WSE:PLW

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

PlayWay S.A. produces and publishes PC and mobile video games in Poland, Western Europe, North America, Germany, and internationally.


Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.0%

PLW

1.2%

PL Entertainment

0.6%

PL Market


1 Year Return

178.1%

PLW

104.8%

PL Entertainment

-6.9%

PL Market

Return vs Industry: PLW exceeded the Polish Entertainment industry which returned 104.8% over the past year.

Return vs Market: PLW exceeded the Polish Market which returned -6.9% over the past year.


Shareholder returns

PLWIndustryMarket
7 Day-1.0%1.2%0.6%
30 Day-8.6%6.2%1.9%
90 Day15.3%17.6%16.0%
1 Year183.5%178.1%105.1%104.8%-5.7%-6.9%
3 Year789.9%744.8%353.6%349.0%-18.1%-23.0%
5 Yearn/a1,071.9%1,034.2%-6.7%-17.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

33.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PLW (PLN490) is trading above our estimate of fair value (PLN308.39)

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


Price To Earnings Ratio

PE vs Industry: PLW is good value based on its PE Ratio (33.5x) compared to the PL Entertainment industry average (39x).

PE vs Market: PLW is poor value based on its PE Ratio (33.5x) compared to the Polish market (13.9x).


Price to Earnings Growth Ratio

PEG Ratio: PLW is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: PLW is overvalued based on its PB Ratio (16.3x) compared to the PL Entertainment industry average (11.2x).


Next Steps

Future Growth

How is PlayWay forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

10.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PLW's forecast earnings growth (10.2% per year) is above the savings rate (2.9%).

Earnings vs Market: PLW's earnings (10.2% per year) are forecast to grow slower than the Polish market (12.3% per year).

High Growth Earnings: PLW's earnings are forecast to grow, but not significantly.

Revenue vs Market: PLW's revenue (17% per year) is forecast to grow faster than the Polish market (3.9% per year).

High Growth Revenue: PLW's revenue (17% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PLW's Return on Equity is forecast to be very high in 3 years time (56%).


Next Steps

Past Performance

How has PlayWay performed over the past 5 years?

64.0%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: PLW's current net profit margins (74.3%) are higher than last year (54.1%).


Past Earnings Growth Analysis

Earnings Trend: PLW's earnings have grown significantly by 64% per year over the past 5 years.

Accelerating Growth: PLW's earnings growth over the past year (120.2%) exceeds its 5-year average (64% per year).

Earnings vs Industry: PLW earnings growth over the past year (120.2%) exceeded the Entertainment industry 44.5%.


Return on Equity

High ROE: PLW's Return on Equity (47.9%) is considered outstanding.


Next Steps

Financial Health

How is PlayWay's financial position?


Financial Position Analysis

Short Term Liabilities: PLW's short term assets (PLN189.8M) exceed its short term liabilities (PLN6.9M).

Long Term Liabilities: PLW's short term assets (PLN189.8M) exceed its long term liabilities (PLN7.0M).


Debt to Equity History and Analysis

Debt Level: PLW is debt free.

Reducing Debt: PLW has no debt compared to 5 years ago when its debt to equity ratio was 0.2%.

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

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


Balance Sheet


Next Steps

Dividend

What is PlayWay current dividend yield, its reliability and sustainability?

1.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PLW's dividend (1.93%) is higher than the bottom 25% of dividend payers in the Polish market (1.7%).

High Dividend: PLW's dividend (1.93%) is low compared to the top 25% of dividend payers in the Polish market (5.82%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PLW has been paying a dividend for less than 10 years.

Growing Dividend: PLW's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.7%), PLW's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PLW's dividends in 3 years are not forecast to be well covered by earnings (92.4% payout ratio).


Next Steps

Management

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

4.7yrs

Average board tenure


CEO

Krzysztof Kostowski

9.33yrs

Tenure

Mr. Krzysztof Kostowski serves as Member of Supervisory Board at Ultimate Games S.A. He has been Member of the Supervisory Board at CreativeForge Games S.A. since January 24, 2019. He serves as the Preside ...


Board Members

NamePositionTenureCompensationOwnership
Aleksy Uchanski
Chairman of the Supervisory Boardno datano datano data
Michal Markowski
Independent Member of the Supervisory Boardno datano datano data
Michal Kojecki
Member of the Supervisory Board4.67yrsno datano data
Grzegorz Czarnecki
Independent Member of the Supervisory Board4.67yrsno datano data
Jan Szpetulski-Lazarowicz
Independent Member of the Supervisory Board0.17yrno datano data

4.7yrs

Average Tenure

44yo

Average Age

Experienced Board: PLW's board of directors are considered experienced (4.7 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

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


Key Information

  • Name: PlayWay S.A.
  • Ticker: PLW
  • Exchange: WSE
  • Founded: 2011
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: zł3.234b
  • Shares outstanding: 6.60m
  • Website: https://www.playway.com

Location

  • PlayWay S.A.
  • ul. Fedorowicza 17A
  • Hornówek
  • Warsaw
  • 05-080
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PLWWSE (Warsaw Stock Exchange)YesCommon Bearer SharesPLPLNOct 2016
0RJZLSE (London Stock Exchange)YesCommon Bearer SharesGBPLNOct 2016
6P5BST (Boerse-Stuttgart)YesCommon Bearer SharesDEEUROct 2016
6P5DB (Deutsche Boerse AG)YesCommon Bearer SharesDEEUROct 2016

Biography

PlayWay S.A. produces and publishes PC and mobile video games in Poland, Western Europe, North America, Germany, and internationally. It sells its products through STEAM, AppStore, and GooglePlay platforms ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/11 22:31
End of Day Share Price2020/08/11 00:00
Earnings2020/03/31
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.