NIP Group Inc. Sponsored ADR (NIPG) AI Stock Analysis

• Market Cap: $122.75M
• Dividend Yield: N/A
• Average Volume (3M): 87.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.61
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 253
• Sector: Communication Services
• Sector Strength: 92
• Industry: Entertainment
• EPS (TTM): -0.08
• Shares Outstanding: 39,364,964
• 10 Day Avg. Volume: 93,940
• 30 Day Avg. Volume: 87,007
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 3.16
• Enterprise Value/Revenue: 4.64
• Enterprise Value/Gross Profit: 53.91
• Enterprise Value/Ebitda: -45.47
• 1Y Price Target: $2.00
• Price Target Upside: -3.38% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: $2.00 ▼(-3.38% Downside)

NIP Group Inc.'s overall score is primarily impacted by its financial performance, which shows revenue growth but significant challenges in profitability and cash flow. Technical analysis indicates mixed momentum, while valuation metrics are poor due to negative earnings and lack of dividends.

Positive Factors

Business Expansion

The company continues to rapidly expand its events business, with a 148% year-on-year increase.

Diversification and Growth

NIP Group has emerged as a diversified esports, entertainment, and technology company with in-house professional esports teams, talent management, and events production.

Strategic Partnerships

Recent strategic developments reinforce confidence in the business trajectory with a multi-year partnership and investment from Abu Dhabi Investment Office, renewed partnerships with Red Bull and the Esports World Cup Foundation.

Negative Factors

Financial Performance

The company reported 2H24 revenue of $45.9M, which was below the estimate of $49.0M, and a gross margin of 1.4%, lower than the expected 4.7% due to decreased higher-margin sponsorship, advertising, and IP licensing revenue from the esports team segment.

Market Conditions

Due to softness in the esports/gaming industry, forward growth estimates are tempered, with a lower 1H25E revenue forecast.

Revenue Challenges

Decreased higher-margin sponsorship, advertising, and IP licensing revenue from the esports team segment contributed to a lower than expected gross margin.

NIP Group Inc. Sponsored ADR Business Overview & Revenue Model

Company Description

NIP Group Inc., through its subsidiaries, operates as an esports company primarily in the People's Republic of China, Sweden, and internationally. It operates Ninjas in Pyjamas, a PC/console esports brand; eStar Gaming, a mobile esports brand. The company also operates a portfolio of esports teams competing at various level in video game titles; and engages in talent management, event production, creative studios, and advertising businesses. In addition, it offers esports education related services to educational institutions; and licenses companies to use the image, including AI and virtual image of its athletes for promotion. NIP Group Inc. was incorporated in 2021 and is based in Stockholm, Sweden.

How the Company Makes Money

NIP Group generates revenue primarily through the sale of insurance policies and risk management services. The company employs a multi-channel revenue model that includes direct sales to clients, as well as partnerships with brokers and agents who facilitate the distribution of its insurance products. Key revenue streams include premiums collected from insured clients, fees for risk assessment and consulting services, and commissions from third-party partnerships. Additionally, NIP Group may benefit from strategic alliances with other financial institutions, enhancing its service offerings and expanding its market reach, which contributes to its overall earnings.

NIP Group Inc. Sponsored ADR Financial Statement Overview

Summary

NIP Group Inc. shows revenue growth but faces significant profitability and cash flow challenges. Negative profit margins and free cash flow indicate operational inefficiencies. While the balance sheet is stable with low leverage, the lack of profitability is a concern.

Income Statement

The company has shown revenue growth over the years, with a notable increase from $5.67 million in 2020 to $85.27 million in 2024. However, the gross profit margin decreased significantly from 11.64% in 2020 to 3.53% in 2024. The net profit margin remains negative, indicating continued losses each year. The EBIT and EBITDA margins are also negative, reflecting operational challenges and insufficient profitability.

Balance Sheet

NIPG's debt-to-equity ratio is low, suggesting conservative leverage. However, the return on equity is negative, reflecting ongoing losses. The equity ratio is strong, with equity making up a significant portion of total assets. Overall, the balance sheet indicates financial stability but lack of profitability.

Cash Flow

The company's free cash flow is negative, and it worsened from -$1.41 million in 2020 to -$18.59 million in 2024. The operating cash flow is also negative, indicating cash outflows from operations. The free cash flow to net income ratio reflects a challenging cash flow situation, with cash flow issues persisting over time.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	85.27M	83.67M	65.84M	31.80M	5.67M
Gross Profit	3.01M	7.20M	3.74M	-593.12K	942.63K
EBITDA	-8.84M	-7.40M	-2.59M	-4.97M	-2.57M
Net Income	-12.69M	-13.26M	-6.22M	-8.00M	-3.21M
Balance Sheet
Total Assets	312.57M	313.84M	133.94M	140.79M	20.47M
Cash, Cash Equivalents and Short-Term Investments	12.55M	7.59M	9.59M	11.41M	5.05M
Total Debt	19.12M	11.44M	14.14M	15.59M	491.95K
Total Liabilities	73.10M	61.10M	44.48M	52.23M	6.56M
Stockholders Equity	234.53M	247.74M	84.46M	82.22M	13.90M
Cash Flow
Free Cash Flow	-18.59M	-8.75M	-16.16M	-9.32M	-1.41M
Operating Cash Flow	-16.54M	-5.15M	-9.63M	331.54K	529.78K
Investing Cash Flow	-4.96M	2.17M	-2.31M	7.16M	-1.91M
Financing Cash Flow	23.46M	1.36M	10.38M	-1.16M	0.00

NIP Group Inc. Sponsored ADR Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NIPG, the sentiment is Positive. The current price of 2.07 is above the 20-day moving average (MA) of 1.85, above the 50-day MA of 2.00, and below the 200-day MA of 3.22, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.52 is Neutral, neither overbought nor oversold. The STOCH value of 80.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NIPG.

NIP Group Inc. Sponsored ADR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNVS	66 Neutral	$96.33M	37.69	9.22%	―	77.07%	―
GAIA	65 Neutral	$142.12M	―	-5.74%	―	12.22%	19.18%
Sector *	60 Neutral	$44.05B	4.50	-12.81%	4.08%	1.86%	-43.08%
RDI	53 Neutral	$55.97M	―	-540.12%	―	7.59%	61.22%
NIPG	49 Neutral	$122.75M	―	-5.35%	―	―	―
LVO	47 Neutral	$62.29M	―	154.70%	―	-18.76%	-21.72%
ANGH	41 Neutral	$21.57M	―	-270.84%	―	88.72%	-85.54%