DB:F2P

Stock Analysis Report

Executive Summary

Glu Mobile Inc. develops, publishes, and markets a portfolio of free-to-play mobile games for the users of smartphones and tablet devices.


Snowflake Analysis

Flawless balance sheet with high growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: F2P's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.7%

F2P

-4.5%

DE Entertainment

-0.6%

DE Market


1 Year Return

-44.6%

F2P

-15.1%

DE Entertainment

-20.9%

DE Market

Return vs Industry: F2P underperformed the German Entertainment industry which returned -15.1% over the past year.

Return vs Market: F2P underperformed the German Market which returned -20.9% over the past year.


Shareholder returns

F2PIndustryMarket
7 Day-8.7%-4.5%-0.6%
30 Day-8.1%-12.7%-16.6%
90 Day0.1%-31.9%-26.0%
1 Year-44.6%-44.6%-14.0%-15.1%-18.6%-20.9%
3 Year163.5%163.5%-8.4%-12.8%-19.0%-25.8%
5 Year16.9%16.9%27.1%17.4%-21.1%-31.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Glu Mobile 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: F2P (€5.58) is trading below our estimate of fair value (€25.06)

Significantly Below Fair Value: F2P is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: F2P is poor value based on its PE Ratio (99x) compared to the Entertainment industry average (27.2x).

PE vs Market: F2P is poor value based on its PE Ratio (99x) compared to the German market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: F2P is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: F2P is overvalued based on its PB Ratio (4.4x) compared to the DE Entertainment industry average (1.1x).


Next Steps

Future Growth

How is Glu Mobile forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

56.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: F2P's forecast earnings growth (56.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: F2P's earnings (56.7% per year) are forecast to grow faster than the German market (14.1% per year).

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

Revenue vs Market: F2P's revenue (11.9% per year) is forecast to grow faster than the German market (4% per year).

High Growth Revenue: F2P's revenue (11.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: F2P's Return on Equity is forecast to be high in 3 years time (22.9%)


Next Steps

Past Performance

How has Glu Mobile performed over the past 5 years?

-6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: F2P has high quality earnings.

Growing Profit Margin: F2P became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: F2P has become profitable over the past 5 years, growing earnings by -6.8% per year.

Accelerating Growth: F2P has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: F2P has become profitable in the last year, making it difficult to compare its past year earnings growth to the Entertainment industry (-50.4%).


Return on Equity

High ROE: F2P's Return on Equity (4.4%) is considered low.


Next Steps

Financial Health

How is Glu Mobile's financial position?


Financial Position Analysis

Short Term Liabilities: F2P's short term assets ($214.6M) exceed its short term liabilities ($150.8M).

Long Term Liabilities: F2P's short term assets ($214.6M) exceed its long term liabilities ($64.2M).


Debt to Equity History and Analysis

Debt Level: F2P is debt free.

Reducing Debt: F2P has not had any debt for past 5 years.


Balance Sheet

Inventory Level: F2P has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if F2P'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: F2P is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: F2P is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate F2P's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate F2P'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 F2P's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if F2P'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 F2P'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?

3.4yrs

Average management tenure


CEO

Nick Earl (53yo)

3.42s

Tenure

US$9,313,085

Compensation

Mr. Nick Earl has been the Chief Executive Officer and President at Glu Mobile Inc. since November 10, 2016. Mr. Earl served as the President of Global Studios at Glu Mobile, Inc. from November 5, 2015 to  ...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD9.31M) is above average for companies of similar size in the German market ($USD1.36M).

Compensation vs Earnings: Nick's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Niccolo de Masi
Executive Chairman5.33yrsUS$375.00k0.54% $4.5m
Nick Earl
President3.42yrsUS$9.31m0.35% $2.9m
Eric Ludwig
Executive VP11.67yrsUS$3.42m0.17% $1.4m
Scott Leichtner
VP, General Counsel & Corporate Secretary9.58yrsUS$883.95k0.14% $1.2m
Christopher Akhavan
Chief Revenue Officer3.92yrsUS$2.11mno data
Gordon Lee
VP of Accounting & Principal Accounting Officer2.75yrsno data0.015% $126.8k
Tim Wilson
Chief Technology Officer4.5yrsUS$1.18mno data
Harman Singh
Vice President of Finance & Investor Relations2.17yrsno datano data
Mike Olsen
Senior Vice President of Studios3.25yrsno datano data
Chuck Elberti
Senior Vice President of Revenue Platform1.83yrsno datano data

3.4yrs

Average Tenure

48yo

Average Age

Experienced Management: F2P's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Niccolo de Masi
Executive Chairman5.33yrsUS$375.00k0.54% $4.5m
Nick Earl
President3.42yrsUS$9.31m0.35% $2.9m
Ann Mather
Independent Director14.58yrsUS$311.60k0.052% $431.6k
Benjamin Feder
Director3.25yrsno datano data
Hany Nada
Independent Director15yrsUS$326.71k0.14% $1.2m
Benjamin Smith
Lead Director4yrsUS$376.26k0.023% $192.1k
Gabrielle Toledano
Independent Director2.33yrsUS$311.71k0.017% $137.2k
Eric R. Ball
Independent Director6.5yrsUS$326.60k0.11% $877.9k
Greg Brandeau
Independent Director4.67yrsUS$321.71k0.017% $137.2k
Darla Anderson
Independent Director1.08yrsno data0.0044% $36.6k

4.3yrs

Average Tenure

54yo

Average Age

Experienced Board: F2P's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: F2P insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.1%.


Top Shareholders

Company Information

Glu Mobile Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Glu Mobile Inc.
  • Ticker: F2P
  • Exchange: DB
  • Founded: 2001
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: US$888.188m
  • Listing Market Cap: US$823.261m
  • Shares outstanding: 150.03m
  • Website: https://www.glu.com

Number of Employees


Location

  • Glu Mobile Inc.
  • 875 Howard Street
  • Suite 100
  • San Francisco
  • California
  • 94103
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
F2PDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2007
GLUUNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 2007
GLUUSWX (SIX Swiss Exchange)YesCommon StockCHCHFMar 2007
0QZLLSE (London Stock Exchange)YesCommon StockGBUSDMar 2007

Biography

Glu Mobile Inc. develops, publishes, and markets a portfolio of free-to-play mobile games for the users of smartphones and tablet devices. The company publishes titles primarily in four genres, including home décor, sports and action, fashion and celebrity, and time management. It portfolio of compelling games based on its own intellectual property, such as Cooking Dash, Covet Fashion, Deer Hunter, Design Home, and QuizUp, as well as games based on or significantly incorporating third party licensed brands, including Kim Kardashian: Hollywood, MLB Tap Sports Baseball, and Restaurant Dash with Gordon Ramsay. It markets, sells, and distributes its games primarily through direct-to-consumer digital storefronts, such as the Apple App Store, Google Play Store, and others. The company was formerly known as Sorrent, Inc. and changed its name to Glu Mobile Inc. in May 2005. Glu Mobile Inc. was founded in 2001 and is headquartered in San Francisco, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 22:10
End of Day Share Price2020/04/06 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.