RSI Stock Fair Value – RUSH STREET INTERACTIVE Reports Second Quarter Earnings for FY2023
August 9, 2023
🌥️Earnings Overview
RUSH STREET INTERACTIVE ($NYSE:RSI) announced their financial results for the second quarter of the FY2023, which concluded on June 30, 2023. They managed to garner a total revenue of USD 165.1 million, exhibiting a year-on-year growth of 14.8%. The reported net income was USD -5.1 million, displaying a significant improvement from the prior year’s figure of -8.3 million.
Price History
The stock opened at $4.0 and closed at $4.4, soaring by 19.9% from the previous closing price of $3.7. This uptick in the stock price demonstrates a positive sentiment in the market towards RUSH STREET INTERACTIVE and its financial performance. These figures demonstrate that the company is well-positioned for future success and that investors are optimistic about its long-term prospects. The second quarter earnings report was met with optimism from both investors and analysts. Analysts noted that the company’s financials are strong and that they are well-positioned to capitalize on future growth opportunities.
They believe that the stock price increase is justified, given the company’s performance. RUSH STREET INTERACTIVE’s executives also expressed confidence in the company’s ability to continue to deliver strong results. They affirmed that they are committed to investing in long-term initiatives that will fuel further growth. With the positive momentum that the company has achieved in the second quarter of FY2023, investors can expect even better results in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for RSI. More…
| Total Revenues | Net Income | Net Margin |
| 640.96 | -28 | -4.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for RSI. More…
| Operations | Investing | Financing |
| -36.21 | -38.19 | -1.01 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for RSI. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 295.04 | 128.24 | 0.75 |
Key Ratios Snapshot
Some of the financial key ratios for RSI are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 110.3% | – | -13.3% |
| FCF Margin | ROE | ROA |
| -11.7% | -103.3% | -18.1% |
Analysis – RSI Stock Fair Value
At GoodWhale, we have evaluated the fundamentals of RUSH STREET INTERACTIVE, and we believe that the intrinsic value of the company’s share is around $12.3. This was calculated based on our proprietary Valuation Line. As of today, RUSH STREET INTERACTIVE stock is traded at $4.4, which is more than 64.2% undervalued compared to its intrinsic value. This provides a great opportunity to purchase the stock at a discounted price. More…
Peers
In the online gambling industry, there is intense competition between companies vying for market share. This is especially true for Rush Street Interactive Inc, which is up against well-established competitors such as DraftKings Inc, Caesars Entertainment Inc, and Penn National Gaming Inc. While each company has its own strengths and weaknesses, Rush Street Interactive has been able to carve out a niche for itself and become a major player in the online gambling industry.
– DraftKings Inc ($NASDAQ:DKNG)
DraftKings is a Boston-based daily fantasy sports contests provider. The company allows users to enter daily and weekly fantasy sports-related contests and win prizes. DraftKings also offer suggestions and tools for users to help them create their fantasy teams. The company was founded in 2012 and has since then grown rapidly, with a valuation of over $6 billion as of 2020. Despite its impressive growth, DraftKings has been unprofitable so far, with a negative return on equity of 69.05% as of 2020. The company is still in its early stages and is investing heavily in expansion, which is the likely reason for its negative profitability.
– Caesars Entertainment Inc ($NASDAQ:CZR)
Caesars Entertainment Inc is a gaming and hospitality company. The company’s brands include Caesars, Harrah’s, Horseshoe, and Eldorado. Caesars Entertainment operates casinos, resorts, and golf courses. The company was founded in 1937 and is based in Las Vegas, Nevada.
– Penn National Gaming Inc ($NASDAQ:PENN)
As of 2022, Penn National Gaming Inc has a market cap of 5.19B and a Return on Equity of 16.23%. The company is a leading operator of gaming and racing facilities in the United States. Penn National Gaming’s properties include casinos, racetracks, and off-track betting. The company also offers online gaming and sports betting through its Penn Interactive Ventures subsidiary.
Summary
Investors in RUSH STREET INTERACTIVE have reason to be optimistic following the company’s second quarter earnings results for the fiscal year 2023. Total revenue increased 14.8% year-over-year to 165.1 million USD, while net income improved from -8.3 million USD in the prior year to -5.1 million. Stock prices followed suit and moved up after the announcement, indicating overall market confidence in the company’s financial performance. With the positive financials, investors may be wise to consider RUSH STREET INTERACTIVE as a potential investment.
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