WSE:CDR

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with high growth potential.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.8%

CDR

8.8%

PL Entertainment

5.6%

PL Market


1 Year Return

57.8%

CDR

48.8%

PL Entertainment

-29.7%

PL Market

Return vs Industry: CDR matched the Polish Entertainment industry which returned 48.7% over the past year.

Return vs Market: CDR exceeded the Polish Market which returned -31.1% over the past year.


Shareholder returns

CDRIndustryMarket
7 Day10.8%8.8%5.6%
30 Day31.1%15.5%-0.6%
90 Day15.4%9.1%-24.2%
1 Year58.6%57.8%49.8%48.8%-27.6%-29.7%
3 Year417.7%407.7%267.6%259.4%-28.9%-33.9%
5 Year1479.5%1449.0%966.4%921.4%-27.5%-36.6%

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?

26.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CDR (PLN308.9) is trading below our estimate of fair value (PLN553.75)

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 (275.3x) compared to the Entertainment industry average (34.4x).

PE vs Market: CDR is poor value based on its PE Ratio (275.3x) compared to the Polish market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: CDR is poor value based on its PEG Ratio (10x)


Price to Book Ratio

PB vs Industry: CDR is overvalued based on its PB Ratio (29.9x) compared to the PL Entertainment industry average (5.3x).


Next Steps

Future Growth

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

23.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CDR's forecast earnings growth (27.6% per year) is above the savings rate (2%).

Earnings vs Market: CDR's earnings (27.6% per year) are forecast to grow faster than the Polish market (12.3% per year).

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

Revenue vs Market: CDR's revenue (19.7% per year) is forecast to grow faster than the Polish market (4.5% per year).

High Growth Revenue: CDR's revenue (19.7% per year) is forecast to grow slower 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 (36%)


Next Steps

Past Performance

How has CD Projekt performed over the past 5 years?

-8.8%

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.


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


Next Steps

Dividend

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

0.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CDR's dividend (0.34%) isn’t notable compared to the bottom 25% of dividend payers in the Polish market (3.11%).

High Dividend: CDR's dividend (0.34%) is low compared to the top 25% of dividend payers in the Polish market (8.66%).


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

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

3.9yrs

Average board tenure


CEO

Marcin Iwinski

no data

Tenure

zł2,632,000

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Marcin's total compensation ($USD631.40K) is about average for companies of similar size in the Polish market ($USD595.48K).

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


Board Members

NamePositionTenureCompensationOwnership
Maciej Nielubowicz
Secretary of the Supervisory Board & Member of Supervisory Board2.5yrsno data0.000050% PLN15.8k
Krzysztof Kilian
Independent Member of Supervisory Board4.92yrsno datano data
Katarzyna Szwarc
Chairwoman of the Supervisory Boardno datano data0.000010% PLN3.2k
Piotr Pagowski
Deputy Chairman of The Supervisory Boardno datano datano data
Michal Bien
Independent Member of Supervisory Board3.92yrsno datano data

3.9yrs

Average Tenure

Experienced Board: CDR's board of directors are considered experienced (3.9 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

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: zł31.623b
  • 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 portfolio comprises The Witche; The Witcher 2: Assassins of Kings; The Witcher 3: Wild Hunt, Hearts of Stone games, and Blood and Wine; Thronebreaker: The Witcher Tales; Gwent: The Witcher Card game; and Cyberpunk 2077, as well as online multiplayer games. It also distributes digital videogames through online channels directly to individual users; and its games for various hardware platforms using traditional distribution channels and digital distribution platforms. The company exports its products in Europe, North America, South America, Asia, Australia, and Africa. CD Projekt S.A. is headquartered in Warsaw, Poland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 04:13
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.