| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 5.30 | -99 |
| Graham Formula | 7.20 | -98 |
Nexxen International Ltd. (LSE: NEXN) is a leading global advertising technology company headquartered in Tel Aviv, Israel. Formerly known as Tremor International, Nexxen provides an end-to-end software platform that connects advertisers with publishers through its demand-side platform (DSP) and supply-side platform (SSP). The company's DSP enables advertisers and agencies to execute real-time digital marketing campaigns across multiple ad formats, while its SSP helps publishers optimize inventory management and revenue. Additionally, Nexxen offers a data management platform (DMP) that integrates DSP and SSP solutions, leveraging data from various sources to enhance campaign performance. Operating in the competitive digital advertising sector, Nexxen serves clients across the U.S., Europe, the Middle East, Africa, and Asia-Pacific. With a market cap of approximately £257 million, Nexxen is positioned as a key player in programmatic advertising, focusing on innovation and scalability in a rapidly evolving industry.
Nexxen International presents a mixed investment profile. On the positive side, the company operates in the high-growth digital advertising sector, with a diversified revenue stream from DSP, SSP, and DMP solutions. Its strong operating cash flow (£150.8 million) and healthy cash reserves (£187.1 million) provide financial stability. However, the company's beta of 1.447 indicates higher volatility compared to the market, and its net income (£35.4 million) suggests modest profitability relative to revenue (£365.5 million). The lack of dividends may deter income-focused investors. Nexxen's competitive positioning in programmatic advertising is promising, but it faces intense competition from larger ad-tech players. Investors should weigh its growth potential against sector risks, including regulatory scrutiny and economic sensitivity.
Nexxen International competes in the fragmented and highly competitive digital advertising technology market. Its primary competitive advantage lies in its integrated platform, combining DSP, SSP, and DMP capabilities, which allows for seamless campaign optimization. Unlike many pure-play DSP or SSP providers, Nexxen’s end-to-end solution offers advertisers and publishers a unified ecosystem, enhancing efficiency and data utilization. The company’s focus on real-time bidding and cross-format ad placements (video, display, CTV) further strengthens its value proposition. However, Nexxen operates in a space dominated by well-funded giants like The Trade Desk and Magnite, which have greater scale, brand recognition, and R&D budgets. Nexxen’s smaller size may limit its ability to compete on pricing and global reach. Its geographic diversification (U.S., EMEA, APAC) is a strength, but regional competitors often have deeper local market expertise. The company’s recent rebranding (from Tremor to Nexxen) reflects a strategic push to unify its offerings, but execution risks remain. Long-term success will depend on its ability to innovate, retain key clients, and navigate industry consolidation.