OM:NETG

Stock Analysis Report

Executive Summary

Net Gaming Europe AB (publ), through its subsidiaries, owns, develops, and operates comparison and news sites in Sweden.

Snowflake

Fundamentals

Undervalued with proven track record.

Share Price & News

How has Net Gaming Europe's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.2%

NETG

2.7%

SE Hospitality

2.7%

SE Market


1 Year Return

-61.0%

NETG

10.7%

SE Hospitality

10.0%

SE Market

Return vs Industry: NETG underperformed the Swedish Hospitality industry which returned 10.7% over the past year.

Return vs Market: NETG underperformed the Swedish Market which returned 10% over the past year.


Shareholder returns

NETGIndustryMarket
7 Day3.2%2.7%2.7%
30 Day-10.3%3.0%1.9%
90 Day-20.6%-2.6%3.2%
1 Year-61.0%-61.0%12.9%10.7%14.7%10.0%
3 Year-36.4%-36.4%32.4%25.3%31.1%11.4%
5 Year714.0%714.0%45.4%33.8%61.5%27.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Net Gaming Europe undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: NETG (SEK3.5) is trading below our estimate of fair value (SEK16.05)

Significantly Undervalued: NETG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NETG is good value based on its PE Ratio (3.8x) compared to the Hospitality industry average (16.3x).

PE vs Market: NETG is good value based on its PE Ratio (3.8x) compared to the Swedish market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate NETG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NETG is good value based on its PB Ratio (1x) compared to the SE Hospitality industry average (2.9x).


Next Steps

Future Growth

How is Net Gaming Europe forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NETG's forecast earnings growth (9.1% per year) is above the savings rate (0.4%).

Earnings vs Market: NETG's earnings (9.1% per year) are forecast to grow faster than the Swedish market (9.4% per year).

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

Revenue vs Market: Insufficient data to determine if NETG's revenue is forecast to grow faster than the Swedish market.

High Growth Revenue: Insufficient data to determine if NETG's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if NETG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Net Gaming Europe performed over the past 5 years?

76.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NETG has become profitable over the past 5 years, growing earnings by 76% per year.

Accelerating Growth: NETG's earnings growth over the past year (93.7%) exceeds its 5-year average (76% per year).

Earnings vs Industry: NETG earnings growth over the past year (93.7%) exceeded the Hospitality industry 18.2%.


Return on Equity

High ROE: Whilst NETG's Return on Equity (26.17%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: NETG has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: NETG's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Net Gaming Europe's financial position?


Financial Position Analysis

Short Term Liabilities: NETG's short term assets (€14.8M) exceeds its short term liabilities (€1.8M)

Long Term Liabilities: NETG's short term assets (14.8M) do not cover its long term liabilities (35.4M)


Debt to Equity History and Analysis

Debt Level: NETG's debt to equity ratio (144.1%) is considered high

Reducing Debt: NETG's debt to equity ratio has increased from 0.2% to 144.1% over the past 5 years.

Debt Coverage: NETG's debt is well covered by operating cash flow (31.7%).

Interest Coverage: NETG's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: NETG's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Net Gaming Europe's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.8%markettop25%4.7%industryaverage3.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate NETG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if NETG's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Net Gaming Europe's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Marcus Teilman (36yo)

7.4yrs

Tenure

€2,789,000

Compensation

Mr. Marcus Teilman has been the Chief Executive Officer at Net Gaming Europe AB (publ) since May 2012 and serves as its President and also served as its Chief Financial Officer. Mr. Teilman has been a Dire ...


CEO Compensation Analysis

Compensation vs. Market: Marcus's total compensation ($USD287.13K) is about average for companies of similar size in the Swedish market ($USD123.93K).

Compensation vs Earnings: Marcus's compensation has increased by more than 20% in the past year.


Management Age and Tenure

1.2yrs

Average Tenure

45yo

Average Age

Experienced Management: NETG's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

2.9yrs

Average Tenure

45.5yo

Average Age

Experienced Board: NETG's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: NETG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€431,77621 Aug 19
Trottholmen AB
EntityCompany
Shares119,229
Max Price€3.62
Buy€416,97620 Aug 19
Henrik Kvick AB
EntityCompany
Shares117,319
Max Price€3.55
Buy€215,41319 Aug 19
Trottholmen AB
EntityCompany
Shares63,452
Max Price€3.39
Buy€100,80016 Aug 19
Gustav Vadenbring
EntityIndividual
Role
Chief Financial Officer
Group CFO & Secretary
Shares30,000
Max Price€3.36
Buy€124,80012 Jun 19
Christian Käfling
EntityIndividual
Role
Senior Key Executive
Head of M&A
Shares30,000
Max Price€4.16
Buy€999,93224 May 19
Marcus Teilman
EntityIndividual
Role
Chief Executive Officer
President
Shares230,399
Max Price€4.34

Ownership Breakdown


Management Team

  • Richard Chindt (57yo)

    Group Chief Accountant

    • Tenure: 1.2yrs
  • Marcus Teilman (36yo)

    President

    • Tenure: 7.4yrs
    • Compensation: €2.79m
  • Gustav Vadenbring (45yo)

    Group CFO & Secretary

    • Tenure: 1.2yrs
  • Erik Gjerde (36yo)

    Chief Executive Officer of Highlight Media

    • Tenure: 2.1yrs
  • John Cremona (47yo)

    Chief Legal Officer

    • Tenure: 0yrs
  • Clinton Cutajar (36yo)

    Group Chief Technology Officer

    • Tenure: 1.1yrs
  • Christian Käfling (47yo)

    Head of M&A

    • Tenure: 0.5yrs

Board Members

  • Peter Åström (53yo)

    Director

    • Tenure: 0.8yrs
  • Fredrik Rüdén (49yo)

    Director

    • Tenure: 0.8yrs
  • Henrik Kvick (42yo)

    Chairman of the Board

    • Tenure: 7.5yrs
    • Compensation: €160.00k
  • Jonas Bertilsson

    Director

    • Tenure: 2.9yrs
    • Compensation: €80.00k
  • Marcus Teilman (36yo)

    President

    • Tenure: 7.4yrs
    • Compensation: €2.79m

Company Information

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


Key Information

  • Name: Net Gaming Europe AB (publ)
  • Ticker: NETG
  • Exchange: OM
  • Founded: 2003
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: kr274.444m
  • Shares outstanding: 75.60m
  • Website: https://www.netgaming.se

Number of Employees


Location

  • Net Gaming Europe AB (publ)
  • Stureplan 6, 4 tr.
  • Stockholm
  • Stockholm County
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NETGOM (OMX Nordic Exchange Stockholm)YesClass A SharesSESEKMay 2009
7NGDB (Deutsche Boerse AG)YesClass A SharesDEEURMay 2009

Biography

Net Gaming Europe AB (publ), through its subsidiaries, owns, develops, and operates comparison and news sites in Sweden. It operates comparison and news sites under various digital brands, such as casinolo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 20:57
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.