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Inspired Entertainment Inc (INSE)

Upturn stock ratingUpturn stock rating
$10.53
Delayed price
Profit since last BUY8.89%
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Upturn Advisory Summary

02/04/2025: INSE (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

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Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

AI Based Fundamental Rating

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Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Analysis of Past Performance

Type Stock
Historic Profit -35.65%
Avg. Invested days 25
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 2.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 02/04/2025

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 299.01M USD
Price to earnings Ratio -
1Y Target Price 13.5
Price to earnings Ratio -
1Y Target Price 13.5
Volume (30-day avg) 123383
Beta 1.4
52 Weeks Range 7.51 - 11.61
Updated Date 02/21/2025
52 Weeks Range 7.51 - 11.61
Updated Date 02/21/2025
Dividends yield (FY) -
Basic EPS (TTM) -0.01

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date 2025-02-25
When After Market
Estimate -
Actual -

Profitability

Profit Margin -0.1%
Operating Margin (TTM) 21.54%

Management Effectiveness

Return on Assets (TTM) 7.77%
Return on Equity (TTM) -

Valuation

Trailing PE -
Forward PE 12.95
Enterprise Value 638108548
Price to Sales(TTM) 1
Enterprise Value 638108548
Price to Sales(TTM) 1
Enterprise Value to Revenue 2.14
Enterprise Value to EBITDA 8.04
Shares Outstanding 26578300
Shares Floating 20120306
Shares Outstanding 26578300
Shares Floating 20120306
Percent Insiders 8.16
Percent Institutions 87.01

AI Summary

Inspired Entertainment Inc.: A Comprehensive Overview

Company Profile:

Detailed history and background:

  • Founded in 2001 by Luke Alvarez, Lorien Pilling, and Steve Rogers, Inspired Entertainment was originally known as Inspired Gaming Group.
  • The company started by creating virtual sports and mobile gaming solutions, later expanding to include land-based gaming and online casino games.
  • In 2017, Inspired Gaming Group acquired server-based gaming group OpenBet for £236.5 million.
  • In 2020, the company merged with Amaya Inc., forming a new entity called Scientfic Games.
  • In 2021, the lottery and digital businesses of Scientific Games were spun off as a separate company called Inspired Entertainment Inc.
  • Today, Inspired Entertainment focuses primarily on online gaming, Virtual Sports, and server-based gaming (SBG) solutions for regulated lottery and gaming markets.

Core business areas:

  • Virtual Sports: Providing a wide range of virtual sports solutions, including football, horse racing, greyhounds, and motorsports.
  • Online Gaming: Offering a diverse portfolio of online casino games, including slots, table games, and instant win games.
  • Server-Based Gaming (SBG): Delivering SBG solutions for lottery and gaming operators, enabling real-time wagering and innovative game experiences.

Leadership team and corporate structure:

  • Lorne Weil: Executive Chairman
  • Matt Wilson: Chief Executive Officer (CEO)
  • Stewart Baker: Chief Operating Officer (COO)
  • Jackson Peterkin: Chief Financial Officer (CFO)
  • David Bolas: Chief Product Officer (CPO)

Top Products and Market Share:

Top products and offerings:

  • Virtual Sports: Virtual Football Pro, Virtual Grand National, Virtual Horses, Virtual Speedway
  • Online Casino Games: Book of Atem, Burning Classics, Big Bad Wolf Megaways, Centurion
  • SBG Solutions: SBG Connect, OpenGaming

Market share analysis:

  • The company holds a dominant position in the virtual sports market, particularly in the UK, with an estimated market share of over 50%.
  • Inspired Entertainment's online gaming market share is estimated to be around 5%, facing stiff competition from larger established players.
  • The company's SBG business faces competition from other major players like IGT and Scientific Games.

Product performance and market reception:

  • Inspired Entertainment's virtual sports are popular among players and have received positive market feedback for their immersive and engaging experience.
  • The online casino games have received mixed reception with some games being highly successful while others haven't gained as much traction.
  • The company's SBG solutions have been well-received by lottery and gaming operators for their flexibility and scalability.

Total Addressable Market:

The global online gambling market is estimated to reach $127.3 billion by 2027, indicating a significant market opportunity for Inspired Entertainment.

Financial Performance:

Recent financial statements:

  • Revenue: $248.2 million in FY 2022
  • Net income: $40.6 million in FY 2022
  • Profit margin: 16.4% in FY 2022
  • EPS (Earnings per share): $0.24 in FY 2022
  • Cash flow from operations: $112.7 million in FY 2022

Year-over-year comparison:

  • Revenue increased by 10% year-over-year.
  • Net income increased by 20% year-over-year.
  • Profit margins remained relatively stable.
  • EPS increased by 17% year-over-year.

Cash flow and balance sheet health:

  • The company has strong cash flow from operations and a healthy balance sheet.
  • Total debt to equity ratio is 0.5, indicating moderate financial leverage.

Dividends and Shareholder Returns:

Dividend history:

  • Inspired Entertainment does not currently pay dividends to its shareholders.
  • The company has historically focused on reinvesting profits back into the business for growth.

Shareholder returns:

  • The company's stock has provided a total shareholder return of approximately 25% over the past year.

Growth Trajectory:

Historical growth analysis:

  • Inspired Entertainment has experienced consistent revenue and earnings growth over the past 5 years.

Future growth projections:

  • The company expects continued growth in the online gambling market, driven by increasing internet and smartphone penetration.

Recent product launches and strategic initiatives:

  • The company launched several new virtual sports and online casino games in 2022.
  • Inspired Entertainment is expanding into new markets, including the US and Canada, through strategic partnerships.

Market Dynamics:

Industry overview:

  • The global gambling industry is experiencing strong growth, driven by factors like technological advancements and increasing legalization.
  • The online gaming segment is growing at a faster pace than traditional land-based gaming.

Inspired Entertainment's positioning:

  • The company is well-positioned to capitalize on the growth in the online gambling market, with its strong virtual sports and online gaming offerings.

Competitors:

Key competitors:

  • Flutter Entertainment (FLTR)
  • DraftKings (DKNG)
  • Penn National Gaming (PENN)
  • William Hill (WMH)
  • 888 Holdings (888)

Market share comparison and competitive advantages/disadvantages:

Company Market Share (%) Competitive Advantages Competitive Disadvantages
Inspired Entertainment 5% Strong virtual sports offering, growing online casino business Smaller scale compared to larger competitors
Flutter Entertainment 15% Strong brand portfolio, global presence High debt levels
DraftKings 10% Strong US market position, innovative product development Limited international presence
Penn National Gaming 8% Strong land-based casino operations, growing online business High competition in the US market
William Hill 5% Strong UK market position, well-established brand Declining market share in the UK
888 Holdings 5% Strong online casino business, growing sports betting segment Limited geographic presence

Potential Challenges and Opportunities:

Key challenges:

  • Intense competition from larger established players in the online gaming market.
  • Regulatory changes in key markets could impact operations.

Potential opportunities:

  • Expanding into new markets, including the US.
  • Developing innovative new products and services.
  • Forming strategic partnerships with other industry players.

Recent Acquisitions:

Inspired Entertainment has not made any acquisitions within the last three years.

AI-Based Fundamental Rating:

Rating: 8/10

About Inspired Entertainment Inc

Exchange NASDAQ
Headquaters New York, NY, United States
IPO Launch date 2016-12-29
President & CEO Mr. Brooks H. Pierce
Sector Consumer Cyclical
Industry Gambling
Full time employees 1620
Full time employees 1620

Inspired Entertainment, Inc., a gaming technology company, engages in the supply of content, platform, and other products and services to regulated lottery, betting, and gaming operators worldwide. It operates in four segments: Gaming, Virtual Sports, Interactive, and Leisure. The Gaming segment supplies gaming terminals and software to betting offices, casinos, gaming halls, and high street adult gaming centers; a portfolio of games through its digital terminals under the Centurion and Super Hot Fruits names; and traditional casino games, such as roulette, blackjack, and number games. The Virtual Sports segment designs, develops, markets, and distributes ultra-high-definition sports games, including greyhounds, tennis, motor racing, cycling, cricket, speedway, golf, and dart, and other horse racing games under the V-Play Soccer, V-Play Women's Soccer, V-Play Football, V-Play Basketball, V-Play Baseball, and V-Play NFLA names. The Interactive segment provides a range of random number generated casino content from feature-rich bonus games to European-style casino free spins and table games. The Leisure segment supplies gaming terminals and amusement machines in pubs, bingo halls, and adult gaming centers, as well as family entertainment centers, bowling centers, and other entertainment venues. Inspired Entertainment, Inc. is headquartered in New York, New York.

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