CD Projekt SA (CDR) AI Stock Analysis

• Market Cap: zł23.99B
• Dividend Yield: 0.42%
• Average Volume (3M): 284.59K
• Price to Earnings (P/E): 42.1
• Beta (1Y): 0.70
• Revenue Growth: -24.57%
• EPS Growth: -19.36%
• Country: PL
• Employees: 634
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 1.93
• Shares Outstanding: 99,910,510
• 10 Day Avg. Volume: 376,216
• 30 Day Avg. Volume: 284,589
• PEG Ratio: -19.54
• Price to Book (P/B): 6.83
• Price to Sales (P/S): 19.42
• P/FCF Ratio: 45.18
• 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: zł188.33
• Price Target Upside: -21.56% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: zł277.00 ▲(15.37% Upside)

CD Projekt SA's strong financial performance is the primary driver of its stock score, supported by solid profitability and a robust balance sheet. Technical analysis indicates stable momentum, but high valuation metrics suggest potential overvaluation risks. The absence of earnings call and corporate events data limits the analysis to these factors.

Positive Factors

Strong Profit Margins

High profit margins indicate effective cost management and strong pricing power, supporting long-term financial stability and profitability.

Solid Balance Sheet

Minimal leverage reduces financial risk, providing flexibility for strategic investments and resilience against economic downturns.

Strong Cash Generation

Strong cash generation supports ongoing operations and investments, ensuring the company can fund growth initiatives and withstand market fluctuations.

Negative Factors

Revenue Decline

Declining revenue may indicate challenges in market demand or competition, potentially impacting future growth and profitability.

Negative Free Cash Flow Growth

Negative free cash flow growth could limit the company's ability to invest in new projects or return capital to shareholders, affecting long-term growth.

Earnings Decline

Declining earnings per share can signal reduced profitability and may affect investor confidence, impacting the company's ability to attract capital.

CD Projekt SA Business Overview & Revenue Model

Company Description

CD 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 Money

CD Projekt generates revenue primarily through the sale of its video games, both physical and digital. The company benefits from a robust pricing strategy, including standard editions, special editions, and downloadable content (DLC) expansions that enhance the gaming experience. Cyberpunk 2077 and The Witcher series are significant contributors to its earnings, driven by high sales volumes and ongoing interest in their respective franchises. Additionally, CD Projekt earns revenue from GOG.com, where it sells both its own titles and third-party games, leveraging a commission-based model. The company has also explored partnerships for merchandise and adaptations of its games into other media, diversifying its revenue streams further. Furthermore, CD Projekt invests in live service models, offering ongoing content updates and expansions that keep players engaged and spending over time.

CD Projekt SA Financial Statement Overview

Summary

CD Projekt SA demonstrates strong profitability with high net and gross profit margins. The balance sheet is solid with minimal leverage, and cash flow is stable despite slight negative growth in free cash flow. Revenue decline poses a challenge, but overall financial health remains robust.

Income Statement

CD Projekt SA shows strong profitability with a high net profit margin of 47.7% and a gross profit margin of 74.9% 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, EBIT and EBITDA margins remain robust at 43.8% and 56.2%, respectively, reflecting efficient cost management.

Balance Sheet

The company's balance sheet is solid, with a very low debt-to-equity ratio of 0.007, indicating minimal leverage and financial risk. Return on equity is healthy at 16.8%, showcasing effective use of shareholder funds. The equity ratio stands at 92.0%, highlighting strong asset backing by equity.

Cash Flow

CD Projekt SA's cash flow performance is stable, with an operating cash flow to net income ratio of 2.38, indicating strong cash generation relative to profits. However, free cash flow growth is slightly negative at -3.0%, suggesting potential challenges in cash flow expansion. The free cash flow to net income ratio is healthy at 81.2%.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.12B	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	633.85M	553.95M	553.33M	514.32M	329.12M	1.44B
Net Income	570.17M	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	556.05M	1.19B	878.98M	894.67M	984.35M	834.15M
Total Debt	21.12M	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	307.67M	423.37M	280.07M	149.93M	784.46M	490.12M
Operating Cash Flow	662.88M	521.30M	610.88M	406.03M	967.83M	711.71M
Investing Cash Flow	-472.33M	-470.55M	-607.35M	-335.61M	-613.79M	-106.39M
Financing Cash Flow	-127.16M	-103.92M	-103.31M	-204.18M	-505.78M	-91.39M

CD Projekt SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 240.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PL:CDR, the sentiment is Negative. The current price of 240.1 is below the 20-day moving average (MA) of 247.49, below the 50-day MA of 247.04, and below the 200-day MA of 247.35, indicating a bearish trend. The MACD of -0.94 indicates Positive momentum. The RSI at 45.12 is Neutral, neither overbought nor oversold. The STOCH value of 23.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PL:CDR.

CD Projekt SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEN	76 Outperform	zł552.40M	6.93	36.49%	18.06%	-10.29%	28.76%
CDR	66 Neutral	zł23.99B	42.06	19.54%	0.42%	-24.57%	-19.36%
11B	63 Neutral	zł342.03M	-18.31	-6.95%	―	186.70%	―
BLO	63 Neutral	zł477.80M	9.45	35.96%	―	―	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CIG	51 Neutral	zł480.88M	-62.38	-4.82%	―	-77.36%	-99.33%