Paradox Interactive (OM:PDX) - Share price, News & Analysis

PDX fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	5/6
Past Performance	1/6
Financial Health	6/6
Dividends	0/6

PDX Stock Overview

Rewards

Earnings are forecast to grow 20.88% per year

Risk Analysis

High level of non-cash earnings

Paradox Interactive Competitors

Embracer Group

OM:EMBRAC B

kr92.9b

Stillfront Group

OM:SF

kr12.0b

G5 Entertainment

OM:G5EN

kr2.0b

Tencent Holdings

SEHK:700

HK$3.2t

Price History & Performance

Summary of all time highs, changes and price drops for Paradox Interactive
Historical stock prices
Current Share Price	kr172.80
52 Week High	kr210.00
52 Week Low	kr115.50
Beta	0.15
1 Month Change	1.02%
3 Month Change	-8.52%
1 Year Change	-4.11%
3 Year Change	23.17%
5 Year Change	146.86%
Change since IPO	289.19%

Shareholder Returns

	PDX	SE Entertainment	SE Market
7D	-5.9%	6.6%	-1.0%
1Y	-4.1%	-38.7%	-13.1%

Return vs Industry: PDX exceeded the Swedish Entertainment industry which returned -38.7% over the past year.

Return vs Market: PDX exceeded the Swedish Market which returned -13.1% over the past year.

Price Volatility

Is PDX's price volatile compared to industry and market?
PDX volatility
PDX 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: PDX is not significantly more volatile than the rest of Swedish stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PDX's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1998	692	Fredrik Wester	https://www.paradoxinteractive.com

Paradox Interactive AB (publ) develops and publishes games and brands for PC, mobile, and console platforms primarily in North and Latin America, Europe, the Middle East, Africa, and the Asia Pacific region. The company’s game portfolio comprises various franchises and brands, including Stellaris, Europa Universalis, Hearts of Iron, Crusader Kings, Cities: Skylines, Surviving Mars, Prison Architect, Magicka, Age of Wonders, Victoria, and the World of Darkness. Paradox Interactive AB (publ) was founded in 1998 and is headquartered in Stockholm, Sweden.

Paradox Interactive Fundamentals Summary

How do Paradox Interactive's earnings and revenue compare to its market cap?
PDX fundamental statistics
Market Cap	kr18.86b
Earnings (TTM)	kr339.58m
Revenue (TTM)	kr1.56b

53.7x

P/E Ratio

11.7x

P/S Ratio

Is PDX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PDX income statement (TTM)
Revenue	kr1.56b
Cost of Revenue	kr656.62m
Gross Profit	kr902.40m
Other Expenses	kr562.82m
Earnings	kr339.58m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 02, 2022

Earnings per share (EPS)	3.22
Gross Margin	57.88%
Net Profit Margin	21.78%
Debt/Equity Ratio	0%

How did PDX perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

31%

Payout Ratio

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

53.74x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: PDX (SEK172.8) is trading above our estimate of fair value (SEK121.97)

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

Price To Earnings Ratio

PE vs Industry: PDX is poor value based on its Price-To-Earnings Ratio (53.7x) compared to the Swedish Entertainment industry average (20.5x).

PE vs Market: PDX is poor value based on its Price-To-Earnings Ratio (53.7x) compared to the Swedish market (16.9x).

Price to Earnings Growth Ratio

PEG Ratio: PDX is poor value based on its PEG Ratio (2.6x)

Price to Book Ratio

PB vs Industry: PDX is overvalued based on its Price-To-Book Ratio (9.9x) compared to the SE Entertainment industry average (2.1x).

Future Growth

How is Paradox Interactive forecast to perform in the next 1 to 3 years based on estimates from 5 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

20.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PDX's forecast earnings growth (20.9% per year) is above the savings rate (0.3%).

Earnings vs Market: PDX's earnings (20.9% per year) are forecast to grow faster than the Swedish market (9.5% per year).

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

Revenue vs Market: PDX's revenue (15.8% per year) is forecast to grow faster than the Swedish market (5.8% per year).

High Growth Revenue: PDX's revenue (15.8% 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 (27.5%)

Past Performance

How has Paradox Interactive performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

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

6.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PDX has a high level of non-cash earnings.

Growing Profit Margin: PDX's current net profit margins (21.8%) are lower than last year (25%).

Past Earnings Growth Analysis

Earnings Trend: PDX's earnings have grown by 6.3% 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 (-22.7%) over the past year, making it difficult to compare to the Entertainment industry average (11.1%).

Return on Equity

High ROE: PDX's Return on Equity (18.5%) is considered low.

Financial Health

How is Paradox Interactive'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: PDX's short term assets (SEK898.3M) exceed its short term liabilities (SEK512.0M).

Long Term Liabilities: PDX's short term assets (SEK898.3M) exceed its long term liabilities (SEK287.3M).

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?

Dividend Score

0/6

Dividend Score 0/6

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

0.58%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PDX's dividend (0.58%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.44%).

High Dividend: PDX's dividend (0.58%) is low compared to the top 25% of dividend payers in the Swedish market (4.89%).

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

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

Discover strong dividend paying companies

Management

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

3.3yrs

Average management tenure

CEO

Fredrik Wester (47 yo)

0.67

Tenure

kr12,000

Compensation

Mr. Fredrik Wester is the Chief Executive Officer of Paradox Interactive AB (publ) since September 01, 2021. He had been the Chairman of the Board at Paradox Interactive AB (publ) since August 1, 2018 unti...

CEO Compensation Analysis

Compensation vs Market: Fredrik's total compensation ($USD1.22K) is below average for companies of similar size in the Swedish market ($USD876.80K).

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

Leadership Team

Experienced Management: PDX's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: PDX's board of directors are considered experienced (3 years average tenure).

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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31