Codere Online Luxembourg S.A. Ordinary Shares (CDRO)

FairStock Score: 29/100 — RISKY

Key Financials

Strengths

• Generates $11 million in annual free cash flow (2.7% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.18, providing financial flexibility

Concerns

• Trades significantly above Graham Number ($0) with negative 1686% margin of safety—limited downside protection
• Weak Piotroski F-Score of 0/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

Codere Online Luxembourg S.A. Ordinary Shares is a micro-cap consumer cyclical company valued at $399 million. Revenue stands at $204 million. From a quality standpoint, Codere shows weak Piotroski F-Score of 0/9 signaling deteriorating fundamentals and Altman Z-Score of 2.3 in the grey zone. On valuation, the stock is commanding a steep 442.5x multiple, with trades far above its Graham Number ($0) with no margin of safety. Our composite FairStock Score of 29/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $11 million in annual free cash flow (2.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 443x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer