AIM:GMR

Stock Analysis Report

Executive Summary

Gaming Realms plc develops, publishes, and licenses mobile gaming content in the United Kingdom, the United States, and internationally.

Rewards

Earnings are forecast to grow 86.04% per year

Earnings have grown 7.8% per year over the past 5 years

Risk Analysis

Has less than 1 year of cash runway

Highly volatile share price over past 3 months

Does not have a meaningful market cap (£26M)



Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

GMR

-0.6%

GB Entertainment

-1.8%

GB Market


1 Year Return

98.7%

GMR

9.2%

GB Entertainment

10.8%

GB Market

Return vs Industry: GMR exceeded the UK Entertainment industry which returned 8.4% over the past year.

Return vs Market: GMR exceeded the UK Market which returned 12.7% over the past year.


Shareholder returns

GMRIndustryMarket
7 Day0%-0.6%-1.8%
30 Day-1.4%-3.6%-1.6%
90 Day17.1%-1.3%4.5%
1 Year98.7%98.7%16.4%9.2%16.6%10.8%
3 Year-46.9%-46.9%32.9%-37.6%21.4%5.8%
5 Year-72.4%-72.4%59.6%-20.9%38.3%6.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Gaming Realms undervalued compared to its fair value and its price relative to the market?

1.75x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate GMR's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate GMR's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GMR is good value based on its PB Ratio (1.8x) compared to the GB Entertainment industry average (2.4x).


Next Steps

Future Growth

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

86.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GMR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.5%).

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

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

Revenue vs Market: GMR's revenue (14.6% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: GMR's revenue (14.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Gaming Realms performed over the past 5 years?

7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GMR is currently unprofitable.

Growing Profit Margin: GMR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GMR is unprofitable, but has reduced losses over the past 5 years at a rate of 7.8% per year.

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

Earnings vs Industry: GMR is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (23.2%).


Return on Equity

High ROE: GMR has a negative Return on Equity (-35.07%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gaming Realms's financial position?


Financial Position Analysis

Short Term Liabilities: GMR's short term assets (£13.2M) exceed its short term liabilities (£8.8M).

Long Term Liabilities: GMR's short term assets (£13.2M) exceed its long term liabilities (£3.8M).


Debt to Equity History and Analysis

Debt Level: GMR's debt to equity ratio (26.1%) is considered satisfactory.

Reducing Debt: GMR's debt to equity ratio has increased from 0.2% to 26.1% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: GMR's debt is covered by short term assets (assets are 3.5x 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: GMR has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: GMR has less than a year of cash runway if free cash flow continues to reduce at historical rates of -28.1% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.1%industryaverage1.8%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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


Next Steps

Management

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

UK£263k

CEO Compensation


CEO

Patrick Southon (46yo)

0yrs

Tenure

UK£263,077

Compensation

Mr. Patrick Southon is the Founder of Bingo Realms Limited. Mr. Southon Co-Founded Gaming Realms plc since 2000 and serves as its Chief Executive Officer. He has been working within the online gambling sec ...


CEO Compensation Analysis

Compensation vs Market: Patrick's total compensation ($USD342.08K) is about average for companies of similar size in the UK market ($USD326.78K).

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


Insider Trading

Insider Buying: GMR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£400,00216 Dec 19
Mark Blandford
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares5,000,000
Max PriceUK£0.08
BuyUK£10,12128 Feb 19
Michael Buckley
EntityIndividual
Role
Chairman of the Board
Co-Founder & Non-Executive Chairman
Shares242,424
Max PriceUK£0.042

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Patrick Southon (46yo)

    Co-Founder

    • Compensation: UK£263.08k
  • Michael Buckley (71yo)

    Co-Founder & Non-Executive Chairman

    • Compensation: UK£210.00k
  • Mark Segal (42yo)

    CFO, Secretary & Director

    • Compensation: UK£200.71k
  • Paul Gambrell

    Chief Technology Officer

    • Jonny Bennet

      Chief Product Officer


      Board Members

      • Mark Blandford (62yo)

        Non Executive Director

        • Tenure: 1yrs
      • Jim Ryan (57yo)

        Non-Executive Director

        • Compensation: UK£40.00k
      • Patrick Southon (46yo)

        Co-Founder

        • Compensation: UK£263.08k
      • Chris Ash (46yo)

        Non-Executive Director

        • Tenure: 0.6yrs
      • Michael Buckley (71yo)

        Co-Founder & Non-Executive Chairman

        • Compensation: UK£210.00k
      • Mark Segal (42yo)

        CFO, Secretary & Director

        • Compensation: UK£200.71k
      • Mark Wilson (57yo)

        Non-Executive Director

        • Compensation: UK£40.00k

      Company Information

      Gaming Realms plc's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Gaming Realms plc
      • Ticker: GMR
      • Exchange: AIM
      • Founded: 2001
      • Industry: Interactive Home Entertainment
      • Sector: Media
      • Market Cap: UK£25.314m
      • Shares outstanding: 284.43m
      • Website: https://www.gamingrealms.com

      Number of Employees


      Location

      • Gaming Realms plc
      • Two Valentine Place
      • London
      • Greater London
      • SE1 8QH
      • United Kingdom

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      GMRAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPAug 2013
      PSDM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2013

      Biography

      Gaming Realms plc develops, publishes, and licenses mobile gaming content in the United Kingdom, the United States, and internationally. The company operates through two segments, Licensing and Social Publishing. The Licensing segment is involved in brand and content licensing to partners. The Social Publishing segment provides freemium games. The company also offers marketing services. Its products include Slingo, bingo, slots, and other casual games. It has strategic partnerships with Fremantle, Zynga, IWG, Pala Interactive, and Scientific Games. Gaming Realms plc was incorporated in 2001 and is based in London, the United Kingdom. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/28 22:00
      End of Day Share Price2020/01/28 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.