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
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Risk Analysis
Snowflake Analysis
Flawless balance sheet with proven track record.
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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 +/- 7% a week.
Volatility Over Time: PDX's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
2.6%
PDX
2.2%
SE Entertainment
0.3%
SE Market
1 Year Return
51.4%
PDX
113.6%
SE Entertainment
16.7%
SE Market
Return vs Industry: PDX underperformed the Swedish Entertainment industry which returned 111.4% over the past year.
Return vs Market: PDX exceeded the Swedish Market which returned 15.4% over the past year.
Shareholder returns
| PDX | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.6% | 2.2% | 0.3% |
| 30 Day | -6.5% | -0.2% | 4.6% |
| 90 Day | -15.6% | 3.0% | 13.8% |
| 1 Year | 52.1%51.4% | 117.5%113.6% | 19.7%16.7% |
| 3 Year | 106.7%103.2% | 224.2%130.4% | 47.1%29.5% |
| 5 Year | n/a | -13.3%-59.0% | 87.5%47.7% |
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
1 day ago | Simply Wall St
Estimating The Intrinsic Value Of Paradox Interactive AB (publ) (STO:PDX)2 weeks ago | Simply Wall St
I Ran A Stock Scan For Earnings Growth And Paradox Interactive (STO:PDX) Passed With Ease4 weeks ago | Simply Wall St
What Type Of Shareholders Own The Most Number of Paradox Interactive AB (publ) (STO:PDX) Shares?Valuation
Is Paradox Interactive undervalued compared to its fair value and its price relative to the market?
1.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PDX (SEK230.8) is trading below our estimate of fair value (SEK235.68)
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 good value based on its PE Ratio (43.4x) compared to the SE Entertainment industry average (62.9x).
PE vs Market: PDX is poor value based on its PE Ratio (43.4x) compared to the Swedish market (23.7x).
Price to Earnings Growth Ratio
PEG Ratio: PDX is poor value based on its PEG Ratio (3.9x)
Price to Book Ratio
PB vs Industry: PDX is overvalued based on its PB Ratio (16.6x) compared to the SE Entertainment industry average (4x).
Next Steps
Future Growth
How is Paradox Interactive forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
11.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PDX's forecast earnings growth (11.2% per year) is above the savings rate (0.4%).
Earnings vs Market: PDX's earnings (11.2% per year) are forecast to grow faster than the Swedish market (11% per year).
High Growth Earnings: PDX's earnings are forecast to grow, but not significantly.
Revenue vs Market: PDX's revenue (13% per year) is forecast to grow faster than the Swedish market (3.2% per year).
High Growth Revenue: PDX's revenue (13% 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 (31.5%)
Next Steps
Past Performance
How has Paradox Interactive performed over the past 5 years?
21.5%
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 (32.2%) are higher than last year (28.8%).
Past Earnings Growth Analysis
Earnings Trend: PDX's earnings have grown significantly by 21.5% per year over the past 5 years.
Accelerating Growth: PDX's earnings growth over the past year (56.8%) exceeds its 5-year average (21.5% per year).
Earnings vs Industry: PDX earnings growth over the past year (56.8%) underperformed the Entertainment industry 76.6%.
Return on Equity
High ROE: PDX's Return on Equity (38.4%) is considered high.
Next Steps
Financial Health
How is Paradox Interactive's financial position?
Financial Position Analysis
Short Term Liabilities: PDX's short term assets (SEK1.0B) exceed its short term liabilities (SEK638.1M).
Long Term Liabilities: PDX's short term assets (SEK1.0B) exceed its long term liabilities (SEK393.9M).
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
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Dividend
What is Paradox Interactive current dividend yield, its reliability and sustainability?
0.43%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PDX's dividend (0.43%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (0.92%).
High Dividend: PDX's dividend (0.43%) is low compared to the top 25% of dividend payers in the Swedish market (3.43%).
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.
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Management
How experienced are the management team and are they aligned to shareholders interests?
2.0yrs
Average management tenure
CEO
Ebba Ljungerud (48 yo)
2.42yrs
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 ($USD583.46K) is below average for companies of similar size in the Swedish market ($USD1.09M).
Compensation vs Earnings: Ebba's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Chairman | 2.42yrs | no data | no data | |
| Chief Executive Officer | 2.42yrs | kr4.85m | 0.013% SEK 3.1m | |
| Chief Financial Officer | 2.83yrs | no data | no data | |
| Chief Operations Officer | 1yr | no data | no data | |
| Chief Technology Officer | 2yrs | no data | no data | |
| Senior Legal Counsel | no data | no data | no data | |
| Chief Marketing Officer | 2yrs | no data | no data | |
| Chief Human Resources Officer | 2yrs | no data | 0% SEK 0 | |
| Executive Vice President of Creative Direction | no data | no data | no data | |
| Chief Business Development Officer | no data | no data | 0.39% SEK 94.2m | |
| Chief Product Officer | 2yrs | no data | no data | |
| Chief Strategy Officer | 2yrs | no data | 0.0095% SEK 2.3m |
2.0yrs
Average Tenure
44yo
Average Age
Experienced Management: PDX's management team is considered experienced (2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Chairman | 2.42yrs | no data | no data | |
| Independent Director | 0.67yr | no data | no data | |
| Independent Deputy Chairman | 1.67yrs | kr520.00k | no data | |
| Independent Director | 1.67yrs | kr260.00k | 0.00095% SEK 231.5k | |
| Independent Director | 2.67yrs | kr260.00k | no data |
1.7yrs
Average Tenure
47yo
Average Age
Experienced Board: PDX's board of directors are not considered experienced ( 1.7 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: kr24.372b
- 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
| 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 Scandinav...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/26 18:32 |
| End of Day Share Price | 2021/01/26 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.