eToro Group Ltd.
eToro Group Ltd. Fundamental Analysis
eToro Group Ltd. (ETOR) shows moderate financial fundamentals with a PE ratio of 12.57, profit margin of 2.12%, and ROE of 17.30%. The company generates $9.8B in annual revenue with weak year-over-year growth of -78.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -25.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ETOR's fundamental strength across five key dimensions:
Efficiency Score
ExcellentETOR demonstrates superior asset utilization.
Valuation Score
ExcellentETOR trades at attractive valuation levels.
Growth Score
ModerateETOR shows steady but slowing expansion.
Financial Health Score
ExcellentETOR maintains a strong and stable balance sheet.
Profitability Score
ModerateETOR maintains healthy but balanced margins.
Key Financial Metrics
Is ETOR Expensive or Cheap?
P/E Ratio
ETOR trades at 12.57 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ETOR's PEG of 0.28 indicates potential undervaluation.
Price to Book
The market values eToro Group Ltd. at 1.94 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.89 times EBITDA. This signals the market has high growth expectations.
How Well Does ETOR Make Money?
Net Profit Margin
For every $100 in sales, eToro Group Ltd. keeps $2.12 as profit after all expenses.
Operating Margin
Core operations generate 2.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.30 in profit for every $100 of shareholder equity.
ROA
eToro Group Ltd. generates $12.04 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
eToro Group Ltd. generates limited operating cash flow of $249.25M, signaling weaker underlying cash strength.
Free Cash Flow
eToro Group Ltd. generates weak or negative free cash flow of $245.14M, restricting financial flexibility.
FCF Per Share
Each share generates $2.93 in free cash annually.
FCF Yield
ETOR converts 9.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.94
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
217.88
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How ETOR Stacks Against Its Sector Peers
| Metric | ETOR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.57 | 18.86 | Better (Cheaper) |
| ROE | 17.30% | 847.00% | Weak |
| Net Margin | 2.12% | 4202.00% | Weak |
| Debt/Equity | 0.07 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 217.88 | 667.17 | Strong Liquidity |
| ROA | 12.04% | -21543.00% (disorted) | Strong |
ETOR outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews eToro Group Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
538.67%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
874.05%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
1962.72%
Industry Style: Value, Dividend, Cyclical
High Growth