DB:7NG

Stock Analysis Report

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Executive Summary

Net Gaming Europe AB (publ), through its subsidiaries, owns, develops, and operates comparison and news sites in Sweden.


Snowflake Analysis

Acceptable track record with mediocre balance sheet.

Share Price & News

How has Net Gaming Europe's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 7NG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.1%

7NG

3.9%

DE Hospitality

3.5%

DE Market


1 Year Return

-21.1%

7NG

-34.8%

DE Hospitality

3.0%

DE Market

Return vs Industry: 7NG exceeded the German Hospitality industry which returned -36.2% over the past year.

Return vs Market: 7NG underperformed the German Market which returned 0.2% over the past year.


Shareholder returns

7NGIndustryMarket
7 Day-5.1%3.9%3.5%
30 Day2.4%-13.4%-0.08%
90 Day35.1%14.9%21.0%
1 Year-21.1%-21.1%-32.2%-34.8%5.2%3.0%
3 Yearn/a-47.1%-54.2%4.5%-4.0%
5 Yearn/a-47.6%-58.6%11.5%-3.2%

Price Volatility Vs. Market

How volatile is Net Gaming Europe's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

43.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 7NG (€0.3) is trading above our estimate of fair value (€0.06)

Significantly Below Fair Value: 7NG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 7NG is poor value based on its PE Ratio (43.8x) compared to the Hospitality industry average (20.9x).

PE vs Market: 7NG is poor value based on its PE Ratio (43.8x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 7NG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 7NG is overvalued based on its PB Ratio (8.7x) compared to the DE Hospitality industry average (2x).


Next Steps

Future Growth

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

113.4%

Forecasted Consumer Services 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 Net Gaming Europe 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.


Next Steps

Past Performance

How has Net Gaming Europe performed over the past 5 years?

64.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 7NG has high quality earnings.

Growing Profit Margin: 7NG's current net profit margins (42.8%) are higher than last year (41.5%).


Past Earnings Growth Analysis

Earnings Trend: 7NG has become profitable over the past 5 years, growing earnings by 64.2% per year.

Accelerating Growth: 7NG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 7NG had negative earnings growth (-24.1%) over the past year, making it difficult to compare to the Hospitality industry average (-15.6%).


Return on Equity

High ROE: 7NG's Return on Equity (20%) is considered low.


Next Steps

Financial Health

How is Net Gaming Europe's financial position?


Financial Position Analysis

Short Term Liabilities: 7NG's short term assets (€5.5M) do not cover its short term liabilities (€25.2M).

Long Term Liabilities: 7NG's short term assets (€5.5M) exceed its long term liabilities (€177.0K).


Debt to Equity History and Analysis

Debt Level: 7NG's debt to equity ratio (79.1%) is considered high.

Reducing Debt: Insufficient data to determine if 7NG's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 7NG's debt is well covered by operating cash flow (30.5%).

Interest Coverage: 7NG's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 7NG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 7NG'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 7NG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 7NG'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 7NG's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Robert Andersson (43yo)

0.42

Tenure

Mr. Robert Andersson has been President and Chief Executive Officer of Net Gaming Europe AB (publ) since February 21, 2020. Mr. Andersson served as Chief Executive Officer and President of Nordic Leisure A ...


Leadership Team

NamePositionTenureCompensationOwnership
Robert Andersson
President & CEO0.42yrno datano data
Gustav Vadenbring
Group CFO & Secretary1.92yrsno data0.040% 9.5k
Richard Chindt
Group Chief Accountant1.92yrsno datano data
Clinton Cutajar
Group Chief Technology Officer1.83yrsno datano data
John Cremona
Chief Legal Officerno datano datano data
Erik Gjerde
Chief Executive Officer of Highlight Media2.83yrsno datano data

1.9yrs

Average Tenure

44.5yo

Average Age

Experienced Management: 7NG's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Peter Åström
Director1.5yrsno datano data
Fredrik Rüdén
Director1.5yrsno datano data
Henrik Kvick
Chairman of the Board8.25yrs€160.00k0.00013% 31.2
Jonas Bertilsson
Independent Director3.67yrs€80.00k0.58% 139.1k

2.6yrs

Average Tenure

50yo

Average Age

Experienced Board: 7NG's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Net Gaming Europe AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Net Gaming Europe AB (publ)
  • Ticker: 7NG
  • Exchange: DB
  • Founded: 2003
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: kr251.763m
  • Listing Market Cap: kr24.023m
  • Shares outstanding: 75.60m
  • Website: https://www.netgaming.se

Number of Employees


Location

  • Net Gaming Europe AB (publ)
  • Stureplan 6, 4 tr.
  • Stockholm
  • Stockholm County
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NETGOM (OMX Nordic Exchange Stockholm)YesClass A SharesSESEKMay 2009
7NGDB (Deutsche Boerse AG)YesClass A SharesDEEURMay 2009

Biography

Net Gaming Europe AB (publ), through its subsidiaries, owns, develops, and operates comparison and news sites in Sweden. It operates comparison and news sites under various digital brands, such as casinoloco.com and pokerloco.com. The company offers gaming guides, rules, and playing tips to find the right casino or poker room, or to find odds within a specific sport for iGaming’s end consumers through its comparison and news sites. Net Gaming Europe AB (publ) was founded in 2003 and is based in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/06 21:35
End of Day Share Price2020/07/06 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.