NeoGames (NasdaqGM:NGMS) - Share price, News & Analysis

NGMS fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	5/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

NGMS Stock Overview

NeoGames S.A. provides iLottery solutions worldwide.

Rewards

Trading at 62.6% below our estimate of its fair value

Earnings are forecast to grow 70.42% per year

Risk Analysis

Shareholders have been diluted in the past year

NeoGames Competitors

Light & Wonder

NasdaqGS:LNW

US$4.8b

International Game Technology

NYSE:IGT

US$4.2b

La Française des Jeux Société anonyme

ENXTPA:FDJ

€6.5b

Tabcorp Holdings

ASX:TAH

AU$2.3b

Price History & Performance

Summary of all time highs, changes and price drops for NeoGames
Historical stock prices
Current Share Price	US$12.62
52 Week High	US$73.54
52 Week Low	US$10.69
Beta	0
1 Month Change	6.14%
3 Month Change	-42.48%
1 Year Change	-75.58%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-42.30%

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

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

Shareholder Returns

	NGMS	US Hospitality	US Market
7D	4.5%	-1.0%	-0.5%
1Y	-75.6%	-25.7%	-12.3%

Return vs Industry: NGMS underperformed the US Hospitality industry which returned -25.7% over the past year.

Return vs Market: NGMS underperformed the US Market which returned -12.3% over the past year.

Price Volatility

Is NGMS's price volatile compared to industry and market?
NGMS volatility
NGMS Average Weekly Movement	11.6%
Hospitality Industry Average Movement	9.2%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

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

Founded	Employees	CEO	Website
2014	154	Moti Malul	https://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 Cap	US$326.35m
Earnings (TTM)	-US$191.00k
Revenue (TTM)	US$50.36m

6.5x

P/S Ratio

-1,710x

P/E Ratio

Is NGMS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NGMS income statement (TTM)
Revenue	US$50.36m
Cost of Revenue	US$0
Gross Profit	US$50.36m
Other Expenses	US$50.56m
Earnings	-US$191.00k

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.0074
Gross Margin	100.00%
Net Profit Margin	-0.38%
Debt/Equity Ratio	22.3%

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 ($11.8) is trading below our estimate of fair value ($31.54)

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

Price To Earnings Ratio

PE vs Industry: NGMS is unprofitable, so we can't compare its Price-To-Earnings Ratio to the US Hospitality industry average.

PE vs Market: NGMS is unprofitable, so we can't compare its Price-To-Earnings Ratio to the US market.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NGMS's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: NGMS is overvalued based on its Price-To-Book Ratio (5.1x) 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

70.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NGMS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: NGMS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NGMS's is expected to become profitable in the next 3 years.

Revenue vs Market: NGMS's revenue (24.5% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: NGMS's revenue (24.5% 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

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

59.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NGMS is currently unprofitable.

Growing Profit Margin: NGMS is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: NGMS is unprofitable, but has reduced losses over the past 5 years at a rate of 59.6% per year.

Accelerating Growth: Unable to compare NGMS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NGMS is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (157.9%).

Return on Equity

High ROE: NGMS has a negative Return on Equity (-0.32%), as it is currently unprofitable.

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 ($54.4M) exceed its short term liabilities ($13.2M).

Long Term Liabilities: NGMS's short term assets ($54.4M) exceed its long term liabilities ($22.2M).

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 (112.2%).

Interest Coverage: NGMS's interest payments on its debt are not well covered by EBIT (0.1x 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.

Discover strong dividend paying companies

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%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31