OM:SF

Stock Analysis Report

Stillfront Group

Executive Summary

Stillfront Group AB (publ), through its subsidiaries, creates, publishes, and distributes digital games in Germany, the United States, France, the United Kingdom, and the Middle East and North Africa region.

Rewards

PE ratio (38.9x) is below the Entertainment industry average (38.9x)

Earnings are forecast to grow 26.34% per year

Earnings grew by 191.6% over the past year

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

High growth potential with acceptable track record.


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Share Price & News

How has Stillfront Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SF's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

17.2%

SF

3.3%

SE Entertainment

-0.6%

SE Market


1 Year Return

214.5%

SF

8.2%

SE Entertainment

23.8%

SE Market

Return vs Industry: SF exceeded the Swedish Entertainment industry which returned 0.8% over the past year.

Return vs Market: SF exceeded the Swedish Market which returned 26.1% over the past year.


Shareholder returns

SFIndustryMarket
7 Day17.2%3.3%-0.6%
30 Day19.8%9.5%1.4%
90 Day61.1%19.7%6.4%
1 Year214.5%214.5%40.5%8.2%28.9%23.8%
3 Yearn/a128.6%44.3%38.9%17.6%
5 Yearn/a1.6%-56.4%53.2%20.2%

Price Volatility Vs. Market

How volatile is Stillfront Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Stillfront Group undervalued compared to its fair value and its price relative to the market?

38.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SF (SEK438.5) is trading above our estimate of fair value (SEK352.96)

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


Price To Earnings Ratio

PE vs Industry: SF is good value based on its PE Ratio (38.9x) compared to the Entertainment industry average (38.9x).

PE vs Market: SF is poor value based on its PE Ratio (32.6x) compared to the Swedish market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: SF is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: SF is overvalued based on its PB Ratio (4.9x) compared to the SE Entertainment industry average (3.5x).


Next Steps

Future Growth

How is Stillfront Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

27.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SF's forecast earnings growth (26.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: SF's earnings (26.3% per year) are forecast to grow faster than the Swedish market (9.6% per year).

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

Revenue vs Market: SF's revenue (10.7% per year) is forecast to grow faster than the Swedish market (4.4% per year).

High Growth Revenue: SF's revenue (10.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SF's Return on Equity is forecast to be high in 3 years time (20.9%)


Next Steps

Past Performance

How has Stillfront Group performed over the past 5 years?

191.6%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: SF has high quality earnings.

Growing Profit Margin: SF's current net profit margins (14.3%) are higher than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if SF's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare SF's past year earnings growth to its 5-year average.

Earnings vs Industry: SF earnings growth over the past year (191.6%) exceeded the Entertainment industry 24.4%.


Return on Equity

High ROE: SF's Return on Equity (14.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Stillfront Group's financial position?


Financial Position Analysis

Short Term Liabilities: SF's short term assets (SEK656.0M) exceed its short term liabilities (SEK534.0M).

Long Term Liabilities: SF's short term assets (SEK656.0M) do not cover its long term liabilities (SEK1.7B).


Debt to Equity History and Analysis

Debt Level: SF's debt to equity ratio (54.7%) is considered high.

Reducing Debt: Insufficient data to determine if SF's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: SF's debt is well covered by operating cash flow (35.6%).

Interest Coverage: SF's interest payments on its debt are well covered by EBIT (10.5x coverage).


Balance Sheet

Inventory Level: SF has a low level of unsold assets or inventory.

Debt Coverage by Assets: SF's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Stillfront Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.6%markettop25%4.4%industryaverage1.7%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SF's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SF's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SF's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SF's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SF'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 Stillfront Group's salary, the management and board of directors tenure and is there insider trading?

0.7yrs

Average management tenure


CEO

Jörgen Larsson (55yo)

10yrs

Tenure

0

Mr. Jörgen Larsson has been Chief Executive Officer of Stillfront Group AB (publ) since 2010 and serves as its President. He is a Founder of GameRock AB and serves as its Chief Executive Officer. Mr. Larss ...


Management Age and Tenure

0.7yrs

Average Tenure

42yo

Average Age

Experienced Management: SF's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Age and Tenure

2.0yrs

Average Tenure

52yo

Average Age

Experienced Board: SF's board of directors are not considered experienced ( 2 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

Buykr368,54513 Sep 19
Erik Forsberg
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max Pricekr245.70
Sellkr750,000,00613 Sep 19
Laureus Capital GmbH
EntityCompany
Shares3,000,000
Max Pricekr250.00
Buykr90,772,95725 Mar 19
Laureus Capital GmbH
EntityCompany
Shares406,343
Max Pricekr229.96
Buykr40,382,98018 Mar 19
Laureus Capital GmbH
EntityCompany
Shares214,258
Max Pricekr190.37
Buykr507,24013 Mar 19
Sten Wranne
EntityIndividual
Shares3,000
Max Pricekr169.08

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.9%.


Management Team

  • Jörgen Larsson (55yo)

    CEO & President

    • Tenure: 10yrs
  • Marina Andersson (47yo)

    Head of M&A

    • Tenure: 0.8yrs
  • Fabian Ritter (42yo)

    Co-Founder and Technical Director

    • Alexis Bonte (43yo)

      Chief Operating Officer

      • Tenure: 0.8yrs
    • Sofia Wretman (42yo)

      Head of IR & Communications

      • Andreas Uddman (40yo)

        Chief Financial Officer

        • Tenure: 0.6yrs
      • Phillip Knust (31yo)

        Group Chief Product Officer

        • Tenure: 0.3yrs
      • Christian Kaul (38yo)

        Chief Commercial Officer

        • Johanna Bergsten (36yo)

          General Counsel

          • Tenure: 0.08yrs

        Board Members

        • Erik Forsberg (48yo)

          Independent Director

          • Tenure: 2yrs
        • Birgitta Henriksson (56yo)

          Independent Director

          • Tenure: 3yrs
        • Katarina Bonde (61yo)

          Independent Director

          • Tenure: 2yrs
        • Ulrika Viklund (38yo)

          Independent Director

          • Tenure: 3yrs
        • Kai Wawrzinek (43yo)

          Director

          • Tenure: 1yrs
        • Jan Samuelsson (56yo)

          Independent Chairman of the Board

          Company Information

          Stillfront Group AB (publ)'s company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Stillfront Group AB (publ)
          • Ticker: SF
          • Exchange: OM
          • Founded:
          • Industry: Interactive Home Entertainment
          • Sector: Media
          • Market Cap: kr13.066b
          • Shares outstanding: 29.76m
          • Website: https://www.stillfront.com

          Number of Employees


          Location

          • Stillfront Group AB (publ)
          • Hitech Building
          • 5th floor
          • Stockholm
          • Stockholm County
          • 111 57
          • Sweden

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          SFOM (OMX Nordic Exchange Stockholm)YesOrdinary SharesSESEKJan 2018
          1YSDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2018
          0A2ALSE (London Stock Exchange)YesOrdinary SharesGBSEKJan 2018

          Biography

          Stillfront Group AB (publ), through its subsidiaries, creates, publishes, and distributes digital games in Germany, the United States, France, the United Kingdom, and the Middle East and North Africa region. Its games portfolio include Call of War, a browser based World War II strategy game; Conflict of Nations: Modern War, a browser based strategy game; eRepublik, a browser based multiplayer online game; Gemstone IV and Dragonrealms, a browser based fantasy games; Goodgame: Big Farm, an online farming strategy game; Goodgame: Big Farm: Mobile Harvest, an online farming strategy game for mobile; Goodgame: EMPIRE, an online strategy game for browser; Goodgame: EMPIRE: Four Kingdoms, an online strategy game for browser. The company’s games portfolio also include Imperia Online, a browser based multiplayer online real-time strategy game; ManagerZone Football & Hockey, a mobile and browser based sports management games; Nida Harb II, a mobile war strategy game; Online Fussball Manager, a sports management game; SIEGE: World War II, a mobile war strategy game; Supremacy 1914, a browser based World War I strategy game; Tank Storm, a mobile war strategy game; Unravel, a puzzle/strategy platform game for console and PC; War and Peace: Civil War, a mobile war strategy game; and World at War, a mobile war strategy game. The company 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 Analysis2020/01/26 22:53
          End of Day Share Price2020/01/24 00:00
          Earnings2019/09/30
          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.