WSE:11B

Stock Analysis Report

11 bit studios

Executive Summary

11 bit studios S.A. develops and sells cross-platform video games worldwide.

Rewards

Trading at 67% below its fair value

Earnings are forecast to grow 43.41% per year

Risk Analysis

High level of non-cash earnings

Profit margins (26.5%) are lower than last year (48.4%)



Snowflake Analysis

High growth potential with excellent balance sheet.

Share Price & News

How has 11 bit studios's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 11B has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.6%

11B

0.7%

PL Entertainment

-1.5%

PL Market


1 Year Return

60.7%

11B

75.7%

PL Entertainment

-6.4%

PL Market

Return vs Industry: 11B underperformed the Polish Entertainment industry which returned 75.7% over the past year.

Return vs Market: 11B exceeded the Polish Market which returned -6.4% over the past year.


Shareholder returns

11BIndustryMarket
7 Day7.6%0.7%-1.5%
30 Day9.3%0.4%-5.8%
90 Day-5.6%2.3%-4.1%
1 Year60.7%60.7%77.0%75.7%-3.4%-6.4%
3 Year170.4%170.4%281.2%272.7%4.2%-3.4%
5 Year424.8%424.8%967.7%924.2%1.9%-10.8%

Price Volatility Vs. Market

How volatile is 11 bit studios's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is 11 bit studios 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: 11B (PLN388) is trading below our estimate of fair value (PLN1177.02)

Significantly Below Fair Value: 11B is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 11B is poor value based on its PE Ratio (46.6x) compared to the Entertainment industry average (24.6x).

PE vs Market: 11B is poor value based on its PE Ratio (46.6x) compared to the Polish market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: 11B is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 11B is overvalued based on its PB Ratio (8.4x) compared to the PL Entertainment industry average (4.9x).


Next Steps

Future Growth

How is 11 bit studios forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

43.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 11B's forecast earnings growth (43.4% per year) is above the savings rate (2%).

Earnings vs Market: 11B's earnings (43.4% per year) are forecast to grow faster than the Polish market (10.7% per year).

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

Revenue vs Market: 11B's revenue (27.2% per year) is forecast to grow faster than the Polish market (5.7% per year).

High Growth Revenue: 11B's revenue (27.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 11B's Return on Equity is forecast to be low in 3 years time (18.8%).


Next Steps

Past Performance

How has 11 bit studios performed over the past 5 years?

24.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 11B has a high level of non-cash earnings.

Growing Profit Margin: 11B's current net profit margins (26.5%) are lower than last year (48.4%).


Past Earnings Growth Analysis

Earnings Trend: 11B has become profitable over the past 5 years, growing earnings by 24.9% per year.

Accelerating Growth: 11B's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 11B had negative earnings growth (-41.6%) over the past year, making it difficult to compare to the Entertainment industry average (65.4%).


Return on Equity

High ROE: 11B's Return on Equity (18%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is 11 bit studios's financial position?


Financial Position Analysis

Short Term Liabilities: 11B's short term assets (PLN96.2M) exceed its short term liabilities (PLN21.0M).

Long Term Liabilities: 11B's short term assets (PLN96.2M) exceed its long term liabilities (PLN11.7M).


Debt to Equity History and Analysis

Debt Level: 11B's debt to equity ratio (11.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 11B's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 11B's debt is well covered by operating cash flow (337.4%).

Interest Coverage: 11B earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 11B has a low level of unsold assets or inventory.

Debt Coverage by Assets: 11B's debt is covered by short term assets (assets are 7.9x debt).


Next Steps

Dividend

What is 11 bit studios's current dividend yield, its reliability and sustainability?

1.15%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.7%markettop25%7.3%industryaverage0.6%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 11B's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 11B'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 11B's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 11B'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 11B's dividend in 3 years as they are not forecast to pay a notable one for the Polish market.


Next Steps

Management

What is the CEO of 11 bit studios's salary, the management and board of directors tenure and is there insider trading?

0.6yrs

Average board tenure


CEO

Grzegorz Miechowski 0

0yrs

Tenure

zł1,631,935

Compensation

Mr. Grzegorz Miechowski serves as the President of the Management Board of 11 Bit Studios S.A., and served as its Chief Executive Officer. Mr. Miechowski served as a Team Leader and Chief Executive Officer ...


CEO Compensation Analysis

Compensation vs Market: Grzegorz's total compensation ($USD422.06K) is about average for companies of similar size in the Polish market ($USD349.88K).

Compensation vs Earnings: Grzegorz's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

0.6yrs

Average Tenure

Experienced Board: 11B's board of directors are not considered experienced ( 0.6 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.


Ownership Breakdown

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


Management Team

  • Grzegorz Miechowski

    President of the Management Board

    • Tenure: 0yrs
    • Compensation: zł1.63m
  • Michal Drozdowski

    Member of the Management Board

    • Tenure: 0yrs
    • Compensation: zł1.63m
  • Przemyslaw Marszal

    Member of the Management Board

    • Tenure: 0yrs
    • Compensation: zł1.62m

Board Members

  • Piotr Wierzbicki

    Member of the Supervisory Board

    • Tenure: 0.6yrs
  • Radoslaw Marter

    Independent Member of the Supervisory Board

    • Tenure: 0yrs
  • Wojciech Ozimek

    Chairman of Supervisory Board

    • Tenure: 0.6yrs
  • Jacek Czykiel

    Vice Chairman of the Supervisory Board

    • Tenure: 0yrs
  • Marcin Kuciapski

    Member of the Supervisory Board

    • Tenure: 0.6yrs

Company Information

11 bit studios S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 11 bit studios S.A.
  • Ticker: 11B
  • Exchange: WSE
  • Founded: 2009
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: zł887.433m
  • Shares outstanding: 2.29m
  • Website: https://www.11bitstudios.com

Number of Employees


Location

  • 11 bit studios S.A.
  • ul. Bertolta Brechta 7
  • Warsaw
  • 03-472
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
11BWSE (Warsaw Stock Exchange)YesCommon Bearer SharesPLPLNJan 2011
11CBST (Boerse-Stuttgart)YesCommon Bearer SharesDEEURJan 2011

Biography

11 bit studios S.A. develops and sells cross-platform video games worldwide. The company sells its video games through specialized Internet platforms. 11 bit studios S.A. was founded in 2009 and is based i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 21:18
End of Day Share Price2019/12/11 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.