SRAD Stock Risk & Deep Value Analysis

Sportradar Group AG

Technology • Software - Application

DVR Score

4.3

out of 10

Proceed with Caution

What You Need to Know About SRAD Stock

We analyzed Sportradar Group AG using our deep value framework. Sign in to see our full verdict and DVR Score.

We ran SRAD through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Aggressive. Here's what we found.

Updated Jun 12, 2026Run Fresh Analysis →

SRAD Risk Analysis & Red Flags

What Could Go Wrong

The ongoing securities class action lawsuit, alleging that Sportradar derived revenue from illegal gambling operators, poses the single largest risk. A negative outcome could result in substantial financial penalties exceeding $100M, significant legal costs, and severe reputational damage, potentially eroding shareholder equity and forcing operational restructuring that could reduce future revenue by 10-20% if existing customer relationships are impacted, with key developments expected by the July 17, 2026, lead-plaintiff deadline.

Risk Matrix

Overall

Aggressive

Financial

High

Market

Medium

Competitive

Medium

Execution

Medium

Regulatory

High

Red Flags

  • Q1 2026 revenue of $401.11M and EPS of $(0.02) both missed analyst estimates.

  • Securities class action lawsuit alleges Sportradar derived a material portion of revenue from illegal gambling operators.

  • Chief Legal Officer Michael Connolly Miller sold 1,500 shares ($24,750) over the last 90 days, despite significant CEO buying.

  • Allegations of illegal market exposure caused the stock to drop approximately 22.6%.

Upcoming Risk Events

  • 📅

    Negative outcome in Class Action Lawsuit (Post July 17, 2026): Significant fines or operational restrictions could result in a one-time charge of potentially $100M+.

  • 📅

    Loss of Major Data Partnership (Ongoing): Reputational damage from legal issues could lead to non-renewal of a top-tier sports league data contract, potentially impacting 5-10% of annual revenue.

When to Reconsider

  • 🚪

    Exit if quarterly revenue growth decelerates below 8% YoY for two consecutive quarters.

  • 🚪

    Sell if a major court ruling or settlement in the class action lawsuit results in liabilities exceeding $150M.

  • 🚪

    Exit if the average analyst price target is cut below $18.00.

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What Does Sportradar Group AG (SRAD) Do?

Market Cap

$5.29B

Sector

Technology

Industry

Software - Application

Employees

4,582

Sportradar Group AG, together with its subsidiaries, provides sports data services for the sports betting and media industries in Switzerland, the United States, North America, Africa, the Asia Pacific, the Middle East, Europe, Latin America, and the Caribbean. The company offers betting technology and solutions, including betting and gaming content; real-time sports data points; pre-match and live odds services; streaming and betting engagement services; iGaming, which includes virtual soccer, horse and dog racing, basketball, tennis, baseball, and cricket; managed betting and trading services; and sports betting and gaming platform. It also provides sports content, technology, and services that include marketing services; sports media services comprising data, content and solutions for broadcasters, publishers, rights-holders, and technology companies; integrity services, including monitoring, intelligence, education, consultancy, rights protection, and regulatory solutions; and sports performance solutions for competition management, official data generation, automated content distribution and performance analysis, which include video and analytics, and coaching and scouting products. Sportradar Group AG was founded in 2001 and is headquartered in Sankt Gallen, Switzerland.

Visit Sportradar Group AG Website

Investment Thesis

If Sportradar successfully navigates and mitigates the financial and reputational fallout from the class action lawsuit and effectively leverages its new strategic partnership with Kalshi to expand into prediction markets, it could re-rate towards its analyst consensus target of $24.06, driven by sustained 12-15% annual revenue growth in the expanding global sports betting and data market, which is not fully priced in due to the current legal overhang.

Is SRAD Stock Undervalued?

Sportradar (SRAD) continues to present a high-risk, high-reward profile, with its score remaining significantly impacted by escalating legal challenges. While Q1 2026 showed 11.3% YoY revenue growth, the actual revenue of $401.11M and EPS of $(0.02) *missed* analyst estimates, indicating weaker performance than previously perceived. This, alongside the persistent class action lawsuit alleging securities fraud and illegal market exposure with a lead-plaintiff deadline of July 17, 2026, casts a severe shadow. Insider buying by CEO Carsten Koerl (~$4.67M over 90 days) and a new strategic partnership with Kalshi provide some underlying confidence and future potential, but the immense uncertainty from legal outcomes continues to temper immediate upside despite promising market fundamentals. The score reflects a high-risk environment where legal outcomes and operational improvements are critical for trajectory.

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SRAD Price Targets & Strategy

12-Month Target

$24.06

Bull Case

$28.00

Bear Case

$12.00

Valuation Basis

Based on consensus analyst target of $24.06, implying 3.8x FY26e P/S on an estimated $1.84B revenue if 15% YoY growth continues.

Entry Strategy

Consider dollar-cost averaging in the $14-$16 range, particularly if the stock re-tests previous support levels or if there is positive news on the legal front.

Exit Strategy

Take 50% profit at $24.00, reassess remaining position if legal clarity emerges. Stop loss at $13.50 if lawsuit developments worsen significantly or Q2 financials underperform.

Portfolio Allocation

2-4% for aggressive risk tolerance.

Price Targets & Strategy

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Is SRAD Financially Healthy?

Valuation

P/E Ratio

65.66

Forward P/E

39.87

EV/EBITDA

7.58

PEG Ratio

0.98

Price/Book

4.58

Price/Sales

2.73

Profitability

Gross Margin

75.39%

Operating Margin

9.06%

Net Margin

5.27%

Return on Equity

7.32%

Revenue Growth

15.05%

EPS

$0.22

Balance Sheet

Current Ratio

1.17

Quick Ratio

1.12

Debt/Equity

0.06

Total Debt

$149.00M

Cash & Equivalents

$356.00M

Cash Flow

Operating Cash Flow

$238.00M

Free Cash Flow

$174.00M

EBITDA

$294.00M

Other

Beta (Volatility)

1.55

Does SRAD Have a Competitive Moat?

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Moat Rating

🛡️ Narrow

Moat Trend

Stable

Moat Sources

3 Identified

Intangible Assets/IP (exclusive data rights, proprietary technology)Switching Costs (deep integration of solutions with operator platforms)Network Effects (increasing value as more sports leagues and operators join)

Sportradar's moat benefits from proprietary data and deep integration with its clients, creating high switching costs. However, the legal challenges regarding ethical data sourcing could erode this if key partnerships are threatened or regulatory crackdowns impact their operational model.

Moat Erosion Risks

  • Reputational damage and loss of exclusive data rights if illegal market allegations are proven.
  • Increased competition from rivals like Genius Sports expanding their own data networks and services.
  • Regulatory changes that restrict data collection methods or market access.

SRAD Competitive Moat Analysis

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SRAD Market Intelligence

Sentiment & Insider Activity

Social Sentiment

Neutral (Cautious due to legal concerns, but interest in growth potential remains)

Institutional Sentiment

Neutral (Overall 'Buy' consensus, but mixed price target adjustments and legal overhang create caution)

Insider Activity (Form 4)

CEO Carsten Koerl and Director William Kurtz bought 357,893 shares worth $4.67M over the last 90 days. Chief Legal Officer Michael Connolly Miller sold 1,500 shares for approximately $24,750.

Options Flow

Normal options activity (No specific unusual activity reported in the research to suggest significant institutional positioning beyond typical hedging or speculative trades).

Earnings Intelligence

Next Earnings

Estimated late July/early August 2026

Surprise Probability

Medium

Historical Earnings Pattern

Stock shows significant volatility around major news events, particularly legal concerns (dropped 22.6% on lawsuit news). Earnings reactions are likely sensitive to guidance and legal updates.

Key Metrics to Watch

YoY Revenue Growth (target >12%)Net Margin (trend vs 5.20%)Updates on Class Action Lawsuit

Competitive Position

Top Competitor

Genius Sports (GENI)

Market Share Trend

Stable (Difficult to ascertain from provided data, but legal issues could threaten future share)

Valuation vs Peers

Trading at a P/S ratio (approx. 3.15x current) generally in line or slightly above peers, but this may not fully reflect the legal risks.

Competitive Advantages

  • Extensive global network of data collection and distribution for sports events.
  • Proprietary technology for real-time data processing and odds compilation.
  • Strategic partnerships with major sports leagues and betting operators.

Market Intelligence

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What Could Drive SRAD Stock Higher?

Near-Term (0-6 months)

  • Class Action Lead-Plaintiff Deadline (July 17, 2026): Potential for further legal developments or increased investor uncertainty.
  • Q2 2026 Earnings Report (Estimated late July/early August 2026): Focus on revenue growth (expecting >12% YoY) and any updates on legal proceedings.

Medium-Term (6-18 months)

  • US Sports Betting Market Expansion (Ongoing into 2027): Continued legalization in new US states could drive 10-15% incremental annual revenue growth from new operator contracts.
  • Resolution of Securities Class Action Lawsuit (Q4 2026 - Q2 2027): A favorable or contained settlement/judgment could remove a major overhang and allow for valuation re-rating.

Long-Term (18+ months)

  • Global Prediction Market Data Dominance (By 2029): If the Kalshi partnership and similar deals position Sportradar as a leader in real-time data for prediction markets, it could add $200M+ in recurring annual revenue.
  • AI-Driven Sports Analytics & Media Integration (By 2030): Deep integration of AI across their data platform, creating new high-value services for media partners, potentially expanding total addressable market by 15-20%.

Catalysts & Growth Drivers

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What's the Bull Case for SRAD?

  • Resolution or significant update on the class action lawsuit by July 17, 2026, or in Q2 earnings.

  • Quarterly revenue growth acceleration above 12% YoY, indicating strong underlying business momentum.

  • Any further C-suite resignations or significant insider selling, which would be a major negative signal.

Bull Case Analysis

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Competing with SRAD

See how Sportradar Group AG compares to related companies

CompanyMarket CapDVR ScoreP/ERevenueProfit MarginRev Growth

Sportradar Group AG

SRAD

$5.3B4.365.7$1.6B5.3%15.0%

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How Sportradar Group AG Makes Money

Sportradar Group AG operates as a business-to-business (B2B) provider of sports data and technology solutions to the global sports betting, sports media, and sports entertainment industries. The company collects, processes, and distributes real-time sports data to its clients, enabling them to power their betting platforms, deliver engaging content, and ensure the integrity of competitions. Essentially, Sportradar provides the critical information infrastructure and tools that support the operations of major players in the sports ecosystem.

Read Full Business Model Breakdown

FAQ

What is the DVR Score for Sportradar Group AG (SRAD)?

As of June 12, 2026, Sportradar Group AG has a DVR Score of 4.3 out of 10, placing it in the "Proceed with Caution" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.

What is the market capitalization of Sportradar Group AG?

Sportradar Group AG's market capitalization is approximately $5.3B. The company operates in the Technology sector within the Software - Application industry.

What ticker symbol does Sportradar Group AG use?

SRAD is the ticker symbol for Sportradar Group AG. The company trades on the NMS.

What is the risk level for SRAD stock?

Our analysis rates Sportradar Group AG's overall risk as Aggressive. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.

What is the P/E ratio of SRAD?

Sportradar Group AG currently has a price-to-earnings (P/E) ratio of 65.7. This is above the market average, suggesting the stock may be priced for high growth expectations.

Is Sportradar Group AG's revenue growing?

Sportradar Group AG has reported revenue growth of 15.0%. The company is showing strong top-line momentum.

Is SRAD stock profitable?

Sportradar Group AG has a profit margin of 5.3%. The company is profitable but margins are modest.

How often is the SRAD DVR analysis updated?

Our AI-powered analysis of Sportradar Group AG is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on June 12, 2026.

Important Disclaimer – Not Financial Advice

Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for SRAD (Sportradar Group AG) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.

All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.

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