OM:G5EN

Stock Analysis Report

G5 Entertainment

Executive Summary

G5 Entertainment AB (publ) develops and publishes free-to-play games for smartphones and tablets.

Rewards

Trading at 51.5% below its fair value

Earnings are forecast to grow 35.83% per year

Risk Analysis

Unstable dividend track record

Highly volatile share price over past 3 months

Profit margins (5.3%) are lower than last year (8.6%)

Does not have a meaningful market cap (SEK811M)



Snowflake Analysis

Very undervalued with flawless balance sheet.


Similar Companies

Share Price & News

How has G5 Entertainment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: G5EN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.1%

G5EN

3.4%

SE Entertainment

1.0%

SE Market


1 Year Return

-37.9%

G5EN

-2.7%

SE Entertainment

22.5%

SE Market

Return vs Industry: G5EN underperformed the Swedish Entertainment industry which returned -2.7% over the past year.

Return vs Market: G5EN underperformed the Swedish Market which returned 22.5% over the past year.


Shareholder returns

G5ENIndustryMarket
7 Day-1.1%3.4%1.0%
30 Day-1.8%10.1%0.07%
90 Day-36.4%3.6%8.2%
1 Year-36.3%-37.9%26.8%-2.7%27.6%22.5%
3 Year-0.9%-4.3%105.4%31.8%34.2%13.7%
5 Year284.1%270.8%9.4%-54.7%61.8%27.0%

Price Volatility Vs. Market

How volatile is G5 Entertainment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: G5EN (SEK89) is trading below our estimate of fair value (SEK183.49)

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 PE Ratio (12x) compared to the Entertainment industry average (30.1x).

PE vs Market: G5EN is good value based on its PE Ratio (12x) compared to the Swedish market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: G5EN is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: G5EN is good value based on its PB Ratio (2x) compared to the SE Entertainment industry average (2.3x).


Next Steps

Future Growth

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

35.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: G5EN's forecast earnings growth (35.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: G5EN's earnings (35.8% per year) are forecast to grow faster than the Swedish market (9.4% per year).

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

Revenue vs Market: G5EN's revenue (11.4% per year) is forecast to grow faster than the Swedish market (4.5% per year).

High Growth Revenue: G5EN's revenue (11.4% 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 (31.4%)


Next Steps

Past Performance

How has G5 Entertainment performed over the past 5 years?

47.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: G5EN has high quality earnings.

Growing Profit Margin: G5EN's current net profit margins (5.3%) are lower than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: G5EN has become profitable over the past 5 years, growing earnings by 47.4% per year.

Accelerating Growth: G5EN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: G5EN had negative earnings growth (-47.1%) over the past year, making it difficult to compare to the Entertainment industry average (24.4%).


Return on Equity

High ROE: G5EN's Return on Equity (16.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is G5 Entertainment's financial position?


Financial Position Analysis

Short Term Liabilities: G5EN's short term assets (SEK304.7M) exceed its short term liabilities (SEK201.0M).

Long Term Liabilities: G5EN's short term assets (SEK304.7M) exceed its long term liabilities (SEK7.2M).


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

Inventory Level: G5EN has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if G5EN's debt is covered by short term assets.


Next Steps

Dividend

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

2.81%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%1.6%markettop25%4.7%industryaverage1.8%forecastin3Years4.1%

Current dividend yield vs market & industry

Notable Dividend: G5EN's dividend (2.81%) is higher than the bottom 25% of dividend payers in the Swedish market (1.63%).

High Dividend: G5EN's dividend (2.81%) is low compared to the top 25% of dividend payers in the Swedish market (4.65%).


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 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.8%), G5EN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: G5EN's dividends in 3 years are forecast to be well covered by earnings (23.2% payout ratio).


Next Steps

Management

What is the CEO of G5 Entertainment's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Vlad Suglobov (42yo)

0yrs

Tenure

kr6,230,000

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 ($USD655.11K) is above average for companies of similar size in the Swedish market ($USD110.78K).

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


Management Age and Tenure

3.7yrs

Average Tenure

42yo

Average Age

Experienced Management: G5EN's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

53yo

Average Age

Experienced Board: G5EN's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buykr2,094,40003 Oct 19
Purple Wolf Ltd
EntityCompany
Shares17,000
Max Pricekr123.20
Sellkr2,094,40003 Oct 19
Alexander Tabunov
EntityIndividual
Role
Top Key Executive
Co-Founder & COO
Shares17,000
Max Pricekr123.20
Buykr240,15213 Feb 19
Stefan Wikstrand
EntityIndividual
Role
Chief Financial Officer
CFO & Deputy CEO
Shares2,200
Max Pricekr109.16
Buykr546,30013 Feb 19
Wide Development Ltd
EntityCompany
Shares5,000
Max Pricekr109.26
Buykr1,411,77018 Dec 18
Wide Development Ltd
EntityCompany
Shares10,000
Max Pricekr141.18
Sellkr1,387,27018 Dec 18
Vladislav Suglobov
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares10,000
Max Pricekr138.73

Ownership Breakdown

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


Management Team

  • Alik Tabunov (45yo)

    Co-Founder & COO

    • Tenure: 18.9yrs
  • Vlad Suglobov (42yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: kr6.23m
  • Stefan Wikstrand (39yo)

    CFO & Deputy CEO

    • Tenure: 4.5yrs
  • Olga Abashova

    HR Director

    • Tenure: 2.9yrs
  • Julia Lykhvar

    Lead Marketing Manager

    • Tenure: 1.9yrs

Board Members

  • Petter Nylander (55yo)

    Independent Chairman

    • Tenure: 0yrs
    • Compensation: kr539.00k
  • Vlad Suglobov (42yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: kr6.23m
  • Jeffrey Rose (57yo)

    Director

    • Tenure: 8.4yrs
    • Compensation: kr1.20m
  • Johanna Köhler (53yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: kr292.00k
  • Stefan Lundborg (47yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: kr272.00k

Company Information

G5 Entertainment AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: G5 Entertainment AB (publ)
  • Ticker: G5EN
  • Exchange: OM
  • Founded: 2001
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: kr811.019m
  • Shares outstanding: 9.02m
  • Website: https://www.g5e.com

Number of Employees


Location

  • G5 Entertainment AB (publ)
  • Birger Jarlsgatan 18
  • Stockholm
  • Stockholm County
  • 114 34
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
G5ENOM (OMX Nordic Exchange Stockholm)YesOrdinary SharesSESEKNov 2008
0QUSLSE (London Stock Exchange)YesOrdinary SharesGBSEKNov 2008
U3IDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2008
GENT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2008
G5ENSBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBSEKNov 2008

Biography

G5 Entertainment AB (publ) develops and publishes free-to-play games for smartphones and tablets. The company provides casual time management and hidden object games on the Apple App store. Its portfolio o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 20:53
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
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.