BST:1HQ

Stock Analysis Report

Ten Square Games

Executive Summary

Ten Square Games S.A. engages in the mobile games development business worldwide.

Rewards

PE ratio (32.7x) is below the Entertainment industry average (44.2x)

Earnings are forecast to grow 12.61% per year

Earnings grew by 112.6% over the past year

Risk Analysis

High level of non-cash earnings

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

How has Ten Square Games's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1HQ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

12.0%

1HQ

0.01%

DE Entertainment

0.07%

DE Market


1 Year Return

200.0%

1HQ

40.3%

DE Entertainment

14.8%

DE Market

Return vs Industry: 1HQ exceeded the German Entertainment industry which returned 44.2% over the past year.

Return vs Market: 1HQ exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

1HQIndustryMarket
7 Day12.0%0.01%0.07%
30 Day28.4%4.2%1.4%
90 Day77.2%6.2%6.1%
1 Year208.3%200.0%42.2%40.3%18.4%14.8%
3 Yearn/a47.9%40.8%17.4%7.0%
5 Yearn/a46.9%39.3%27.9%10.4%

Price Volatility Vs. Market

How volatile is Ten Square Games's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Ten Square Games undervalued compared to its fair value and its price relative to the market?

33.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1HQ (€56.9) is trading above our estimate of fair value (€45.33)

Significantly Below Fair Value: 1HQ is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1HQ is good value based on its PE Ratio (32.7x) compared to the Entertainment industry average (44.2x).

PE vs Market: 1HQ is poor value based on its PE Ratio (32.7x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: 1HQ is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: 1HQ is overvalued based on its PB Ratio (31.6x) compared to the DE Entertainment industry average (1.4x).


Next Steps

Future Growth

How is Ten Square Games forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1HQ's forecast earnings growth (12.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: 1HQ's earnings (12.6% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: 1HQ's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1HQ's revenue (12% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: 1HQ's revenue (12% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1HQ's Return on Equity is forecast to be very high in 3 years time (64.3%).


Next Steps

Past Performance

How has Ten Square Games performed over the past 5 years?

59.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1HQ has a high level of non-cash earnings.

Growing Profit Margin: 1HQ's current net profit margins (27%) are lower than last year (31%).


Past Earnings Growth Analysis

Earnings Trend: 1HQ's earnings have grown significantly by 59.2% per year over the past 5 years.

Accelerating Growth: 1HQ's earnings growth over the past year (112.6%) exceeds its 5-year average (59.2% per year).

Earnings vs Industry: 1HQ earnings growth over the past year (112.6%) exceeded the Entertainment industry 15.3%.


Return on Equity

High ROE: 1HQ's Return on Equity (96.9%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ten Square Games's financial position?


Financial Position Analysis

Short Term Liabilities: 1HQ's short term assets (PLN71.0M) exceed its short term liabilities (PLN18.4M).

Long Term Liabilities: 1HQ's short term assets (PLN71.0M) exceed its long term liabilities (PLN750.7K).


Debt to Equity History and Analysis

Debt Level: 1HQ is debt free.

Reducing Debt: 1HQ has not had any debt for past 5 years.

Debt Coverage: 1HQ has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1HQ has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1HQ has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 1HQ's debt is covered by short term assets.


Next Steps

Dividend

What is Ten Square Games's current dividend yield, its reliability and sustainability?

1.50%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.4%markettop25%3.5%industryaverage1.2%forecastin3Years3.2%

Current dividend yield vs market & industry

Notable Dividend: 1HQ's dividend (1.52%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: 1HQ's dividend (1.52%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 1HQ's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1HQ's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.6%), 1HQ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1HQ's dividends in 3 years are forecast to be covered by earnings (69.2% payout ratio).


Next Steps

Management

What is the CEO of Ten Square Games's salary, the management and board of directors tenure and is there insider trading?


CEO

Maciej Popowicz 0

0yrs

Tenure

0

Mr. Maciej Popowicz has been President of the Management Board at Ten Square Games S.A. since 2011. Mr. Popowicz serves as President of the Management Boards at Tiny Dragon Adventure Games Sp. z .o.o and  ...


Insider Trading

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 not been meaningfully diluted in the past year.


Management Team

  • Maciej Popowicz

    President of the Management Board

    • Arkadiusz Pernal

      Vice President of the Management Board

      • Tenure: 9yrs
    • Magdalena Jurewicz

      CFO & Member of the Management Board


      Board Members

      • Maciej Zuzalek

        Chairman of the Supervisory Board

        • Rafal Olesinski

          Vice Chairman of the Supervisory Board

          • Marcin Chruszczynski

            Member of the Supervisory Board

            • Maciej Marszalek

              Member of the Supervisory Board

              • Tomasz Drozdzynski

                Member of the Supervisory Board

                • Wiktor Schmidt

                  Member of the Supervisory Board

                  • Milena Olszewska-Miszuris

                    Member of the Supervisory Board

                    Company Information

                    Ten Square Games S.A.'s company bio, employee growth, exchange listings and data sources


                    Key Information

                    • Name: Ten Square Games S.A.
                    • Ticker: 1HQ
                    • Exchange: BST
                    • Founded: 2011
                    • Industry: Interactive Home Entertainment
                    • Sector: Media
                    • Market Cap: zł1.825b
                    • Listing Market Cap: zł430.224m
                    • Shares outstanding: 7.24m
                    • Website: https://www.tensquaregames.com

                    Location

                    • Ten Square Games S.A.
                    • ul. Dlugosza 60
                    • Wroclaw
                    • 51-162
                    • Poland

                    Listings

                    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                    TENWSE (Warsaw Stock Exchange)YesShare CapitalPLPLNMay 2018
                    1HQBST (Boerse-Stuttgart)YesShare CapitalDEEURMay 2018

                    Biography

                    Ten Square Games S.A. engages in the mobile games development business worldwide. It offers free-to-play games through social platforms and a network of partner sites, as well as on Google Play, App Store, and Microsoft Store. The company was founded in 2011 and is based in Wroclaw, Poland. 


                    Company Analysis and Financial Data Status

                    All financial data provided by Standard & Poor's Capital IQ.
                    DataLast Updated (UTC time)
                    Company Analysis2020/01/20 22:42
                    End of Day Share Price2020/01/20 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.