Loading...

Paradox Interactive

DB:ETA
Snowflake Description

Flawless balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ETA
DB
SEK16B
Market Cap
  1. Home
  2. DE
  3. Media
Company description

Paradox Interactive AB (publ) develops and publishes strategy games for PC primarily in the United States and Europe. The last earnings update was 59 days ago. More info.


Add to Portfolio Compare Print
ETA Share Price and Events
7 Day Returns
5.9%
DB:ETA
0.9%
DE Entertainment
2.4%
DE Market
1 Year Returns
25.6%
DB:ETA
11.6%
DE Entertainment
-6.2%
DE Market
ETA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Paradox Interactive (ETA) 5.9% 3.3% 1.8% 25.6% - -
DE Entertainment 0.9% 7.3% 13.9% 11.6% 33.9% 72.6%
DE Market 2.4% 3% 7.4% -6.2% 9.6% 14.1%
1 Year Return vs Industry and Market
  • ETA outperformed the Entertainment industry which returned 11.6% over the past year.
  • ETA outperformed the Market in Germany which returned -6.2% over the past year.
Price Volatility
ETA
Industry
5yr Volatility vs Market

Value

 Is Paradox Interactive undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Paradox Interactive to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Paradox Interactive.

DB:ETA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:ETA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Entertainment Unlevered Beta Simply Wall St/ S&P Global 0.96
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.959 (1 + (1- 22%) (0%))
0.973
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.97
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.973 * 5.96%)
6.02%

Discounted Cash Flow Calculation for DB:ETA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Paradox Interactive is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:ETA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (SEK, Millions) Source Present Value
Discounted (@ 6.02%)
2019 342.00 Analyst x2 322.57
2020 473.50 Analyst x2 421.22
2021 553.00 Analyst x2 463.98
2022 613.38 Est @ 10.92% 485.40
2023 660.68 Est @ 7.71% 493.12
2024 696.79 Est @ 5.47% 490.52
2025 723.93 Est @ 3.89% 480.67
2026 744.16 Est @ 2.79% 466.02
2027 759.23 Est @ 2.02% 448.44
2028 770.51 Est @ 1.49% 429.24
Present value of next 10 years cash flows SEK4,501.17
DB:ETA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= SEK770.51 × (1 + 0.23%) ÷ (6.02% – 0.23%)
SEK13,322.23
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= SEK13,322.23 ÷ (1 + 6.02%)10
SEK7,421.67
DB:ETA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= SEK4,501.17 + SEK7,421.67
SEK11,922.84
Equity Value per Share
(SEK)
= Total value / Shares Outstanding
= SEK11,922.84 / 105.60
SEK112.91
DB:ETA Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:ETA represents 0.09419x of OM:PDX
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.09419x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (SEK) x Listing Adjustment Factor
= SEK 112.91 x 0.09419
€10.63
Value per share (EUR) From above. €10.63
Current discount Discount to share price of €14.60
= -1 x (€14.60 - €10.63) / €10.63
-37.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Paradox Interactive is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Paradox Interactive's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Paradox Interactive's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:ETA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in SEK SEK3.35
OM:PDX Share Price ** OM (2019-04-18) in SEK SEK155
Germany Entertainment Industry PE Ratio Median Figure of 10 Publicly-Listed Entertainment Companies 17.11x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 19.67x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Paradox Interactive.

DB:ETA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OM:PDX Share Price ÷ EPS (both in SEK)

= 155 ÷ 3.35

46.25x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Paradox Interactive is overvalued based on earnings compared to the DE Entertainment industry average.
  • Paradox Interactive is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Paradox Interactive's expected growth come at a high price?
Raw Data
DB:ETA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 46.25x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
17.2%per year
Europe Entertainment Industry PEG Ratio Median Figure of 30 Publicly-Listed Entertainment Companies 1.73x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

DB:ETA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 46.25x ÷ 17.2%

2.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Paradox Interactive is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Paradox Interactive's assets?
Raw Data
DB:ETA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in SEK SEK8.09
OM:PDX Share Price * OM (2019-04-18) in SEK SEK155
Germany Entertainment Industry PB Ratio Median Figure of 14 Publicly-Listed Entertainment Companies 1.56x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.85x
DB:ETA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OM:PDX Share Price ÷ Book Value per Share (both in SEK)

= 155 ÷ 8.09

19.17x

* Primary Listing of Paradox Interactive.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Paradox Interactive is overvalued based on assets compared to the DE Entertainment industry average.
X
Value checks
We assess Paradox Interactive's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Entertainment industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Entertainment industry average (and greater than 0)? (1 check)
  5. Paradox Interactive has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Paradox Interactive expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Paradox Interactive expected to grow at an attractive rate?
  • Paradox Interactive's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Paradox Interactive's earnings growth is expected to exceed the Germany market average.
  • Paradox Interactive's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:ETA Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:ETA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 17.2%
DB:ETA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 16.9%
Germany Entertainment Industry Earnings Growth Rate Market Cap Weighted Average 22.8%
Germany Entertainment Industry Revenue Growth Rate Market Cap Weighted Average 3.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.5%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:ETA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in SEK Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:ETA Future Estimates Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,903 1,022 610 2
2020-12-31 1,678 881 552 2
2019-12-31 1,420 697 468 2
DB:ETA Past Financials Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income *
2018-12-31 1,128 575 354
2018-09-30 1,013 563 308
2018-06-30 969 536 296
2018-03-31 960 494 345
2017-12-31 814 435 265
2017-09-30 790 386 264
2017-06-30 736 419 266
2017-03-31 682 341 250
2016-12-31 654 288 240
2016-09-30 582 235 207
2016-06-30 546 187 190
2016-03-31 493 299 132

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Paradox Interactive's earnings are expected to grow by 17.2% yearly, however this is not considered high growth (20% yearly).
  • Paradox Interactive's revenue is expected to grow by 16.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:ETA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Paradox Interactive Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:ETA Future Estimates Data
Date (Data in SEK Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 5.78 5.83 5.72 2.00
2020-12-31 5.23 5.23 5.22 2.00
2019-12-31 4.43 4.71 4.15 2.00
DB:ETA Past Financials Data
Date (Data in SEK Millions) EPS *
2018-12-31 3.35
2018-09-30 2.92
2018-06-30 2.80
2018-03-31 3.26
2017-12-31 2.51
2017-09-30 2.50
2017-06-30 2.52
2017-03-31 2.37
2016-12-31 2.28
2016-09-30 1.96
2016-06-30 1.80
2016-03-31 1.25

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Paradox Interactive is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Paradox Interactive's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Paradox Interactive has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Paradox Interactive performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Paradox Interactive's growth in the last year to its industry (Entertainment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Paradox Interactive has delivered over 20% year on year earnings growth in the past 5 years.
  • Paradox Interactive's 1-year earnings growth exceeds its 5-year average (33.6% vs 29.4%)
  • Paradox Interactive's earnings growth has exceeded the DE Entertainment industry average in the past year (33.6% vs -6%).
Earnings and Revenue History
Paradox Interactive's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Paradox Interactive Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:ETA Past Revenue, Cash Flow and Net Income Data
Date (Data in SEK Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,127.72 353.93 279.88
2018-09-30 1,013.21 308.44 245.81
2018-06-30 968.90 296.06 218.98
2018-03-31 959.50 344.51 195.11
2017-12-31 813.79 264.94 171.13
2017-09-30 789.78 264.22 157.08
2017-06-30 736.28 265.98 146.02
2017-03-31 681.73 250.25 132.69
2016-12-31 653.74 240.44 126.61
2016-09-30 582.20 207.23 112.13
2016-06-30 545.53 189.72 106.84
2016-03-31 492.66 132.32 100.38
2015-12-31 604.05 188.83 98.14
2014-12-31 177.05 33.61 42.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Paradox Interactive made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Paradox Interactive used its assets more efficiently than the DE Entertainment industry average last year based on Return on Assets.
  • Paradox Interactive's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Paradox Interactive's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Entertainment industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Paradox Interactive has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Paradox Interactive's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Paradox Interactive's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Paradox Interactive is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Paradox Interactive's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Paradox Interactive's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Paradox Interactive has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Paradox Interactive Company Filings, last reported 3 months ago.

DB:ETA Past Debt and Equity Data
Date (Data in SEK Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 853.78 0.00 327.04
2018-09-30 740.18 0.00 344.14
2018-06-30 687.23 0.00 329.26
2018-03-31 710.39 0.00 373.57
2017-12-31 599.92 0.00 320.10
2017-09-30 530.01 0.00 244.29
2017-06-30 489.85 0.00 253.20
2017-03-31 469.12 0.00 288.03
2016-12-31 439.91 0.00 246.91
2016-09-30 371.80 0.00 215.05
2016-06-30 329.47 0.00 143.20
2016-03-31 218.87 0.00 106.23
2015-12-31 270.23 0.00 159.84
2014-12-31 113.07 0.00 50.54
  • Paradox Interactive has no debt.
  • Paradox Interactive has not taken on any debt in the past 5 years.
  • Paradox Interactive has no debt, it does not need to be covered by operating cash flow.
  • Paradox Interactive has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Paradox Interactive's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Paradox Interactive has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.65%
Current annual income from Paradox Interactive dividends. Estimated to be 1.16% next year.
If you bought €2,000 of Paradox Interactive shares you are expected to receive €13 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Paradox Interactive's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.43%).
  • Paradox Interactive's dividend is below the markets top 25% of dividend payers in Germany (3.7%).
Upcoming dividend payment

Purchase Paradox Interactive before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:ETA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Germany Entertainment Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 1.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:ETA Future Dividends Estimate Data
Date (Data in SEK) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 2.25 2.00
2020-12-31 1.75 2.00
2019-12-31 1.38 2.00
DB:ETA Past Annualized Dividends Data
Date (Data in SEK) Dividend per share (annual) Avg. Yield (%)
2019-04-16 1.000 0.676
2018-05-18 1.000 0.652
2017-04-06 1.000 1.157
2016-11-14 0.000 0.000
2016-08-25 0.000 0.000
2016-05-31 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Paradox Interactive is not paying a notable dividend for Germany, therefore no need to check if the payments are stable.
  • Paradox Interactive is not paying a notable dividend for Germany, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Paradox Interactive's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Paradox Interactive's dividends as it is not paying a notable one for Germany.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).
X
Income/ dividend checks
We assess Paradox Interactive's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Paradox Interactive afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Paradox Interactive has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ebba Ljungerud
COMPENSATION SEK180,000
AGE 46
TENURE AS CEO 0.7 years
CEO Bio

Ms. Ebba Ljungerud is Chief Executive Officer at Paradox Interactive AB (publ) since August 2018. Ms. Ljungerud was Chief Commercial Officer of Unibet Group plc from 2016 to June 30, 2018. Ms. Ljungerud has been working in the gaming industry since 2007. She served as the Chief Programme Officer at Kindred Group plc since 2014 until 2016. She has international experience from several different gaming brands. Ms. Ljungerud served as a Marketing Director as well as Executive Vice President for Swedish companies, focused mainly on print and online media. She has been a Director of Paradox Interactive AB (publ) since 2014. She served as a Non-Executive Director of Shoal Games Ltd. (formerly, Bingo.com Ltd.) from June 2011 to January 27, 2015. Ms. Ljungerud has a M.Sc. in Business and Economics from Lund University.

CEO Compensation
  • Ebba's compensation has been consistent with company performance over the past year.
  • Ebba's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Paradox Interactive management team in years:

1.1
Average Tenure
43
Average Age
  • The average tenure for the Paradox Interactive management team is less than 2 years, this suggests a new team.
Management Team

Fredrik Wester

TITLE
Founder & Chairman
COMPENSATION
SEK643K
AGE
44

Ebba Ljungerud

TITLE
CEO & Director
COMPENSATION
SEK180K
AGE
46
TENURE
0.7 yrs

Alexander Bricca

TITLE
Chief Financial Officer
AGE
42
TENURE
1.1 yrs

John Hargelid

TITLE
Chief Information Officer
AGE
37
TENURE
5.3 yrs

Juliette Auverny-Bennetot

TITLE
Senior Legal Counsel

Johan Andersson

TITLE
Executive Vice President of Creative Direction
Board of Directors Tenure

Average tenure and age of the Paradox Interactive board of directors in years:

2.2
Average Tenure
46
Average Age
  • The average tenure for the Paradox Interactive board of directors is less than 3 years, this suggests a new board.
Board of Directors

Fredrik Wester

TITLE
Founder & Chairman
COMPENSATION
SEK643K
AGE
44
TENURE
0.7 yrs

Ebba Ljungerud

TITLE
CEO & Director
COMPENSATION
SEK180K
AGE
46
TENURE
5.3 yrs

Håkan Sjunnesson

TITLE
Director
COMPENSATION
SEK360K
AGE
62

Cecilia Beck-Friis

TITLE
Director
COMPENSATION
SEK180K
AGE
45
TENURE
3.1 yrs

Josephine Salenstedt

TITLE
Director
AGE
34
TENURE
1.3 yrs

Peter Ingman

TITLE
Director
AGE
50
TENURE
1.3 yrs

Lars Klingstedt

TITLE
Director
COMPENSATION
SEK90K
AGE
64
TENURE
3.1 yrs
Who owns this company?
Recent Insider Trading
  • Paradox Interactive insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
28. Mar 19 Sell Shams Jorjani Individual 25. Mar 19 25. Mar 19 -40,000 €146.00 €-5,840,000
12. Sep 18 Sell John Hargelid Individual 11. Sep 18 11. Sep 18 -150,000 €149.80 €-22,470,000
15. Aug 18 Buy Ebba Ljungerud Individual 15. Aug 18 15. Aug 18 1,200 €156.00 €187,200
X
Management checks
We assess Paradox Interactive's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Paradox Interactive has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Paradox Interactive AB (publ) develops and publishes strategy games for PC primarily in the United States and Europe. The company publishes own titles and titles developed by independent studios, as well as music and books. Its game portfolio comprises approximately 100 titles, including owned brands, such as Stellaris, Europa Universalis, Hearts of Iron, Crusader Kings, Cities: Skylines, Magicka, and Age of Wonders. The company distributes its games through distributors, as well as digital download portals. Paradox Interactive AB (publ) was founded in 1998 and is headquartered in Stockholm, Sweden.

Details
Name: Paradox Interactive AB (publ)
ETA
Exchange: DB
Founded: 1998
SEK1,565,613,195
105,600,000
Website: http://www.paradoxinteractive.com
Address: Paradox Interactive AB (publ)
Vastgotagatan 5,
Stockholm,
Stockholm County, 118 27,
Sweden
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OM PDX Ordinary Shares OMX Nordic Exchange Stockholm SE SEK 31. May 2016
OTCPK PRXX.F Ordinary Shares Pink Sheets LLC US USD 31. May 2016
DB ETA Ordinary Shares Deutsche Boerse AG DE EUR 31. May 2016
LSE 0GDU Ordinary Shares London Stock Exchange GB SEK 31. May 2016
Number of employees
Current staff
Staff numbers
405
Paradox Interactive employees.
Industry
Interactive Home Entertainment
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 22:07
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/03/20
Last earnings filing: 2019/02/19
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.