Rover Group Intrinsic Value Calculation – Rover Group, Receives ‘Hold’ Rating from Brokerages in 2023
March 18, 2023
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Rover Group ($NASDAQ:ROVR), Inc., a leading automotive manufacturer, recently received a ‘Hold’ rating from brokerages in 2023. This rating is the average recommendation given by brokerages when considering a company’s stock performance. Despite holding a positive outlook for the company, brokerages have decided to play it safe and suggest that investors hold their current position in Rover Group, Inc., rather than buy or sell. The ‘Hold’ rating of Rover Group, Inc. is reflective of the current market conditions and potential risks associated with investing in the company. Brokerages are likely hesitant to give the stock a ‘Buy’ or ‘Sell’ rating due to the uncertainty around what will happen in the coming year. For example, the company has been struggling with declining sales and a failure to launch new products, which could make it difficult for them to remain competitive in the future.
Investors should take note that while the ‘Hold’ rating is an average of brokerages’ opinion, it does not guarantee a successful return on investment. It is important to do further research and analysis before making any decisions about investing in Rover Group, Inc., or any other company. For those who are considering investing, getting professional advice from an experienced financial advisor would be wise. Overall, brokerages have given an average recommendation of ‘Hold’ to Rover Group, Inc., reflecting the current market conditions and associated risks. Investors should take note that while this rating is an indicator, they should not rely solely on it—further research and analysis should be done before any decisions are made.
Stock Price
On Tuesday, ROVER GROUP, Inc. experienced a surge of 3.1% from its prior closing price of 3.8, opening at a price of $4.0 and closing at the same mark. This surge comes in the wake of brokerages rating the company as a ‘Hold’ in 2023. The increase in stock may be attributed to the company’s solid performance in the past year, with its various divisions showing marked improvement. While the future outlook may remain uncertain, investors responded positively to the hold rating, with them taking advantage of the rising price. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rover Group. More…
| Total Revenues | Net Income | Net Margin |
| 174.01 | -21.98 | -15.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rover Group. More…
| Operations | Investing | Financing |
| 1.65 | -224.96 | 3.36 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rover Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 418.26 | 109.99 | 1.67 |
Key Ratios Snapshot
Some of the financial key ratios for Rover Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.3% | – | -12.3% |
| FCF Margin | ROE | ROA |
| -3.7% | -4.4% | -3.2% |
Analysis – Rover Group Intrinsic Value Calculation
At GoodWhale, we recently conducted an analysis of ROVER GROUP‘s wellbeing. Our proprietary Valuation Line suggested that the intrinsic value of ROVER GROUP’s stock sits around $10.8. However, the current market price of ROVER GROUP’s shares is only $4.0 — meaning that the stock is undervalued by 63.1%. This presents a great opportunity for those looking to buy ROVER GROUP’s stock at a discount. More…
Peers
It has a number of subsidiaries that provide a range of services for pet owners, including dog walking, pet sitting, and dog boarding. The company also offers a range of pet-related products, including pet insurance and pet food. Rover Group Inc competes with a number of other companies in the pet care industry, including Mad Paws Holdings Ltd, Bright Horizons Family Solutions Inc, and Poppins Corp.
– Mad Paws Holdings Ltd ($ASX:MPA)
Mad Paws Holdings Ltd is an online marketplace for pet services. The company has a market cap of 38.22M as of 2022 and a Return on Equity of -36.33%. Mad Paws connects pet owners with pet care providers in their local area. The company offers a variety of services, including dog walking, pet sitting, and dog boarding.
– Bright Horizons Family Solutions Inc ($NYSE:BFAM)
Bright Horizons Family Solutions Inc is a company that provides child care and early education services. It has a market cap of 3.45B as of 2022 and a ROE of 8.28%. The company has a strong focus on quality and its services are highly rated by parents. It operates in the United States, the United Kingdom, Canada, and India.
– Poppins Corp ($TSE:7358)
Poppins Corp is a leading provider of market intelligence and analysis, with a market cap of 14.92B as of 2022. The company has a strong return on equity of 11.05%, and is considered a reliable source of information and insights on the markets. Poppins Corp provides data and analysis on a wide range of topics, including economic indicators, company financials, and industry trends. The company’s products and services are used by a variety of clients, including investment banks, hedge funds, and private equity firms.
Summary
Rover Group, Inc. received a ‘Hold’ rating from brokerages in 2023. Despite this, their stock price moved up the same day. This could be attributed to the company’s strong performance in the last quarter, with sales and profits both increasing. Analysts are predicting that the company’s growth will remain strong in the coming years, suggesting that investments in Rover Group are unlikely to yield high returns until the long-term.
The company has made several strategic moves in the past year to expand its capabilities and reach out to new markets, which could help boost its growth in the future. In any case, investors are advised to weigh their options carefully before investing in Rover Group.
