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Paradox Interactive

OM:PDX
Snowflake Description

High growth potential with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PDX
OM
SEK15B
Market Cap
  1. Home
  2. SE
  3. Media
Company description

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. The last earnings update was 9 days ago. More info.


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PDX Share Price and Events
7 Day Returns
-2%
OM:PDX
-0.7%
SE Entertainment
0.7%
SE Market
1 Year Returns
-27.5%
OM:PDX
-33.1%
SE Entertainment
0.1%
SE Market
PDX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Paradox Interactive (PDX) -2% -8.8% -2.5% -27.5% - -
SE Entertainment -0.7% 2.2% -11.9% -33.1% -63.6% -63.4%
SE Market 0.7% -2.1% 2.8% 0.1% 12.9% 17.5%
1 Year Return vs Industry and Market
  • PDX outperformed the Entertainment industry which returned -33.1% over the past year.
  • PDX underperformed the Market in Sweden which returned 0.1% over the past year.
Price Volatility
PDX
Industry
5yr Volatility vs Market

Value

 Is Paradox Interactive undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Paradox Interactive to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Paradox Interactive.

OM:PDX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.2%
Perpetual Growth Rate 10-Year SE Government Bond Rate 0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OM:PDX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year SE Govt Bond Rate 0.4%
Equity Risk Premium S&P Global 6%
Entertainment Unlevered Beta Simply Wall St/ S&P Global 0.95
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.949 (1 + (1- 22%) (0.26%))
0.967
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.97
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.43% + (0.967 * 5.96%)
6.2%

Discounted Cash Flow Calculation for OM:PDX using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Paradox Interactive is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

OM:PDX DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (SEK, Millions) Source Present Value
Discounted (@ 6.2%)
2019 271.50 Analyst x2 255.65
2020 472.50 Analyst x2 418.96
2021 565.00 Analyst x2 471.74
2022 636.31 Est @ 12.62% 500.27
2023 693.35 Est @ 8.96% 513.30
2024 737.76 Est @ 6.41% 514.30
2025 771.80 Est @ 4.61% 506.63
2026 797.74 Est @ 3.36% 493.09
2027 817.54 Est @ 2.48% 475.84
2028 832.81 Est @ 1.87% 456.44
Present value of next 10 years cash flows SEK4,606.23
OM:PDX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= SEK832.81 × (1 + 0.43%) ÷ (6.2% – 0.43%)
SEK14,512.09
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= SEK14,512.09 ÷ (1 + 6.2%)10
SEK7,953.67
OM:PDX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= SEK4,606.23 + SEK7,953.67
SEK12,559.90
Equity Value per Share
(SEK)
= Total value / Shares Outstanding
= SEK12,559.90 / 105.60
SEK118.94
OM:PDX Discount to Share Price
Calculation Result
Value per share (SEK) From above. SEK118.94
Current discount Discount to share price of SEK146.00
= -1 x (SEK146.00 - SEK118.94) / SEK118.94
-22.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Paradox Interactive is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Paradox Interactive's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Paradox Interactive's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OM:PDX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in SEK SEK2.79
OM:PDX Share Price ** OM (2019-05-23) in SEK SEK146
Sweden Entertainment Industry PE Ratio Median Figure of 5 Publicly-Listed Entertainment Companies 31.76x
Sweden Market PE Ratio Median Figure of 323 Publicly-Listed Companies 16.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Paradox Interactive.

OM:PDX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OM:PDX Share Price ÷ EPS (both in SEK)

= 146 ÷ 2.79

52.35x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Paradox Interactive is overvalued based on earnings compared to the SE Entertainment industry average.
  • Paradox Interactive is overvalued based on earnings compared to the Sweden market.
Price based on expected Growth
Does Paradox Interactive's expected growth come at a high price?
Raw Data
OM:PDX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 52.35x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
21.6%per year
Sweden Entertainment Industry PEG Ratio Median Figure of 5 Publicly-Listed Entertainment Companies 1.87x
Sweden Market PEG Ratio Median Figure of 235 Publicly-Listed Companies 1.34x

*Line of best fit is calculated by linear regression .

OM:PDX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 52.35x ÷ 21.6%

2.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Paradox Interactive is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Paradox Interactive's assets?
Raw Data
OM:PDX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in SEK SEK8.58
OM:PDX Share Price * OM (2019-05-23) in SEK SEK146
Sweden Entertainment Industry PB Ratio Median Figure of 14 Publicly-Listed Entertainment Companies 2.69x
Sweden Market PB Ratio Median Figure of 568 Publicly-Listed Companies 2.46x
OM:PDX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OM:PDX Share Price ÷ Book Value per Share (both in SEK)

= 146 ÷ 8.58

17.01x

* Primary Listing of Paradox Interactive.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Paradox Interactive is overvalued based on assets compared to the SE Entertainment industry average.
X
Value checks
We assess Paradox Interactive's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Entertainment industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Entertainment industry average (and greater than 0)? (1 check)
  5. Paradox Interactive has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Paradox Interactive expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
21.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Paradox Interactive expected to grow at an attractive rate?
  • Paradox Interactive's earnings growth is expected to exceed the low risk savings rate of 0.4%.
Growth vs Market Checks
  • Paradox Interactive's earnings growth is expected to exceed the Sweden market average.
  • Paradox Interactive's revenue growth is expected to exceed the Sweden market average.
Annual Growth Rates Comparison
Raw Data
OM:PDX Future Growth Rates Data Sources
Data Point Source Value (per year)
OM:PDX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 21.6%
OM:PDX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 18.5%
Sweden Entertainment Industry Earnings Growth Rate Market Cap Weighted Average 16.3%
Sweden Entertainment Industry Revenue Growth Rate Market Cap Weighted Average 9.6%
Sweden Market Earnings Growth Rate Market Cap Weighted Average 8.7%
Sweden Market Revenue Growth Rate Market Cap Weighted Average 4.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OM:PDX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in SEK Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OM:PDX Future Estimates Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,878 1,017 594 2
2020-12-31 1,659 884 532 2
2019-12-31 1,360 678 431 2
OM:PDX Past Financials Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income *
2019-03-31 1,099 587 294
2018-12-31 1,128 575 354
2018-09-30 1,013 563 308
2018-06-30 969 536 296
2018-03-31 960 494 345
2017-12-31 814 435 265
2017-09-30 790 386 264
2017-06-30 736 419 266
2017-03-31 682 341 250
2016-12-31 654 288 240
2016-09-30 582 235 207
2016-06-30 546 187 190

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Paradox Interactive's earnings are expected to grow significantly at over 20% yearly.
  • Paradox Interactive's revenue is expected to grow by 18.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OM:PDX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Paradox Interactive Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OM:PDX Future Estimates Data
Date (Data in SEK Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 5.63 5.64 5.61 2.00
2020-12-31 5.04 5.13 4.95 2.00
2019-12-31 4.08 4.20 3.96 2.00
OM:PDX Past Financials Data
Date (Data in SEK Millions) EPS *
2019-03-31 2.79
2018-12-31 3.35
2018-09-30 2.92
2018-06-30 2.80
2018-03-31 3.26
2017-12-31 2.51
2017-09-30 2.50
2017-06-30 2.52
2017-03-31 2.37
2016-12-31 2.28
2016-09-30 1.96
2016-06-30 1.80

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Paradox Interactive is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Paradox Interactive's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Sweden market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Sweden market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Paradox Interactive has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Paradox Interactive performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Paradox Interactive's growth in the last year to its industry (Entertainment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Paradox Interactive has delivered over 20% year on year earnings growth in the past 5 years.
  • Paradox Interactive's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Paradox Interactive's 1-year earnings growth is negative, it can't be compared to the SE Entertainment industry average.
Earnings and Revenue History
Paradox Interactive's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Paradox Interactive Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OM:PDX Past Revenue, Cash Flow and Net Income Data
Date (Data in SEK Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,099.00 294.49 301.40
2018-12-31 1,127.72 353.93 279.46
2018-09-30 1,013.21 308.44 245.81
2018-06-30 968.90 296.06 218.98
2018-03-31 959.50 344.51 195.74
2017-12-31 813.79 264.94 171.75
2017-09-30 789.78 264.22 157.08
2017-06-30 736.28 265.98 146.02
2017-03-31 681.73 250.25 132.69
2016-12-31 653.74 240.44 126.61
2016-09-30 582.20 207.23 112.13
2016-06-30 545.53 189.72 106.84
2016-03-31 492.66 132.32 100.38
2015-12-31 604.05 188.83 98.14
2014-12-31 177.05 33.61 42.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Paradox Interactive has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Paradox Interactive used its assets more efficiently than the SE Entertainment industry average last year based on Return on Assets.
  • Paradox Interactive's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Paradox Interactive's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Entertainment industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Paradox Interactive has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Paradox Interactive's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Paradox Interactive's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Paradox Interactive is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Paradox Interactive's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Paradox Interactive's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 12.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Paradox Interactive Company Filings, last reported 1 month ago.

OM:PDX Past Debt and Equity Data
Date (Data in SEK Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 906.14 40.16 378.75
2018-12-31 853.78 0.00 327.04
2018-09-30 740.18 0.00 344.14
2018-06-30 687.23 0.00 329.26
2018-03-31 710.39 0.00 373.57
2017-12-31 599.92 0.00 320.10
2017-09-30 530.01 0.00 244.29
2017-06-30 489.85 0.00 253.20
2017-03-31 469.12 0.00 288.03
2016-12-31 439.91 0.00 246.91
2016-09-30 371.80 0.00 215.05
2016-06-30 329.47 0.00 143.20
2016-03-31 218.87 0.00 106.23
2015-12-31 270.23 0.00 159.84
2014-12-31 113.07 0.00 50.54
  • Paradox Interactive's level of debt (4.4%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Paradox Interactive's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (1462.2%, greater than 20% of total debt).
  • Paradox Interactive earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Paradox Interactive's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Paradox Interactive has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.68%
Current annual income from Paradox Interactive dividends. Estimated to be 1.23% next year.
If you bought SEK2,000 of Paradox Interactive shares you are expected to receive SEK14 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Paradox Interactive's pays a lower dividend yield than the bottom 25% of dividend payers in Sweden (1.82%).
  • Paradox Interactive's dividend is below the markets top 25% of dividend payers in Sweden (4.36%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OM:PDX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Europe Entertainment Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 2%
Sweden Market Average Dividend Yield Market Cap Weighted Average of 243 Stocks 3.2%
Sweden Minimum Threshold Dividend Yield 10th Percentile 1.2%
Sweden Bottom 25% Dividend Yield 25th Percentile 1.8%
Sweden Top 25% Dividend Yield 75th Percentile 4.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OM:PDX Future Dividends Estimate Data
Date (Data in SEK) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 2.25 2.00
2020-12-31 1.75 2.00
2019-12-31 1.38 2.00
OM:PDX Past Annualized Dividends Data
Date (Data in SEK) Dividend per share (annual) Avg. Yield (%)
2019-04-16 1.000 0.679
2018-05-18 1.000 0.652
2017-04-06 1.000 1.157
2016-11-14 0.000 0.000
2016-08-25 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Paradox Interactive is not paying a notable dividend for Sweden, therefore no need to check if the payments are stable.
  • Paradox Interactive is not paying a notable dividend for Sweden, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Paradox Interactive's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Paradox Interactive's dividends as it is not paying a notable one for Sweden.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess Paradox Interactive's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Paradox Interactive afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Paradox Interactive has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ebba Ljungerud
COMPENSATION SEK180,000
AGE 46
TENURE AS CEO 0.8 years
CEO Bio

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 has been working in the gaming industry since 2007. She served as the Chief Programme Officer at Kindred Group plc since 2014 until 2016. She has international experience from several different gaming brands. Ms. Ljungerud served as a Marketing Director as well as Executive Vice President for Swedish companies, focused mainly on print and online media. She was appointed as a Director of Paradox Interactive AB (publ) in 2014. She served as a Non-Executive Director of Shoal Games Ltd. (formerly, Bingo.com Ltd.) from June 2011 to January 27, 2015. Ms. Ljungerud has a M.Sc. in Business and Economics from Lund University.

CEO Compensation
  • Ebba's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ebba's remuneration is lower than average for companies of similar size in Sweden.
Management Team Tenure

Average tenure and age of the Paradox Interactive management team in years:

1.2
Average Tenure
45
Average Age
  • The average tenure for the Paradox Interactive management team is less than 2 years, this suggests a new team.
Management Team

Fredrik Wester

TITLE
Founder & Chairman
COMPENSATION
SEK643K
AGE
44

Ebba Ljungerud

TITLE
Chief Executive Officer
COMPENSATION
SEK180K
AGE
46
TENURE
0.8 yrs

Alexander Bricca

TITLE
Chief Financial Officer
AGE
42
TENURE
1.2 yrs

Juliette Auverny-Bennetot

TITLE
Senior Legal Counsel

Johan Andersson

TITLE
Executive Vice President of Creative Direction

Mattias Lilja

TITLE
Chief Production Officer
AGE
46
TENURE
4.3 yrs
Board of Directors Tenure

Average tenure and age of the Paradox Interactive board of directors in years:

1
Average Tenure
48
Average Age
  • The average tenure for the Paradox Interactive board of directors is less than 3 years, this suggests a new board.
Board of Directors

Fredrik Wester

TITLE
Founder & Chairman
COMPENSATION
SEK643K
AGE
44
TENURE
0.8 yrs

Håkan Sjunnesson

TITLE
Deputy Chairman
COMPENSATION
SEK360K
AGE
62

Josephine Salenstedt

TITLE
Director
AGE
34
TENURE
1 yrs

Peter Ingman

TITLE
Director
AGE
50
TENURE
1 yrs

Mathias Hermansson

TITLE
Independent Director
AGE
46

Lars Klingstedt

TITLE
Director
COMPENSATION
SEK90K
AGE
64
TENURE
3.2 yrs
Who owns this company?
Recent Insider Trading
  • Paradox Interactive insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (SEK) Value (SEK)
28. Mar 19 Sell Shams Jorjani Individual 25. Mar 19 25. Mar 19 -40,000 SEK146.00 SEK-5,840,000
12. Sep 18 Sell John Hargelid Individual 11. Sep 18 11. Sep 18 -150,000 SEK149.80 SEK-22,470,000
15. Aug 18 Buy Ebba Ljungerud Individual 15. Aug 18 15. Aug 18 1,200 SEK156.00 SEK187,200
X
Management checks
We assess Paradox Interactive's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Paradox Interactive has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should Paradox Interactive (STO:PDX) Be Disappointed With Their 14% Profit?

To wit, the Paradox Interactive AB (publ) (STO:PDX) share price is 14% higher than it was a year ago, much better than the market return of around -0.5% (not including dividends) in the same period. … We'll need to follow Paradox Interactive for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Simply Wall St -

Is Paradox Interactive AB (publ) (STO:PDX) A High Quality Stock To Own?

We'll use ROE to examine Paradox Interactive AB (publ) (STO:PDX), by way of a worked example. … One way to conceptualize this, is that for each SEK1 of shareholders' equity it has, the company made SEK0.41 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Paradox Interactive AB (publ) (STO:PDX): Is Growth Priced In?

Paradox Interactive AB (publ) (STO:PDX) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of SEK145.5 is based on unrealistic expectations. … Let’s take a look at some key metrics to determine whether there's any value here for current and potential future investors. … Paradox Interactive is poised for extremely high earnings growth in the near future

Simply Wall St -

Will Paradox Interactive AB (publ)'s (STO:PDX) Earnings Grow In The Year Ahead?

Looking at Paradox Interactive AB (publ)'s (STO:PDX) earnings update in December 2018,. … as upcoming earnings growth is expected to be 32% next year, similar to the range of average earnings growth for the past five years of 29% per year … Presently, with latest-twelve-month earnings at kr354m, we should see this growing to kr468m by 2020.

Simply Wall St -

Have You Considered This Before Investing In Paradox Interactive AB (publ) (STO:PDX)?

Paradox Interactive AB (publ) (STO:PDX) shareholders, and potential investors, need to understand how much cash the business makes from its core operational activities, as well as how much is invested back into the business. … Paradox Interactive’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure. … I will be analysing Paradox Interactive’s FCF by looking at its FCF yield and its operating cash flow growth.

Simply Wall St -

What Should We Expect From Paradox Interactive AB (publ)'s (STO:PDX) Earnings Over The Next Few Years?

Paradox Interactive AB (publ)'s (STO:PDX) most recent earnings update in December 2018a … confirmed

Simply Wall St -

What Kind Of Investor Owns Most Of Paradox Interactive AB (publ) (STO:PDX)?

Every investor in Paradox Interactive AB (publ) (STO:PDX) should be aware of the most powerful shareholder groups. … Taking a look at our data on the ownership groups (below), it's seems that. … We can zoom in on the different ownership groups, to learn more about PDX

Simply Wall St -

Read This Before Buying Paradox Interactive AB (publ) (STO:PDX) Shares

So before you buy or sell Paradox Interactive AB (publ) (STO:PDX), you may well want to know whether insiders have been buying or selling. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … That means that an insider was selling shares at around the current price of kr150

Simply Wall St -

Paradox Interactive AB (publ) (STO:PDX)'s Return on Capital

and want a simplistic look at the return on Paradox Interactive AB (publ) (STO:PDX) stock. … This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … To understand Paradox Interactive’s capital returns we will look at a useful metric called return on capital employed.

Simply Wall St -

Where Paradox Interactive AB (publ)'s (STO:PDX) Earnings Growth Stands Against Its Industry

Assessing Paradox Interactive AB (publ)'s (STO:PDX) past track record of performance is a useful exercise for investors. … Below, I assess PDX's latest performance announced on 30 June 2018 and evaluate these figures to its historical trend and industry movements. … How PDX fared against its long-term earnings performance and its industry

Simply Wall St -

Company Info

Description

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. The company publishes own titles and titles developed by independent studios, as well as music and books. Its game portfolio comprises approximately 100 titles and brands, including Stellaris, Europa Universalis, Hearts of Iron, Crusader Kings, Cities: Skylines, Prison Architect, Magicka, Age of Wonders, and the World of Darkness. The company was founded in 1998 and is headquartered in Stockholm, Sweden.

Details
Name: Paradox Interactive AB (publ)
PDX
Exchange: OM
Founded: 1998
SEK15,417,600,000
105,600,000
Website: http://www.paradoxinteractive.com
Address: Paradox Interactive AB (publ)
Västgötagatan 5, 6 vån,
Stockholm,
Stockholm County, 118 27,
Sweden
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OM PDX Ordinary Shares OMX Nordic Exchange Stockholm SE SEK 31. May 2016
OTCPK PRXX.F Ordinary Shares Pink Sheets LLC US USD 31. May 2016
DB ETA Ordinary Shares Deutsche Boerse AG DE EUR 31. May 2016
LSE 0GDU Ordinary Shares London Stock Exchange GB SEK 31. May 2016
Number of employees
Current staff
Staff numbers
423
Paradox Interactive employees.
Industry
Interactive Home Entertainment
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 22:28
End of day share price update: 2019/05/23 00:00
Last estimates confirmation: 2019/05/16
Last earnings filing: 2019/05/14
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.