BST:2EC

Stock Analysis Report

Executive Summary

Team17 Group PLC develops video games label for independent developers worldwide.

Rewards

PE ratio (36.8x) is below the Entertainment industry average (44.2x)

Earnings are forecast to grow 6.69% per year

Earnings grew by 387% over the past year

Risk Analysis

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Outstanding track record with flawless balance sheet.

Share Price & News

How has Team17 Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2EC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.2%

2EC

0.01%

DE Entertainment

0.07%

DE Market


1 Year Return

105.7%

2EC

40.3%

DE Entertainment

14.8%

DE Market

Return vs Industry: 2EC exceeded the German Entertainment industry which returned 44.2% over the past year.

Return vs Market: 2EC exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

2ECIndustryMarket
7 Day8.2%0.01%0.07%
30 Day36.0%4.2%1.4%
90 Day40.8%6.2%6.1%
1 Year105.7%105.7%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 Team17 Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Team17 Group undervalued compared to its fair value and its price relative to the market?

36.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2EC (€5.12) is trading above our estimate of fair value (€4.39)

Significantly Below Fair Value: 2EC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2EC is good value based on its PE Ratio (36.8x) compared to the Entertainment industry average (44.2x).

PE vs Market: 2EC is poor value based on its PE Ratio (36.8x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: 2EC is poor value based on its PEG Ratio (5.5x)


Price to Book Ratio

PB vs Industry: 2EC is overvalued based on its PB Ratio (8.4x) compared to the DE Entertainment industry average (1.4x).


Next Steps

Future Growth

How is Team17 Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2EC's forecast earnings growth (6.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: 2EC's earnings (6.7% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: 2EC's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2EC's revenue (7.6% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: 2EC's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2EC's Return on Equity is forecast to be low in 3 years time (18.1%).


Next Steps

Past Performance

How has Team17 Group performed over the past 5 years?

36.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2EC has high quality earnings.

Growing Profit Margin: 2EC's current net profit margins (28.2%) are higher than last year (9.7%).


Past Earnings Growth Analysis

Earnings Trend: 2EC's earnings have grown significantly by 36.3% per year over the past 5 years.

Accelerating Growth: 2EC's earnings growth over the past year (387%) exceeds its 5-year average (36.3% per year).

Earnings vs Industry: 2EC earnings growth over the past year (387%) exceeded the Entertainment industry 15.3%.


Return on Equity

High ROE: 2EC's Return on Equity (22.8%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Team17 Group's financial position?


Financial Position Analysis

Short Term Liabilities: 2EC's short term assets (£44.3M) exceed its short term liabilities (£10.2M).

Long Term Liabilities: 2EC's short term assets (£44.3M) exceed its long term liabilities (£3.2M).


Debt to Equity History and Analysis

Debt Level: 2EC is debt free.

Reducing Debt: 2EC had no debt 5 years ago.

Debt Coverage: 2EC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 2EC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 2EC has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 2EC's debt is covered by short term assets.


Next Steps

Dividend

What is Team17 Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.5%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 2EC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2EC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2EC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2EC'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 2EC's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Team17 Group's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average board tenure


CEO

Debbie Bestwick (49yo)

0yrs

Tenure

0

Ms. Deborah Jayne Bestwick, MBE, also known as Debbie, has been Director of Team17 Group PLC/Team17 Digital Ltd. since May 01, 1994 and serves as its Chief Executive Officer. Ms. Bestwick is an industry le ...


Board Age and Tenure

1.7yrs

Average Tenure

54yo

Average Age

Experienced Board: 2EC's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 24.9%.


Management Team

  • Mark Crawford (51yo)

    Interim Chief Financial Officer

    • Tenure: 0.2yrs
  • Debbie Bestwick (49yo)

    CEO & Director

    • Richard Almond

      Company secretary


      Board Members

      • Chris Bell (61yo)

        Non-Executive Chairman

        • Tenure: 1.7yrs
      • Martin Hellawell (54yo)

        Non-Executive Director

        • Tenure: 0.3yrs
      • Jennifer Lawrence (37yo)

        Non-Executive Director

        • Tenure: 0.9yrs
      • Penny Judd (56yo)

        Non-Executive Director

        • Tenure: 1.7yrs
      • Debbie Bestwick (49yo)

        CEO & Director

        Company Information

        Team17 Group PLC's company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Team17 Group PLC
        • Ticker: 2EC
        • Exchange: BST
        • Founded: 1990
        • Industry: Interactive Home Entertainment
        • Sector: Media
        • Market Cap: UK£595.182m
        • Listing Market Cap: UK£698.960m
        • Shares outstanding: 129.39m
        • Website: https://www.team17.com

        Number of Employees


        Location

        • Team17 Group PLC
        • 3 Red Hall Avenue
        • Paragon Business Park
        • Wakefield
        • West Yorkshire
        • WF1 2UL
        • United Kingdom

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        TM17AIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMay 2018
        2ECBST (Boerse-Stuttgart)YesOrdinary SharesDEEURMay 2018

        Biography

        Team17 Group PLC develops video games label for independent developers worldwide. The company develops and publishes computer games for the digital and physical market. Its portfolio comprises approximately 100 games, including the Worms franchise, Overcooked, and The Escapists. Team17 Group PLC was founded in 1990 and is based in Wakefield, the United Kingdom. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/19 22:13
        End of Day Share Price2020/01/17 00:00
        Earnings2019/06/30
        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.