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1. Company Snapshot

1.a. Company Description

Entain PLC operates as a sports-betting and gaming company.The company provides online betting, casino, poker, and bingo services through mobile and web under the bwin; online and multi-channel betting under the Ladbrokes; street and online betting under the Coral; sports betting, casino, game, and poker under the Sportingbet; online bingo, sportsbook, casino, and poker access under the Betboo; and sports betting, poker, and casino games under the Crystalbet brands, as well as Gamebookers, a full-service sportsbook.It also offers software and technology for race book and sportsbook under the Stadium; online sports betting, casino, and gaming under the Eurobet; sports action and horse racing under the Neds; online bingo under the Gala Bingo; casino and live casino under the Gala Casino; virtual sports under the AGT brands, as well as partypoker, which provides online poker; PartyCasino that provides online casino; and Gala Spins, a gaming application.


In addition, the company provides Foxy Bingo that provides online bingo; Foxy Games, which offers slot games, jackpots, and various table games; casino and live casino games under the Casino Las Vegas brand; playtech casino under the Casino King brand; Ladbrokes.be, a shop and newsagent outlet; Ladbrokes.com.au, an online betting site; online betting and gaming under the Optibet; online casino and betting under the NinjaCasino brand; gender-neutral mobile-first casino and bingo under the Laimz brand; online sports, casino, and poker under the BetMGM brand; online sports and gaming under the Borgata brand; and Danske Spil that provides online gaming.Further, it operates an online casino website for German-speaking markets under the CasinoClub brand; Gioco Digitale, a gaming site; and Cheeky Bingo, a bingo platform.Additionally, the company offers PMU that offers online poker; betting in the shop estates; and telephone betting services.


Entain PLC was founded in 2004 and is headquartered in London, the United Kingdom.

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1.b. Last Insights on ENT

Entain Plc's recent performance has been driven by several positive factors. The company's half-yearly results have led analysts to revise their forecasts, indicating a promising outlook. Additionally, Entain has increased its dividend to £0.098, demonstrating its commitment to rewarding shareholders. The sports-betting and gambling group has also lifted its guidance after a rise in net gaming revenue, expecting online net gaming revenue growth of around 7% on a constant currency basis. Furthermore, the online gambling market is poised for substantial growth, with a predicted CAGR of 12.4% from 2024-2029.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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FTSE 100 Live: Blue-chip index flat; banks and builders on the march

Nov -27

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Gambling tax rise puts a chill on Flutter and Entain

Nov -27

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FTSE 100 Live: London index dragged down by ex-divs and tobacco stocks

Nov -27

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FTSE 100 Live: London index dragged down by ex-divs, bookies Budget warnings

Nov -27

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3 UK Stocks Trading Up To 31.5% Below Intrinsic Value Estimates

Oct -08

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Casino Market to Reach US$ 561.9 Billion by 2033 | Astute Analytica

Oct -06

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SEON Closes $80 Million Series C Led by Sixth Street Growth to Scale Command Center for Fraud Prevention and AML Compliance as Digital Fraud Set to Exceed Billions Annually

Sep -16

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UK Stocks Estimated To Be 11.1% To 26.1% Below Intrinsic Value

Sep -05

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.80%)

6. Segments

Photovoltaics Inverters

Expected Growth: 3.5%

Entain Plc's Photovoltaics Inverters segment growth of 3.5% is driven by increasing adoption of renewable energy sources, government incentives for solar power, and declining costs of photovoltaic systems. Additionally, growing demand for energy storage and grid parity in key markets contribute to the segment's growth.

Industrial Service

Expected Growth: 3.8%

Entain Plc's Industrial Service segment growth of 3.8% is driven by increasing demand for online gaming, strategic partnerships, and expansion into new markets. Additionally, investments in digital transformation, improved customer experiences, and a strong brand portfolio have contributed to the segment's growth.

Industrial Automation

Expected Growth: 4.2%

Entain Plc's Industrial Automation segment growth of 4.2% is driven by increasing demand for efficient manufacturing processes, adoption of Industry 4.0 technologies, and rising need for predictive maintenance. Additionally, growing investments in robotics, artificial intelligence, and IoT solutions are contributing to the segment's growth.

Power

Expected Growth: 4.5%

Entain Plc's 4.5% growth is driven by its diversified online betting and gaming portfolio, strong brand presence, and strategic expansion into new markets. Additionally, the company's focus on technology innovation, customer engagement, and responsible gambling practices have contributed to its growth momentum.

Other

Expected Growth: 3.2%

Entain Plc's 3.2% growth in 'Other' segment is driven by increasing demand for non-gaming products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, customer engagement, and retention has contributed to the growth. Furthermore, the rise of online platforms and digitalization have also played a significant role in driving growth in this segment.

7. Detailed Products

Sports Betting

Entain Plc offers sports betting services, allowing customers to place bets on various sports events and tournaments.

Online Casino

Entain Plc provides an online casino platform, offering a range of games such as slots, roulette, and blackjack.

Poker

Entain Plc offers online poker services, allowing customers to play poker games against other players.

Bingo

Entain Plc provides online bingo services, offering a range of bingo games and rooms.

Gaming Technology

Entain Plc offers gaming technology solutions, providing software and services to other gaming companies.

8. Entain Plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Entain Plc operates in the online gaming industry, where substitutes are readily available. However, the company's strong brand recognition and loyalty programs help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Entain Plc's customers have a high bargaining power due to the ease of switching to competitors. The company's pricing strategy and loyalty programs are crucial in retaining customers.

Bargaining Power Of Suppliers

Entain Plc has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company's scale of operations also gives it negotiating power over suppliers.

Threat Of New Entrants

The online gaming industry has moderate barriers to entry, and new entrants can easily enter the market. However, Entain Plc's established brand and regulatory compliance expertise provide a competitive advantage.

Intensity Of Rivalry

The online gaming industry is highly competitive, with many established players. Entain Plc competes with other major players, and the company's marketing and product strategies are crucial in differentiating itself.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 60.15%
Debt Cost 6.37%
Equity Weight 39.85%
Equity Cost 10.14%
WACC 7.87%
Leverage 150.96%

11. Quality Control: Entain Plc passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
SBM

A-Score: 5.7/10

Value: 4.7

Growth: 6.7

Quality: 6.2

Yield: 1.2

Momentum: 7.0

Volatility: 8.3

1-Year Total Return ->

Stock-Card
La Française des Jeux

A-Score: 5.6/10

Value: 4.4

Growth: 7.1

Quality: 6.2

Yield: 7.5

Momentum: 2.0

Volatility: 6.7

1-Year Total Return ->

Stock-Card
IGT

A-Score: 5.0/10

Value: 5.7

Growth: 2.2

Quality: 4.6

Yield: 8.1

Momentum: 2.5

Volatility: 6.7

1-Year Total Return ->

Stock-Card
Entain

A-Score: 4.2/10

Value: 5.5

Growth: 4.1

Quality: 2.2

Yield: 3.1

Momentum: 7.5

Volatility: 3.0

1-Year Total Return ->

Stock-Card
Forvia

A-Score: 4.1/10

Value: 9.6

Growth: 3.2

Quality: 1.5

Yield: 1.2

Momentum: 8.0

Volatility: 1.3

1-Year Total Return ->

Stock-Card
On

A-Score: 3.5/10

Value: 0.7

Growth: 9.9

Quality: 6.3

Yield: 0.0

Momentum: 2.5

Volatility: 1.7

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7.59$

Current Price

7.59$

Potential

-0.00%

Expected Cash-Flows