Rivalry Corp (RVLY) AI Stock Analysis

• Market Cap: C$7.61M
• Dividend Yield: N/A
• Average Volume (3M): 3.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: -29.40%
• EPS Growth: 15.55%
• Country: CA
• Employees: 53
• Sector: Consumer Cyclical
• Sector Strength: 55
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): -0.39
• Shares Outstanding: 87,268,940
• 10 Day Avg. Volume: 4,803
• 30 Day Avg. Volume: 3,762
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.54
• Price to Cash Flow (P/CF): -3.10
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Rivalry Corp's stock score is primarily impacted by its weak financial health, characterized by persistent losses and high leverage. While there are positive strategic efforts in terms of product development and crypto market expansion, they are overshadowed by current financial instability and valuation challenges. Technical indicators further suggest cautious optimism without strong upward momentum, and recent corporate initiatives highlight potential future growth areas.

Positive Factors

Revenue Growth

Average net revenue per user has reached a record high, up 51% compared to the 2024 average, and up 70% from the trailing 3-year average.

User Engagement

RVLY's crypto/token users exhibit 2x+ the value of non-crypto users and 30% higher retention rates.

Negative Factors

Financial Performance

RVLY reported lower-than-expected 3Q24 results as the company prioritized significant cost reductions and accelerated its strategic realignment.

Rivalry Corp Business Overview & Revenue Model

Company Description

Rivalry Corp (RVLY) is a leading online sports betting and entertainment company, primarily focused on the esports and traditional sports sectors. The company is known for its innovative platform that offers betting services on a wide range of esports events, including popular games like League of Legends, Dota 2, and CS:GO, as well as conventional sports. Rivalry's user-friendly interface and engaging content have positioned it as a popular choice for a younger demographic interested in interactive and digital sports experiences.

How the Company Makes Money

Rivalry Corp generates revenue primarily through its online betting platform. The company's main revenue stream comes from the commissions and margins on bets placed by users on esports and traditional sports events. Additionally, Rivalry may engage in partnerships with esports organizations, game developers, and advertising networks, which can provide additional revenue opportunities through sponsorships and promotional activities. The company also focuses on expanding its market reach by obtaining licenses in various jurisdictions, enhancing its ability to attract a global customer base and increase its earnings potential through geographical diversification.

Rivalry Corp Financial Statement Overview

Summary

Rivalry Corp faces significant financial challenges with persistent losses, high leverage, and negative cash flows. While there is some revenue growth, the company struggles with cost management and profitability. The negative equity and high debt levels increase financial risk, suggesting the need for strategic shifts to improve financial health and operational efficiencies.

Income Statement

Rivalry Corp shows a concerning financial trajectory with negative profit margins across multiple years. The TTM gross profit margin is positive at 68.5%, but the net profit margin is negative at -115.1%, indicating high costs relative to revenues. Revenue growth from 2023 to TTM was 34.1%, which is positive, but previous years have shown inconsistency. The persistent negative EBIT and EBITDA margins reflect operational inefficiencies, suggesting a challenging path to profitability.

Balance Sheet

The balance sheet reveals significant risks with a negative equity position in the TTM, exposing the company to financial instability. The debt-to-equity ratio is not meaningful due to negative equity, indicating high leverage. A negative return on equity further underscores financial challenges. While the cash position has decreased significantly, liabilities have increased, straining financial health.

Cash Flow

Cash flow analysis shows continuous negative operating and free cash flow, indicating sustainability issues. The operating cash flow to net income and free cash flow to net income ratios are negative, pointing to cash flow inefficiencies. While there was a slight reduction in free cash flow deficit from 2023 to TTM, overall cash management remains weak.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
21.77M	16.24M	26.63M	11.08M	1.55M	517.83K
	Gross Profit
14.92M	-3.47M	9.81M	2.19M	690.31K	-1.20M
	EBIT
-23.01M	-22.59M	-30.14M	-24.71M	-6.81M	-3.61M
	EBITDA
-23.91M	-24.31M	-30.90M	-24.08M	-6.59M	-3.55M
	Net Income Common Stockholders
-25.04M	-23.80M	-31.12M	-24.72M	-6.90M	-3.79M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
620.16K	10.54M	12.19M	35.45M	620.16K	3.54M
	Total Assets
7.62M	15.08M	18.06M	40.46M	7.62M	4.90M
	Total Debt
320.64K	10.23M	484.99K	139.20K	320.64K	407.47K
	Net Debt
-299.52K	-309.00K	-11.71M	-35.31M	-299.52K	-3.13M
	Total Liabilities
814.62K	13.15M	3.36M	1.47M	814.62K	751.34K
	Stockholders Equity
6.81M	-1.11M	14.70M	38.98M	6.81M	4.15M
Cash Flow		Free Cash Flow
-16.92M	-21.55M	-21.39M	-10.93M	-12.06M	-3.66M
	Operating Cash Flow
-16.82M	-21.48M	-21.28M	-10.87M	-12.03M	-3.48M
	Investing Cash Flow
-141.81K	-105.13K	-606.22K	-58.76K	-25.96K	-320.51K
	Financing Cash Flow
13.64M	20.64M	-124.39K	45.30M	9.31M	-251.84K

Rivalry Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RVLY, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.13, and below the 200-day MA of 0.25, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 29.34 is Positive, neither overbought nor oversold. The STOCH value of 1.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:RVLY.

Rivalry Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCR	77 Outperform	C$5.80B	9.60	10.83%	2.81%	796.07%	-35.52%
BRAG	74 Outperform	C$141.38M	―	-7.16%	―	7.29%	-31.64%
Sector *	59 Neutral	$12.18B	11.09	-1.08%	3.77%	1.26%	-19.82%
EGLX	48 Neutral	$10.35M	―	-95.51%	―	-44.89%	42.48%
TGO	45 Neutral	C$19.60M	―	-119.27%	―	1.15%	25.39%
RVLY	40 Underperform	C$7.61M	―		―	-29.40%	15.55%

Rivalry Corp Corporate Events

Rivalry Corp Expands Crypto Payment Options with $TRUMP

Rivalry Corp has announced its strategy to incorporate meme coins into its crypto payment options, starting with the addition of the Solana-based cryptocurrency $TRUMP. This move highlights Rivalry’s quick response to market trends and positions the company at the center of pop culture-driven financial transactions, offering new marketing and revenue opportunities. Ahead of the U.S. Presidential Inauguration, Rivalry users can now deposit and wager using $TRUMP, with exclusive rewards for those participating, demonstrating the company’s innovative approach to leveraging cultural moments for growth.

Rivalry Corp Embraces $TRUMP Meme Coin as New Payment Method

Rivalry Corp has introduced the Solana-based cryptocurrency $TRUMP as a payment method on its platform, becoming the first betting operator to accept it. This move, coinciding with the U.S. Presidential Inauguration, represents Rivalry’s strategy to capitalize on cultural moments and expand its crypto gambling offerings, enhancing its market position and offering exclusive rewards to users. The acceptance of $TRUMP signifies Rivalry’s commitment to a crypto-first approach, enabling broader engagement with its user base and continuous expansion in the crypto gambling segment.

Rivalry Corp. Raises $3.32 Million in Private Placement

Rivalry Corp. has successfully completed a non-brokered private placement, raising approximately $3.32 million through the issuance of over 22 million units at $0.15 each. The funds from this offering will be used for corporate development and general working capital, supporting the company’s operations in the digital-first sports betting and iGaming sector.

Rivalry Corp. Expands with New Fundraising Round

Rivalry Corp. has successfully closed the third tranche of its non-brokered private placement, raising $334,688 by issuing over 2.2 million units. The funds are earmarked for corporate development and general working capital, as the company continues to expand its presence in the digital betting arena.

Rivalry Corp Embraces Crypto Focus in Strategic Revamp

Rivalry Corp has reported a significant organizational realignment and product revamp to focus on the crypto-gambling market, achieving a 51% increase in average net revenue per user. The company has also reduced its operating expenses by 50% and strengthened its financial position with a $3 million funding round.

Rivalry Corp Raises $1.94 Million in Private Placement

Rivalry Corp has successfully closed the initial tranche of a non-brokered private placement, raising approximately $1.94 million, with the potential to reach up to $3 million. The funds will be used for corporate development and general working capital, highlighting strong insider and shareholder support. Each unit sold includes a voting share and half a warrant, offering potential future investment growth.

Rivalry Corp. Announces Q3 2024 Financial Results Date

Rivalry Corp., a leader in sportsbook and iGaming for Gen Z, will release its third quarter 2024 financial results on November 29 before the stock market opens. The company, which operates globally in over 20 countries with a focus on esports and traditional sports betting, will also hold a conference call to discuss these results with investors.