G5 Entertainment (OM:G5EN) - Share price, News & Analysis

G5EN fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	5/6
Past Performance	4/6
Financial Health	6/6
Dividends	3/6

G5EN Stock Overview

G5 Entertainment AB (publ) develops and publishes free-to-play games for smartphones, tablets, and personal computers in Sweden.

Rewards

Trading at 68.2% below our estimate of its fair value

Earnings are forecast to grow 21.83% per year

Earnings have grown 19.6% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Volatile share price over the past 3 months

Significant insider selling over the past 3 months

G5 Entertainment Competitors

Embracer Group

OM:EMBRAC B

kr92.9b

Paradox Interactive

OM:PDX

kr18.9b

Stillfront Group

OM:SF

kr12.0b

Modern Times Group MTG

OM:MTG B

kr11.8b

Price History & Performance

Summary of all time highs, changes and price drops for G5 Entertainment
Historical stock prices
Current Share Price	kr239.60
52 Week High	kr554.00
52 Week Low	kr172.90
Beta	0.96
1 Month Change	23.70%
3 Month Change	-3.39%
1 Year Change	-54.88%
3 Year Change	155.03%
5 Year Change	13.02%
Change since IPO	7,886.67%

Recent News & Updates

May 12

G5 Entertainment (STO:G5EN) Is Paying Out A Larger Dividend Than Last Year

G5 Entertainment AB (publ)'s ( STO:G5EN ) dividend will be increasing to kr7.00 on 22nd of June. This will take the...

Shareholder Returns

	G5EN	SE Entertainment	SE Market
7D	-6.0%	6.6%	-1.0%
1Y	-54.9%	-38.7%	-13.1%

Return vs Industry: G5EN underperformed the Swedish Entertainment industry which returned -37.8% over the past year.

Return vs Market: G5EN underperformed the Swedish Market which returned -12.2% over the past year.

Price Volatility

Is G5EN's price volatile compared to industry and market?
G5EN volatility
G5EN Average Weekly Movement	10.7%
Entertainment Industry Average Movement	8.3%
Market Average Movement	7.6%
10% most volatile stocks in SE Market	12.9%
10% least volatile stocks in SE Market	4.9%

Stable Share Price: G5EN is more volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: G5EN's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of Swedish stocks.

About the Company

Founded	Employees	CEO	Website
2001	913	Vlad Suglobov	https://www.g5e.com

G5 Entertainment AB (publ) develops and publishes free-to-play games for smartphones, tablets, and personal computers in Sweden. Its primary portfolio of games includes Hidden City, Jewels of Rome, Sherlock, Jewels of the Wild West, Mahjong Journey, The Secret Society, Jewels of Egypt, Homicide Squad, Sheriff of Mahjong, and Match Town Makeover. The company distributes games through Apple App Store, Microsoft Store, Google Play, Amazon Appstore, and Mac App Store, as well as its proprietary store

G5 Entertainment Fundamentals Summary

How do G5 Entertainment's earnings and revenue compare to its market cap?
G5EN fundamental statistics
Market Cap	kr2.02b
Earnings (TTM)	kr194.30m
Revenue (TTM)	kr1.32b

10.4x

P/E Ratio

1.5x

P/S Ratio

Is G5EN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
G5EN income statement (TTM)
Revenue	kr1.32b
Cost of Revenue	kr481.14m
Gross Profit	kr841.06m
Other Expenses	kr646.76m
Earnings	kr194.30m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 11, 2022

Earnings per share (EPS)	23.02
Gross Margin	63.61%
Net Profit Margin	14.70%
Debt/Equity Ratio	0%

How did G5EN perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

30%

Payout Ratio

Does G5EN pay a reliable dividends?

See G5EN dividend history and benchmarks

When do you need to buy G5EN by to receive an upcoming dividend?
G5 Entertainment dividend dates
Ex Dividend Date	Jun 16 2022
Dividend Pay Date	Jun 22 2022
Days until Ex dividend	22 days
Days until Dividend pay date	28 days

Does G5EN pay a reliable dividends?

See G5EN dividend history and benchmarks

Valuation

Is G5 Entertainment undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: G5EN (SEK239.6) is trading below our estimate of fair value (SEK753.37)

Significantly Below Fair Value: G5EN is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: G5EN is good value based on its Price-To-Earnings Ratio (10.4x) compared to the Swedish Entertainment industry average (21.2x).

PE vs Market: G5EN is good value based on its Price-To-Earnings Ratio (10.4x) compared to the Swedish market (17.5x).

Price to Earnings Growth Ratio

PEG Ratio: G5EN is good value based on its PEG Ratio (0.5x)

Price to Book Ratio

PB vs Industry: G5EN is overvalued based on its Price-To-Book Ratio (3.7x) compared to the SE Entertainment industry average (2.1x).

Future Growth

How is G5 Entertainment forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

21.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: G5EN's forecast earnings growth (21.8% per year) is above the savings rate (0.3%).

Earnings vs Market: G5EN's earnings (21.8% per year) are forecast to grow faster than the Swedish market (9.7% per year).

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

Revenue vs Market: G5EN's revenue (7.4% per year) is forecast to grow faster than the Swedish market (5.8% per year).

High Growth Revenue: G5EN's revenue (7.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: G5EN's Return on Equity is forecast to be high in 3 years time (35.8%)

Past Performance

How has G5 Entertainment performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

19.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: G5EN has high quality earnings.

Growing Profit Margin: G5EN's current net profit margins (14.7%) are higher than last year (13.7%).

Past Earnings Growth Analysis

Earnings Trend: G5EN's earnings have grown by 19.6% per year over the past 5 years.

Accelerating Growth: G5EN's earnings growth over the past year (3.6%) is below its 5-year average (19.6% per year).

Earnings vs Industry: G5EN earnings growth over the past year (3.6%) underperformed the Entertainment industry 11.1%.

Return on Equity

High ROE: G5EN's Return on Equity (35.7%) is considered high.

Financial Health

How is G5 Entertainment's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: G5EN's short term assets (SEK353.1M) exceed its short term liabilities (SEK130.3M).

Long Term Liabilities: G5EN's short term assets (SEK353.1M) exceed its long term liabilities (SEK2.5M).

Debt to Equity History and Analysis

Debt Level: G5EN is debt free.

Reducing Debt: G5EN has not had any debt for past 5 years.

Debt Coverage: G5EN has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: G5EN has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is G5 Entertainment current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.92%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: G5EN's dividend (2.92%) is higher than the bottom 25% of dividend payers in the Swedish market (1.43%).

High Dividend: G5EN's dividend (2.92%) is low compared to the top 25% of dividend payers in the Swedish market (4.8%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, G5EN has been paying a dividend for less than 10 years.

Growing Dividend: G5EN's dividend payments have increased, but the company has only paid a dividend for 5 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (30.5%), G5EN's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (36.3%), G5EN's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

6.1yrs

Average management tenure

CEO

Vlad Suglobov (44 yo)

21.33yrs

Tenure

kr4,829

Compensation

Mr. Vladislav Suglobov, also known as Vlad, Co-Founded G5 Entertainment AB in 2001 and serves as its Chief Executive Officer. Mr. Suglobov is responsible for corporate strategy, customer relations and dail...

CEO Compensation Analysis

Compensation vs Market: Vlad's total compensation ($USD493.53) is below average for companies of similar size in the Swedish market ($USD419.04K).

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

Leadership Team

Experienced Management: G5EN's management team is seasoned and experienced (6.1 years average tenure).

Board Members

Experienced Board: G5EN's board of directors are considered experienced (9.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: G5EN insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31