Sportradar Group AG (SRAD): A Bull Case Theory 

We came across a bullish thesis on Sportradar Group AG on Valueinvestorsclub.com by Jumbos02. In this article, we will summarize the bulls’ thesis on SRAD. Sportradar Group AG’s share was trading at $18.58 as of January 28th. SRAD’s trailing and forward P/E were 53.78 and 34.36 respectively according to Yahoo Finance.

Sportradar (SRAD) operates as a critical intermediary between sportsbook operators and professional sports leagues, providing real-time sports data, video feeds, managed trading services, marketing solutions, and integrity services. Its platform powers sportsbooks globally, serving over 65 million bettors and partnering with more than 800 operators across 85+ sports, covering over one million events annually. This scale creates strong network effects: extensive operator distribution makes SRAD the preferred partner for leagues, while its ability to monetize long-tail sports efficiently drives higher profitability, which can be reinvested into technology and product innovation.

Since 2001, the company has achieved rapid growth, with sales increasing 28% annually to €1.1 billion in 2024, and it is positioned to benefit from the global expansion of sports betting, particularly in high-growth markets such as the U.S. and Brazil, as well as the growing adoption of in-play betting, which commands higher take rates. SRAD has delivered strong profit growth despite rising sports rights costs, with management targeting EBITDA margins of 27% by 2027, supported by operating leverage, AI-driven efficiencies, and secured long-term contracts.

The recent acquisition of IMG Arena adds significant sports rights and streaming assets, expected to be immediately accretive to revenue and margins, with additional cost synergies enhancing upside. SRAD’s revenue model combines fixed contracts and variable performance-based fees, providing visibility of over €2 billion in revenue secured for the next two years.

At $23, shares trade at 51x forward earnings but closer to 17x 2027 free cash flow when adjusting for cash and expected growth, highlighting a compelling risk/reward profile. Key risks include prediction markets, league rights inflation, and potential operator insourcing, though SRAD’s scale, exclusive partnerships, and long-term contracts mitigate these concerns, leaving the company well-positioned to capture continued market expansion and margin growth.

Previously, we covered a bullish thesis on Samsara Inc. (IOT) by Compounding Your Wealth in April 2025, which highlighted the company’s strong ARR growth, AI-driven fleet solutions, and international expansion. IOT’s stock price has depreciated by approximately 21.41% since our coverage due to macro uncertainty and long sales cycles. Jumbos02 shares a similar thesis on Sportradar Group AG (SRAD) but emphasizes its global sports betting scale and network-driven growth.

Sportradar Group AG is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held SRAD at the end of the third quarter which was 35 in the previous quarter. While we acknowledge the risk and potential of SRAD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SRAD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.