Klarna Group PLC KLAR

Morningstar Rating
$19.62 −0.28 (1.41%)
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Company Report

Klarna's PSP Strategy Will Drive Growth

Klarna has recently signed multiple agreements with payment services providers, which will significantly broaden its reach as a payment method this year and in the years to come. Growth is what it is all about for Klarna. Its platform is just breaking even, starting to eke out a marginal operating profit, but as its platform ramps up further and its underwriting models are fed more data on shopper behaviors, we think Klarna will turn itself into a profitable staple among fintechs globally.

Price vs Fair Value

KLAR is trading at a LOCK|vG@ premium.
Price
$19.62
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Klarna will achieve default payment status at most if not all the PSP it partners with, amplifying its growth potential.

Bears

Klarna’s business model has not been stress-tested, yet. Low delinquencies currently could prove to be a poor predictor of loss rates in times of stress.

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Trading Information

Previous Close Price
$19.90
Day Range
$19.3719.93
52-Week Range
$12.0657.20
Bid/Ask
$19.51 / $19.75
Shares Outstanding
378.11M
Market Cap
$7.42B
Volume/Avg
75 / 5M

Key Statistics

Price/Earnings (Normalized)
Price/Sales
1.90
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Total Yield

Company Profile

Klarna Group PLC is a technology-driven payments company, with operations spanning multiple countries. It connects consumers and merchants with comprehensive payment solutions and tailored advertising solutions, both online and offline. Its payment solutions provide consumers with more control and flexibility over their payments. It is a digital bank and flexible payments provider building the next-generation AI-powered commerce network.
Sector
Financial Services
Industry
Credit Services
Stock Style Box
Small Growth
Total Number of Employees
2,831

Competitors

Valuation

Metric
KLAR
XYZ
PYPL
Price/Earnings (Normalized)
29.7111.17
Price/Book Value
3.022.152.57
Price/Sales
1.901.921.60
Price/Cash Flow
4.0812.027.23
Price/Earnings
KLAR
XYZ
PYPL

Financial Strength

Metric
KLAR
XYZ
PYPL
Quick Ratio
1.031.961.25
Current Ratio
1.032.211.29
Interest Coverage
0.814.6112.75
Quick Ratio
KLAR
XYZ
PYPL

Profitability

Metric
KLAR
XYZ
PYPL
Return on Assets (Normalized)
< 0.01%4.80%7.54%
Return on Equity (Normalized)
0.03%8.45%30.25%
Return on Invested Capital (Normalized)
13.82%6.80%19.54%
Return on Assets
KLAR
XYZ
PYPL

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LOCK|#G&@?nvLOCK|zqjF#$51B
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LOCK|#bjy!ZLOCK|mh$25B
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LOCK|^?l>yhLOCK|f>$13B

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