Rush Street Interactive, Inc. Fundamental Analysis (NYSE: RSI)
Rush Street Interactive, Inc. Fundamental Analysis (NYSE: RSI)
Rush Street Interactive, Inc. (NYSE: RSI) shows moderate financial fundamentals with a PE ratio of 83.90, profit margin of 2.33%, and ROE of 20.44%. The company generates $1.3B in annual revenue with strong year-over-year growth of 22.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.3/100 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 RSI's fundamental strength across five key dimensions:
Efficiency Score
WeakRSI struggles to generate sufficient returns from assets.
Valuation Score
WeakRSI trades at a premium to fair value.
Growth Score
ExcellentRSI delivers strong and consistent growth momentum.
Financial Health Score
ExcellentRSI maintains a strong and stable balance sheet.
Profitability Score
ModerateRSI maintains healthy but balanced margins.
Key Financial Metrics
Is RSI Expensive or Cheap?
P/E Ratio
RSI trades at 83.90 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RSI's PEG of 11.75 indicates potential overvaluation.
Price to Book
The market values Rush Street Interactive, Inc. at 15.26 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 34.84 times EBITDA. This signals the market has high growth expectations.
How Well Does RSI Make Money?
Net Profit Margin
For every $100 in sales, Rush Street Interactive, Inc. keeps $2.33 as profit after all expenses.
Operating Margin
Core operations generate 10.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.44 in profit for every $100 of shareholder equity.
ROA
Rush Street Interactive, Inc. generates $4.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Rush Street Interactive, Inc. produces operating cash flow of $167.79M, showing steady but balanced cash generation.
Free Cash Flow
Rush Street Interactive, Inc. generates strong free cash flow of $156.82M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.54 in free cash annually.
FCF Yield
RSI converts 2.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
83.90
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
11.75
vs 25 benchmark
P/B Ratio
Price to book value ratio
15.26
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.12
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.23
vs 25 benchmark
How RSI Stacks Against Its Sector Peers
| Metric | RSI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 83.90 | 27.16 | Worse (Expensive) |
| ROE | 20.44% | 951.00% | Weak |
| Net Margin | 2.33% | -4915.00% (disorted) | Weak |
| Debt/Equity | 0.08 | 0.61 | Strong (Low Leverage) |
| Current Ratio | 2.12 | 2.33 | Strong Liquidity |
| ROA | 4.02% | 314.00% | Weak |
RSI outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Rush Street Interactive, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
85.25%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
1301.28%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
363.82%
Industry Style: Cyclical, Growth, Discretionary
High Growth