BIT:GAME

Stock Analysis Report

Executive Summary

Gamenet Group S.p.A. engages in the gaming and betting business in Italy.

Snowflake

Fundamentals

High growth potential with adequate balance sheet and pays a dividend.

Share Price & News

How has Gamenet Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

11.1%

GAME

2.6%

IT Hospitality

1.4%

IT Market


1 Year Return

47.5%

GAME

7.2%

IT Hospitality

9.9%

IT Market

Return vs Industry: GAME exceeded the Italian Hospitality industry which returned 7.2% over the past year.

Return vs Market: GAME exceeded the Italian Market which returned 9.9% over the past year.


Shareholder returns

GAMEIndustryMarket
7 Day11.1%2.6%1.4%
30 Day9.9%0.5%-0.8%
90 Day45.8%-5.3%-1.5%
1 Year58.3%47.5%10.7%7.2%14.7%9.9%
3 Yearn/a21.7%10.6%30.7%12.6%
5 Yearn/a59.0%34.1%25.6%-24.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Gamenet Group undervalued compared to its fair value and its price relative to the market?

15.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: GAME (€11.76) is trading above our estimate of fair value (€6.08)

Significantly Undervalued: GAME is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GAME is good value based on its PE Ratio (15.3x) compared to the Hospitality industry average (20x).

PE vs Market: GAME is good value based on its PE Ratio (15.3x) compared to the Italian market (17x).


Price to Earnings Growth Ratio

Low PEG Ratio: GAME is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: GAME is overvalued based on its PB Ratio (10.1x) compared to the IT Hospitality industry average (3x).


Next Steps

Future Growth

How is Gamenet Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

33.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GAME's forecast earnings growth (33.5% per year) is above the savings rate (2.9%).

Earnings vs Market: GAME's earnings (33.5% per year) are forecast to grow faster than the Italian market (8.7% per year).

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

Revenue vs Market: GAME's revenue (4.3% per year) is forecast to grow faster than the Italian market (3.1% per year).

High Growth Revenue: GAME's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: GAME's Return on Equity is forecast to be very high in 3 years time (69.2%).


Next Steps

Past Performance

How has Gamenet Group performed over the past 5 years?

37.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GAME's earnings have grown significantly by 37% per year over the past 5 years.

Accelerating Growth: GAME has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GAME has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (2.5%).


Return on Equity

High ROE: Whilst GAME's Return on Equity (64.28%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: GAME has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: GAME's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Gamenet Group's financial position?


Financial Position Analysis

Short Term Liabilities: GAME's short term assets (€196.4M) exceeds its short term liabilities (€162.7M)

Long Term Liabilities: GAME's short term assets (196.4M) do not cover its long term liabilities (526.7M)


Debt to Equity History and Analysis

Debt Level: GAME's debt to equity ratio (1230%) is considered high

Reducing Debt: GAME's debt to equity ratio has reduced from 1938.3% to 1230% over the past 5 years.

Debt Coverage: GAME's debt is well covered by operating cash flow (28.1%).

Interest Coverage: GAME's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: GAME's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Gamenet Group's current dividend yield, its reliability and sustainability?

5.30%

Current Dividend Yield


Dividend Yield vs Market

company5.3%marketbottom25%2.1%markettop25%4.4%industryaverage3.1%forecastin3Years6.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GAME's dividend (5.53%) is higher than the bottom 25% of dividend payers in the Italian market (2.08%).

High Dividend: GAME's dividend (5.53%) is in the top 25% of dividend payers in the Italian market (4.43%)

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

Growing Dividend: GAME's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84.3%), GAME's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GAME's dividends in 3 years are forecast to be well covered by earnings (45.8% payout ratio).


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Guglielmo Angelozzi (47yo)

3.3yrs

Tenure

0

Mr. Guglielmo Angelozzi serves Chief Executive Officer of Gamenet Group S.p.A. since September 13, 2017 and July 1, 2016 respectively and serves as Managing Director. Mr. Angelozzi serves as the Chief Exec ...


Management Age and Tenure

5.5yrs

Average Tenure

49yo

Average Age

Experienced Management: GAME's management team is seasoned and experienced (5.5 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

49yo

Average Age

Experienced Board: GAME's board of directors are not considered experienced ( 2.8 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.


Recent Insider Transactions

Sell€37,574,99828 May 19
TCP Lux Eurinvest Sàrl
EntityCompany
Shares4,500,000
Max Price€8.35

Ownership Breakdown


Management Team

  • Guglielmo Angelozzi (47yo)

    CEO & Director

    • Tenure: 3.3yrs
  • Mario Bruno (54yo)

    Chief Financial Officer

    • Tenure: 7.8yrs
  • Oronzo Gonnella (43yo)

    Manager of Regulatory Compliance & Anti-Money Laundering

    • Tenure: 7.8yrs
  • Josef Mastragostino

    Head of Investor Relations

    • Tenure: 1.9yrs
  • Giovanni Barbieri (51yo)

    Head of M&A

    • Tenure: 0yrs
  • Maila Pietrangeli

    Head of Retail Business & Distribution Network Delivery

    • Tenure: 0yrs
  • Marco Ambrosino

    Head of Gaming Machines Business & Sales

    • Tenure: 0yrs
  • Gennaro Schettino

    Head of External Relations & Communication

    • Tenure: 0yrs
  • Fabio De Santis

    Chief Technology Officer

    • Tenure: 0yrs
  • Sabrina Lai

    Head of Group Integration

    • Tenure: 0yrs

Board Members

  • Vittorio Campori (61yo)

    Chairman of the Board

    • Tenure: 0yrs
  • Giacinto D'Onofrio (45yo)

    Non-Executive Director

    • Tenure: 3.3yrs
  • Antonios Kerastaris (50yo)

    Non-Executive Director

    • Tenure: 2.3yrs
  • Guglielmo Angelozzi (47yo)

    CEO & Director

    • Tenure: 3.3yrs
  • Marco Conte (37yo)

    Non-Executive Director

    • Tenure: 3.3yrs
  • Giacomo Morano (39yo)

    Non-Executive Director

    • Tenure: 3.3yrs
  • Camilla Ciambellotti (49yo)

    Lead Independent Director

    • Tenure: 1.8yrs
  • Claudia Ricchetti (54yo)

    Independent Director

    • Tenure: 1.8yrs
  • Daniela Saitta (57yo)

    Independent Director

    • Tenure: 1.8yrs
  • Francesco Bonifacio

    Chairman of Board of Statutory Auditors

    • Tenure: 0yrs

Company Information

Gamenet Group S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gamenet Group S.p.A.
  • Ticker: GAME
  • Exchange: BIT
  • Founded: 2006
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: €367.800m
  • Shares outstanding: 30.00m
  • Website: https://www.gamenetgroup.it

Number of Employees


Location

  • Gamenet Group S.p.A.
  • Via degli Aldobrandeschi, 300
  • Rome
  • Rome
  • 163
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GAMEBIT (Borsa Italiana)YesClass A SharesITEURDec 2017
GAMEMBATS-CHIXE (BATS 'Chi-X Europe')YesClass A SharesGBEURDec 2017
8GGDB (Deutsche Boerse AG)YesClass A SharesDEEURDec 2017
0TDKLSE (London Stock Exchange)YesClass A SharesGBEURDec 2017
GMNN.FOTCPK (Pink Sheets LLC)YesClass A SharesUSUSDDec 2017

Biography

Gamenet Group S.p.A. engages in the gaming and betting business in Italy. The company operates through four segments: Amusement With Prize (AWP), Video Lottery Terminal (VLT), Betting and Online, and Retai ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 21:38
End of Day Share Price2019/10/15 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.