OB:GIG

Stock Analysis Report

Gaming Innovation Group

Executive Summary

Gaming Innovation Group Inc., through its subsidiaries, provides and facilitates a platform for Internet gambling, gaming, and betting in Nordic countries, other European countries, and internationally.

Rewards

Trading at 46.7% below its fair value

Earnings are forecast to grow 113% per year

Risk Analysis

Highly volatile share price over past 3 months

Does not have a meaningful market cap (NOK669M)



Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-8.6%

GIG

-1.4%

NO Hospitality

-0.8%

NO Market


1 Year Return

-64.0%

GIG

14.0%

NO Hospitality

4.9%

NO Market

Return vs Industry: GIG underperformed the Norwegian Hospitality industry which returned 16.5% over the past year.

Return vs Market: GIG underperformed the Norwegian Market which returned 4.5% over the past year.


Shareholder returns

GIGIndustryMarket
7 Day-8.6%-1.4%-0.8%
30 Day-17.4%-1.9%1.1%
90 Day-13.5%2.4%3.6%
1 Year-64.0%-64.0%17.5%14.0%10.5%4.9%
3 Year-79.3%-79.3%24.1%12.9%31.4%15.1%
5 Yearn/a38.2%17.3%64.3%26.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GIG (NOK7.43) is trading below our estimate of fair value (NOK13.94)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GIG is good value based on its PB Ratio (1x) compared to the XE Hospitality industry average (1.6x).


Next Steps

Future Growth

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

113.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GIG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.7%).

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

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

Revenue vs Market: GIG's revenue (6.3% per year) is forecast to grow faster than the Norwegian market (3.2% per year).

High Growth Revenue: GIG's revenue (6.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GIG's Return on Equity is forecast to be low in 3 years time (9.7%).


Next Steps

Past Performance

How has Gaming Innovation Group performed over the past 5 years?

-81.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GIG is currently unprofitable.

Growing Profit Margin: GIG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GIG is unprofitable, and losses have increased over the past 5 years at a rate of -81% per year.

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

Earnings vs Industry: GIG is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-7%).


Return on Equity

High ROE: GIG has a negative Return on Equity (-48.8%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gaming Innovation Group's financial position?


Financial Position Analysis

Short Term Liabilities: GIG's short term assets (€31.4M) do not cover its short term liabilities (€64.1M).

Long Term Liabilities: GIG's short term assets (€31.4M) do not cover its long term liabilities (€46.6M).


Debt to Equity History and Analysis

Debt Level: GIG's debt to equity ratio (93.1%) is considered high.

Reducing Debt: Insufficient data to determine if GIG's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: GIG's debt is not covered by short term assets (assets are 0.5x 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: GIG has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if GIG has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.5%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Richard Brown 0

0.3yrs

Tenure

€481,600

Compensation

Mr. Richard Brown has been Chief Executive Officer of Gaming Innovation Group Inc since November 06, 2019. Mr. Brown is responsible for the positioning of GiG and for aligning people, technology, product a ...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD531.04K) is about average for companies of similar size in the Norwegian market ($USD412.51K).

Compensation vs Earnings: Richard's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.2yrs

Average Tenure

Experienced Management: GIG's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

1.1yrs

Average Tenure

52yo

Average Age

Experienced Board: GIG's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

Sellkr113,53820 Nov 19
Helge Nielsen
EntityIndividual
Role
Member of the Board of Directors
Director
Shares24,736
Max Pricekr4.59
Buykr211,12020 Nov 19
Tim Parker
EntityIndividual
Role
Head of Marketing
Chief Marketing Officer
Shares45,500
Max Pricekr4.64
Buykr119,34020 Nov 19
Barnebarnene AS
EntityCompany
Shares26,000
Max Pricekr4.59
Buykr96,60320 Nov 19
Richard Brown
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares21,000
Max Pricekr4.60
Buykr439,17105 Sep 19
Henrik Ekdahl
EntityIndividual
Role
Member of the Board of Directors
Director
Shares55,000
Max Pricekr7.98
Buykr88,70027 Aug 19
Frode Fagerli
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares10,000
Max Pricekr8.87
Buykr248,97216 Aug 19
Henrik Ekdahl
EntityIndividual
Role
Member of the Board of Directors
Director
Shares26,800
Max Pricekr9.29
Buykr470,25018 Feb 19
Ben Clemes
EntityIndividual
Role
Senior Key Executive
Chief Commercial Officer
Shares25,000
Max Pricekr18.81
Buykr192,50018 Feb 19
Paul Fischbein
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max Pricekr19.25
Buykr459,75012 Feb 19
Frode Fagerli
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares25,000
Max Pricekr18.39
Buykr173,00011 Feb 19
Robert Burén
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max Pricekr17.30
Buykr231,25011 Feb 19
Petter Nylander
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares12,500
Max Pricekr18.50

Ownership Breakdown

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


Management Team

  • Tore Formo (55yo)

    Group Chief Financial Officer

    • Compensation: €177.40k
  • Frode Fagerli

    Founder

    • Tenure: 1.1yrs
    • Compensation: €2.20k
  • Ben Clemes

    Chief Commercial Officer

    • Compensation: €138.80k
  • Mike Broughton

    CTO & Partner

    • Compensation: €108.10k
  • Anna-Lena Åström

    Head of Investor Relations & Corporate Communications

    • Tenure: 1.8yrs
  • Justin Psaila

    Chief Financial Officer

    • Compensation: €180.30k
  • Richard Brown

    Chief Executive Officer

    • Tenure: 0.3yrs
    • Compensation: €481.60k
  • Edgars Peics

    Chief Technology Officer

    • Compensation: €144.70k
  • Tim Parker

    Chief Marketing Officer

    • Tenure: 1.2yrs
    • Compensation: €132.50k
  • Cristina Niculae

    Chief Strategy Officer

    • Tenure: 1.2yrs
    • Compensation: €99.80k

Board Members

  • Petter Nylander (55yo)

    Chairman of the Board

    • Tenure: 1.1yrs
    • Compensation: €4.60k
  • Helge Nielsen (67yo)

    Director

    • Compensation: €41.60k
  • Paul Fischbein (46yo)

    Director

    • Tenure: 1.1yrs
    • Compensation: €2.80k
  • Robert Burén (49yo)

    Director

    • Tenure: 1.1yrs
    • Compensation: €2.50k
  • Frode Fagerli

    Founder

    • Tenure: 1.1yrs
    • Compensation: €2.20k
  • Henrik Ekdahl

    Director

    • Tenure: 2.7yrs
    • Compensation: €9.90k
  • Jan Angman

    Director

    • Tenure: 1.9yrs

Company Information

Gaming Innovation Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gaming Innovation Group Inc.
  • Ticker: GIG
  • Exchange: OB
  • Founded: 2012
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: kr576.036m
  • Shares outstanding: 90.01m
  • Website: https://www.gig.com

Number of Employees


Location

  • Gaming Innovation Group Inc.
  • @GiG Beach
  • Golden Mile Business Centre
  • St Julians
  • STJ 3148
  • Malta

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GIGOB (Oslo Bors)YesCommon StockNONOKMay 2015
GIGSEKOM (OMX Nordic Exchange Stockholm)YesCommon StockSESEKMay 2015
GIGOBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBNOKMay 2015
GI11DB (Deutsche Boerse AG)YesCommon StockDEEURMay 2015

Biography

Gaming Innovation Group Inc., through its subsidiaries, provides and facilitates a platform for Internet gambling, gaming, and betting in Nordic countries, other European countries, and internationally. It operates in two segments, Business-to-Business (B2B) and Business-to-Consumer (B2C). The company offers profile management system with integrated KYC tools to verify end users, which comprises of payment gateway, gaming tools, and regulatory adaption engine, as well as bonus, affiliate, and content management systems. It also designs, hosts, and distributes in-house-developed and third-party games, such as casino; and offers sportsbook solutions that helps the customers to offer betting experience to their end users. In addition, it provides iGaming end user leads for casino and sportsbook customers using the techniques and technology in social media, adwords, permission marketing, and display advertising; and digital agency, which comprises of ad-tech, publishing, and paid media channels. Additionally, it offers front end development, compliance standards, payments, and product management services. Further, the company offers B2C casino, sports betting, and poker services through its own brands, such as Guts.com, Betspin.com, Rizk.com, SuperLenny.com, Kaboo.com, Thrills.com, and Highroller.com. The company was founded in 2012 and is headquartered in St Julians, Malta. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/25 21:56
End of Day Share Price2020/01/24 00:00
Earnings2019/09/30
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.