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.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with high 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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
2.8%
PDX
5.9%
SE Entertainment
1.4%
SE Market
1 Year Return
12.5%
PDX
8.6%
SE Entertainment
25.4%
SE Market
Return vs Industry: PDX exceeded the Swedish Entertainment industry which returned 0.8% over the past year.
Return vs Market: PDX underperformed the Swedish Market which returned 26.1% over the past year.
Shareholder returns
| PDX | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.8% | 5.9% | 1.4% |
| 30 Day | 6.6% | 10.2% | 1.8% |
| 90 Day | 21.3% | 20.4% | 7.7% |
| 1 Year | 13.3%12.5% | 40.5%8.6% | 30.6%25.4% |
| 3 Year | 198.5%190.2% | 128.2%44.3% | 38.7%17.4% |
| 5 Year | n/a | 4.0%-55.2% | 54.6%21.3% |
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
1 week ago | Simply Wall St
Have Insiders Been Selling Paradox Interactive AB (publ) (STO:PDX) Shares?1 month ago | Simply Wall St
Is Paradox Interactive AB (publ)'s (STO:PDX) ROE Of 36% Impressive?2 months ago | Simply Wall St
Should You Be Adding Paradox Interactive (STO:PDX) To Your Watchlist Today?Valuation
Is Paradox Interactive undervalued compared to its fair value and its price relative to the market?
19.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PDX (SEK153.4) is trading below our estimate of fair value (SEK196.29)
Significantly Below Fair Value: PDX is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: PDX is poor value based on its PE Ratio (45.3x) compared to the Entertainment industry average (32.6x).
PE vs Market: PDX is poor value based on its PE Ratio (45.3x) compared to the Swedish market (19.4x).
Price to Earnings Growth Ratio
PEG Ratio: PDX is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: PDX is overvalued based on its PB Ratio (16.2x) compared to the SE Entertainment industry average (3.5x).
Next Steps
Future Growth
How is Paradox Interactive forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
23.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PDX's forecast earnings growth (23.6% per year) is above the savings rate (-0.4%).
Earnings vs Market: PDX's earnings (23.6% per year) are forecast to grow faster than the Swedish market (9.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: PDX's revenue (8.2% per year) is forecast to grow faster than the Swedish market (4.4% per year).
High Growth Revenue: PDX's revenue (8.2% 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 (31.4%)
Next Steps
Past Performance
How has Paradox Interactive performed over the past 5 years?
23.2%
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 (28.8%) are lower than last year (30.4%).
Past Earnings Growth Analysis
Earnings Trend: PDX's earnings have grown significantly by 23.2% per year over the past 5 years.
Accelerating Growth: PDX's earnings growth over the past year (16%) is below its 5-year average (23.2% per year).
Earnings vs Industry: PDX earnings growth over the past year (16%) underperformed the Entertainment industry 24.4%.
Return on Equity
High ROE: PDX's Return on Equity (35.8%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Paradox Interactive's financial position?
Financial Position Analysis
Short Term Liabilities: PDX's short term assets (SEK673.9M) exceed its short term liabilities (SEK279.3M).
Long Term Liabilities: PDX's short term assets (SEK673.9M) exceed its long term liabilities (SEK195.1M).
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
Inventory Level: PDX has a low level of unsold assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if PDX's debt is covered by short term assets.
Next Steps
Dividend
What is Paradox Interactive's current dividend yield, its reliability and sustainability?
0.63%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: PDX's dividend (0.65%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.57%).
High Dividend: PDX's dividend (0.65%) is low compared to the top 25% of dividend payers in the Swedish market (4.45%).
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
What is the CEO of Paradox Interactive's salary, the management and board of directors tenure and is there insider trading?
1.2yrs
Average management tenure
CEO
Ebba Ljungerud (47yo)
1.4yrs
Tenure
kr2,504,000
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 ($USD264.60K) is below average for companies of similar size in the Swedish market ($USD727.33K).
Compensation vs Earnings: Ebba's compensation has increased by more than 20% in the past year.
Management Age and Tenure
1.2yrs
Average Tenure
44yo
Average Age
Experienced Management: PDX's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.
Board Age and Tenure
1.5yrs
Average Tenure
49yo
Average Age
Experienced Board: PDX's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Senior Key Executive Chief Business Development Officer |
| Shares | 40,000 |
| Max Price | kr146.00 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Alexander Bricca (43yo)
Chief Financial Officer
- Tenure: 1.8yrs
Fredrik Wester (45yo)
Founder & Chairman
- Tenure: 1.4yrs
Johan Andersson
Executive Vice President of Creative Direction
Ebba Ljungerud (47yo)
Chief Executive Officer
- Tenure: 1.4yrs
- Compensation: kr2.50m
Marina Hedman (43yo)
Chief Human Resources Officer
- Tenure: 1yrs
Juliette Auverny-Bennetot
Senior Legal Counsel
Shams Jorjani (36yo)
Chief Business Development Officer
Mattias Lilja (47yo)
Chief Production Officer
- Tenure: 5yrs
Julien Wera (34yo)
Chief Product Officer
- Tenure: 1yrs
Mina Nakicenovic (47yo)
Chief Technology Officer
- Tenure: 1yrs
Board Members
Lars Klingstedt (65yo)
Director
- Tenure: 3.8yrs
- Compensation: kr90.00k
Håkan Sjunnesson (63yo)
Deputy Chairman
- Tenure: 0.7yrs
- Compensation: kr500.00k
Mathias Hermansson (47yo)
Independent Director
- Tenure: 0.7yrs
Peter Ingman (51yo)
Independent Director
- Tenure: 1.7yrs
- Compensation: kr250.00k
Josephine Salenstedt (35yo)
Independent Director
- Tenure: 1.7yrs
- Compensation: kr250.00k
Fredrik Wester (45yo)
Founder & Chairman
- Tenure: 1.4yrs
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: kr16.780b
- Shares outstanding: 105.60m
- Website: https://www.paradoxinteractive.com
Number of Employees
Location
- Paradox Interactive AB (publ)
- Västgötagatan 5, 6 vån
- Stockholm
- Stockholm County
- 118 27
- Sweden
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PDX | OM (OMX Nordic Exchange Stockholm) | Yes | Ordinary Shares | SE | SEK | May 2016 |
| ETA | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | May 2016 |
| 0GDU | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | SEK | May 2016 |
| PRXX.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | May 2016 |
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 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/22 22:17 |
| End of Day Share Price | 2020/01/22 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.