Klarna Group PLC KLAR

Morningstar Rating

Company Report

Klarna Has Started to Monetize Its Customer Base Beyond Transactions

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|^#j>YH premium.
Price
$12.45
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's default-on status at major payment services providers will amplify 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.

News

Articles & Videos

Trading Information

Previous Close Price
—
Day Range
—–—
52-Week Range
—–—
Bid/Ask
— / —
Shares Outstanding
379.16M
Market Cap
—
Volume/Avg
— / —

Key Statistics

Price/Earnings (Normalized)
—
Price/Sales
1.21
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Dividend Payment Schedule
—
Total Yield
—

Company Profile

Klarna is the largest pure-play in the buy now, pay later space. The company operates a two-sided network with a payment method at its core, but it is ultimately a lender. Merchants sign up with Klarna to increase turnover in their stores. Primarily, Klarna can provide merchants with higher conversion rates and average order values relative to other payment methods. Some merchants enter a symbiotic relationship with Klarna, advertising its brand on the product page to drive conversion and to benefit from Klarna’s brand value in the merchant’s sales funnel. Customers use Klarna for its ease of use, quick access to credit, zero-interest financing, and lower reminder fees.
Sector
Financial Services
Industry
Credit Services
Stock Style Box
Small Growth
Total Number of Employees
2,831

Competitors

Valuation

Metric
KLAR
PYPL
XYZ
Price/Earnings (Normalized)
—10.0324.20
Price/Book Value
1.922.312.02
Price/Sales
1.211.441.80
Price/Cash Flow
2.596.5011.27
Price/Earnings
KLAR
PYPL
XYZ

Financial Strength

Metric
KLAR
PYPL
XYZ
Quick Ratio
1.031.251.96
Current Ratio
1.031.292.21
Interest Coverage
0.8112.754.61
Quick Ratio
KLAR
PYPL
XYZ

Profitability

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

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LOCK|@H$<%R?LOCK|FW?D!$45B
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