GAN Limited
GAN Limited Fundamental Analysis
GAN Limited (GAN) shows moderate financial fundamentals with a PE ratio of -10.14, profit margin of -9.06%, and ROE of 79.97%. The company generates $0.1B in annual revenue with moderate year-over-year growth of 4.31%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze GAN's fundamental strength across five key dimensions:
Efficiency Score
WeakGAN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGAN trades at attractive valuation levels.
Growth Score
ModerateGAN shows steady but slowing expansion.
Financial Health Score
ExcellentGAN maintains a strong and stable balance sheet.
Profitability Score
ModerateGAN maintains healthy but balanced margins.
Key Financial Metrics
Is GAN Expensive or Cheap?
P/E Ratio
GAN trades at -10.14 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GAN's PEG of 0.37 indicates potential undervaluation.
Price to Book
The market values GAN Limited at -5.48 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 216.13 times EBITDA. This signals the market has high growth expectations.
How Well Does GAN Make Money?
Net Profit Margin
For every $100 in sales, GAN Limited keeps $-9.06 as profit after all expenses.
Operating Margin
Core operations generate -5.68 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $79.97 in profit for every $100 of shareholder equity.
ROA
GAN Limited generates $-11.84 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
GAN Limited generates limited operating cash flow of $6.21M, signaling weaker underlying cash strength.
Free Cash Flow
GAN Limited produces free cash flow of $6.20M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.13 in free cash annually.
FCF Yield
GAN converts 6.68% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-10.14
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.37
vs 25 benchmark
P/B Ratio
Price to book value ratio
-5.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-3.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.80
vs 25 benchmark
ROA
Return on assets percentage
-0.12
vs 25 benchmark
ROCE
Return on capital employed
-0.13
vs 25 benchmark
How GAN Stacks Against Its Sector Peers
| Metric | GAN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -10.14 | 24.85 | Better (Cheaper) |
| ROE | 79.97% | 1165.00% | Weak |
| Net Margin | -9.06% | 749.00% | Weak |
| Debt/Equity | -3.13 | 0.76 | Strong (Low Leverage) |
| Current Ratio | 1.57 | 9.23 | Neutral |
| ROA | -11.84% | 1271.00% | Weak |
GAN outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews GAN Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
111.98%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-309.49%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-56.25%
Industry Style: Cyclical, Growth, Discretionary
Declining