OM:NET B

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Executive Summary

NetEnt AB (publ), a digital entertainment company, provides gaming solutions to online casino operators worldwide. More Details


Snowflake Analysis

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NET B is not significantly more volatile than the rest of Swedish stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: NET B's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-3.5%

NET B

2.0%

SE Hospitality

-0.4%

SE Market


1 Year Return

226.7%

NET B

74.0%

SE Hospitality

13.2%

SE Market

Return vs Industry: NET B exceeded the Swedish Hospitality industry which returned 62.3% over the past year.

Return vs Market: NET B exceeded the Swedish Market which returned 17.7% over the past year.


Shareholder returns

NET BIndustryMarket
7 Day-3.5%2.0%-0.4%
30 Day-2.9%7.1%3.9%
90 Day11.5%19.0%7.8%
1 Year226.7%226.7%81.0%74.0%16.3%13.2%
3 Year36.5%36.5%115.2%95.5%45.1%27.8%
5 Year-2.6%-4.1%165.1%137.5%83.9%44.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

44.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NET B (SEK82.5) is trading above our estimate of fair value (SEK76.1)

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


Price To Earnings Ratio

PE vs Industry: NET B is poor value based on its PE Ratio (44.2x) compared to the SE Hospitality industry average (18.8x).

PE vs Market: NET B is poor value based on its PE Ratio (44.2x) compared to the Swedish market (22.7x).


Price to Earnings Growth Ratio

PEG Ratio: NET B is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: NET B is overvalued based on its PB Ratio (18.7x) compared to the SE Hospitality industry average (3.3x).


Next Steps

Future Growth

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

34.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NET B's forecast earnings growth (34% per year) is above the savings rate (0.5%).

Earnings vs Market: NET B's earnings (34% per year) are forecast to grow faster than the Swedish market (11.5% per year).

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

Revenue vs Market: NET B's revenue (8.2% per year) is forecast to grow faster than the Swedish market (3.4% per year).

High Growth Revenue: NET B's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NET B's Return on Equity is forecast to be very high in 3 years time (50.8%).


Next Steps

Past Performance

How has NetEnt performed over the past 5 years?

1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NET B has high quality earnings.

Growing Profit Margin: NET B's current net profit margins (21.6%) are lower than last year (26.2%).


Past Earnings Growth Analysis

Earnings Trend: NET B's earnings have grown by 1.3% per year over the past 5 years.

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

Earnings vs Industry: NET B had negative earnings growth (-0.5%) over the past year, making it difficult to compare to the Hospitality industry average (3.8%).


Return on Equity

High ROE: Whilst NET B's Return on Equity (41.64%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is NetEnt's financial position?


Financial Position Analysis

Short Term Liabilities: NET B's short term assets (SEK810.4M) exceed its short term liabilities (SEK785.4M).

Long Term Liabilities: NET B's short term assets (SEK810.4M) do not cover its long term liabilities (SEK2.0B).


Debt to Equity History and Analysis

Debt Level: NET B's debt to equity ratio (184.4%) is considered high.

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

Debt Coverage: NET B's debt is well covered by operating cash flow (45.3%).

Interest Coverage: NET B's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


Next Steps

Dividend

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

2.43%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if NET B's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: NET B is not paying a notable dividend for the Swedish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NET B's dividend in 3 years as they are not forecast to pay a notable one for the Swedish market.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Therese Hillman (40 yo)

2.75yrs

Tenure

Ms. Therese Hillman has been Chief Executive Officer of NetEnt AB (publ) since May 22, 2018. Ms. Hillman has been a Director of Actic Sverige AB since 2018. She has been Director of MQ Holding AB since Jan...


Leadership Team

NamePositionTenureCompensationOwnership
Therese Hillman
Chief Executive Officer2.75yrsno datano data
Tobias Palmborg
Chief Technology Officerno datano datano data
Roland Glasfors
Investor Relations & Corporate Strategy Officerno datano datano data
Pamela Williams
Chief Compliance Officer1.92yrsno datano data
Mikael Ångman
Interim HR Manager1.92yrsno datano data
Björn Krantz
Chief Operating Officer of Commercial Operationsno datano datano data
Christian Lindhoff
Chief Game Development Officer2.92yrsno datano data

2.3yrs

Average Tenure

44yo

Average Age

Experienced Management: NET B's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pontus Lindwall
Independent Director9.92yrskr308.00k0%
SEK 0
Christoffer Lundstrom
Director1.58yrskr230.00k0%
SEK 0
Fredrik Erbing
Independent Director12.92yrskr733.00k0%
SEK 0
Peter Hamberg
Independent Director11.67yrskr308.00k0%
SEK 0
Maria Redin
Independent Director8.92yrskr407.00k0%
SEK 0
Jonathan Pettemerides
Independent Director1.58yrskr207.00kno data
Lisa Gunnarsson
Independent Director1.58yrskr207.00k0%
SEK 0
Mathias Hedlund
Chairman of the Board0.67yrno datano data

5.3yrs

Average Tenure

47yo

Average Age

Experienced Board: NET B's board of directors are considered experienced (5.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.6%.


Top Shareholders

Company Information

NetEnt AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NetEnt AB (publ)
  • Ticker: NET B
  • Exchange: OM
  • Founded: 1996
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: kr20.987b
  • Shares outstanding: 245.46m
  • Website: https://www.netent.com

Number of Employees


Location

  • NetEnt AB (publ)
  • Vasagatan 16
  • Stockholm
  • Stockholm County
  • 111 20
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NET BOM (OMX Nordic Exchange Stockholm)YesSeries B StockSESEKApr 2007
0XX7LSE (London Stock Exchange)YesSeries B StockGBSEKApr 2007
KT0UDB (Deutsche Boerse AG)YesSeries B StockDEEURApr 2007
NETBSBATS-CHIXE (BATS 'Chi-X Europe')YesSeries B StockGBSEKApr 2007
NTAB.FOTCPK (Pink Sheets LLC)YesSeries B StockUSUSDApr 2007
NTNT.YOTCPK (Pink Sheets LLC)ADRUSUSDAug 2016

Biography

NetEnt AB (publ), a digital entertainment company, provides gaming solutions to online casino operators worldwide. It offers slot games; and live casino, including table games, such as Roulette and Blackja...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 18:40
End of Day Share Price2020/12/03 00:00
Earnings2020/09/30
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.