HLSE:NXTGMS

Stock Analysis Report

Executive Summary

Next Games Oyj develops and publishes mobile games in North America, Europe, and internationally.

Rewards

Trading at 72.9% below its fair value

Earnings are forecast to grow 64.64% per year

Risk Analysis

Has less than 1 year of cash runway

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap (€23M)



Snowflake Analysis

High growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.8%

NXTGMS

0.4%

FI Entertainment

-0.7%

FI Market


1 Year Return

-35.5%

NXTGMS

15.8%

FI Entertainment

9.9%

FI Market

Return vs Industry: NXTGMS underperformed the Finnish Entertainment industry which returned 15.8% over the past year.

Return vs Market: NXTGMS underperformed the Finnish Market which returned 9.9% over the past year.


Shareholder returns

NXTGMSIndustryMarket
7 Day-3.8%0.4%-0.7%
30 Day0%1.7%-2.5%
90 Day-41.5%-1.8%1.2%
1 Year-33.8%-35.5%20.7%15.8%15.0%9.9%
3 Yearn/a54.6%29.2%26.5%11.3%
5 Yearn/a81.5%36.6%55.5%25.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Next Games Oyj 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: NXTGMS (€0.81) is trading below our estimate of fair value (€2.99)

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


Price To Earnings Ratio

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

PE vs Market: NXTGMS is unprofitable, so we can't compare its PE Ratio to the Finnish market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NXTGMS is good value based on its PB Ratio (0.8x) compared to the XE Entertainment industry average (2.4x).


Next Steps

Future Growth

How is Next Games Oyj forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

64.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NXTGMS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.1%).

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

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

Revenue vs Market: NXTGMS's revenue (20.1% per year) is forecast to grow faster than the Finnish market (1.5% per year).

High Growth Revenue: NXTGMS's revenue (20.1% 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 NXTGMS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Next Games Oyj performed over the past 5 years?

-64.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NXTGMS is currently unprofitable.

Growing Profit Margin: NXTGMS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NXTGMS is unprofitable, and losses have increased over the past 5 years at a rate of -64.9% per year.

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

Earnings vs Industry: NXTGMS is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (14.6%).


Return on Equity

High ROE: NXTGMS has a negative Return on Equity (-86.55%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Next Games Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: NXTGMS's short term assets (€10.6M) exceed its short term liabilities (€9.2M).

Long Term Liabilities: NXTGMS's short term assets (€10.6M) exceed its long term liabilities (€4.2M).


Debt to Equity History and Analysis

Debt Level: NXTGMS's debt to equity ratio (4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if NXTGMS's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: NXTGMS's debt is covered by short term assets (assets are 13.9x debt).


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: NXTGMS has less than a year of cash runway based on its current free cash flow.

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


Next Steps

Dividend

What is Next Games Oyj's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%4.9%industryaverage1.8%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Teemu Huuhtanen (48yo)

6.9yrs

Tenure

0

Mr. Teemu Huuhtanen, BBA, has been the Chief Executive Officer of Next Games Oyj since 2013 and serves as its Chairman of the Management Board. Mr. Huuhtanen served as Executive Vice President of Business  ...


Management Age and Tenure

5.9yrs

Average Tenure

39yo

Average Age

Experienced Management: NXTGMS's management team is seasoned and experienced (5.9 years average tenure).


Board Age and Tenure

1.7yrs

Average Tenure

51yo

Average Age

Experienced Board: NXTGMS'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 3.2%.


Management Team

  • Teemu Huuhtanen (48yo)

    CEO & Chairman of Management Board

    • Tenure: 6.9yrs
  • Saara Bergström (40yo)

    Chief Marketing Officer & Member of Management Board

    • Tenure: 5.9yrs
  • Sami Nurmio

    Head of New Projects & Member of Management Board

    • Tenure: 0yrs
  • Annina Salvén (31yo)

    CFO & Member of Management Board

    • Tenure: 3.9yrs
  • Kalle Hiitola (39yo)

    CTO & Member of Management Board

    • Tenure: 6.9yrs
  • Joonas Viitala (31yo)

    COO & Member of Management Board

    • Tenure: 1.9yrs

Board Members

  • Jari Ovaskainen (55yo)

    Director

    • Tenure: 6.7yrs
  • Peter Levin (49yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: €30.00k
  • Petri Niemi (58yo)

    Chairman

    • Tenure: 2.8yrs
    • Compensation: €54.00k
  • Elina Anckar (51yo)

    Independent Director

    • Tenure: 0.6yrs
  • Xenophin Lategan (39yo)

    Director

    • Tenure: 0.6yrs
  • Nicholas Seibert

    Director

    • Tenure: 0.3yrs

Company Information

Next Games Oyj's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Next Games Oyj
  • Ticker: NXTGMS
  • Exchange: HLSE
  • Founded: 2013
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: €23.488m
  • Shares outstanding: 27.90m
  • Website: https://www.nextgames.com

Number of Employees


Location

  • Next Games Oyj
  • Aleksanterinkatu 9A
  • Helsinki
  • Uusimaa
  • 100
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NXTGMSHLSE (OMX Nordic Exchange Helsinki)YesA Series SharesFIEURMar 2017
6NGMUN (Boerse Muenchen)YesA Series SharesDEEURMar 2017
NXXT.FOTCPK (Pink Sheets LLC)YesA Series SharesUSUSDMar 2017

Biography

Next Games Oyj develops and publishes mobile games in North America, Europe, and internationally. The company develops mobile games based on entertainment franchises. It distributes games through the Apple ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 22:16
End of Day Share Price2019/12/05 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.