Rovio Entertainment Oyj (HLSE:ROVIO) - Share price, News & Analysis

ROVIO fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	2/6
Financial Health	6/6
Dividends	2/6

ROVIO Stock Overview

Rovio Entertainment Oyj, a games-first entertainment company, creates, develops, and publishes mobile games in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific.

Rewards

Trading at 29% below our estimate of its fair value

Earnings are forecast to grow 13.19% per year

Risk Analysis

Volatile share price over the past 3 months

Rovio Entertainment Oyj Competitors

Next Games Oyj

HLSE:NXTGMS

€61.8m

Tencent Holdings

SEHK:700

HK$3.4t

Activision Blizzard

NasdaqGS:ATVI

US$60.5b

Electronic Arts

NasdaqGS:EA

US$36.8b

Price History & Performance

Summary of all time highs, changes and price drops for Rovio Entertainment Oyj
Historical stock prices
Current Share Price	€8.39
52 Week High	€9.68
52 Week Low	€5.69
Beta	0.80
1 Month Change	17.42%
3 Month Change	10.69%
1 Year Change	24.76%
3 Year Change	16.45%
5 Year Change	n/a
Change since IPO	-27.04%

Recent News & Updates

Apr 08

Rovio Entertainment Oyj (HEL:ROVIO) Has Re-Affirmed Its Dividend Of €0.12

Rovio Entertainment Oyj ( HEL:ROVIO ) has announced that it will pay a dividend of €0.12 per share on the 20th of...

Shareholder Returns

	ROVIO	FI Entertainment	FI Market
7D	-0.8%	2.2%	-0.2%
1Y	24.8%	-21.3%	-13.4%

Return vs Industry: ROVIO exceeded the Finnish Entertainment industry which returned -22% over the past year.

Return vs Market: ROVIO exceeded the Finnish Market which returned -13.7% over the past year.

Price Volatility

Is ROVIO's price volatile compared to industry and market?
ROVIO volatility
ROVIO Average Weekly Movement	8.0%
Entertainment Industry Average Movement	7.4%
Market Average Movement	6.1%
10% most volatile stocks in FI Market	8.9%
10% least volatile stocks in FI Market	4.4%

Stable Share Price: ROVIO is more volatile than 75% of Finnish stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: ROVIO's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of Finnish stocks.

About the Company

Founded	Employees	CEO	Website
2003	495	Alex Pelletier-Normand	https://www.rovio.com

Rovio Entertainment Oyj, a games-first entertainment company, creates, develops, and publishes mobile games in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Games, Brand Licensing, and Other segments. The company offers various mobile games through mobile application stores; produces movies; and licenses various consumer and entertainment products.

Rovio Entertainment Oyj Fundamentals Summary

How do Rovio Entertainment Oyj's earnings and revenue compare to its market cap?
ROVIO fundamental statistics
Market Cap	€626.68m
Earnings (TTM)	€28.24m
Revenue (TTM)	€304.12m

22.2x

P/E Ratio

2.1x

P/S Ratio

Is ROVIO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ROVIO income statement (TTM)
Revenue	€304.12m
Cost of Revenue	€77.16m
Gross Profit	€226.96m
Other Expenses	€198.72m
Earnings	€28.24m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 11, 2022

Earnings per share (EPS)	0.38
Gross Margin	74.63%
Net Profit Margin	9.29%
Debt/Equity Ratio	0.4%

How did ROVIO perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

32%

Payout Ratio

Valuation

Is Rovio Entertainment Oyj undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

29.0%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ROVIO (€8.39) is trading below our estimate of fair value (€11.82)

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

Price To Earnings Ratio

PE vs Industry: ROVIO is poor value based on its PE Ratio (22.2x) compared to the European Entertainment industry average (18.4x).

PE vs Market: ROVIO is poor value based on its PE Ratio (22.2x) compared to the Finnish market (17.3x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: ROVIO is overvalued based on its PB Ratio (3.1x) compared to the XE Entertainment industry average (2.8x).

Future Growth

How is Rovio Entertainment Oyj forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

13.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ROVIO's forecast earnings growth (13.2% per year) is above the savings rate (0.2%).

Earnings vs Market: ROVIO's earnings (13.2% per year) are forecast to grow faster than the Finnish market (8.7% per year).

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

Revenue vs Market: ROVIO's revenue (4.5% per year) is forecast to grow faster than the Finnish market (2.9% per year).

High Growth Revenue: ROVIO's revenue (4.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ROVIO's Return on Equity is forecast to be low in 3 years time (16.8%).

Past Performance

How has Rovio Entertainment Oyj performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

9.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ROVIO has high quality earnings.

Growing Profit Margin: ROVIO's current net profit margins (9.3%) are lower than last year (11.2%).

Past Earnings Growth Analysis

Earnings Trend: ROVIO's earnings have grown by 9.7% per year over the past 5 years.

Accelerating Growth: ROVIO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ROVIO had negative earnings growth (-7.8%) over the past year, making it difficult to compare to the Entertainment industry average (11.1%).

Return on Equity

High ROE: ROVIO's Return on Equity (13.8%) is considered low.

Financial Health

How is Rovio Entertainment Oyj's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ROVIO's short term assets (€208.7M) exceed its short term liabilities (€73.4M).

Long Term Liabilities: ROVIO's short term assets (€208.7M) exceed its long term liabilities (€21.5M).

Debt to Equity History and Analysis

Debt Level: ROVIO has more cash than its total debt.

Reducing Debt: ROVIO's debt to equity ratio has reduced from 21.7% to 0.4% over the past 5 years.

Debt Coverage: ROVIO's debt is well covered by operating cash flow (6921.6%).

Interest Coverage: ROVIO's interest payments on its debt are well covered by EBIT (45.9x coverage).

Balance Sheet

Dividend

What is Rovio Entertainment Oyj current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.43%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ROVIO's dividend (1.43%) isn’t notable compared to the bottom 25% of dividend payers in the Finnish market (2.37%).

High Dividend: ROVIO's dividend (1.43%) is low compared to the top 25% of dividend payers in the Finnish market (4.79%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ROVIO has been paying a dividend for less than 10 years.

Growing Dividend: ROVIO's dividend payments have increased, but the company has only paid a dividend for 4 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (31.6%), ROVIO's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (17.9%), ROVIO's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure

CEO

Alex Pelletier-Normand (41 yo)

1.33yrs

Tenure

€900,050

Compensation

Mr. Alexandre Pelletier-Normand, also known as Alex, serves as the Chief Executive Officer at Rovio Entertainment Oyj since January 01, 2021. He served as an Executive Vice President of Games at Rovio Ente...

CEO Compensation Analysis

Compensation vs Market: Alex's total compensation ($USD949.52K) is above average for companies of similar size in the Finnish market ($USD698.70K).

Compensation vs Earnings: Insufficient data to compare Alex's compensation with company performance.

Leadership Team

Experienced Management: ROVIO's management team is considered experienced (3.5 years average tenure).

Board Members

Experienced Board: ROVIO's board of directors are not considered experienced ( 2.2 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/20 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31