DB:2ST

Stock Analysis Report

Executive Summary

Starbreeze AB (publ) operates as an independent developer, creator, publisher, and distributor of PC and console products in Sweden and internationally.


Snowflake Analysis

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.0%

2ST

-6.7%

DE Entertainment

-4.7%

DE Market


1 Year Return

111.6%

2ST

25.9%

DE Entertainment

8.3%

DE Market

Return vs Industry: 2ST exceeded the German Entertainment industry which returned 25.9% over the past year.

Return vs Market: 2ST exceeded the German Market which returned 8.3% over the past year.


Shareholder returns

2STIndustryMarket
7 Day-2.0%-6.7%-4.7%
30 Day-14.2%-10.2%-4.0%
90 Day-32.1%-2.1%-1.4%
1 Year111.6%111.6%27.6%25.9%11.7%8.3%
3 Yearn/a32.9%26.5%11.4%1.6%
5 Yearn/a96.5%80.9%15.1%-0.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Starbreeze 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: 2ST (€0.13) is trading below our estimate of fair value (€1.51)

Significantly Below Fair Value: 2ST is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2ST is unprofitable, so we can't compare its PE Ratio to the Entertainment industry average.

PE vs Market: 2ST is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2ST's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2ST is overvalued based on its PB Ratio (96.3x) compared to the DE Entertainment industry average (1.3x).


Next Steps

Future Growth

How is Starbreeze forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

127.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2ST is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: 2ST is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 2ST's is expected to become profitable in the next 3 years.

Revenue vs Market: 2ST's revenue (66.1% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: 2ST's revenue (66.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 2ST's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Starbreeze performed over the past 5 years?

-79.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2ST is currently unprofitable.

Growing Profit Margin: 2ST is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2ST is unprofitable, and losses have increased over the past 5 years at a rate of -79.5% per year.

Accelerating Growth: Unable to compare 2ST's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2ST is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (14.9%).


Return on Equity

High ROE: 2ST has a negative Return on Equity (-6513.46%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Starbreeze's financial position?


Financial Position Analysis

Short Term Liabilities: 2ST's short term assets (SEK130.8M) do not cover its short term liabilities (SEK401.6M).

Long Term Liabilities: 2ST's short term assets (SEK130.8M) do not cover its long term liabilities (SEK184.2M).


Debt to Equity History and Analysis

Debt Level: 2ST is debt free.

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


Balance Sheet

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

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


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: 2ST has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 2ST has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate 2ST'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 2ST's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2ST'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 2ST'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?

1.8yrs

Average management tenure


CEO

Mikael Nermark (49yo)

1.2yrs

Tenure

kr3,602,000

Compensation

Mr. Mikael Nermark serves as the Chief Operating Officer of Starbreeze AB (publ) and has been its Acting Chief Executive Officer since December 3, 2018. Mr. Nermark was Deputy Chief Executive Officer at St ...


CEO Compensation Analysis

Compensation vs Market: Mikael's total compensation ($USD370.08K) is about average for companies of similar size in the German market ($USD414.81K).

Compensation vs Earnings: Mikael's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Mikael Nermark
Acting CEO & COO1.2yrskr3.60mno data
Claes Wenthzel
Acting Chief Financial Officer1.2yrsno datano data
Emmanuel Marquez
Chief Technology Officer6.1yrsno datano data
Johanna Wikland
Global Human Resources Director4.1yrsno datano data
Martin Ternheim
HR Director & Chief People Officer1.1yrsno datano data
Maeva Sponbergs
Chief Commercial Officer2.6yrsno datano data
Stéphane Decroix
Chief Development Officer1.8yrsno datano data
Charlotte Albertsson
Head of Business & Financial Control2.1yrsno datano data
Per Juhlen
Head of Production1.1yrsno datano data

1.8yrs

Average Tenure

43yo

Average Age

Experienced Management: 2ST's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stefano Salbe
Director0.6yrsno datano data
Torgny Hellström
Independent Chairman of the Board0.9yrsno datano data
Jan Benjaminson
Independent Director0.9yrsno datano data
Tobias Sjögren
Independent Director0.6yrsno datano data
Hyung Kim
Director4.1yrskr200.00kno data
Kerstin Sundberg
Independent Director0.9yrsno datano data

0.9yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 2ST's board of directors are not considered experienced ( 0.9 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Starbreeze AB (publ)
  • Ticker: 2ST
  • Exchange: DB
  • Founded: 1998
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: kr652.148m
  • Listing Market Cap: kr61.730m
  • Shares outstanding: 362.30m
  • Website: https://www.starbreeze.com

Number of Employees


Location

  • Starbreeze AB (publ)
  • Regeringsgatan 38
  • Stockholm
  • Stockholm County
  • 111 56
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STAR BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKAug 2000
STBE.FOTCPK (Pink Sheets LLC)YesClass B SharesUSUSDAug 2000
STARBSBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBSEKAug 2000
0RUULSE (London Stock Exchange)YesClass B SharesGBSEKAug 2000
2STDB (Deutsche Boerse AG)YesClass B SharesDEEURAug 2000
STAR AOM (OMX Nordic Exchange Stockholm)Class A SharesSESEKJun 2015
0RUVLSE (London Stock Exchange)Class A SharesGBSEKJun 2015
2STADB (Deutsche Boerse AG)Class A SharesDEEURJun 2015
STARASBATS-CHIXE (BATS 'Chi-X Europe')Class A SharesGBSEKJun 2015

Biography

Starbreeze AB (publ) operates as an independent developer, creator, publisher, and distributor of PC and console products in Sweden and internationally. It develops games based on proprietary and third-party rights. The company was founded in 1998 and is headquartered in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 23:52
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
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.