NOT FOR DISTRIBUTION
Header cover image

Paradox Interactive

Market Cap

kr18.6b

Last Updated

2021/05/16 19:17 UTC

Data Sources

Company Financials +

Executive Summary

Paradox Interactive AB (publ) develops and publishes games and brands for PC, mobile, and console platforms primarily in the United States, the United Kingdom, China, Germany, France, Russia, and Scandinavia. More Details

Rewards

Trading at 19.2% below our estimate of its fair value

Earnings are forecast to grow 15.12% per year

Risk Analysis

No risks detected for PDX from our risk checks.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Paradox Interactive's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PDX is not significantly more volatile than the rest of Swedish stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: PDX's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-3.1%

PDX

-8.2%

SE Entertainment

-1.4%

SE Market


1 Year Return

-21.1%

PDX

52.2%

SE Entertainment

56.4%

SE Market

Return vs Industry: PDX underperformed the Swedish Entertainment industry which returned 52.2% over the past year.

Return vs Market: PDX underperformed the Swedish Market which returned 56.4% over the past year.


Shareholder returns

PDXIndustryMarket
7 Day-3.1%-8.2%-1.4%
30 Day-18.2%-15.8%-2.8%
90 Day-29.7%-21.4%7.7%
1 Year-20.7%-21.1%54.3%52.2%61.6%56.4%
3 Year8.7%6.8%117.0%59.6%63.4%45.3%
5 Yearn/a-10.9%-60.9%105.4%64.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Paradox Interactive undervalued compared to its fair value and its price relative to the market?

19.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PDX (SEK176.5) is trading below our estimate of fair value (SEK218.32)

Significantly Below Fair Value: PDX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PDX's PE Ratio (42.4x) is in line with the Swedish Entertainment industry average.

PE vs Market: PDX is poor value based on its PE Ratio (42.4x) compared to the Swedish market (24.5x).


Price to Earnings Growth Ratio

PEG Ratio: PDX is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: PDX is overvalued based on its PB Ratio (11.7x) compared to the SE Entertainment industry average (3.6x).


Future Growth

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

15.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PDX's forecast earnings growth (15.1% per year) is above the savings rate (0.3%).

Earnings vs Market: PDX's earnings (15.1% per year) are forecast to grow faster than the Swedish market (1.8% per year).

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

Revenue vs Market: PDX's revenue (12.8% per year) is forecast to grow faster than the Swedish market (0.6% per year).

High Growth Revenue: PDX's revenue (12.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PDX's Return on Equity is forecast to be high in 3 years time (29.5%)


Past Performance

How has Paradox Interactive performed over the past 5 years?

20.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PDX has high quality earnings.

Growing Profit Margin: PDX's current net profit margins (25%) are lower than last year (31.2%).


Past Earnings Growth Analysis

Earnings Trend: PDX's earnings have grown by 20% per year over the past 5 years.

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

Earnings vs Industry: PDX had negative earnings growth (-3%) over the past year, making it difficult to compare to the Entertainment industry average (89.8%).


Return on Equity

High ROE: PDX's Return on Equity (27.6%) is considered high.


Financial Health

How is Paradox Interactive's financial position?


Financial Position Analysis

Short Term Liabilities: PDX's short term assets (SEK932.6M) exceed its short term liabilities (SEK549.4M).

Long Term Liabilities: PDX's short term assets (SEK932.6M) exceed its long term liabilities (SEK351.5M).


Debt to Equity History and Analysis

Debt Level: PDX is debt free.

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

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

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


Balance Sheet


Dividend

What is Paradox Interactive current dividend yield, its reliability and sustainability?

0.57%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 17 2021Ex Dividend DateMay 19 2021Dividend Pay DateMay 25 20216 days from Ex DividendBuy in the next 2 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: PDX's dividend (0.57%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.17%).

High Dividend: PDX's dividend (0.57%) is low compared to the top 25% of dividend payers in the Swedish market (3.36%).


Stability and Growth of Payments

Stable Dividend: PDX is not paying a notable dividend for the Swedish market, therefore no need to check if payments are stable.

Growing Dividend: PDX is not paying a notable dividend for the Swedish market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: PDX is not paying a notable dividend for the Swedish market.


Future Payout to Shareholders

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


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Ebba Ljungerud (48 yo)

2.75yrs

Tenure

kr4,853,000

Compensation

Ms. Ebba Ljungerud is Chief Executive Officer at Paradox Interactive AB (publ) since August 2018. Ms. Ljungerud was Chief Commercial Officer of Unibet Group plc from 2016 to June 30, 2018. Ms. Ljungerud ha...


CEO Compensation Analysis

Compensation vs Market: Ebba's total compensation ($USD581.60K) is below average for companies of similar size in the Swedish market ($USD979.84K).

Compensation vs Earnings: Ebba's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: PDX's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: PDX'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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Paradox Interactive AB (publ)
  • Ticker: PDX
  • Exchange: OM
  • Founded: 1998
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: kr18.638b
  • Shares outstanding: 105.60m
  • Website: https://www.paradoxinteractive.com

Number of Employees


Location

  • Paradox Interactive AB (publ)
  • Magnus Ladulåsgatan 4
  • Stockholm
  • Stockholm County
  • 118 66
  • Sweden

Listings


Biography

Paradox Interactive AB (publ) develops and publishes games and brands for PC, mobile, and console platforms primarily in the United States, the United Kingdom, China, Germany, France, Russia, and Scandinav...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/16 19:17
End of Day Share Price2021/05/14 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.