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Paradox Interactive

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


Snowflake Analysis

Flawless balance sheet with proven track record.


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 +/- 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

PDXIndustryMarket
7 Day2.6%2.2%0.3%
30 Day-6.5%-0.2%4.6%
90 Day-15.6%3.0%13.8%
1 Year52.1%51.4%117.5%113.6%19.7%16.7%
3 Year106.7%103.2%224.2%130.4%47.1%29.5%
5 Yearn/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

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


Next Steps

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.


Next Steps

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

NamePositionTenureCompensationOwnership
Fredrik Wester
Founder & Chairman2.42yrsno datano data
Ebba Ljungerud
Chief Executive Officer2.42yrskr4.85m0.013%
SEK 3.1m
Alexander Bricca
Chief Financial Officer2.83yrsno datano data
Charlotta Nilsson
Chief Operations Officer1yrno datano data
Mina Nakicenovic
Chief Technology Officer2yrsno datano data
Juliette Auverny-Bennetot
Senior Legal Counselno datano datano data
Daniel Goldberg
Chief Marketing Officer2yrsno datano data
Marina Hedman
Chief Human Resources Officer2yrsno data0%
SEK 0
Johan Andersson
Executive Vice President of Creative Directionno datano datano data
Shams Jorjani
Chief Business Development Officerno datano data0.39%
SEK 94.2m
Julien Wera
Chief Product Officer2yrsno datano data
Kim Nordstrom
Chief Strategy Officer2yrsno data0.0095%
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

NamePositionTenureCompensationOwnership
Fredrik Wester
Founder & Chairman2.42yrsno datano data
Linda Höglund
Independent Director0.67yrno datano data
Håkan Sjunnesson
Independent Deputy Chairman1.67yrskr520.00kno data
Mathias Hermansson
Independent Director1.67yrskr260.00k0.00095%
SEK 231.5k
Josephine Salenstedt
Independent Director2.67yrskr260.00kno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PDXOM (OMX Nordic Exchange Stockholm)YesOrdinary SharesSESEKMay 2016
ETADB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2016
0GDULSE (London Stock Exchange)YesOrdinary SharesGBSEKMay 2016
PRXX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/26 18:32
End of Day Share Price2021/01/26 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.