OPRA
STOCK INFORMATION
Stock chart
| Open | 6.90 |
| Daily high | 7.11 |
| Daily low | 6.63 |
| Daily Volume | 195K |
| All-time high | 14.62 |
| 1y analyst estimate | 16.23 |
| Beta | 1.10 |
| EPS (TTM) | 0.77 |
| Dividend per share | - |
| Ex-div date | - |
| Next earnings date | 11 Nov 2021 |
Downside potential
| OPRA | S&P500 | |
| Current price drop from All-time high | -54.24% | -2.72% |
| Highest price drop | -67.99% | -56.47% |
| Date of highest drop | 8 Apr 2020 | 9 Mar 2009 |
| Avg drop from high | -36.54% | -11.36% |
| Avg time to new high | 125 days | 12 days |
| Max time to new high | 597 days | 1805 days |
BUSINESS INSIGHT
Segment Revenues ($M)
Search and Advertising revenues are derived mainly from the core platforms: the Opera browsers and Opera News
Tech is basically the "Other" category, which includes everything outside Search and Advertising
Segment Adjusted EBITDA ($M)
Okash, Opera's main fintech arm was spun out and merged with Mobimagic in 20Q3, creating a new entity, Nanobank, of which Opera owns 42%. As a consequence, results are no longer consolidated into the standard results and an equity valuation model is used (Nanobank results are not included in operating results, but are treated as an investment and are visible on the balance sheet)
Nanobank's financial results are visible on a chart below
Opera's European Fintech (now Dify) operations have not had meaningful revenues, but are expected to ramp up soon
MAU distribution as of 2020 Dec (M)
In Africa, the Opera mobile browsers are very popular and a considerable portion of the company's products are developed specifically for African/Emerging markets
The main user base for the PC browsers is in Europe
MAU development of products (M)
20Q4 numbers (except for PC users) are from the company's 20-F report, as management decided not to disclose the numbers in the usual quarterly report
The in-house products of the company include: Browsers (Cornerstone product), Opera News, Opera Ads, Olist, Dify (Pocosys acquisition), Opera Games (YoYo Games + Opera GX browser)
Investee revenues ($M - ex Nanobank)
The company has notable stakes in 5 companies. Opera owns 42% of Nanobank, 13.1% of Opay, 19.4% of StarMaker, 29.1% of nHorizon and 9.9% of Fjord Bank
OPay is the largest mobile payment platform in Nigeria with $2B+ monthly transaction volume as of December 2020
StarMaker is a karaoke app used mainly in India, the Middle East and Indonesia. It has 50M+ users and $180M revenue runrate as of 21Q1
For Nanobank details, refer to the corresponding chart below
nHorizon is a joint venture and operates an Opera browser in China
The smallest notable equity stake is in Fjord Bank with a 9.9% interest, which Opera acquired for €0.77M in 2021 January
Estimated equity value of investees ($M - 2020 Dec 31)
Opera liquidated all of its remaining stake in Powerbets in 2020
nHorizon's estimated value was $1M in 2019 and $0.5M in 2020. Because of the tiny amount it is not on the chart
Nanobank Financials ($M)
Opera owns 42% of Nanobank
Nanobank runs a microlending business, serves over 50M+ users as of the end of 2020 and has issued $2B+ worth of loans in 2019 and 2020
The company has substantial operations in 4 markets: India, Indonesia, Mexico and Kenya
Desktop browser market share (%)
Chrome is developed by Google, Firefox by Mozilla, Safari by Apple, the Opera browsers by Opera and IE was developed by Microsoft but has been discontinued
https://gs.statcounter.com/browser-market-share/desktop/worldwide#yearly-2009-2021
Mobile browser market share (%)
Chrome and the Android browser (as well as the OS) are developed by Google, Safari by Apple, UC Browser by a subsidiary of Alibaba, the Opera browsers by Opera, Samsung Internet by Samsung, Nokia by Nokia and Blackberry by Blackberry (then Research in Motion)
https://gs.statcounter.com/browser-market-share/mobile/worldwide#yearly-2009-2021
DIVIDENDS
VALUATION
Valuation Ratios
| Trailing P/E | 4.38 |
| Price to OCF | 8.25 |
| Price to FCF | 9.00 |
| Price to EBITDA | 14.30 |
| EV to EBITDA | 14.31 |
Valuation (Sales/Book Value)
| Price to Sales | 2.69 |
| Price to Book | 0.69 |
| EV to Sales | 2.69 |
FINANCIALS
Per share
| Current share count | 115.15M |
| EPS (TTM) | 0.77 |
| FCF per share (TTM) | 0.37 |
Income statement
| Revenue (TTM) | 286.09M |
| Gross profit (TTM) | 220.23M |
| Operating income (TTM) | -1.49M |
| Net income (TTM) | 176.05M |
| EPS (TTM) | 0.77 |
| EPS (1y forward) | 0.53 |
Margins
| Gross margin (TTM) | 76.98% |
| Operating margin (TTM) | -0.52% |
| Profit margin (TTM) | 61.54% |
Balance Sheet
| Cash | 89.96M |
| Net receivables | 47.53M |
| Total current assets | 254.39M |
| Goodwill | 433.50M |
| Intangible assets | 107.35M |
| Property, plant and equipment | 0.00 |
| Total assets | 1.21B |
| Accounts payable | 36.59M |
| Short/Current long term debt | 0.00 |
| Total current liabilities | 77.65M |
| Total liabilities | 90.53M |
| Shareholder's equity | 1.12B |
| Net tangible assets | 581.12M |
Cash flow
| Operating cash flow (TTM) | 93.33M |
| Capital expenditures (TTM) | 7.78M |
| Free cash flow (TTM) | 85.55M |
| Dividends paid (TTM) | 0.00 |
Financial returns
| Return on Equity | 16.82% |
| Return on Assets | 15.89% |
| Return on Invested Capital | 16.76% |
| Cash Return on Invested Capital | 8.14% |
