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.03%
GM growth 5Y36.12%
F-Score5
Asset Turnover1.62
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA 81.34
Cap/Depr 42.46%
Cap/Sales 3.2%
Interest Coverage N/A
Cash Conversion 37.9%
Profit Quality N/A
Current Ratio 1.74
Quick Ratio 1.74
Altman-Z -3.18
F-Score5
WACC8.51%
ROIC/WACCN/A
Cap/Depr(3y)59.66%
Cap/Depr(5y)86.35%
Cap/Sales(3y)8.59%
Cap/Sales(5y)10.49%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)93.05%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%122.22%
EPS Next Y89.25%
EPS Next 2Y39.62%
EPS Next 3Y24.53%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.21%
Revenue growth 3Y54.34%
Revenue growth 5Y56.02%
Sales Q2Q%24.42%
Revenue Next Year7.13%
Revenue Next 2Y8.89%
Revenue Next 3Y8.2%
Revenue Next 5YN/A
EBIT growth 1Y68.22%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year146.98%
EBIT Next 3Y37.94%
EBIT Next 5YN/A
FCF growth 1Y84.11%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y102.15%
OCF growth 3YN/A
OCF growth 5YN/A