AIM:KWS

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Executive Summary

Keywords Studios plc provides integrated outsourced creative and technical services to the video game industry. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Keywords Studios's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KWS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

KWS

1.9%

GB IT

-1.9%

GB Market


1 Year Return

90.9%

KWS

20.2%

GB IT

-14.5%

GB Market

Return vs Industry: KWS exceeded the UK IT industry which returned 20.2% over the past year.

Return vs Market: KWS exceeded the UK Market which returned -14.5% over the past year.


Shareholder returns

KWSIndustryMarket
7 Day-1.1%1.9%-1.9%
30 Day1.4%5.8%-1.7%
90 Day16.3%5.5%-4.4%
1 Year90.9%90.9%21.5%20.2%-11.3%-14.5%
3 Year48.4%48.1%61.9%53.7%-9.0%-20.3%
5 Year977.5%969.6%145.0%125.4%15.3%-10.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Keywords Studios undervalued compared to its fair value and its price relative to the market?

120.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KWS (£22.14) is trading above our estimate of fair value (£11.58)

Significantly Below Fair Value: KWS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KWS is poor value based on its PE Ratio (120.7x) compared to the GB IT industry average (33.2x).

PE vs Market: KWS is poor value based on its PE Ratio (120.7x) compared to the UK market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: KWS is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: KWS is overvalued based on its PB Ratio (5.2x) compared to the GB IT industry average (2.6x).


Next Steps

Future Growth

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

35.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KWS's forecast earnings growth (35.3% per year) is above the savings rate (1.2%).

Earnings vs Market: KWS's earnings (35.3% per year) are forecast to grow faster than the UK market (24.2% per year).

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

Revenue vs Market: KWS's revenue (12% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: KWS's revenue (12% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KWS's Return on Equity is forecast to be low in 3 years time (11.7%).


Next Steps

  • Explore growth companies in the Software industry.

Past Performance

How has Keywords Studios performed over the past 5 years?

25.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KWS has high quality earnings.

Growing Profit Margin: KWS's current net profit margins (3.8%) are higher than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: KWS's earnings have grown significantly by 25.4% per year over the past 5 years.

Accelerating Growth: KWS's earnings growth over the past year (29.8%) exceeds its 5-year average (25.4% per year).

Earnings vs Industry: KWS earnings growth over the past year (29.8%) exceeded the IT industry 11.1%.


Return on Equity

High ROE: KWS's Return on Equity (3.9%) is considered low.


Next Steps

Financial Health

How is Keywords Studios's financial position?


Financial Position Analysis

Short Term Liabilities: KWS's short term assets (€190.1M) exceed its short term liabilities (€63.4M).

Long Term Liabilities: KWS's short term assets (€190.1M) exceed its long term liabilities (€34.9M).


Debt to Equity History and Analysis

Debt Level: KWS's debt to equity ratio (0.06%) is considered satisfactory.

Reducing Debt: KWS's debt to equity ratio has reduced from 0.1% to 0.06% over the past 5 years.

Debt Coverage: KWS's debt is well covered by operating cash flow (20804.6%).

Interest Coverage: KWS's interest payments on its debt are well covered by EBIT (15.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Keywords Studios's current dividend yield, its reliability and sustainability?

0.068%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate KWS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KWS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KWS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: KWS is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KWS's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Andrew Day (56 yo)

11.5yrs

Tenure

€1,198,000

Compensation

Mr. Andrew John Day has been the Chief Executive Officer of Keywords Studios plc. since April 2009. Mr. Day has a background in technology, manufacturing and business services through corporate development ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD1.83M) is about average for companies of similar size in the UK market ($USD1.73M).

Compensation vs Earnings: Andrew's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Day
Group CEO & Executive Director11.5yrs€1.20m4.48%
€ 73.0m
Jon Hauck
CFO & Executive Director1yr€207.00kno data
Giacomo Duranti
Chief Operating Officer13.75yrsno datano data
Joseph Quinn
Investor Relations Managerno datano datano data
Andrew Brown
Chief Marketing Officer2.25yrsno datano data
Igor Efremov
Chief Commercial Officer2.25yrsno datano data
Michael Wallen
Head of Global Business Developmentno datano datano data
Aisling Hanley
Head of Internal Audit1.17yrsno datano data
William O'Donoghue
Company Secretary2.33yrsno datano data
Jamie Campbell
Engineering Service Line Director2.25yrsno datano data
Nicolas Liorzou
Regional Managing Director – Americasno datano datano data
Michael Cartier
Studio Managerno datano datano data

2.3yrs

Average Tenure

46.5yo

Average Age

Experienced Management: KWS's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Day
Group CEO & Executive Director11.5yrs€1.20m4.48%
€ 73.0m
Jon Hauck
CFO & Executive Director1yr€207.00kno data
Ross Graham
Independent Non-Executive Chairman7.25yrs€92.00k0.081%
€ 1.3m
David Reeves
Senior Independent Non-Executive Directorno data€68.00k0.045%
€ 732.6k
Georges Fornay
Independent Non-Executive Director3.08yrs€51.00k0.0089%
€ 144.4k
Giorgio Guastalla
Non-Executive Director11.75yrs€48.00k4.28%
€ 69.8m
Maria Ginman-Horrell
Independent Non-Executive Director3.08yrs€63.00k0.0024%
€ 38.3k

3.1yrs

Average Tenure

56yo

Average Age

Experienced Board: KWS's board of directors are considered experienced (3.1 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 13.7%.


Top Shareholders

Company Information

Keywords Studios plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Keywords Studios plc
  • Ticker: KWS
  • Exchange: AIM
  • Founded: 1998
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: UK£1.630b
  • Shares outstanding: 73.63m
  • Website: https://www.keywordsstudios.com

Number of Employees


Location

  • Keywords Studios plc
  • Whelan House
  • South County Business Park
  • Dublin
  • Co. Dublin
  • D18 T9P8
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KWSAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJul 2013
KYYW.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2013
KS3DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2013

Biography

Keywords Studios plc provides integrated outsourced creative and technical services to the video game industry. It offers art creation services related to the production of graphical art assets for inclusi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 21:01
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
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.