WSE:CDR

Stock Analysis Report

Executive Summary

CD Projekt S.A., through its subsidiaries, engages in the development and digital distribution of videogames worldwide.

Rewards

Trading at 34.9% below its fair value

Earnings are forecast to grow 30.5% per year

Risk Analysis

No risks detected for CDR from our risk checks.


Snowflake Analysis

Exceptional growth potential with flawless balance sheet.


Similar Companies

Share Price & News

How has CD Projekt's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.8%

CDR

-1.4%

PL Entertainment

-1.1%

PL Market


1 Year Return

78.4%

CDR

72.5%

PL Entertainment

-7.5%

PL Market

Return vs Industry: CDR exceeded the Polish Entertainment industry which returned 72.5% over the past year.

Return vs Market: CDR exceeded the Polish Market which returned -7.5% over the past year.


Shareholder returns

CDRIndustryMarket
7 Day-2.8%-1.4%-1.1%
30 Day-3.0%-0.6%-6.1%
90 Day0.8%1.6%-4.3%
1 Year79.3%78.4%73.8%72.5%-4.6%-7.5%
3 Year391.4%381.9%275.2%266.9%3.2%-4.4%
5 Year1492.5%1461.7%959.6%916.9%1.7%-10.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is CD Projekt undervalued compared to its fair value and its price relative to the market?

34.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CDR (PLN253) is trading below our estimate of fair value (PLN388.58)

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


Price To Earnings Ratio

PE vs Industry: CDR is poor value based on its PE Ratio (225.5x) compared to the Entertainment industry average (25.1x).

PE vs Market: CDR is poor value based on its PE Ratio (225.5x) compared to the Polish market (10.8x).


Price to Earnings Growth Ratio

PEG Ratio: CDR is poor value based on its PEG Ratio (7.4x)


Price to Book Ratio

PB vs Industry: CDR is overvalued based on its PB Ratio (24.4x) compared to the PL Entertainment industry average (4.9x).


Next Steps

Future Growth

How is CD Projekt forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

30.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CDR's forecast earnings growth (30.5% per year) is above the savings rate (2%).

Earnings vs Market: CDR's earnings (30.5% per year) are forecast to grow faster than the Polish market (10.9% per year).

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

Revenue vs Market: CDR's revenue (21.1% per year) is forecast to grow faster than the Polish market (5.7% per year).

High Growth Revenue: CDR's revenue (21.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CDR's Return on Equity is forecast to be high in 3 years time (39.2%)


Next Steps

Past Performance

How has CD Projekt performed over the past 5 years?

-3.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CDR has high quality earnings.

Growing Profit Margin: CDR's current net profit margins (24.8%) are lower than last year (31.7%).


Past Earnings Growth Analysis

Earnings Trend: CDR's earnings have declined by -3.5% per year over the past 5 years.

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

Earnings vs Industry: CDR had negative earnings growth (-5.2%) over the past year, making it difficult to compare to the Entertainment industry average (65.4%).


Return on Equity

High ROE: CDR's Return on Equity (10.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CD Projekt's financial position?


Financial Position Analysis

Short Term Liabilities: CDR's short term assets (PLN705.4M) exceed its short term liabilities (PLN207.2M).

Long Term Liabilities: CDR's short term assets (PLN705.4M) exceed its long term liabilities (PLN6.2M).


Debt to Equity History and Analysis

Debt Level: CDR is debt free.

Reducing Debt: CDR has no debt compared to 5 years ago when its debt to equity ratio was 0.01%.

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

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if CDR's debt is covered by short term assets.


Next Steps

Dividend

What is CD Projekt's current dividend yield, its reliability and sustainability?

0.42%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%2.6%markettop25%7.2%industryaverage0.6%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: CDR's dividend (0.42%) isn’t notable compared to the bottom 25% of dividend payers in the Polish market (2.61%).

High Dividend: CDR's dividend (0.42%) is low compared to the top 25% of dividend payers in the Polish market (7.25%).


Stability and Growth of Payments

Stable Dividend: CDR is not paying a notable dividend for the Polish market, therefore no need to check if payments are stable.

Growing Dividend: CDR is not paying a notable dividend for the Polish market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CDR is not paying a notable dividend for the Polish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CDR'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 CD Projekt's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average board tenure


CEO

Marcin Iwinski 0

0yrs

Tenure

zł2,632,000

Compensation

Mr. Marcin Piotr Iwiski has been Vice President of the Management Board for International Affairs at CD Projekt Red Spólka Akcyjna (formerly, Optimus S.A.) since January 20, 2010 and serves as its Joint Ch ...


CEO Compensation Analysis

Compensation vs Market: Marcin's total compensation ($USD681.74K) is above average for companies of similar size in the Polish market ($USD464.81K).

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


Board Age and Tenure

3.6yrs

Average Tenure

Experienced Board: CDR's board of directors are considered experienced (3.6 years average tenure).


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

  • Marcin Iwinski

    Co-Founder

    • Tenure: 0yrs
    • Compensation: zł2.63m
  • Adam Kicinski

    Joint CEO & President of the Management Board

    • Tenure: 0yrs
    • Compensation: zł2.72m
  • Piotr Nielubowicz

    CFO & Vice President of the Management Board

    • Tenure: 0yrs
    • Compensation: zł2.64m
  • Adam Badowski

    Head of CD Projekt RED & Member of the Management Board

    • Tenure: 0yrs
    • Compensation: zł1.98m
  • Michal Nowakowski

    Senior VP of Business Development & Member of the Management Board

    • Tenure: 0yrs
    • Compensation: zł1.95m
  • Piotr Karwowski

    Member of Management Board

    • Tenure: 4.1yrs
    • Compensation: zł60.00k
  • Maciej Nielubowicz

    Secretary of the Supervisory Board

    • Tenure: 2.2yrs
  • Rafal Zuchowicz

    Chief Accountant

    • Tenure: 0yrs

Board Members

  • Krzysztof Kilian

    Member of Supervisory Board

    • Tenure: 4.6yrs
  • Katarzyna Szwarc

    Chairwoman of the Supervisory Board

    • Tenure: 0yrs
  • Piotr Pagowski

    Deputy Chairman of The Supervisory Board

    • Tenure: 0yrs
  • Michal Bien

    Member of Supervisory Board

    • Tenure: 3.6yrs
  • Maciej Nielubowicz

    Secretary of the Supervisory Board

    • Tenure: 2.2yrs

Company Information

CD Projekt S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CD Projekt S.A.
  • Ticker: CDR
  • Exchange: WSE
  • Founded:
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: zł24.318b
  • Shares outstanding: 96.12m
  • Website: https://www.cdprojekt.com

Number of Employees


Location

  • CD Projekt S.A.
  • Building E
  • ul. Jagiellonska 74
  • Warsaw
  • 03-301
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CDRWSE (Warsaw Stock Exchange)YesBearer SharesPLPLNJun 2010
7CDDB (Deutsche Boerse AG)YesBearer SharesDEEURJun 2010
OTGL.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDJun 2010
CDRWBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBPLNJun 2010
OTGL.YOTCPK (Pink Sheets LLC)UNSPONSRED ADSUSUSDOct 2019

Biography

CD Projekt S.A., through its subsidiaries, engages in the development and digital distribution of videogames worldwide. It operates through two segments, CD PROJEKT RED and GOG.com. The company’s product p ...


Company Analysis and Financial Data Status

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