Sportradar Group AG Class A Ordinary Shares (SRAD)

FairStock Score: 58/100 — STEADY

Key Financials

Strengths

• Generates $302 million in annual free cash flow (8.0% yield on market cap)
• Solid return on equity of 10.5% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.06, providing financial flexibility
• Revenue growth of 20.1% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($5) with negative 146% margin of safety—limited downside protection
• Altman Z-Score of 1.6 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Sportradar Group AG Class A Ordinary Shares is a small-cap technology company valued at $3.8 billion. The business generates $1.3 billion in annual revenue with a 0.3% net margin and $302 million in free cash flow. From a quality standpoint, Sportradar shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 1.6 warrants caution. On valuation, the stock is trading at a premium 35.8x earnings, with trades far above its Graham Number ($5) with no margin of safety. Growth dynamics show revenue growing at 20.1% and profit growth of 504.1%. Our composite FairStock Score of 58/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Sportradar's 20% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. With $302 million in annual free cash flow (8.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 36x 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