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

• Market Cap: $74.84M
• Dividend Yield: N/A
• Average Volume (3M): 83.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 253
• Sector: Communication Services
• Sector Strength: 86
• Industry: Entertainment
• EPS (TTM): -0.16
• Shares Outstanding: 37,696,125
• 10 Day Avg. Volume: 126,074
• 30 Day Avg. Volume: 83,948
• PEG Ratio: 0.03
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.88
• 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: $12.00
• Price Target Upside: 795.52% 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 despite broad market softness in the esports/gaming industry.

New Ventures

NIPG recently launched a joint venture with Homeinns Hotels Group to develop esports hotels that can potentially disrupt the internet café industry, and launched a game publishing division expecting significant revenues starting in 1H25.

Strategic Developments

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, expansion into game publishing and esports hotels, and acquisition of Young Will expanding talent management.

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.

Industry Conditions

Due to softness in the esports/gaming industry, forward growth estimates are tempered, with a lower 1H25E revenue forecast, but strong multi-year growth and positive adjusted EBITDA are still expected by 2026.

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
	EBIT
-14.65M	-8.08M	-8.45M	-2.88M
	EBITDA
-7.40M	-2.59M	-4.97M	-2.57M
	Net Income Common Stockholders
-13.26M	-6.22M	-8.00M	-3.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.59M	9.59M	11.41M	5.05M
	Total Assets
313.84M	133.94M	140.79M	20.47M
	Total Debt
11.44M	14.14M	15.59M	491.95K
	Net Debt
3.84M	4.55M	4.18M	-4.56M
	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
BRO	78 Outperform	$31.65B	30.78	16.18%	0.51%	12.57%	10.52%
AJG	74 Outperform	$85.92B	51.60	9.27%	0.73%	14.07%	31.44%
MMC	73 Outperform	$112.57B	28.02	30.51%	1.43%	7.56%	3.39%
TRV	71 Outperform	$61.41B	14.76	16.05%	1.55%	9.60%	36.89%
AON	69 Neutral	$78.26B	30.88	74.17%	0.75%	19.57%	-8.09%
Sector *	60 Neutral	$14.12B	6.43	-3.57%	3.69%	2.49%	-35.43%
NIPG	44 Neutral	$74.84M	―	-5.35%	―	―	―