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

• Market Cap: €8.10M
• Dividend Yield: N/A
• Average Volume (3M): 3.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• 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: 38 Underperform
• Price Target: €0.50 ▼(-20.63% Downside)

The overall stock score is heavily impacted by significant financial challenges, including declining revenues and persistent losses. Technical analysis 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. These factors collectively contribute to a low overall score, highlighting the need for strategic improvements in financial performance and market positioning.

Positive Factors

Revenue Model

Don't Nod's diversified revenue model, including digital sales and episodic content, supports recurring income and enhances revenue potential.

Partnerships and Collaborations

Strategic partnerships offer financial backing and marketing reach, aiding in project funding and expanding market presence.

Industry Position

The company's focus on narrative-driven games establishes a niche market position, attracting a dedicated fanbase and industry recognition.

Negative Factors

Revenue Decline

A sharp revenue decline indicates potential market share loss and challenges in maintaining sales growth, impacting long-term sustainability.

Profitability Issues

Ongoing profitability challenges suggest inefficiencies in cost management, affecting the company's ability to generate sustainable profits.

Cash Flow Challenges

Negative cash flow indicates difficulties in generating sufficient cash from operations, which could constrain future investment and growth.

Don't Nod Entertainment SA Business Overview & Revenue Model

Company Description

Don't Nod Entertainment S.A. develops and publishes video games worldwide. It offers games in various genres, including adventure, action, and role play for consoles, PCs, smartphones, and tablets. The company was founded in 2008 and is headquartered in Paris, France.

How the Company Makes Money

Don't Nod Entertainment generates revenue through several key streams, primarily from the sales of its video games, which are sold as digital downloads and physical copies on various platforms. The company also benefits from royalties and licensing agreements related to its intellectual properties. Additionally, Don't Nod engages in partnerships with larger publishers, such as Square Enix, which help finance game development and marketing efforts, thereby enhancing revenue opportunities. Furthermore, the studio explores additional earnings through merchandise and potential expansions of its game franchises, including sequels and spin-offs.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.49M	3.31M	5.24M	7.05M	10.50M	13.51M
Gross Profit	-32.00M	23.94M	32.06M	30.01M	-2.97M	-2.31M
EBITDA	-2.52M	-27.99M	-2.97M	-2.75M	817.00K	165.00K
Net Income	-42.77M	-64.32M	-14.83M	2.55M	-3.26M	949.00K
Balance Sheet
Total Assets	45.36M	68.38M	132.60M	100.15M	95.94M	52.00M
Cash, Cash Equivalents and Short-Term Investments	23.41M	32.88M	54.80M	34.91M	58.44M	21.22M
Total Debt	975.00K	1.65M	3.15M	4.32M	4.11M	4.03M
Total Liabilities	10.60M	12.65M	14.04M	12.09M	10.35M	11.88M
Stockholders Equity	33.21M	55.73M	118.57M	88.06M	85.59M	40.12M
Cash Flow
Free Cash Flow	-20.58M	-24.00M	-23.95M	-23.07M	-11.73M	-5.23M
Operating Cash Flow	-5.76M	-3.28M	3.13M	169.00K	5.15M	5.31M
Investing Cash Flow	-14.82M	-18.76M	-27.11M	-22.76M	-16.40M	-9.76M
Financing Cash Flow	-1.40M	131.00K	43.88M	-985.00K	48.41M	8.72M

Don't Nod Entertainment SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 0.63 is above the 20-day moving average (MA) of 0.60, below the 50-day MA of 0.70, and below the 200-day MA of 0.85, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 51.52 is Neutral, neither overbought nor oversold. The STOCH value of 75.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	63 Neutral	€123.33M	5.98	-0.44%	6.72%	-14.35%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
NACON	45 Neutral	€59.37M	-54.54	-0.36%	―	-4.48%	-105.25%
UBI	43 Neutral	€852.09M	-11.31	-4.52%	―	-11.78%	-28.61%
ALDNE	38 Underperform	€8.10M	-0.19	-78.20%	―	90.92%	24.05%
ALATA	38 Underperform	€66.98M	-4.19	-514.29%	―	63.11%	10.97%