Codere Online Luxembourg, S.A. (CDRO)
Valuation Overview•Is Codere Online Luxembourg, S.A. Overvalued or Undervalued?
The market is pricing the stock in line with historical averages, assuming steady-state growth.
Moderate quality score of 55/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. However, capital return yields remain modest, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
CDRO demonstrates adequate business quality with stable profitability. This is backed by a fortress balance sheet, holding significant net cash ($46M) and minimal debt risk.
The company is driving exceptional top-line expansion (22.0% 3Y CAGR) paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (2.2%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $49.3M | +4.8% | +22.0% | +24.4% | — | |
| EBITDA | $1.4M | — | — | — | — | |
| Net Income | $2.1M | -66.9% | — | — | — | |
| EPS (Diluted) | $0.04 | -62.5% | — | — | — | |
| Free Cash Flow | $2.1M | +345.4% | — | +34.0% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 90.6% | 96.1% | 95.1% | 87.9% |
| Operating Margin | 2.2% | -1.4% | -28.2% | -26.7% |
| Net Margin | 1.9% | 0.4% | -24.8% | -24.7% |
| FCF Margin | 1.8% | 0.8% | -8.2% | -5.4% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.05 | $0.15 | +225.0% | ||
| Q1'26 | $0.08 | $0.04 | -53.8% | ||
| Q4'25 | $0.06 | $0.04 | -45.5% | ||
| Q2'25 | $0.02 | $-0.02 | -208.2% | ||
| Q2'25 | $0.02 | $0.05 | +130.8% | ||
| Q2'25 | — | $-0.03 | — | ||
| Q1'25 | $0.02 | $0.16 | +900.0% | ||
| Q4'24 | $0.01 | $-0.07 | -768.0% |
Total return is +30.9% (1Y), outperforming the benchmark by +5.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +26.7% | +17.4% | — |
| 1Y | +30.9% | +5.9% | — |
| 3YCAGR | +46.0% | +25.4% | — |
| 5YCAGR | +0.6% | -12.4% | — |
| 10YCAGR | -0.0% | -13.9% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Codere Online Luxembourg, S.A. (CDRO) valuation, health, and returns.
Based on peer relative multiples, Codere Online Luxembourg, S.A. appears Fair versus peers compared to industry peers.
Codere Online Luxembourg, S.A. has multiple valuation anchors: Peer Relative Fair Value: $9.63 | Wall Street Analyst Target: $10.00 (implying -2.0% upside). A convergence of these signals offers higher conviction.
Codere Online Luxembourg, S.A. displays fair financial health with a composite quality score of 55/100, supported by a Altman Z-Score of 5.8 (safe zone), Piotroski F-Score of 5/9.
Codere Online Luxembourg, S.A. returns capital via buybacks instead of dividends, carrying a 0.6% buyback yield and reducing outstanding shares by -0.4% in the last 12 months.
Codere Online Luxembourg, S.A.'s current growth trajectory is Decelerating. The company achieved +4.8% 1Y revenue growth and -62.5% 1Y EPS growth, compared to its 3Y revenue CAGR of +22.0%.
Wall Street consensus is Hold based on 1 analysts, beating EPS expectations in 58% of recent quarters with a 1-quarter streak. The consensus price target represents a -2.0% change from current levels.
Investment risks for Codere Online Luxembourg, S.A. include: -37.6% 1-year max drawdown. Volatility risk is characterized by a beta of 0.41x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.