Don't Nod Entertainment SA (ALDNE) AI Stock Analysis

• Market Cap: €10.30M
• Dividend Yield: N/A
• Average Volume (3M): 3.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: 90.92%
• EPS Growth: 24.05%
• Country: FR
• Employees: 316
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -1.68
• Shares Outstanding: 13,081,759
• 10 Day Avg. Volume: 1,950
• 30 Day Avg. Volume: 3,752
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 5.76
• P/FCF Ratio: -0.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: €0.50 ▼(-35.90% Downside)

The overall stock score is heavily influenced by the company's poor financial performance, characterized by declining revenues and persistent losses. Technical analysis further indicates bearish momentum, with the stock trading below key moving averages and showing oversold conditions. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield, reflecting the company's financial instability and lack of profitability.

Don't Nod Entertainment SA Business Overview & Revenue Model

Company Description

Don't Nod Entertainment SA (ALDNE) is a French video game developer and publisher known for creating narrative-driven games that emphasize player choice and emotional storytelling. Founded in 2008, the company operates primarily in the interactive entertainment sector, focusing on developing games for various platforms, including PC, consoles, and mobile devices. Their core products include critically acclaimed titles such as 'Life is Strange,' 'Remember Me,' and 'Tell Me Why,' which have garnered a strong fanbase and recognition for their unique approaches to gameplay and storytelling.

How the Company Makes Money

Don't Nod Entertainment generates revenue primarily through game sales, both physical and digital, on various platforms. The company benefits from a strong revenue model that includes direct sales of its titles through major gaming retailers and digital storefronts like Steam, PlayStation Store, and Xbox Live. Additionally, Don't Nod has embraced episodic content and downloadable content (DLC) strategies, allowing for recurring revenue from existing titles. The company also engages in partnerships and collaborations with larger publishers, which can provide funding and marketing support for their projects, further enhancing their revenue potential. Licensing deals for merchandise and adaptations of their intellectual properties into other media can also contribute to their earnings, although specifics on such deals may vary.

Don't Nod Entertainment SA Financial Statement Overview

Summary

Don't Nod Entertainment SA faces significant financial challenges, with declining revenues and persistent losses impacting profitability. While leverage is low, cash flow issues and negative returns on equity highlight operational inefficiencies and financial instability. The company needs to address revenue generation and cost management to improve its financial position.

Income Statement

The income statement reveals significant challenges, with a drastic revenue decline of 81% in the latest year and persistent negative profit margins. The gross profit margin is negative, indicating cost issues, and the net profit margin has worsened, reflecting deepening losses. The EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio, indicating conservative leverage. However, the return on equity is negative, reflecting poor profitability. The equity ratio is stable, suggesting a solid asset base, but the overall financial health is weakened by ongoing losses.

Cash Flow

Cash flow analysis shows negative free cash flow, although there is a slight improvement in free cash flow growth. The operating cash flow is negative, indicating cash generation issues, and the free cash flow to net income ratio is zero, reflecting cash flow challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.31M	5.24M	7.05M	10.50M	13.51M
Gross Profit	23.94M	32.06M	30.01M	-2.97M	-2.31M
EBITDA	-27.99M	-2.97M	-2.75M	817.00K	165.00K
Net Income	-64.32M	-14.83M	2.55M	-3.26M	949.00K
Balance Sheet
Total Assets	68.38M	132.60M	100.15M	95.94M	52.00M
Cash, Cash Equivalents and Short-Term Investments	32.88M	54.80M	34.91M	58.44M	21.22M
Total Debt	1.65M	3.15M	4.32M	4.11M	4.03M
Total Liabilities	12.65M	14.04M	12.09M	10.35M	11.88M
Stockholders Equity	55.73M	118.57M	88.06M	85.59M	40.12M
Cash Flow
Free Cash Flow	-24.00M	-23.95M	-23.07M	-11.73M	-5.23M
Operating Cash Flow	-3.28M	3.13M	169.00K	5.15M	5.31M
Investing Cash Flow	-18.76M	-27.11M	-22.76M	-16.40M	-9.76M
Financing Cash Flow	131.00K	43.88M	-985.00K	48.41M	8.72M

Don't Nod Entertainment SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ALDNE, the sentiment is Negative. The current price of 0.78 is below the 20-day moving average (MA) of 0.81, below the 50-day MA of 0.84, and below the 200-day MA of 0.92, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 35.20 is Neutral, neither overbought nor oversold. The STOCH value of 43.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:ALDNE.

Don't Nod Entertainment SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALPUL	62 Neutral	€154.57M	7.48	13.78%	5.52%	108.18%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
NACON	45 Neutral	€65.92M	―	-0.49%	―	0.14%	-104.73%
UBI	43 Neutral	€899.33M	-5.25	-8.66%	―	-17.46%	-203.48%
ALATA	40 Underperform	€74.20M	―	-514.29%	―	63.11%	10.97%
ALDNE	39 Underperform	€10.30M	-0.24	-77.09%	―	90.92%	24.05%