Stock in Focus: Bumble Inc. (BMBL)

Company Profile:

Bumble Inc. provides online dating and social networking platforms in North America, Europe, internationally. It owns and operates websites and applications that offers subscription and in-app purchases dating products. The company operates two apps, Bumble and Badoo with approximately 40 million users on monthly basis, as well as Fruitz, an online dating app. Bumble Inc. was founded in 2014 in and is headquartered in Austin, Texas.

Recent News:

According to Zacks Equity Rearch, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company’s ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.

For the third quarter ended September 30, 2022, the company reported that total Revenue increased 16.8% to $232.6 million, compared to $199.1 million of the same period of 2021. Net earnings was $26.4 million or 11.4% of revenue, compared to net loss of $10.4 million, or (5.2)% of revenue of the same period of 2021.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects:

Price to Book Value – P/BV, a ratio used to compare book value to its current market price, to gauge whether a stock is valued properly.

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Price to Earnings – PE, the ratio for valuing a company that measures its current share price relative to its earnings per share (EPS).

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Discounted cash flow – DCF, a valuation method used to estimate the value of an investment based on its expected future cash flows.

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Return on Assets – ROA, indicates how profitable a company is in relation to its total assets, how efficiently uses assets to generate a profit.

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Return on Equity – ROE, a measure of financial performance calculated by dividing net income by equity. a gauge of profitability and efficiency.

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Debt to Equity – evaluate financial leverage, reflects the ability of equity to cover outstanding debts in the event of a business downturn.

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Conclusion:

BMBL receives outperform rating in price to book value, price to earnings, discounted cash flow and debt to equity. Technical indicators signal the bullish signs, as there is a bullish crossover in the Stochastic oscillator, the MACD is trying to cross back up and the RSI(14) stands at 40.9 with positive bias. We rate Bumble Inc. (BMBL) a BUY.