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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.


Snowflake Analysis

Outstanding track record with flawless balance sheet.


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

5.1%

PDX

4.6%

SE Entertainment

2.5%

SE Market


1 Year Return

43.0%

PDX

84.2%

SE Entertainment

7.5%

SE Market

Return vs Industry: PDX underperformed the Swedish Entertainment industry which returned 84% over the past year.

Return vs Market: PDX exceeded the Swedish Market which returned 7.7% over the past year.


Shareholder returns

PDXIndustryMarket
7 Day5.1%4.6%2.5%
30 Day7.0%17.9%1.1%
90 Day23.8%47.5%17.6%
1 Year43.6%43.0%84.5%84.2%9.1%7.5%
3 Year224.5%218.8%229.6%109.7%19.7%6.9%
5 Yearn/a-4.4%-60.0%38.4%11.0%

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?

50.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PDX (SEK216) is trading above our estimate of fair value (SEK209.11)

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


Price To Earnings Ratio

PE vs Industry: PDX is good value based on its PE Ratio (50.4x) compared to the Entertainment industry average (84.5x).

PE vs Market: PDX is poor value based on its PE Ratio (50.4x) compared to the Swedish market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: PDX is poor value based on its PEG Ratio (4.6x)


Price to Book Ratio

PB vs Industry: PDX is overvalued based on its PB Ratio (18.1x) compared to the SE Entertainment industry average (4.2x).


Next Steps

Future Growth

How is Paradox Interactive forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PDX's forecast earnings growth (11% per year) is above the savings rate (0.5%).

Earnings vs Market: PDX's earnings (11% per year) are forecast to grow slower than the Swedish market (17.2% per year).

High Growth Earnings: PDX's earnings are forecast to grow, but not significantly.

Revenue vs Market: PDX's revenue (10.4% per year) is forecast to grow faster than the Swedish market (6.2% per year).

High Growth Revenue: PDX's revenue (10.4% 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 (32.1%)


Next Steps

Past Performance

How has Paradox Interactive performed over the past 5 years?

19.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PDX has high quality earnings.

Growing Profit Margin: PDX's current net profit margins (31.2%) are higher than last year (26.8%).


Past Earnings Growth Analysis

Earnings Trend: PDX's earnings have grown by 19.3% per year over the past 5 years.

Accelerating Growth: PDX's earnings growth over the past year (53.5%) exceeds its 5-year average (19.3% per year).

Earnings vs Industry: PDX earnings growth over the past year (53.5%) exceeded the Entertainment industry -10%.


Return on Equity

High ROE: PDX's Return on Equity (35.9%) 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 (SEK851.7M) exceed its short term liabilities (SEK425.6M).

Long Term Liabilities: PDX's short term assets (SEK851.7M) exceed its long term liabilities (SEK338.9M).


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?

0.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PDX's dividend (0.46%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.61%).

High Dividend: PDX's dividend (0.46%) is low compared to the top 25% of dividend payers in the Swedish market (5.07%).


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?

1.5yrs

Average management tenure


CEO

Ebba Ljungerud (48yo)

1.92yrs

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 ($USD525.89K) is below average for companies of similar size in the Swedish market ($USD1.34M).

Compensation vs Earnings: Ebba's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Fredrik Wester
Founder & Chairman1.92yrsno datano data
Ebba Ljungerud
Chief Executive Officer1.92yrskr4.85m0.013% SEK2.9m
Alexander Bricca
Chief Financial Officer2.33yrsno datano data
Charlotta Nilsson
Chief Operations Officer0.50yrno datano data
Mina Nakicenovic
Chief Technology Officer1.5yrsno datano data
Juliette Auverny-Bennetot
Senior Legal Counselno datano datano data
Daniel Goldberg
Chief Marketing Officer1.5yrsno datano data
Marina Hedman
Chief Human Resources Officer1.5yrsno data0.00044% SEK100.4k
Johan Andersson
Executive Vice President of Creative Directionno datano datano data
Shams Jorjani
Chief Business Development Officerno datano data0.39% SEK88.1m

1.5yrs

Average Tenure

44yo

Average Age

Experienced Management: PDX's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Fredrik Wester
Founder & Chairman1.92yrsno datano data
Linda Höglund
Independent Director0.17yrno datano data
Håkan Sjunnesson
Independent Deputy Chairman1.17yrskr520.00kno data
Mathias Hermansson
Independent Director1.17yrskr260.00k0.00095% SEK216.7k
Josephine Salenstedt
Independent Director2.17yrskr260.00kno data

1.2yrs

Average Tenure

47yo

Average Age

Experienced Board: PDX's board of directors are not considered experienced ( 1.2 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: PDX insiders have only sold shares 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: kr22.810b
  • 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 Scandinavia. The company publishes titles, 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, Surviving Mars, 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/08 20:54
End of Day Share Price2020/07/08 00:00
Earnings2020/03/31
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.