company background image
KWS

Keywords StudiosAIM:KWS Stock Report

Last Price

UK£26.38

Market Cap

UK£2.0b

7D

-0.7%

1Y

1.2%

Updated

21 Jan, 2022

Data

Company Financials +
KWS fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance5/6
Financial Health6/6
Dividends0/6

KWS Stock Overview

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

Keywords Studios Competitors

Technicolor

ENXTPA:TCH

€641.0m

Price History & Performance

Summary of all time highs, changes and price drops for Keywords Studios
Historical stock prices
Current Share PriceUK£26.38
52 Week HighUK£33.66
52 Week LowUK£22.92
Beta0.90
1 Month Change-5.79%
3 Month Change-12.48%
1 Year Change1.23%
3 Year Change122.43%
5 Year Change384.48%
Change since IPO1,700.68%

Recent News & Updates

Dec 08
Investors Could Be Concerned With Keywords Studios' (LON:KWS) Returns On Capital

Investors Could Be Concerned With Keywords Studios' (LON:KWS) Returns On Capital

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'll want to see a proven...

Nov 21
I Ran A Stock Scan For Earnings Growth And Keywords Studios (LON:KWS) Passed With Ease

I Ran A Stock Scan For Earnings Growth And Keywords Studios (LON:KWS) Passed With Ease

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

KWSGB ITGB Market
7D-0.7%2.4%-0.5%
1Y1.2%9.7%8.7%

Return vs Industry: KWS underperformed the UK IT industry which returned 9.7% over the past year.

Return vs Market: KWS underperformed the UK Market which returned 8.7% over the past year.

Price Volatility

Is KWS's price volatile compared to industry and market?
KWS volatility
KWS Average Weekly Movement4.8%
IT Industry Average Movement5.7%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: KWS is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: KWS's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19989,000Bertrand J. F. Bodsonhttps://www.keywordsstudios.com

Keywords Studios plc provides integrated outsourced creative and technical services to the video game industry. The company offers art creation services related to the production of graphical art assets for inclusion in the video game, including concept art creation, as well as 2D and 3D art asset production and animation. It also provides audio/voice-over services, including script translation, actor selection, and talent management through pre-production, audio direction, recording, and post-production, as well as offers music licensing or music soundtracks selling services.

Keywords Studios Fundamentals Summary

How do Keywords Studios's earnings and revenue compare to its market cap?
KWS fundamental statistics
Market Cap€2.40b
Earnings (TTM)€30.77m
Revenue (TTM)€438.72m

77.9x

P/E Ratio

5.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KWS income statement (TTM)
Revenue€438.72m
Cost of Revenue€284.34m
Gross Profit€154.38m
Expenses€123.61m
Earnings€30.77m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.40
Gross Margin35.19%
Net Profit Margin7.01%
Debt/Equity Ratio0.04%

How did KWS perform over the long term?

See historical performance and comparison

Dividends

0.05%

Current Dividend Yield

2%

Payout Ratio

Valuation

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

77.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KWS (£26.38) is trading above our estimate of fair value (£11.19)

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 (77.9x) compared to the UK IT industry average (38.8x).

PE vs Market: KWS is poor value based on its PE Ratio (77.9x) compared to the UK market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: KWS is poor value based on its PEG Ratio (5.9x)


Price to Book Ratio

PB vs Industry: KWS is overvalued based on its PB Ratio (5.6x) compared to the GB IT industry average (4.5x).


Future Growth

How is Keywords Studios forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

13.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KWS's forecast earnings growth (13.1% per year) is above the savings rate (0.9%).

Earnings vs Market: KWS's earnings (13.1% per year) are forecast to grow faster than the UK market (12.1% per year).

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

Revenue vs Market: KWS's revenue (12.4% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: KWS's revenue (12.4% 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 (14.6%).


Past Performance

How has Keywords Studios performed over the past 5 years?

30.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KWS has high quality earnings.

Growing Profit Margin: KWS's current net profit margins (7%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: KWS's earnings have grown significantly by 30.4% per year over the past 5 years.

Accelerating Growth: KWS's earnings growth over the past year (130.6%) exceeds its 5-year average (30.4% per year).

Earnings vs Industry: KWS earnings growth over the past year (130.6%) exceeded the IT industry 26.7%.


Return on Equity

High ROE: KWS's Return on Equity (7.2%) is considered low.


Financial Health

How is Keywords Studios's financial position?


Financial Position Analysis

Short Term Liabilities: KWS's short term assets (€193.7M) exceed its short term liabilities (€127.8M).

Long Term Liabilities: KWS's short term assets (€193.7M) exceed its long term liabilities (€70.7M).


Debt to Equity History and Analysis

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

Reducing Debt: KWS's debt to equity ratio has reduced from 6.6% to 0.04% over the past 5 years.

Debt Coverage: KWS's debt is well covered by operating cash flow (56683%).

Interest Coverage: KWS's interest payments on its debt are well covered by EBIT (162.2x coverage).


Balance Sheet


Dividend

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

0.051%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KWS's dividend (0.051%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: KWS's dividend (0.051%) is low compared to the top 25% of dividend payers in the UK market (4.04%).


Stability and Growth of Payments

Stable Dividend: KWS is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: KWS is not paying a notable dividend for the UK market, therefore no need to check if payments are 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?

3.0yrs

Average management tenure


CEO

Bertrand J. F. Bodson (46 yo)

0.083

Tenure

Mr. Bertrand J. F. X. Bodson serves as Chief Executive Officer and Director at Keywords Studios plc since December 01, 2021. He has been Chief Digital Officer of Novartis International AG since January 1,...


Leadership Team

Experienced Management: KWS's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: KWS's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: KWS insiders have bought more shares than they have sold 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 2.6%.


Top Shareholders

Company Information

Keywords Studios plc's 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
  • Implied Market Cap: UK£2.005b
  • Shares outstanding: 75.99m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 21:26
End of Day Share Price2022/01/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.