$8.14
arrow_drop_down1.57%Is GENI a Buy or Sell based on AI Analysis?
Fundamental Analysis
Genius Sports Limited shows promising fundamentals based on key indicators. Firstly, the company has a market capitalization of $1.49B, indicating its size and value in the market. Moreover, with a revenue growth of 21.1% and a return on equity of -16.89%, it suggests that the company is focused on growth while also maintaining a solid financial position. Additionally, having an average price-to-sales ratio of 3.34 and a price-to-book ratio of 2.69 shows that the stock is fairly valued in comparison to its financial performance. Furthermore, the company's gross margin of 16.46% and operating margin of -20.3% highlight its efficiency in generating profits and managing costs. In terms of financial health, Genius Sports Limited has a current ratio of 1.54, indicating that the company has enough current assets to cover its short-term liabilities. Additionally, the company's operating cash flow of $36.4M reflects its ability to generate cash from its core business operations. Furthermore, with a net debt to assets ratio of -0.3, the company appears to have a strong balance sheet with minimal debt, providing a stable foundation for future growth. Overall, these fundamental indicators suggest that Genius Sports Limited is in a strong position to sustain growth and create value for its shareholders in the long term.
Positive Development
Genius Sports has shown strong revenue growth, with a 9.9% increase from the previous year's Q2. This is a positive sign for the company's financial health and growth potential. The company has been recognized as a high-quality "pick and shovel" play on elite sports, which suggests that Genius Sports has a strong position in the market and can benefit from the growing sports betting industry. The company's announcement of its participation in eight upcoming investor conferences is a positive sign for investor engagement and investor sentiment.
Negative Development
The company's gross margin is negative, which suggests that the company's profitability could be a concern. The company's EPS is also negative, which could be a sign of potential financial challenges. The company's long-term debt-to-equity ratio is 0.1226, which indicates that the company is highly leveraged and could be vulnerable to financial distress.
Technical Analysis
Genius Sports Limited's technical analysis reveals a mixed outlook for the company's stock performance. The stock currently has a neutral technical rating, indicating that there is no strong trend in either direction. However, the company has experienced a 9.95% price increase over the past seven days, suggesting some bullish momentum in the short term. Additionally, the stock has a beta of 1.96, indicating that it is more volatile than the overall market. On the downside, Genius Sports Limited's stock has a technical hold indicator count of six, with indicators including RSI, MACD, CCI, ADX, WILLR, and ROC. This suggests that there may be some headwinds in the near term that could limit further upside potential. Furthermore, the stock has a trailing PE ratio of -13.76, indicating that the company has negative earnings. Overall, while the company has shown some recent price growth, investors may want to exercise caution and closely monitor technical indicators for any potential shifts in the stock's performance.
Conclusion and recommendation
Based on the data provided, Genius Sports Limited (GENI) appears to be a stock with a neutral technical rating and a score of 74. The company's current stock price is $7.26, with a market cap of $1.49B. Genius Sports has shown positive price change percentages over the past week, month, and year-to-date, indicating a potential for growth in the future. Additionally, the company has a strong market growth score of 84, suggesting that it may be poised for further expansion in the sports industry. In conclusion, Genius Sports Limited seems to be a promising investment opportunity for those looking to capitalize on the growing sports industry. With a solid market score and positive price change percentages, the company shows potential for continued growth in the coming months. However, investors should also consider factors such as the company's financial health, operational efficiency, and market competition before making any investment decisions. Overall, Genius Sports Limited presents itself as a company worth further exploration for potential investors seeking opportunities in the sports sector.