OM:EMBRAC B

Stock Analysis Report

Executive Summary

THQ Nordic AB (publ), together with its subsidiaries, acquires, develops, and publishes PC and console games for the gaming market.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

5.8%

EMBRAC B

3.3%

SE Entertainment

-0.6%

SE Market


1 Year Return

50.0%

EMBRAC B

8.2%

SE Entertainment

23.8%

SE Market

Return vs Industry: EMBRAC B exceeded the Swedish Entertainment industry which returned 0.8% over the past year.

Return vs Market: EMBRAC B exceeded the Swedish Market which returned 26.1% over the past year.


Shareholder returns

EMBRAC BIndustryMarket
7 Day5.8%3.3%-0.6%
30 Day15.2%9.5%1.4%
90 Day5.8%19.7%6.4%
1 Year50.0%50.0%40.5%8.2%28.9%23.8%
3 Year693.5%693.5%128.6%44.3%38.9%17.6%
5 Yearn/a1.6%-56.4%53.2%20.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

69.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EMBRAC B (SEK74.7) is trading above our estimate of fair value (SEK62.32)

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


Price To Earnings Ratio

PE vs Industry: EMBRAC B is poor value based on its PE Ratio (63.7x) compared to the Entertainment industry average (32.6x).

PE vs Market: EMBRAC B is poor value based on its PE Ratio (63.7x) compared to the Swedish market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: EMBRAC B is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: EMBRAC B is overvalued based on its PB Ratio (3.8x) compared to the SE Entertainment industry average (3.5x).


Next Steps

Future Growth

How is Embracer Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

30.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EMBRAC B's forecast earnings growth (27.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: EMBRAC B's earnings (27.6% per year) are forecast to grow faster than the Swedish market (9.6% per year).

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

Revenue vs Market: EMBRAC B's revenue (9.8% per year) is forecast to grow faster than the Swedish market (4.4% per year).

High Growth Revenue: EMBRAC B's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EMBRAC B's Return on Equity is forecast to be low in 3 years time (11.4%).


Next Steps

Past Performance

How has Embracer Group performed over the past 5 years?

43.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EMBRAC B has high quality earnings.

Growing Profit Margin: EMBRAC B's current net profit margins (5.7%) are lower than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: EMBRAC B's earnings have grown significantly by 43.5% per year over the past 5 years.

Accelerating Growth: EMBRAC B's earnings growth over the past year (32.8%) is below its 5-year average (43.5% per year).

Earnings vs Industry: EMBRAC B earnings growth over the past year (32.8%) exceeded the Entertainment industry 24.4%.


Return on Equity

High ROE: EMBRAC B's Return on Equity (5.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Embracer Group's financial position?


Financial Position Analysis

Short Term Liabilities: EMBRAC B's short term assets (SEK4.8B) exceed its short term liabilities (SEK3.1B).

Long Term Liabilities: EMBRAC B's short term assets (SEK4.8B) exceed its long term liabilities (SEK1.4B).


Debt to Equity History and Analysis

Debt Level: EMBRAC B's debt to equity ratio (28.6%) is considered satisfactory.

Reducing Debt: EMBRAC B's debt to equity ratio has reduced from 56.4% to 28.6% over the past 5 years.

Debt Coverage: EMBRAC B's debt is well covered by operating cash flow (110.6%).

Interest Coverage: EMBRAC B earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: EMBRAC B's debt is covered by short term assets (assets are 2.7x debt).


Next Steps

Dividend

What is Embracer Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.6%markettop25%4.4%industryaverage1.7%forecastin3Years0%

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: EMBRAC 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 EMBRAC B'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 Embracer Group's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Lars Wingefors (42yo)

0yrs

Tenure

kr14,000,000

Compensation

Mr. Lars Wingefors is founder of Lars Wingefors AB. Mr. Wingefors is also the founder of THQ Nordic AB (publ) (formerly, Nordic Games Holding AB) and serves as its Chief Executive Officer. He is a Founder  ...


CEO Compensation Analysis

Compensation vs Market: Lars's total compensation ($USD1.48M) is above average for companies of similar size in the Swedish market ($USD1.01M).

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


Management Age and Tenure

1.0yrs

Average Tenure

43yo

Average Age

Experienced Management: EMBRAC B's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

4.0yrs

Average Tenure

56yo

Average Age

Experienced Board: EMBRAC B's board of directors are considered experienced (4 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.


Recent Insider Transactions

Sellkr130,965,63505 Jun 19
Koch Media Holding GmbH
EntityCompany
Shares1,835,967
Max Pricekr71.33

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.8%.


Management Team

  • Klemens Kundratitz (57yo)

    Co-Founder & CEO of Koch Media

    • Tenure: 1yrs
  • Lars Wingefors (42yo)

    Founder

    • Compensation: kr14.00m
  • Erik Stenberg (56yo)

    Co-Founder

    • Tenure: 18yrs
    • Compensation: kr9.20m
  • Klemens Kreuzer (43yo)

    CEO of THQ Nordic GmbH

    • Tenure: 1yrs
  • Johan Ekström

    Chief Financial Officer

    • Tenure: 1yrs
  • Anton Westbergh (34yo)

    Chief Executive Officer of Coffee Stain

    • Tenure: 1yrs

Board Members

  • Kicki Wallje-Lund (66yo)

    Chairman of the Board

    • Tenure: 4yrs
    • Compensation: kr11.00m
  • Lars Wingefors (42yo)

    Founder

    • Compensation: kr14.00m
  • Erik Stenberg (56yo)

    Co-Founder

    • Tenure: 18yrs
    • Compensation: kr9.20m
  • Jacob Jonmyren (39yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: kr3.60m
  • Ulf Hjalmarsson (63yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: kr1.60m

Company Information

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


Key Information

  • Name: Embracer Group AB (publ)
  • Ticker: EMBRAC B
  • Exchange: OM
  • Founded: 1999
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: kr25.557b
  • Shares outstanding: 311.67m
  • Website: https://www.embracer.com

Number of Employees


Location

  • Embracer Group AB (publ)
  • Alvgatan 1
  • Karlstad
  • Värmland County
  • 652 25
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TH9ADB (Deutsche Boerse AG)YesClass B SharesDEEURNov 2016
EMBRAC BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKNov 2016
0GFELSE (London Stock Exchange)YesClass B SharesGBSEKNov 2016
THQQ.FOTCPK (Pink Sheets LLC)YesClass B SharesUSUSDNov 2016

Biography

THQ Nordic AB (publ), together with its subsidiaries, acquires, develops, and publishes PC and console games for the gaming market. The company’s game portfolio consists of owned franchises and published titles. The company also publishes games for various partners. The company distributes games through retailers and digital distributors. In addition, the company publishes and distributes films. It has operations in Sweden, rest of Europe, the United States, and internationally. The company was formerly known as Nordic Games and changed its name to THQ Nordic AB (publ) in August 2016. THQ Nordic AB (publ) was incorporated in 1999 and is headquartered in Karlstad, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/26 22:31
End of Day Share Price2020/01/24 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.