Company Overview
Opera Limited operates within the Communication Services sector, specifically focusing on the Internet Content & Information industry, where it delivers mobile and PC web browsers alongside related digital products and services to markets in Norway and internationally. The company's product portfolio includes specific offerings such as Opera Mini, browsers for Android and iOS devices, and specialized PC and mobile solutions like Opera GX, catering to a global user base seeking optimized web experiences. Currently, the company holds a market capitalization of $1.21B and generates annual revenue of $614.83M, while its total employee count is listed as N/A in available records. These valuation and revenue figures indicate that Opera Limited maintains a significant presence in the global browser market, positioning it as a mid-to-large-cap entity capable of sustaining operations across diverse international regions without the scale of a massive technology conglomerate.
Financial Health
The company reported revenue of $614.83M and net income of $108.28M over the trailing twelve months, with an EBITDA of $110.88M, revealing a cost structure where non-operating expenses and taxes account for a specific deduction from operating earnings to reach final net profit. The gap between the $108.28M net income and the $110.88M EBITDA suggests that interest, taxes, and other non-operating items result in a net income figure that is slightly lower than the cash earnings before interest and taxes. Free cash flow stands at $90.90M, which provides the company with substantial financial flexibility to fund operations, invest in product development, or manage liquidity without relying heavily on external financing. Analyzing the three primary margins shows a gross margin of 51.3%, an operating margin of 16.3%, and a profit margin of 17.6%, indicating that the company retains over half of its revenue as gross profit but faces significant operating expenses that reduce the bottom-line percentage. The balance sheet appears conservative as total cash of $155.47M significantly exceeds total debt of $8.41M, supported by a low debt-to-equity ratio of 0.83 which implies minimal leverage risk. Short-term liquidity is robust, evidenced by a current ratio of 2.35, meaning the company holds more than twice the assets needed to cover its current liabilities. Management effectiveness is reflected in a return on equity of 11.1% and a return on assets of 5.2%, demonstrating efficient utilization of shareholder capital and overall asset base to generate returns.
Valuation Assessment
Valuation metrics for Opera Limited include a trailing P/E ratio of 11.34 and a forward P/E of 7.70, implying that the market expects earnings to grow significantly in the future to justify the higher current valuation relative to projected forward earnings. The price-to-book ratio is 1.20, indicating that the company trades at a slight premium over its book value, suggesting the market values its intangible assets and growth potential above the tangible assets recorded on the balance sheet. Alternative valuation measures such as a price-to-sales ratio of 1.97 and an EV/EBITDA of 9.58 suggest that the stock is priced reasonably relative to its sales volume and earnings power before interest, taxes, depreciation, and amortization. The stock has traded between a 52-week high of $21.06 and a 52-week low of $11.71; without a specific current share price provided in the data, the trading range establishes a volatility band where the company has experienced a wide swing of nearly 80% over the past year. The beta of 1.11 indicates that the stock's price volatility is slightly higher than the broader market, moving 11% more aggressively than the market index in response to systemic risks.
Growth & Income
Growth metrics show revenue growth of 21.5% year-over-year and earnings growth of 90.0% year-over-year, indicating that earnings are expanding at a much faster rate than revenue, which often implies improving operating leverage, margin expansion, or one-time gains contributing to the bottom line. As a dividend payer, the company offers a dividend yield of 5.9% with a payout ratio of 67.2%, a level that appears sustainable given the high earnings growth and strong free cash flow generation, allowing the company to return capital to shareholders while maintaining reserves. The combination of accelerating earnings growth and a healthy payout ratio suggests a mature yet growing business model that balances income generation with capital allocation. Overall, the company presents a growth and income profile characterized by double-digit revenue expansion, triple-digit earnings acceleration, and a substantial yield supported by a conservative balance sheet.