OM:PDX

Stock Analysis Report

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

Fundamentals

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


Market Performance


7 Day Return

-14.8%

OM:PDX

-1.0%

SE Entertainment

-1.2%

SE Market


1 Year Return

-21.8%

OM:PDX

-28.2%

SE Entertainment

-2.6%

SE Market

PDX outperformed the Entertainment industry which returned -28.2% over the past year.

PDX underperformed the Market in Sweden which returned -2.6% over the past year.


Share holder returns

PDXIndustryMarket
7 Day-14.8%-1.0%-1.2%
30 Day-16.0%-4.1%-3.6%
90 Day-8.9%-5.1%-2.8%
1 Year-21.2%-21.8%-11.5%-28.2%1.4%-2.6%
3 Year116.4%110.4%12.1%-28.6%25.3%6.6%
5 Yearn/a-28.0%-68.9%44.9%14.3%

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

Valuation

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

40.56x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Paradox Interactive's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Paradox Interactive's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Paradox Interactive is poor value based on expected growth next year.


Price Based on Value of Assets

Paradox Interactive is overvalued based on assets compared to the SE Entertainment industry average.


Next Steps

Future Growth

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

23.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Paradox Interactive's revenue is expected to grow by 9.9% yearly, however this is not considered high growth (20% yearly).

Paradox Interactive's earnings are expected to grow significantly at over 20% yearly.

Paradox Interactive's revenue growth is expected to exceed the Sweden market average.

Paradox Interactive's earnings growth is expected to exceed the Sweden market average.

Paradox Interactive's earnings growth is expected to exceed the low risk savings rate of 0.4%.


Earnings per Share Growth Estimates


Future Return on Equity

Paradox Interactive is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Paradox Interactive performed over the past 5 years?

24.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Paradox Interactive has delivered over 20% year on year earnings growth in the past 5 years.

Paradox Interactive's 1-year earnings growth is less than its 5-year average (13.8% vs 24.4%)

Paradox Interactive's earnings growth has not exceeded the SE Entertainment industry average in the past year (13.8% vs 13.8%).


Return on Equity

Paradox Interactive has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Paradox Interactive used its assets more efficiently than the SE Entertainment industry average last year based on Return on Assets.


Return on Capital Employed

Paradox Interactive's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Paradox Interactive's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Paradox Interactive has no debt.

Paradox Interactive has not taken on any debt in the past 5 years.

Paradox Interactive has no debt, it does not need to be covered by operating cash flow.

Paradox Interactive has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Paradox Interactive has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

1.26%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Paradox Interactive's pays a lower dividend yield than the bottom 25% of dividend payers in Sweden (1.97%).

Paradox Interactive's dividend is below the markets top 25% of dividend payers in Sweden (4.54%).

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

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

No need to calculate the sustainability of Paradox Interactive's dividends in 3 years as they are not expected to pay a notable one for Sweden.


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Ebba Ljungerud (47yo)

1.0yrs

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

Ebba's remuneration is lower than average for companies of similar size in Sweden.

Ebba's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

1.4yrs

Average Tenure

46yo

Average Age

The average tenure for the Paradox Interactive management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.1yrs

Average Tenure

49yo

Average Age

The average tenure for the Paradox Interactive board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Sellkr5,840,00028 Mar 19
Shams Jorjani
EntityIndividual
Shares40,000
Max Pricekr146.00
Sellkr22,470,00012 Sep 18
John Hargelid
EntityIndividual
Shares150,000
Max Pricekr149.80

Ownership Breakdown


Management Team

  • Alexander Bricca (43yo)

    Chief Financial Officer

    • Tenure: 1.4yrs
  • Fredrik Wester (45yo)

    Founder & Chairman

    • Tenure: 1.0yrs
  • Johan Andersson

    Executive Vice President of Creative Direction

    • Tenure: 0.0yrs
  • Ebba Ljungerud (47yo)

    Chief Executive Officer

    • Tenure: 1.0yrs
    • Compensation: kr2.50m
  • Juliette Auverny-Bennetot

    Senior Legal Counsel

    • Tenure: 0.0yrs
  • Mattias Lilja (47yo)

    Chief Production Officer

    • Tenure: 4.6yrs

Board Members

  • Lars Klingstedt (65yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: kr90.00k
  • Håkan Sjunnesson (63yo)

    Deputy Chairman

    • Tenure: 0.3yrs
    • Compensation: kr500.00k
  • Mathias Hermansson (47yo)

    Independent Director

    • Tenure: 0.3yrs
  • Peter Ingman (51yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: kr250.00k
  • Josephine Salenstedt (35yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: kr250.00k
  • Fredrik Wester (45yo)

    Founder & Chairman

    • Tenure: 1.0yrs

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: kr13.665b
  • 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

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 Analysis2019/08/18 21:53
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.