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EM1

Emerge GamingASX:EM1 Stock Report

Market Cap

AU$25.8m

7D

9.5%

1Y

-74.7%

Updated

18 Oct, 2021

Data

Company Financials
EM1 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends0/6

EM1 Overview

Emerge Gaming Limited designs, develops, and distributes competitive casual gaming and esports products and platforms in Australia.

Price History & Performance

Summary of all time highs, changes and price drops for Emerge Gaming
Historical stock prices
Current Share PriceAU$0.023
52 Week HighAU$0.02
52 Week LowAU$0.17
Beta1.23
1 Month Change9.52%
3 Month Change-28.13%
1 Year Change-74.73%
3 Year Change130.00%
5 Year Changen/a
Change since IPO9.52%

Recent News & Updates

Dec 31
We're Not Very Worried About Emerge Gaming's (ASX:EM1) Cash Burn Rate

We're Not Very Worried About Emerge Gaming's (ASX:EM1) Cash Burn Rate

Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the...

Shareholder Returns

EM1AU EntertainmentAU Market
7D9.5%3.6%0.9%
1Y-74.7%58.6%20.2%

Return vs Industry: EM1 underperformed the Australian Entertainment industry which returned 58.6% over the past year.

Return vs Market: EM1 underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is EM1's price volatile compared to industry and market?
EM1 volatility
EM1 Beta1.23
Industry Beta1.18
Market Beta1

Stable Share Price: EM1 is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: EM1's weekly volatility (12%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/an/aGreg Stevenshttps://www.emergegaming.com.au

Emerge Gaming Limited designs, develops, and distributes competitive casual gaming and esports products and platforms in Australia. The company owns and operates ArcadeX, a gaming and esports platform, where subscribers compete in sponsored tournaments to establish rankings, win prizes, and earn participation rewards. The company is based in Sydney, Australia.

Emerge Gaming Fundamentals Summary


Earnings & Revenue

Key profitability statistics from the latest earnings report
EM1 income statement (TTM)
RevenueAU$10.27m
Cost of RevenueAU$6.62m
Gross ProfitAU$3.64m
ExpensesAU$3.13m
EarningsAU$516.42k

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.00046
Gross Margin35.50%
Net Profit Margin5.03%
Debt/Equity Ratio0.0%

How did EM1 perform over the long term?

See historical performance and comparison

Valuation

Is Emerge Gaming undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EM1 (A$0.02) is trading below our estimate of fair value (A$0.9)

Significantly Below Fair Value: EM1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EM1 is poor value based on its PE Ratio (50x) compared to the Global Entertainment industry average (26.7x).

PE vs Market: EM1 is poor value based on its PE Ratio (50x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EM1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EM1 is good value based on its PB Ratio (2.1x) compared to the AU Entertainment industry average (2.9x).


Future Growth

How is Emerge Gaming forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

30.5%

Forecasted Media industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Emerge Gaming has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Emerge Gaming performed over the past 5 years?

52.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EM1 has high quality earnings.

Growing Profit Margin: EM1 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: EM1 has become profitable over the past 5 years, growing earnings by 52% per year.

Accelerating Growth: EM1 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: EM1 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Entertainment industry (21.5%).


Return on Equity

High ROE: EM1's Return on Equity (4.3%) is considered low.


Financial Health

How is Emerge Gaming's financial position?


Financial Position Analysis

Short Term Liabilities: EM1's short term assets (A$23.2M) exceed its short term liabilities (A$12.9M).

Long Term Liabilities: EM1 has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: EM1 is debt free.

Reducing Debt: EM1 had no debt 5 years ago.

Debt Coverage: EM1 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: EM1 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Emerge Gaming current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate EM1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate EM1's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EM1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EM1's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EM1's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average board tenure


CEO

Greg Stevens

3.5yrs

Tenure

AU$697,398

Compensation

Mr. Gregory Hamilton Stevens, also known as Greg, is a Co-Founder of Emerge Gaming Limited (GBG) and has been its Chief Executive Officer and Executive Director since April 16, 2018. Mr. Stevens served as...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD517.63K) is above average for companies of similar size in the Australian market ($USD302.72K).

Compensation vs Earnings: Greg's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: EM1's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 57.3%.


Top Shareholders

Company Information

Emerge Gaming Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Emerge Gaming Limited
  • Ticker: EM1
  • Exchange: ASX
  • Founded: NaN
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: AU$25.787m
  • Shares outstanding: 1.12b
  • Website: https://www.emergegaming.com.au

Location

  • Emerge Gaming Limited
  • 126-130 Philip Street
  • Level 5
  • Leederville
  • Western Australia
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 07:03
End of Day Share Price2021/10/18 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.