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

-1.0%

PDX

-2.1%

SE Entertainment

2.9%

SE Market


1 Year Return

1.5%

PDX

-19.2%

SE Entertainment

9.0%

SE Market

Return vs Industry: PDX exceeded the Swedish Entertainment industry which returned -19.2% over the past year.

Return vs Market: PDX underperformed the Swedish Market which returned 9% over the past year.


Share holder returns

PDXIndustryMarket
7 Day-1.0%-2.1%2.9%
30 Day-4.3%-1.7%-0.4%
90 Day-13.2%-7.7%0.3%
1 Year2.2%1.5%3.0%-19.2%13.7%9.0%
3 Year170.1%162.7%10.9%-29.1%30.5%11.1%
5 Yearn/a-21.9%-63.3%66.0%30.7%

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?

41.38x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: PDX (SEK132) is trading above our estimate of fair value (SEK96.71)

Significantly Undervalued: PDX is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: PDX is poor value based on its PE Ratio (41.4x) compared to the Entertainment industry average (23.5x).

PE vs Market: PDX is poor value based on its PE Ratio (41.4x) compared to the Swedish market (16.7x).


Price Based on Expected Growth

Low PEG Ratio: PDX is poor value based on its PEG Ratio (1.8x)


Price Based on Value of Assets

PB vs Industry: PDX is overvalued based on its PB Ratio (15.2x) compared to the SE Entertainment industry average (2.2x).


Next Steps

Future Growth

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

22.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: PDX's forecast earnings growth (22.6% per year) is above the savings rate (0.4%).

Earnings vs Market: PDX's earnings (22.6% per year) are forecast to grow faster than the Swedish market (8.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PDX's revenue (10.3% per year) is forecast to grow faster than the Swedish market (4.5% per year).

High Growth Revenue: PDX's revenue (10.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: PDX's Return on Equity is forecast to be high in 3 years time (34.6%)


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

Earnings Trend: PDX's earnings have grown significantly by 24.4% per year over the past 5 years.

Accelerating Growth: PDX's earnings growth over the past year (13.8%) is below its 5-year average (24.4% per year).

Earnings vs Industry: PDX earnings growth over the past year (13.8%) underperformed the Entertainment industry 38.1%.


Return on Equity

High ROE: PDX's Return on Equity (36.6%) is considered high.


Return on Assets

ROA vs Industry: PDX has a higher Return on Assets than the Entertainment industry average last year.


Return on Capital Employed

ROCE Improving: PDX's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Paradox Interactive's financial position?


Financial Position Analysis

Short Term Liabilities: PDX's short term assets (SEK578.8M) exceeds its short term liabilities (SEK291.2M)

Long Term Liabilities: PDX's short term assets (578.8M) exceeds its long term liabilities (195.8M)


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?

1.23%

Expected Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.8%markettop25%4.8%industryaverage2.0%forecastin3Years1.2%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: PDX's dividend (0.76%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.8%).

High Dividend: PDX's dividend (0.76%) is low compared to the top 25% of dividend payers in the Swedish market (4.84%).

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 .


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?

1.6yrs

Average management tenure


CEO

Ebba Ljungerud (47yo)

1.2yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Swedish market.

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


Management Age and Tenure

1.6yrs

Average Tenure

46yo

Average Age

Experienced Management: PDX's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

1.3yrs

Average Tenure

49yo

Average Age

Experienced Board: PDX's board of directors are not considered experienced ( 1.3 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

Sellkr5,840,00028 Mar 19
Shams Jorjani
EntityIndividual
Shares40,000
Max Pricekr146.00

Ownership Breakdown


Management Team

  • Alexander Bricca (43yo)

    Chief Financial Officer

    • Tenure: 1.6yrs
  • Fredrik Wester (45yo)

    Founder & Chairman

    • Tenure: 1.2yrs
  • Johan Andersson

    Executive Vice President of Creative Direction

    • Tenure: 0yrs
  • Ebba Ljungerud (47yo)

    Chief Executive Officer

    • Tenure: 1.2yrs
    • Compensation: kr2.50m
  • Juliette Auverny-Bennetot

    Senior Legal Counsel

    • Tenure: 0yrs
  • Mattias Lilja (47yo)

    Chief Production Officer

    • Tenure: 4.8yrs

Board Members

  • Lars Klingstedt (65yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: kr90.00k
  • Håkan Sjunnesson (63yo)

    Deputy Chairman

    • Tenure: 0.4yrs
    • Compensation: kr500.00k
  • Mathias Hermansson (47yo)

    Independent Director

    • Tenure: 0.4yrs
  • Peter Ingman (51yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: kr250.00k
  • Josephine Salenstedt (35yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: kr250.00k
  • Fredrik Wester (45yo)

    Founder & Chairman

    • Tenure: 1.2yrs

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: kr13.939b
  • 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 Analysis2019/10/13 23:43
End of Day Share Price2019/10/11 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.

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