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NGMS

NeoGames NasdaqGM:NGMS Stock Report

Last Price

US$12.05

Market Cap

US$311.6m

7D

-8.9%

1Y

-73.8%

Updated

15 May, 2022

Data

Company Financials +
NGMS fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance1/6
Financial Health4/6
Dividends0/6

NGMS Stock Overview

NeoGames S.A. provides iLottery solutions worldwide.

NeoGames Competitors

Price History & Performance

Summary of all time highs, changes and price drops for NeoGames
Historical stock prices
Current Share PriceUS$12.05
52 Week HighUS$73.54
52 Week LowUS$10.69
Beta0
1 Month Change-18.36%
3 Month Change-49.56%
1 Year Change-73.83%
3 Year Changen/a
5 Year Changen/a
Change since IPO-44.90%

Recent News & Updates

May 03

Alta Fox Capital - NeoGames: In A Healthy Oligopoly

NeoGames valuation has recently slumped to levels that imply far more pessimism than we can realistically envision. We believe the pro forma entity is much more attractive to a potential acquirer. Our research suggests that there are likely several interested strategic acquirers in NGMS.

Apr 23
NeoGames S.A.'s (NASDAQ:NGMS) Intrinsic Value Is Potentially 92% Above Its Share Price

NeoGames S.A.'s (NASDAQ:NGMS) Intrinsic Value Is Potentially 92% Above Its Share Price

Today we will run through one way of estimating the intrinsic value of NeoGames S.A. ( NASDAQ:NGMS ) by projecting its...

Shareholder Returns

NGMSUS HospitalityUS Market
7D-8.9%-5.3%-2.5%
1Y-73.8%-22.2%-10.4%

Return vs Industry: NGMS underperformed the US Hospitality industry which returned -22.2% over the past year.

Return vs Market: NGMS underperformed the US Market which returned -10.4% over the past year.

Price Volatility

Is NGMS's price volatile compared to industry and market?
NGMS volatility
NGMS Average Weekly Movement11.5%
Hospitality Industry Average Movement9.1%
Market Average Movement7.8%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: NGMS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: NGMS's weekly volatility (12%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2014154Moti Malulhttps://neogames.com

NeoGames S.A. provides iLottery solutions worldwide. The company offers various technology platforms, a range of value-added services, and a game studio that provides a portfolio of draw based games and instant tickets through personal computers, smartphones, and handheld devices. It also develops and operates online lotteries and games that allows lottery operators to distribute lottery products through online sales channels using the company’s technology.

NeoGames Fundamentals Summary

How do NeoGames's earnings and revenue compare to its market cap?
NGMS fundamental statistics
Market CapUS$311.61m
Earnings (TTM)US$4.65m
Revenue (TTM)US$50.46m

67.0x

P/E Ratio

6.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NGMS income statement (TTM)
RevenueUS$50.46m
Cost of RevenueUS$0
Gross ProfitUS$50.46m
Other ExpensesUS$45.81m
EarningsUS$4.65m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.18
Gross Margin100.00%
Net Profit Margin9.22%
Debt/Equity Ratio56.8%

How did NGMS perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: NGMS ($12.05) is trading below our estimate of fair value ($40.47)

Significantly Below Fair Value: NGMS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NGMS is poor value based on its PE Ratio (67x) compared to the US Hospitality industry average (17.7x).

PE vs Market: NGMS is poor value based on its PE Ratio (67x) compared to the US market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: NGMS is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: NGMS is overvalued based on its PB Ratio (5.2x) compared to the US Hospitality industry average (2.6x).


Future Growth

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

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


50.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NGMS's forecast earnings growth (50.9% per year) is above the savings rate (1.9%).

Earnings vs Market: NGMS's earnings (50.9% per year) are forecast to grow faster than the US market (12.6% per year).

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

Revenue vs Market: NGMS's revenue (27.8% per year) is forecast to grow faster than the US market (8% per year).

High Growth Revenue: NGMS's revenue (27.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NGMS's Return on Equity is forecast to be high in 3 years time


Past Performance

How has NeoGames performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


68.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NGMS has a high level of non-cash earnings.

Growing Profit Margin: NGMS's current net profit margins (9.2%) are lower than last year (13.2%).


Past Earnings Growth Analysis

Earnings Trend: NGMS's earnings have grown significantly by 68.3% per year over the past 5 years.

Accelerating Growth: NGMS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NGMS had negative earnings growth (-28.6%) over the past year, making it difficult to compare to the Hospitality industry average (86.7%).


Return on Equity

High ROE: NGMS's Return on Equity (7.8%) is considered low.


Financial Health

How is NeoGames's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NGMS's short term assets ($77.5M) exceed its short term liabilities ($34.1M).

Long Term Liabilities: NGMS's short term assets ($77.5M) exceed its long term liabilities ($21.8M).


Debt to Equity History and Analysis

Debt Level: NGMS has more cash than its total debt.

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

Debt Coverage: NGMS's debt is well covered by operating cash flow (43.9%).

Interest Coverage: NGMS's interest payments on its debt are not well covered by EBIT (0.5x coverage).


Balance Sheet


Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as NGMS has not reported any payouts.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Moti Malul (49 yo)

3.58yrs

Tenure

Mr. Moti Malul serves as Chief Executive Officer and Director at NeoGames S.A. since October 2018 and is its Co-Managing Director. Prior to that, Mr. Malul served as Executive Vice President of Sales and B...


Leadership Team

Experienced Management: NGMS's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: NGMS's board of directors are considered experienced (3.1 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 3.5%.


Top Shareholders

Company Information

NeoGames S.A.'s employee growth, exchange listings and data sources


Key Information

  • Name: NeoGames S.A.
  • Ticker: NGMS
  • Exchange: NasdaqGM
  • Founded: 2014
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Implied Market Cap: US$311.609m
  • Shares outstanding: 25.86m
  • Website: https://neogames.com

Number of Employees


Location

  • NeoGames S.A.
  • Building C
  • 16th Floor
  • Tel Aviv
  • 6971014
  • Israel

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/15 00:00
End of Day Share Price2022/05/13 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.