OPRA Analysis 8/20
Disclosure: As of 8/20 I am long Opera Limited NYSE: OPRA
Opera is a browser company available on Mac, PC, and Mobile. They earn revenue through advertisements, as well as a search partnership with Google.
*This partnership with Google is a key risk for Opera as if the relationship falls apart they will lose a large portion of their revenue*
As a customer of Opera I can say they have a quality product and is well reviewed by the people I know who use it. Most of their user growth is organic. And with only 8% of the market going to Opera there is large room for growth.
Looking at the qualitative factors they have $0 debt, revenue has grown since their IPO in 2019 with a dip in 2021 that quickly recovered. Over this time period they have seen stable margins and a growing book value.
The valuation of this company is the main reason I am looking at it. With the price/book being 1.25 and the book value increasing there is limited downside to this company. The earnings+dividend yield is 21% which is a rough estimate of what your investment could return off of the current earnings. Please note that this does not include growth, so potential returns could be higher or lower.
Of course all investment decisions must be evaluated on their own merit of risk/reward and what factors you value. As always this is not financial advice, and read the annual reports and financial information prior to making any decisions.
Have a great day everyone!
Opera is a browser company available on Mac, PC, and Mobile. They earn revenue through advertisements, as well as a search partnership with Google.
*This partnership with Google is a key risk for Opera as if the relationship falls apart they will lose a large portion of their revenue*
As a customer of Opera I can say they have a quality product and is well reviewed by the people I know who use it. Most of their user growth is organic. And with only 8% of the market going to Opera there is large room for growth.
Looking at the qualitative factors they have $0 debt, revenue has grown since their IPO in 2019 with a dip in 2021 that quickly recovered. Over this time period they have seen stable margins and a growing book value.
The valuation of this company is the main reason I am looking at it. With the price/book being 1.25 and the book value increasing there is limited downside to this company. The earnings+dividend yield is 21% which is a rough estimate of what your investment could return off of the current earnings. Please note that this does not include growth, so potential returns could be higher or lower.
Of course all investment decisions must be evaluated on their own merit of risk/reward and what factors you value. As always this is not financial advice, and read the annual reports and financial information prior to making any decisions.
Have a great day everyone!
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