11 bit studios (WSE:11B) - Share price, News & Analysis

Q: What is the Fair Price of 11B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

11B (PLN510) is trading above our estimate of [[fair value]] (PLN482.35)

11B fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	6/6
Past Performance	3/6
Financial Health	5/6
Dividends	0/6

11B Stock Overview

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

Rewards

Earnings are forecast to grow 52.13% per year

Earnings have grown 19.9% per year over the past 5 years

Risk Analysis

No risks detected for 11B from our risk checks.

11 bit studios Competitors

PCF Group Spólka Akcyjna

WSE:PCF

zł1.5b

Huuuge

WSE:HUG

zł1.9b

PlayWay

WSE:PLW

zł2.2b

Ten Square Games

WSE:TEN

zł795.5m

Price History & Performance

Summary of all time highs, changes and price drops for 11 bit studios
Historical stock prices
Current Share Price	zł510.00
52 Week High	zł595.00
52 Week Low	zł395.20
Beta	0.38
1 Month Change	5.81%
3 Month Change	2.00%
1 Year Change	10.39%
3 Year Change	32.47%
5 Year Change	163.50%
Change since IPO	6,267.04%

Shareholder Returns

	11B	PL Entertainment	PL Market
7D	-0.6%	1.6%	3.7%
1Y	10.4%	-41.2%	-21.2%

Return vs Industry: 11B exceeded the Polish Entertainment industry which returned -41.2% over the past year.

Return vs Market: 11B exceeded the Polish Market which returned -21.2% over the past year.

Price Volatility

Is 11B's price volatile compared to industry and market?
11B volatility
11B Average Weekly Movement	5.0%
Entertainment Industry Average Movement	6.9%
Market Average Movement	6.3%
10% most volatile stocks in PL Market	12.1%
10% least volatile stocks in PL Market	4.2%

Stable Share Price: 11B is less volatile than 75% of Polish stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 11B's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2009	222	Przemyslaw Marszal	https://www.11bitstudios.com

11 bit studios S.A. develops and sells cross-platform video games worldwide. It sells its video games through specialized online platforms. 11 bit studios S.A. was incorporated in 2009 and is headquartered in Warsaw, Poland.

11 bit studios Fundamentals Summary

How do 11 bit studios's earnings and revenue compare to its market cap?
11B fundamental statistics
Market Cap	zł1.21b
Earnings (TTM)	zł28.90m
Revenue (TTM)	zł73.03m

42.0x

P/E Ratio

16.6x

P/S Ratio

Is 11B overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
11B income statement (TTM)
Revenue	zł73.03m
Cost of Revenue	zł29.86m
Gross Profit	zł43.18m
Other Expenses	zł14.28m
Earnings	zł28.90m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 25, 2022

Earnings per share (EPS)	12.14
Gross Margin	59.12%
Net Profit Margin	39.57%
Debt/Equity Ratio	4.2%

How did 11B perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is 11B undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 11B?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 11B. This is calculated by dividing 11B's market cap by their current preferred multiple.
What is 11B's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	zł1.21b

11B 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	15.3x
Enterprise Value/EBITDA	29.7x
PEG Ratio	0.8x

Price to Earnings Ratio vs Peers

How does 11B's PE Ratio compare to its peers?

11B PE Ratio vs Peers

The above table shows the PE ratio for 11B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	14.2x
PCF PCF Group Spólka Akcyjna	21.8x	33.1%	zł1.5b
HUG Huuuge	11.9x	4.3%	zł1.9b
PLW PlayWay	16.1x	6.2%	zł2.2b
TEN Ten Square Games	7x	-4.6%	zł795.5m
11B 11 bit studios	42x	52.1%	zł1.2b

Price-To-Earnings vs Peers: 11B is expensive based on its Price-To-Earnings Ratio (42x) compared to the peer average (14.2x).

Price to Earnings Ratio vs Industry

How does 11B's PE Ratio compare vs other companies in the PL Entertainment Industry?

Price-To-Earnings vs Industry: 11B is expensive based on its Price-To-Earnings Ratio (42x) compared to the Polish Entertainment industry average (15.1x)

Price to Earnings Ratio vs Fair Ratio

What is 11B'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.

11B PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	42x
Fair PE Ratio	26.3x

Price-To-Earnings vs Fair Ratio: 11B is expensive based on its Price-To-Earnings Ratio (42x) compared to the estimated Fair Price-To-Earnings Ratio (26.3x).

Share Price vs Fair Value

What is the Fair Price of 11B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 11B (PLN510) is trading above our estimate of fair value (PLN482.35)

Significantly Below Fair Value: 11B is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is 11 bit studios forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

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

52.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 11B's forecast earnings growth (52.1% per year) is above the savings rate (2.6%).

Earnings vs Market: 11B's earnings (52.1% per year) are forecast to grow faster than the Polish market (7.4% per year).

High Growth Earnings: 11B's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 11B's revenue (30.8% per year) is forecast to grow faster than the Polish market (5% per year).

High Growth Revenue: 11B's revenue (30.8% 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 high in 3 years time (35.4%)

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Past Performance

How has 11 bit studios 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

19.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 11B has high quality earnings.

Growing Profit Margin: 11B's current net profit margins (39.6%) are higher than last year (37%).

Past Earnings Growth Analysis

Earnings Trend: 11B's earnings have grown by 19.9% per year over the past 5 years.

Accelerating Growth: 11B's earnings growth over the past year (9.4%) is below its 5-year average (19.9% per year).

Earnings vs Industry: 11B earnings growth over the past year (9.4%) underperformed the Entertainment industry 26.7%.

Return on Equity

High ROE: 11B's Return on Equity (14.3%) is considered low.

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Financial Health

How is 11 bit studios's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: 11B's short term assets (PLN123.6M) exceed its short term liabilities (PLN14.2M).

Long Term Liabilities: 11B's short term assets (PLN123.6M) exceed its long term liabilities (PLN10.4M).

Debt to Equity History and Analysis

Debt Level: 11B has more cash than its total debt.

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 (536%).

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

Balance Sheet

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Dividend

What is 11 bit studios'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
Cash Flow Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate 11B'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 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.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 11B has not reported any payouts.

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Management

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

2.3yrs

Average board tenure

CEO

Przemyslaw Marszal

1.75yrs

Tenure

zł734,824

Compensation

Mr. Przemyslaw Piotr Marszal serves as Member of the Management Board at 11 Bit Studios S.A., and Serves as President of the Management board since November 2020 and served as its an Art Director. Mr. Mars...

CEO Compensation Analysis

Compensation vs Market: Przemyslaw's total compensation ($USD159.89K) is below average for companies of similar size in the Polish market ($USD353.16K).

Compensation vs Earnings: Przemyslaw's compensation has been consistent with company performance over the past year.

Board Members

Experienced Board: 11B's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.

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.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/08/15 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31