Modern Times Group MTG (OM:MTG B) - Share price, News & Analysis

MTG B fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

MTG B Stock Overview

Rewards

Trading at 31% below our estimate of its fair value

Risk Analysis

Earnings are forecast to decline by an average of 27.8% per year for the next 3 years

Shareholders have been diluted in the past year

Modern Times Group MTG Competitors

Embracer Group

OM:EMBRAC B

kr92.9b

Stillfront Group

OM:SF

kr12.0b

G5 Entertainment

OM:G5EN

kr2.0b

Comcast

NasdaqGS:CMCS.A

US$193.0b

Price History & Performance

Summary of all time highs, changes and price drops for Modern Times Group MTG
Historical stock prices
Current Share Price	kr107.90
52 Week High	kr143.90
52 Week Low	kr82.80
Beta	0.82
1 Month Change	-14.97%
3 Month Change	-8.01%
1 Year Change	-6.01%
3 Year Change	-3.27%
5 Year Change	-64.38%
Change since IPO	87.65%

Shareholder Returns

	MTG B	SE Entertainment	SE Market
7D	-4.6%	6.6%	-1.0%
1Y	-6.0%	-38.7%	-13.1%

Return vs Industry: MTG B exceeded the Swedish Entertainment industry which returned -37.8% over the past year.

Return vs Market: MTG B exceeded the Swedish Market which returned -12.2% over the past year.

Price Volatility

Is MTG B's price volatile compared to industry and market?
MTG B volatility
MTG B Average Weekly Movement	6.5%
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: MTG B is not significantly more volatile than the rest of Swedish stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: MTG B's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1987	1,040	Maria Redin	https://www.mtg.com

Modern Times Group MTG AB (publ), through its subsidiaries, operates as a digital entertainment company in the United States, the United Kingdom, Germany, rest of Europe, Singapore, India, New Zealand, and internationally. It operates through Esport and Gaming segments. The Esport segment operates national and international tournaments, as well as grassroots amateur cups, leagues, and festivals; and engages in the gaming technology, event management, advertising, and TV production business.

Modern Times Group MTG Fundamentals Summary

How do Modern Times Group MTG's earnings and revenue compare to its market cap?
MTG B fundamental statistics
Market Cap	kr11.85b
Earnings (TTM)	-kr471.00m
Revenue (TTM)	kr5.90b

2.0x

P/S Ratio

-25.1x

P/E Ratio

Is MTG B overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MTG B income statement (TTM)
Revenue	kr5.90b
Cost of Revenue	kr3.12b
Gross Profit	kr2.78b
Other Expenses	kr3.25b
Earnings	-kr471.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 20, 2022

Earnings per share (EPS)	-4.29
Gross Margin	47.12%
Net Profit Margin	-7.99%
Debt/Equity Ratio	28.2%

How did MTG B perform over the long term?

See historical performance and comparison

Valuation

Is Modern Times Group MTG undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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

31.0%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MTG B (SEK107.9) is trading below our estimate of fair value (SEK156.43)

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

Price To Earnings Ratio

PE vs Industry: MTG B is unprofitable, so we can't compare its Price-To-Earnings Ratio to the Swedish Entertainment industry average.

PE vs Market: MTG B is unprofitable, so we can't compare its Price-To-Earnings Ratio to the Swedish market.

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: MTG B is good value based on its Price-To-Book Ratio (1.5x) compared to the SE Entertainment industry average (2.1x).

Future Growth

How is Modern Times Group MTG forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

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

-27.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTG B's earnings are forecast to decline over the next 3 years (-27.8% per year).

Earnings vs Market: MTG B is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MTG B's is expected to become profitable in the next 3 years.

Revenue vs Market: MTG B's revenue (4.9% per year) is forecast to grow slower than the Swedish market (5.8% per year).

High Growth Revenue: MTG B's revenue (4.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: MTG B's Return on Equity is forecast to be low in 3 years time (3.4%).

Past Performance

How has Modern Times Group MTG performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

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

-49.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MTG B is currently unprofitable.

Growing Profit Margin: MTG B is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: MTG B is unprofitable, and losses have increased over the past 5 years at a rate of 49.8% per year.

Accelerating Growth: Unable to compare MTG B's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MTG B is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (11.1%).

Return on Equity

High ROE: MTG B has a negative Return on Equity (-5.63%), as it is currently unprofitable.

Financial Health

How is Modern Times Group MTG's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

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

Financial Position Analysis

Short Term Liabilities: MTG B's short term assets (SEK4.7B) exceed its short term liabilities (SEK4.3B).

Long Term Liabilities: MTG B's short term assets (SEK4.7B) exceed its long term liabilities (SEK3.8B).

Debt to Equity History and Analysis

Debt Level: MTG B's net debt to equity ratio (19.1%) is considered satisfactory.

Reducing Debt: MTG B's debt to equity ratio has reduced from 61.7% to 28.2% over the past 5 years.

Debt Coverage: MTG B's debt is not well covered by operating cash flow (15.5%).

Interest Coverage: MTG B's interest payments on its debt are not well covered by EBIT (1.3x coverage).

Balance Sheet

Dividend

What is Modern Times Group MTG current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

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

Dividend Yield vs Market

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

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

Earnings Payout to Shareholders

Earnings Coverage: MTG B is not paying a notable dividend for the Swedish market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as MTG B has not reported any payouts.

Discover strong dividend paying companies

Management

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

3.7yrs

Average management tenure

CEO

Maria Redin (43 yo)

1.67yrs

Tenure

kr12,857,000

Compensation

Ms. Maria Redin serves as Director of Hemnet Group AB (publ) since April 29, 2022. She serves as Group President and Chief Executive Officer at Modern Times Group Mtg AB since September 03, 2020. She had b...

CEO Compensation Analysis

Compensation vs Market: Maria's total compensation ($USD1.31M) is above average for companies of similar size in the Swedish market ($USD830.31K).

Compensation vs Earnings: Maria's compensation has increased whilst the company is unprofitable.

Leadership Team

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

Board Members

Experienced Board: MTG B's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.

Ownership

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

Insider Trading Volume

Insider Buying: MTG B 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 3.6%.

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