Falcon Games (WSE:FLG) - Share price, News & Analysis

FLG fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	3/6
Financial Health	6/6
Dividends	0/6

FLG Stock Overview

Falcon Games S.A. operates in the gaming industry in Poland.

Rewards

Trading at 62.5% below our estimate of its fair value

Became profitable this year

Risk Analysis

Highly volatile share price over the past 3 months

Shareholders have been substantially diluted in the past year

Makes less than USD$1m in revenue (PLN234K)

Does not have a meaningful market cap (PLN8M)

Falcon Games Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Falcon Games
Historical stock prices
Current Share Price	zł0.30
52 Week High	zł0.88
52 Week Low	zł0.27
Beta	1.61
1 Month Change	-25.12%
3 Month Change	-47.41%
1 Year Change	-57.30%
3 Year Change	-50.57%
5 Year Change	-83.57%
Change since IPO	-99.46%

Shareholder Returns

	FLG	PL Professional Services	PL Market
7D	-19.6%	-10.6%	0.6%
1Y	-57.3%	-50.3%	-23.8%

Return vs Industry: FLG underperformed the Polish Professional Services industry which returned -50.3% over the past year.

Return vs Market: FLG underperformed the Polish Market which returned -23.8% over the past year.

Price Volatility

Is FLG's price volatile compared to industry and market?
FLG volatility
FLG Average Weekly Movement	13.4%
Professional Services Industry Average Movement	5.1%
Market Average Movement	6.3%
10% most volatile stocks in PL Market	11.6%
10% least volatile stocks in PL Market	4.2%

Stable Share Price: FLG is more volatile than 90% of Polish stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: FLG's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of Polish stocks.

About the Company

Founded	Employees	CEO	Website
n/a	n/a	Marcin Kostrzewa	https://www.falcongames.pl

Falcon Games S.A. operates in the gaming industry in Poland. It focuses on publishing PC games. The company was formerly known as EastSideCapital Spólka Akcyjna.

Falcon Games Fundamentals Summary

How do Falcon Games's earnings and revenue compare to its market cap?
FLG fundamental statistics
Market Cap	zł8.00m
Earnings (TTM)	zł69.30k
Revenue (TTM)	zł234.20k

115.6x

P/E Ratio

34.2x

P/S Ratio

Is FLG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FLG income statement (TTM)
Revenue	zł234.20k
Cost of Revenue	zł176.04k
Gross Profit	zł58.16k
Other Expenses	-zł11.13k
Earnings	zł69.30k

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 15, 2022

Earnings per share (EPS)	0.0026
Gross Margin	24.83%
Net Profit Margin	29.59%
Debt/Equity Ratio	0.0%

How did FLG perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is FLG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FLG?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for FLG. This is calculated by dividing FLG's market cap by their current preferred multiple.
What is FLG's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	zł8.00m

FLG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	31.6x
Enterprise Value/EBITDA	76.1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does FLG's PE Ratio compare to its peers?

FLG PE Ratio vs Peers

The above table shows the PE ratio for FLG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	23x

Forward PE

Price-To-Earnings vs Peers: FLG is expensive based on its Price-To-Earnings Ratio (115.6x) compared to the peer average (23x).

Price to Earnings Ratio vs Industry

How does FLG's PE Ratio compare vs other companies in the Professional Services Industry?

Price-To-Earnings vs Industry: FLG is expensive based on its Price-To-Earnings Ratio (115.6x) compared to the Polish Professional Services industry average (26.6x)

Price to Earnings Ratio vs Fair Ratio

What is FLG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FLG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	115.6x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate FLG's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of FLG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FLG (PLN0.3) is trading below our estimate of fair value (PLN0.81)

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

Price to Earnings Growth Ratio

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

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Future Growth

How is Falcon Games forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

9.6%

Forecasted Commercial Services industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Falcon Games has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Discover growth companies

Examine Falcon Games's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
Falcon Games competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Falcon Games performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

88.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FLG has high quality earnings.

Growing Profit Margin: FLG became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: FLG has become profitable over the past 5 years, growing earnings by 88.8% per year.

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

Earnings vs Industry: FLG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Professional Services industry (26.8%).

Return on Equity

High ROE: FLG's Return on Equity (0.5%) is considered low.

Discover strong past performing companies

Financial Health

How is Falcon Games's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: FLG's short term assets (PLN1.1M) exceed its short term liabilities (PLN273.3K).

Long Term Liabilities: FLG has no long term liabilities.

Debt to Equity History and Analysis

Debt Level: FLG is debt free.

Reducing Debt: FLG has no debt compared to 5 years ago when its debt to equity ratio was 30.6%.

Debt Coverage: FLG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: FLG has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Falcon Games's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

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

Earnings Payout to Shareholders

Earnings Coverage: FLG is not paying a notable dividend for the Polish market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as FLG has not reported any payouts.

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Management

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

CEO

Marcin Kostrzewa

3.17yrs

Tenure

Mr. Marcin Kostrzewa has been Chairman of Management Board at Falcon Games S.A. since April 17, 2019 and serves as its Chief Executive Officer. He serves as Chairman of the Supervisory Board at Duality S.A...

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 substantially diluted in the past year, with total shares outstanding growing by 316.5%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/22 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31