Is CTS Eventim KGaA (ETR:EVD) Using Too Much Debt?
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
German (DAX) Entertainment Industry Analysis
UpdatedDec 02, 2021
DataAggregated Company Financials
Companies13
- 7D-2.6%
- 3M-4.4%
- 1Y13.8%
- YTD11.6%
Over the last 7 days, the Entertainment industry has dropped 2.6%, driven by pullbacks in Media and Games Invest and CTS Eventim KGaA of 12% and 1.4%, respectively. Meanwhile, Your Family Entertainment actually outperformed within the industry, gaining 70% in the last week. This takes the industry's 12 month performance to a gain of 14%.
Industry Valuation and Performance
Has the German Entertainment Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sat, 04 Dec 2021 | €7.4b | €1.8b | -€57,719,133.00 | 48.3x |
| Mon, 01 Nov 2021 | €9.1b | €1.6b | -€157,976,544.00 | 30.8x |
| Wed, 29 Sep 2021 | €9.3b | €1.6b | -€180,410,651.00 | 31x |
| Fri, 27 Aug 2021 | €7.5b | €1.8b | -€193,251,761.86 | 68.7x |
| Sat, 03 Jul 2021 | €7.2b | €1.8b | -€193,251,761.86 | 62.9x |
| Tue, 06 Apr 2021 | €6.6b | €1.7b | -€288,798,678.08 | 64.6x |
| Fri, 08 Jan 2021 | €6.7b | €1.8b | -€246,631,670.61 | 41.8x |
| Thu, 01 Oct 2020 | €5.2b | €2.2b | -€142,655,558.47 | 13.7x |
| Sun, 05 Jul 2020 | €4.9b | €2.7b | -€23,942,008.09 | 49.3x |
| Wed, 08 Apr 2020 | €5.3b | €3.2b | €44.5m | 22x |
| Tue, 31 Dec 2019 | €7.1b | €3.3b | €89.4m | 32.7x |
| Fri, 04 Oct 2019 | €6.7b | €3.4b | €96.2m | 39x |
| Mon, 08 Jul 2019 | €5.6b | €3.3b | €96.6m | 32x |
| Sun, 31 Mar 2019 | €5.7b | €3.3b | €115.3m | 31.4x |
| Wed, 02 Jan 2019 | €4.7b | €3.2b | €125.8m | 23x |
PE Ratio
23x
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 40.2x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: Total earnings for the Entertainment industry have declined over the last three years, with the industry now making a loss overall. Revenues have declined 18% per year. This means overall sales are declining and profits are subsequently falling as well.
Industry Trends
Which industries have driven the changes within the German Entertainment industry?
| Movies and Entertainment | -1.47% | |
| Interactive Home Entertainment | -11.46% | |
Industry PE: Investors are most optimistic about the Interactive Home Entertainment industry even though it's trading below its 3-year average PE ratio of 247x. However analysts are expecting annual earnings growth of 41%, which is lower than the prior year's growth of 5,737% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Movies and Entertainment industry. Although, investor sentiment seems to have improved given its trading above its 3-year average of 24.8x.
Forecasted Growth: Analysts are most optimistic on the Movies and Entertainment industry, expecting annual earnings growth of 112% over the next 5 years. This is better than it's past earnings growth rate of 58% per year. Meanwhile, the Interactive Home Entertainment industry is expected to see its earnings grow by 41% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| RTV Your Family Entertainment | 70.4%+€8.4m | 37.1% | PE434.6x | |
| ERO tmc Content Group | 10.3%+€307.5k | 3.9% | PS0.4x | |
| SPM Splendid Medien | 2.3%+€293.7k | 109.5% | PE5.3x |
