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Cd Projekt S.A. (OTGLY)
:OTGLY
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CD Projekt
(OTC:OTGLY)
Rating:79Outperform
Price Target:―
CD Projekt (OTGLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.76B
Dividend Yield0.38%
Average Volume (3M)924.00
Price to Earnings (P/E)59.4
Beta (1Y)0.81
Revenue Growth-20.94%
EPS Growth-9.37%
CountryUS
Employees634
SectorCommunication Services
Sector Strength92
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)0.05
Shares Outstanding399,642,030
10 Day Avg. Volume1,753
30 Day Avg. Volume924
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.79
Enterprise Value/Revenue5.43
Enterprise Value/Gross Profit7.10
Enterprise Value/Ebitda10.66
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
CD Projekt Business Overview & Revenue Model
Company DescriptionCD Projekt S.A., together its subsidiaries, engages in the development, publishing, and digital distribution of videogames for personal computers and video game consoles worldwide. It operates through two segments, CD PROJEKT RED and GOG.com. The company's product portfolio comprises The Witcher; The Witcher 2: Assassins of Kings; The Witcher 3: Wild Hunt; Thronebreaker: The Witcher Tales; Gwent: The Witcher Card game; and Cyberpunk 2077. It also distributes videogames through GOG.com distribution platform and the GOG GALAXY application. The company exports its products in Europe, North America, South America, Asia, Australia, and Africa. CD Projekt S.A. was incorporated in 2001 and is headquartered in Warsaw, Poland.
How the Company Makes MoneyCD Projekt generates revenue primarily through the sale of video games developed by its studio, CD Projekt Red. This includes both initial sales of new game releases and ongoing sales of existing titles. The company benefits from digital distribution channels, including GOG.com, which allows it to reach a global audience while retaining a larger share of sales revenue compared to traditional retail distribution. CD Projekt also earns money through the sale of game-related merchandise and licensing deals. Additionally, the company occasionally partners with other entities for co-development or distribution, which can contribute to its earnings.
CD Projekt Earnings Call Summary
Earnings Call Date:May 28, 2025
(Q1-2025)
| % Change Since: 19.29%|
Next Earnings Date:Aug 28, 2025
Earnings Call Sentiment Positive
The earnings call highlighted several positive developments, including successful product launches and strong sales figures for existing titles. Financial performance was robust, with notable profit and strategic decisions regarding dividends and share buybacks. However, increased operating costs and high income tax adjustments posed challenges. The positive aspects significantly outweighed the negatives.Q1-2025 Updates
Positive Updates
Cyberpunk 2077 Ultimate Edition Launch
Cyberpunk 2077 Ultimate Edition is set to be a launch title for the Nintendo Switch 2 on June 5, 2025, marking a significant milestone as the first time one of CD PROJEKT's games will debut on a new platform.
Phantom Liberty Expansion Success
The Phantom Liberty expansion for Cyberpunk 2077 has surpassed 10 million copies sold worldwide since its release in September 2023, demonstrating the expansion's quality and the enduring appeal of the Cyberpunk franchise.
The Witcher 3: Wild Hunt Sales Milestone
The Witcher 3: Wild Hunt has now sold over 60 million copies globally, contributing PLN2.4 billion in revenue over the past decade, establishing it as one of the best-selling games of all time.
Strong Financial Performance
CD PROJEKT reported a net profit of PLN86 million for Q1 2025 with an EBIT increase of 18% year-over-year, supported by strong sales and strategic amortization decisions.
Dividend and Share Buyback Plans
CD PROJEKT proposed a dividend of nearly PLN100 million and a share buyback to settle its incentive program, reflecting a strong cash position and confidence in future performance.
Negative Updates
High Income Tax Adjustments
A relatively high income tax of nearly PLN22 million was recorded for Q1 2025, mainly due to adjustments relating to prior years, impacting net results.
Increased Operating Costs
Operating costs remained stable overall but included extra expenses related to the new ERP system implementation and increased costs of incentive programs.
Company Guidance
During the Q1 2025 Earnings Conference Call held on May 28, CD PROJEKT provided several key metrics and guidance. They announced that the Cyberpunk 2077 Ultimate Edition would be a launch title for the Nintendo Switch 2 on June 5, 2025, marking the company's first game to be a launch title on a new platform. The Phantom Liberty expansion for Cyberpunk 2077 surpassed 10 million copies sold worldwide within just over 20 months since its release. The Witcher 3: Wild Hunt celebrated its tenth anniversary, with global sales exceeding 60 million copies and generating PLN2.4 billion in revenue. The company's development team has grown to over 730 developers, with 420 focused on The Witcher 4, which is in production, while Cyberpunk 2 has moved into preproduction. Financially, CD PROJEKT reported Q1 2025 sales revenue of PLN226 million, consistent with the previous year, and a net profit of PLN86 million, with a group net profitability of 38%. They also proposed a dividend of nearly PLN100 million from 2024 profits and a share buyback program valued at around PLN20 million.CD Projekt Financial Statement Overview
Summary
CD Projekt maintains strong profitability and an impressive balance sheet free of debt, with high gross and net profit margins. Despite a revenue decline of 9.4%, efficient cash flow management and solid financial reserves underscore resilience.Income Statement
CD Projekt shows strong profitability with a TTM gross profit margin of 71.5% and a net profit margin of 39.4%. The revenue growth rate, however, shows a decline of 9.4% from the previous year, indicating some challenges in maintaining revenue growth. Despite this, the company maintains robust margins, with an EBIT margin of 36.7% and an EBITDA margin of 55.7%.82
Very Positive
Balance Sheet
CD Projekt's balance sheet is robust with a debt-to-equity ratio of 0.0, indicating no reliance on debt. The equity ratio stands at a strong 93.3%, showcasing financial stability. However, a slight decrease in stockholders' equity from the previous year may warrant monitoring.95
Very Positive
Cash Flow
The company's cash flow is impressive, with a free cash flow growth rate of 55.8% and an operating cash flow to net income ratio of 1.67. The free cash flow to net income ratio of 0.99 indicates efficient cash flow management, though a slight dip in operating cash flow growth could be a potential concern.88
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 984.54M | 985.03M | 1.23B | 952.58M | 888.17M | 2.14B |
| Gross Profit | 752.95M | 737.88M | 849.63M | 708.60M | 637.94M | 1.65B |
| EBITDA | 501.82M | 448.49M | 553.33M | 514.32M | 326.63M | 1.44B |
| Net Income | 455.78M | 469.87M | 481.11M | 347.09M | 208.91M | 1.15B |
Balance Sheet | ||||||
| Total Assets | 3.12B | 3.04B | 2.61B | 2.27B | 2.16B | 2.89B |
| Cash, Cash Equivalents and Short-Term Investments | 1.17B | 1.19B | 878.98M | 894.67M | 984.35M | 834.15M |
| Total Debt | 0.00 | 0.00 | 20.04M | 28.46M | 46.88M | 18.94M |
| Total Liabilities | 226.55M | 241.76M | 209.95M | 240.72M | 264.38M | 707.12M |
| Stockholders Equity | 2.89B | 2.80B | 2.40B | 2.03B | 1.89B | 2.19B |
Cash Flow | ||||||
| Free Cash Flow | 71.74M | 173.84M | 280.07M | 149.93M | 784.46M | 490.12M |
| Operating Cash Flow | 491.44M | 521.30M | 610.88M | 406.03M | 967.83M | 711.71M |
| Investing Cash Flow | -294.20M | -470.55M | -607.35M | -335.61M | -613.79M | -106.39M |
| Financing Cash Flow | -103.73M | -103.92M | -103.31M | -204.18M | -505.78M | -91.39M |
CD Projekt Technical Analysis
Positive
17.50
Price Trends
17.92
Negative
16.46
Positive
14.34
Positive
Market Momentum
-0.12
Negative
51.01
Neutral
67.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OTGLY, the sentiment is Positive. The current price of 17.5 is above the 20-day moving average (MA) of 17.16, below the 50-day MA of 17.92, and above the 200-day MA of 14.34, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 51.01 is Neutral, neither overbought nor oversold. The STOCH value of 67.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OTGLY.
CD Projekt Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $6.76B | 59.45 | 16.59% | 0.38% | -20.94% | -9.37% | |
76 Outperform | $43.70B | 43.85 | 15.46% | 0.44% | 2.68% | -6.15% | |
75 Outperform | $469.27M | 4.41 | 12.33% | ― | 0.77% | -8.46% | |
69 Neutral | $10.03B | ― | -4.29% | ― | 21.11% | 87.93% | |
60 Neutral | $43.84B | 1.71 | -10.46% | 3.98% | 2.32% | -37.93% | |
59 Neutral | $1.36B | 15.75 | -220.61% | 10.70% | 4.98% | -60.29% | |
55 Neutral | $42.83B | ― | -89.29% | ― | 7.33% | -7.46% |
* Communication Services Sector Average
Performance Comparison
OTGLY
CD Projekt
17.50
6.14
54.05%
EA
Electronic Arts
170.68
22.40
15.11%
TTWO
Take-Two
232.55
77.74
50.22%
BILI
Bilibili
25.35
11.40
81.72%
DDI
Doubledown Interactive Co
9.47
-4.70
-33.17%
PLTK
Playtika Holding
3.70
-3.04
-45.10%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.