GAN (GAN) is a SaaS company that provides technology platforms for online casino gaming (i-gaming) and online sports betting. It operates worldwide but with the main focus being the United States, Europe, and Latin America. The company went public in May 2020 at around $14.4 per share and doubled to $30 per share in February last year. However, it has dropped 70% since then due to the sell-off in growth stocks and is currently trading at $8.5 per share. The price is now very compelling for a SaaS company operating in an expanding industry.
The company’s main product is GameSTACK, an internet gaming ecosystem platform designed to help customers rapidly launch and scale their iGaming and online sportsbook operations. The platform provides the foundational technology and back-office tools such as intuitive player account activation, payment services, geolocation, marketing, loyalty management, and real-time analytics and reporting. It also manages players’ accounts which stores and processes customer and player activity data. The company has a diverse customer base with well-known names such as Fanduel and Wynn.
The market opportunity for Gan is huge as more and more states are starting to allow i-gaming and sports betting. The TAM (total addressable market) for i-gaming is forecasted to grow from $11 billion in 2021 to $18.7 billion in 2026 while sports betting is forecasted to grow from $6 billion in 2021 to $15.8 billion in 2026. The market expansion is already stating to provide tailwinds for Gan where its revenue is forecasted to increase 32% from 2021 to 2022 and 28% from 2022 to 2023. The company is not profitable yet but it is expected to start generating income no later than 2023. Using its 2021 revenue, the company is now trading at a price to sales ratio of 2.7 which is extremely cheap. It also has a gross margin of 67% and $50 million cash in hand with only $1 million outstanding debt. Gan stock is a buy at the current price point as it offers a very favorable risk and reward trade-off for investors.
Check out another article 3 beaten-down tech stocks to buy for 2022
Get notified when new articles are being posted!!