Key insights
- An analyst suggests Klarna is undervalued due to its low price-to-sales ratio, high growth, and substantial cash reserves, despite current unprofitability. Insider buying signals confidence. Potential for future profitability and buybacks could drive positive market sentiment, though the Buy Now Pay Later sector remains a concern.
Post IPO this one has done a swan dive into a dry pool, but now it looks insanely cheap. Sitting at a 9b market cap with over 5b in cash with topline growth in the high 20s low 30%s. Price to sales is sitting at under 1.4 which seems insane. Recently an insider purchased $50m in stock right around the current bottom. Analyst show it flipping positive net in a year and free cash flow yield will sky rocket. Seems like only a matter of time before they announce a huge buyback.
The bad, it isnt profitable yet anf it is one of my least favorite sectors. Fintech, specifically buy now pay later, though they are after other verticals.