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

• Market Cap: $120.82M
• Dividend Yield: N/A
• Average Volume (3M): 315.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 253
• Sector: Communication Services
• Sector Strength: 83
• Industry: Entertainment
• EPS (TTM): -0.08
• Shares Outstanding: 39,364,964
• 10 Day Avg. Volume: 578,651
• 30 Day Avg. Volume: 315,775
• PEG Ratio: 1.90
• Price to Book (P/B): 2.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.64
• Enterprise Value/Market Cap: 4.22
• Enterprise Value/Revenue: 1.84
• Enterprise Value/Gross Profit: 70.87
• Enterprise Value/Ebitda: -22.31
• 1Y Price Target: $12.00
• Price Target Upside: 463.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: ―

NIPG's overall stock score reflects its significant financial challenges, characterized by consistent net losses and negative cash flows despite revenue growth. The technical analysis shows bearish momentum, which further weighs on the stock. The absence of valuation ratios adds to the uncertainty, making it less attractive to investors seeking stability or growth.

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 Inc. Sponsored ADR Financial Statement Overview

Summary

NIP Group Inc. demonstrates a mixed financial performance. Revenue has grown significantly, but consistent net losses and negative cash flows pose significant challenges. The balance sheet is relatively strong with low leverage, yet high liabilities and poor cash flow performance indicate potential risks.

Income Statement

The company shows significant revenue growth over the years, with a notable increase from 2020 to 2023. However, profitability remains a concern with negative EBIT and net profit margins throughout the period. The gross profit margin has improved, but the company still reports substantial net losses, impacting overall financial health.

Balance Sheet

The balance sheet reflects a solid equity base with an increasing trend in stockholders' equity. The debt-to-equity ratio is relatively low, indicating manageable leverage. However, the company's high total liabilities raise potential risk concerns, and the negative return on equity highlights operational inefficiencies.

Cash Flow

The cash flow statement reveals challenges in generating positive cash flows, with negative operating and free cash flows across the years. The operating cash flow to net income ratio signals inefficiency in converting net income to cash, while free cash flow growth remains negative, indicating cash flow management issues.

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

NIP Group Inc. Sponsored ADR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$41.26B	-0.79	-14.19%	3.78%	2.39%	-73.52%
GAIA	58 Neutral	$106.31M	―	-6.03%	―	12.18%	5.88%
LVO	58 Neutral	$85.00M	―	154.70%	―	11.43%	26.78%
CNVS	56 Neutral	$103.33M	40.98	10.01%	―	39.86%	3.86%
NIPG	44 Neutral	$120.82M	―	-5.35%	―	―	―
RDI	42 Neutral	$43.01M	―	-540.12%	―	-7.36%	18.52%
ANGH	41 Neutral	$33.42M	―	-270.84%	―	88.72%	-85.53%