CD Projekt (OTGLY) AI Stock Analysis

• Market Cap: $6.70B
• Dividend Yield: 0.41%
• Average Volume (3M): 1.24K
• Price to Earnings (P/E): 45.3
• Beta (1Y): 0.93
• Revenue Growth: 5.50%
• EPS Growth: 35.59%
• Country: US
• Employees: 634
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.13
• Shares Outstanding: 399,642,030
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 1,236
• PEG Ratio: -24.28
• Price to Book (P/B): 6.79
• Price to Sales (P/S): 19.30
• P/FCF Ratio: 109.38
• Enterprise Value/Market Cap: 4.04
• Enterprise Value/Revenue: 31.03
• Enterprise Value/Gross Profit: 29.65
• Enterprise Value/Ebitda: 60.09
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $19.00 ▲(14.18% Upside)

CD Projekt's stock score is primarily influenced by strong financial performance, despite challenges in revenue and cash flow growth. Technical indicators suggest neutral momentum, while high valuation metrics indicate potential overvaluation.

Positive Factors

High Profit Margins

High profit margins indicate efficient cost management and strong pricing power, which can sustain profitability even amid revenue fluctuations.

Solid Balance Sheet

A strong balance sheet with low leverage enhances financial stability and flexibility, allowing for strategic investments and resilience in downturns.

Strong Cash Generation

Robust cash generation supports ongoing operations and strategic initiatives, providing a buffer against economic uncertainties and funding growth opportunities.

Negative Factors

Decline in Revenue

A decline in revenue poses challenges for growth and may pressure margins if not addressed, potentially impacting long-term financial performance.

Free Cash Flow Decline

A significant drop in free cash flow growth limits the company's ability to invest in new projects or return capital to shareholders, affecting future growth prospects.

Revenue Growth Challenges

Sustained challenges in revenue growth can hinder the company's ability to expand its market share and maintain competitive positioning over time.

CD Projekt Business Overview & Revenue Model

Company Description

CD Projekt is a Polish video game developer and publisher, best known for its critically acclaimed role-playing game series, The Witcher, and the open-world game Cyberpunk 2077. Founded in 1994, the company operates primarily in the entertainment sector, focusing on video games for various platforms, including PC, consoles, and mobile devices. In addition to game development, CD Projekt owns GOG.com, a digital distribution platform for video games and films, which emphasizes DRM-free content and classic titles.

How the Company Makes Money

CD Projekt generates revenue primarily through the sales of its video games, with significant earnings coming from both physical and digital copies. The Witcher series and Cyberpunk 2077 represent major revenue streams, with sales bolstered by expansions, downloadable content (DLC), and merchandise. The company also earns income from GOG.com through the sale of third-party games, as well as its own titles. Additionally, CD Projekt has established partnerships for licensing and collaborations, which can contribute to its overall revenue. The company’s revenue model is further supported by ongoing community engagement and post-launch support, which help maintain player interest and drive additional sales over time.

CD Projekt Financial Statement Overview

Summary

CD Projekt shows strong profitability with high margins and a solid balance sheet with low leverage. However, challenges include a decline in revenue and free cash flow growth, which could impact long-term growth.

Income Statement

CD Projekt's income statement shows strong profitability with a high gross profit margin of 74.9% and a net profit margin of 47.7% for 2024. However, the company experienced a revenue decline of 11.6% compared to the previous year, indicating potential challenges in maintaining growth. Despite this, the EBIT and EBITDA margins remain robust at 43.8% and 45.5%, respectively, reflecting efficient cost management.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio, indicating minimal leverage and financial risk. The return on equity is healthy at 16.8%, showcasing effective use of shareholder funds. The equity ratio is strong, suggesting a stable financial position with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth by 60.2%, which could impact future investments. However, the operating cash flow to net income ratio is strong at 2.38, indicating good cash generation relative to net income. The free cash flow to net income ratio is moderate at 33.3%, suggesting room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	871.49M	985.03M	1.23B	952.58M	888.17M	2.14B
Gross Profit	912.07M	737.88M	849.63M	708.60M	637.94M	1.65B
EBITDA	450.07M	448.49M	553.33M	514.32M	329.12M	1.44B
Net Income	429.78M	469.87M	481.11M	347.09M	208.91M	1.15B
Balance Sheet
Total Assets	3.30B	3.04B	2.61B	2.27B	2.16B	2.89B
Cash, Cash Equivalents and Short-Term Investments	153.27M	1.19B	878.98M	894.67M	984.35M	834.15M
Total Debt	5.82M	20.15M	20.04M	28.46M	46.88M	18.94M
Total Liabilities	237.60M	241.76M	209.95M	240.72M	264.38M	707.12M
Stockholders Equity	3.06B	2.80B	2.40B	2.03B	1.89B	2.19B
Cash Flow
Free Cash Flow	52.09M	173.84M	280.07M	149.93M	784.46M	490.12M
Operating Cash Flow	471.93M	521.30M	610.88M	406.03M	967.83M	711.71M
Investing Cash Flow	-376.96M	-470.55M	-607.35M	-335.61M	-613.79M	-106.39M
Financing Cash Flow	-36.51M	-103.92M	-103.31M	-204.18M	-505.78M	-91.39M

CD Projekt Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OTGLY, the sentiment is Negative. The current price of 16.64 is below the 20-day moving average (MA) of 17.10, below the 50-day MA of 16.94, and below the 200-day MA of 16.73, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.75 is Neutral, neither overbought nor oversold. The STOCH value of 2.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OTGLY.

CD Projekt Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DDI	80 Outperform	$412.28M	3.73	12.55%	―	1.21%	0.72%
EA	70 Outperform	$51.22B	59.85	13.20%	0.37%	-1.45%	-11.99%
PLTK	66 Neutral	$1.53B	17.60	―	9.98%	7.49%	-60.32%
OTGLY	65 Neutral	$6.70B	45.32	19.54%	0.41%	5.50%	35.59%
BILI	62 Neutral	$10.22B	97.27	5.30%	―	16.84%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TTWO	53 Neutral	$46.49B	-11.34	-86.61%	―	13.98%	-6.71%

CD Projekt Corporate Events

CD Projekt S.A. Reports Solid Financial Performance

CD Projekt S.A. is a prominent player in the video game industry, known for its development and publishing of high-quality games, particularly in the role-playing game (RPG) genre. The company operates primarily through its two segments: CD PROJEKT RED, responsible for game development, and GOG.COM, a digital distribution platform.