DB:8GG

Stock Analysis Report

Executive Summary

Gamenet Group S.p.A. engages in the gaming and betting business in Italy.


Snowflake Analysis

Reasonable growth potential with acceptable track record.


Similar Companies

Share Price & News

How has Gamenet Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8GG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

8GG

-11.1%

DE Hospitality

-4.7%

DE Market


1 Year Return

80.7%

8GG

-5.0%

DE Hospitality

8.3%

DE Market

Return vs Industry: 8GG exceeded the German Hospitality industry which returned -5% over the past year.

Return vs Market: 8GG exceeded the German Market which returned 8.3% over the past year.


Shareholder returns

8GGIndustryMarket
7 Day-0.6%-11.1%-4.7%
30 Day0.6%-6.5%-4.0%
90 Day0.5%-21.9%-1.4%
1 Year94.0%80.7%-0.9%-5.0%11.7%8.3%
3 Yearn/a-17.1%-28.5%11.4%1.6%
5 Yearn/a-18.7%-35.9%15.1%-0.7%

Price Volatility Vs. Market

How volatile is Gamenet Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Gamenet Group undervalued compared to its fair value and its price relative to the market?

22.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 8GG (€12.94) is trading above our estimate of fair value (€10.65)

Significantly Below Fair Value: 8GG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 8GG is good value based on its PE Ratio (22.5x) compared to the Hospitality industry average (25.4x).

PE vs Market: 8GG is poor value based on its PE Ratio (22.5x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: 8GG is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 8GG is overvalued based on its PB Ratio (17.1x) compared to the DE Hospitality industry average (2.2x).


Next Steps

Future Growth

How is Gamenet Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

26.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8GG's forecast earnings growth (26.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: 8GG's earnings (26.8% per year) are forecast to grow faster than the German market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 8GG's revenue (2% per year) is forecast to grow slower than the German market (5.1% per year).

High Growth Revenue: 8GG's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 8GG's Return on Equity is forecast to be very high in 3 years time (66.3%).


Next Steps

Past Performance

How has Gamenet Group performed over the past 5 years?

16.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8GG has high quality earnings.

Growing Profit Margin: 8GG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 8GG has become profitable over the past 5 years, growing earnings by 16.3% per year.

Accelerating Growth: 8GG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 8GG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (-36.8%).


Return on Equity

High ROE: Whilst 8GG's Return on Equity (70.37%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gamenet Group's financial position?


Financial Position Analysis

Short Term Liabilities: 8GG's short term assets (€198.0M) exceed its short term liabilities (€147.9M).

Long Term Liabilities: 8GG's short term assets (€198.0M) do not cover its long term liabilities (€533.3M).


Debt to Equity History and Analysis

Debt Level: 8GG's debt to equity ratio (1822.3%) is considered high.

Reducing Debt: 8GG's debt to equity ratio has increased from 1788.5% to 1822.3% over the past 5 years.


Balance Sheet

Inventory Level: 8GG has a low level of unsold assets or inventory.

Debt Coverage by Assets: 8GG's debt is not covered by short term assets (assets are 0.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 8GG is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 8GG is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Gamenet Group's current dividend yield, its reliability and sustainability?

4.99%

Current Dividend Yield


Dividend Yield vs Market

company5.0%marketbottom25%1.4%markettop25%3.7%industryaverage5.9%forecastin3Years6.5%

Current dividend yield vs market & industry

Notable Dividend: 8GG's dividend (4.99%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: 8GG's dividend (4.99%) is in the top 25% of dividend payers in the German market (3.73%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 8GG has been paying a dividend for less than 10 years.

Growing Dividend: 8GG's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (112.3%), 8GG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 8GG's dividends in 3 years are forecast to be well covered by earnings (46.1% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Guglielmo Angelozzi (47yo)

3.6yrs

Tenure

0

Mr. Guglielmo Angelozzi serves Chief Executive Officer of Gamenet Group S.p.A. since September 13, 2017 and July 1, 2016 respectively and serves as Managing Director. Mr. Angelozzi serves as the Chief Exec ...


Leadership Team

NamePositionTenureCompensationOwnership
Guglielmo Angelozzi
CEO & Director3.6yrsno datano data
Mario Bruno
Chief Financial Officer8.1yrsno datano data
Fabio De Santis
Chief Technology Officer0yrsno datano data
Josef Mastragostino
Head of Investor Relations2.3yrsno datano data
Oronzo Gonnella
Manager of Regulatory Compliance & Anti-Money Laundering8.1yrsno datano data
Marco Ambrosino
Head of Gaming Machines Business & Sales0yrsno datano data
Giovanni Barbieri
Head of M&A0yrsno datano data
Maila Pietrangeli
Head of Retail Business & Distribution Network Delivery0yrsno datano data
Gennaro Schettino
Head of External Relations & Communication0yrsno datano data
Sabrina Lai
Head of Group Integration0yrsno datano data

5.8yrs

Average Tenure

49yo

Average Age

Experienced Management: 8GG's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Guglielmo Angelozzi
CEO & Director3.6yrsno datano data
Paolo Agrifoglio
Director0yrsno datano data
Maurizio De Magistris
Chairman of Board of Statutory Auditors0yrsno datano data
Giacinto D'Onofrio
Non-Executive Director3.7yrsno datano data
Andrea Collalti
Statutory Auditor0yrsno datano data
Marco Conte
Non-Executive Director3.7yrsno datano data
Giacomo Morano
Non-Executive Director3.7yrsno datano data
Camilla Ciambellotti
Lead Independent Director2.1yrsno datano data
Claudia Ricchetti
Independent Director2.2yrsno datano data
Nikolaos Nikolakopoulos
Director0yrsno datano data

3.7yrs

Average Tenure

49yo

Average Age

Experienced Board: 8GG's board of directors are considered experienced (3.7 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Gamenet Group S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gamenet Group S.p.A.
  • Ticker: 8GG
  • Exchange: DB
  • Founded: 2006
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: €390.600m
  • Shares outstanding: 30.00m
  • Website: https://www.gamenetgroup.it

Number of Employees


Location

  • Gamenet Group S.p.A.
  • Via degli Aldobrandeschi, 300
  • Rome
  • Rome
  • 163
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GAMEBIT (Borsa Italiana)YesClass A SharesITEURDec 2017
GAMEMBATS-CHIXE (BATS 'Chi-X Europe')YesClass A SharesGBEURDec 2017
8GGDB (Deutsche Boerse AG)YesClass A SharesDEEURDec 2017
0TDKLSE (London Stock Exchange)YesClass A SharesGBEURDec 2017
GMNN.FOTCPK (Pink Sheets LLC)YesClass A SharesUSUSDDec 2017

Biography

Gamenet Group S.p.A. engages in the gaming and betting business in Italy. The company operates through four segments: Amusement With Prize (AWP), Video Lottery Terminal (VLT), Betting and Online, and Retail and Street Operations. Its AWPs are represented by traditional slot machines. The company engages in the betting and online games, such as poker, casino games, bingo, horse racing, bingo and prediction games, and other sports betting. As of December 31, 2018, its distribution network included 1,732 betting rights; 8,570 VLT licenses; 29,972 AWP operating permits; and 759 gaming halls, of which 70 are directly managed. The company was founded in 2006 and is based in Rome, Italy. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 23:45
End of Day Share Price2020/02/24 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.