Playtika Holding (PLTK) AI Stock Analysis

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Playtika Holding

(NASDAQ:PLTK)

Rating:63Neutral

Price Target:

$5.50

▲( 21.95% Upside)

Playtika's overall stock score reflects a balance of strengths in cash flow management and valuation, with notable risks in financial stability due to high leverage and declining net margins. The recent earnings call provided optimism with record-breaking revenues and promising new launches, despite challenges in certain segments. The technical analysis suggests a cautious outlook with potential for stabilization.

Positive Factors

Acquisitions

Playtika's acquisition of SuperPlay is expected to be highly accretive and contribute to considerable pro forma growth.

New Product Launch

Disney Solitaire is off to a very strong start, which bodes well for the rest of the year.

Revenue Growth

Playtika’s core games and recent acquisitions should drive both revenue and profit growth for the next several years.

Negative Factors

Market Uncertainty

Investors remain uncertain about the ownership base in China and the mobile gaming sector’s challenging return to growth.

Profitability Concerns

Adjusted EBITDA of $167MM (-10% y/y) missed our estimate of $178MM and consensus of $173MM due to higher marketing expense.

Revenue Decline

Social casino revenue was down -14% y/y and -4% q/q, with Slotomania declining -17% y/y and -6% q/q as management indicated that title performance was disappointing, and that softness would likely persist for at least the next few quarters.

Playtika Holding (PLTK) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.69B

Dividend Yield8.87%

Average Volume (3M)1.73M

Price to Earnings (P/E)12.0

Beta (1Y)0.93

Revenue Growth1.64%

EPS Growth-32.31%

CountryUS

Employees3,500

SectorCommunication Services

Sector Strength89

IndustryElectronic Gaming & Multimedia

Share Statistics

EPS (TTM)0.08

Shares Outstanding375,216,670

10 Day Avg. Volume1,692,923

30 Day Avg. Volume1,726,267

Financial Highlights & Ratios

PEG Ratio-0.48

Price to Book (P/B)-14.40

Price to Sales (P/S)0.00

P/FCF Ratio4.80

Enterprise Value/Market Cap2.26

Enterprise Value/Revenue0.38

Enterprise Value/Gross Profit2.06

Enterprise Value/Ebitda1.49

Forecast

1Y Price Target

$8.22

Price Target Upside82.26% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering9

Playtika Holding Business Overview & Revenue Model

Company DescriptionPlaytika Holding Corp. develops mobile games in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company owns a portfolio of casual and casino-themed games. It distributes its games to the end customer through various web and mobile platforms, such as Apple, Facebook, Google, and other web and mobile platforms and its own proprietary platforms. The company was founded in 2010 and is headquartered in Herzliya Pituarch, Israel. Playtika Holding Corp. is a subsidiary of Playtika Holding Uk Ii Limited.

How the Company Makes MoneyPlaytika primarily generates revenue through a freemium model, where games are free to download and play, but offer in-app purchases for virtual items, currency, and other premium features. This model encourages player engagement and monetization through microtransactions. Additionally, the company earns revenue from in-game advertising, which is integrated into its mobile games. Playtika's strategy involves leveraging advanced data analytics to optimize user acquisition, retention, and monetization, ensuring sustained revenue growth. Furthermore, Playtika benefits from strategic partnerships and collaborations with other gaming and technology companies, enhancing its distribution and market reach.

Playtika Holding Financial Statement Overview

Summary

Playtika Holding shows stable revenue and strong cash flow management, but is challenged by declining profit margins and a highly leveraged balance sheet. Strength in cash flow offers resilience, yet negative equity and profit margin pressures suggest a need for strategic financial improvement.

Income Statement

Positive

Playtika Holding has shown stable revenue with slight fluctuations over the years. The gross profit margin remains strong, indicating efficient production. However, the net profit margin has decreased in recent years due to increasing costs affecting net income. The decline in EBIT margins also points to pressure on operational efficiency.

Balance Sheet

Neutral

The company has a negative stockholders' equity, indicating a leveraged position with more liabilities than assets. The debt-to-equity ratio is concerning, highlighting financial risk. Despite this, the company maintains significant cash reserves, which provide some liquidity cushion.

Cash Flow

Positive

Playtika has managed to maintain a steady free cash flow, with recent growth in free cash flow despite operational challenges. The operating cash flow to net income ratio is strong, reflecting efficient cash generation relative to earnings, though the high leverage remains a concern.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
2.55B	2.57B	2.62B	2.58B	2.37B
	Gross Profit
1.86B	1.85B	1.88B	1.85B	1.66B
	EBIT
391.60M	568.00M	309.40M	416.70M	268.00M
	EBITDA
603.00M	703.60M	640.30M	703.10M	511.90M
	Net Income Common Stockholders
162.20M	235.00M	275.30M	308.50M	92.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
565.80M	1.03B	768.70M	1.12B	520.10M
	Total Assets
3.64B	3.17B	2.70B	2.80B	1.78B
	Total Debt
2.50B	2.52B	2.53B	2.53B	2.40B
	Net Debt
1.93B	1.49B	1.76B	1.52B	1.88B
	Total Liabilities
3.77B	3.40B	3.27B	3.18B	3.02B
	Stockholders Equity
-131.10M	-221.50M	-568.60M	-377.70M	-1.24B
Cash Flow		Free Cash Flow
449.20M	436.40M	383.70M	452.10M	419.60M
	Operating Cash Flow
490.10M	515.60M	493.70M	551.70M	517.70M
	Investing Cash Flow
-782.10M	-240.20M	-74.60M	-609.40M	-98.10M
	Financing Cash Flow
-167.10M	-18.20M	-652.00M	559.70M	-181.30M

Playtika Holding Technical Analysis

Technical Analysis Sentiment

Negative

Last Price4.51

Price Trends

50DMA

4.94

Negative

100DMA

5.73

Negative

200DMA

6.58

Negative

Market Momentum

MACD

-0.13

Positive

RSI

35.59

Neutral

STOCH

3.64

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLTK, the sentiment is Negative. The current price of 4.51 is below the 20-day moving average (MA) of 5.06, below the 50-day MA of 4.94, and below the 200-day MA of 6.58, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 35.59 is Neutral, neither overbought nor oversold. The STOCH value of 3.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLTK.

Playtika Holding Risk Analysis

Playtika Holding disclosed 72 risk factors in its most recent earnings report. Playtika Holding reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 3 New Risks

There are uncertainties regarding the amount and timing of repurchases under our stock repurchase program. Q4, 2024

Shifts in the revenue mix between our games may adversely affect our margin profile. Q4, 2024

Legal and regulatory restrictions on the use of incentivized marketing may negatively impact our business or results of operations. Q4, 2024

Playtika Holding Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CURI	66 Neutral	$344.43M	―	-12.13%	1.49%	-4.04%	84.17%
GDEV	66 Neutral	$280.29M	7.21		―	-5.57%	―
PLTK	63 Neutral	$1.69B	12.03	-220.61%	8.87%	1.64%	-32.31%
Sector *	61 Neutral	$14.08B	5.95	-4.18%	3.68%	2.79%	-36.29%
MYPS	58 Neutral	$176.37M	―	-11.64%	―	-11.11%	-90.96%
SKLZ	51 Neutral	$107.92M	―	-21.26%	―	-29.26%	57.78%
DOYU	49 Neutral	$201.29M	―	-6.76%	―	-24.10%	-953.50%

* Communication Services Sector Average

Performance Comparison

PLTK

Playtika Holding

4.51

-3.57

-44.18%

DOYU

DouYu International Holdings

6.67

4.75

247.40%

CURI

CuriosityStream

6.05

5.06

511.11%

SKLZ

Skillz

6.05

>-0.01

-0.17%

GDEV

Nexters

15.46

-3.66

-19.14%

MYPS

PLAYSTUDIOS

1.41

-0.88

-38.43%

Playtika Holding Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: -16.94%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Neutral

Playtika achieved record-breaking revenue in Q1 2025, driven by strong performances in its casual games and successful launches, such as Disney Solitaire. However, challenges persist with declining revenues in the Slotomania franchise and decreased EBITDA margins due to increased marketing expenses. The company is focused on stabilizing its slot games while leveraging its strengths in the D2C business.

Q1-2025 Updates

Positive Updates

Record-Breaking Revenue

Playtika achieved a historic milestone in Q1 2025, generating over $700 million in revenue, marking the highest quarterly revenue in the company's history. This represents an 8.4% year-over-year increase.

Strong Performance of Bingo Blitz

Bingo Blitz achieved an all-time high in total revenues, generating $162.4 million, up 2.1% sequentially and 3.1% year over year. The game benefited from several key initiatives, including the American Idol campaign.

Successful Launch of Disney Solitaire

Disney Solitaire, launched on April 17, 2025, is showing promising results with some of the best launch KPIs seen in years. It's expected to reach the $100 million run rate revenue mark faster than Dice Dreams and Domino Dreams.

Growth in Direct-to-Consumer (D2C) Business

The D2C business achieved record revenues of $179.2 million, up 2.6% sequentially and 4.5% year over year, driven by Bingo Blitz, June's Journey, and Solitaire Grand Harvest.

Dice Dreams Revenue Surge

Dice Dreams was among the top three games by revenue with $78.6 million, up 124.5% sequentially, reflecting successful integration and strong execution.

Negative Updates

Slotomania Revenue Decline

Slotomania's revenue was $111.8 million, down 5.5% sequentially and 17.4% year-over-year, due to several quarters of sequential decline and resurfacing game economy issues.

Decreased EBITDA Margins

Credit-adjusted EBITDA was $167.3 million, down 9% sequentially and 9.9% year-over-year, impacted by increased marketing expenses and losses from the SuperPlay acquisition.

GAAP Net Income Decrease

GAAP net income was $30.6 million, down 42.3% year-over-year, reflecting challenges in the slot games and increased operating expenses.

Company Guidance

During the Playtika Q1 2025 earnings call, the company reported a historic milestone, generating over $700 million in revenue for the quarter, marking the highest quarterly revenue in its history. Despite this achievement, the company faced challenges with its Slotomania title, which saw a decline in revenue, down 5.5% sequentially and 17.4% year-over-year, with expectations of continued decline before improvements are realized. Conversely, Bingo Blitz achieved record-breaking revenue of $162.4 million, a 2.1% sequential and 3.1% year-over-year increase. The newly launched Disney Solitaire is showing promising early metrics and is projected to reach $100 million in run rate revenue faster than other titles. Playtika's direct-to-consumer (D2C) business also achieved record revenues of $179.2 million, with a 2.6% sequential and 4.5% year-over-year increase, driven by strong performances from Bingo Blitz, June's Journey, and Solitaire Grand Harvest. The company maintains its guidance for the year, aiming to offset slot title declines with growth in casual titles, and plans to strategically manage marketing expenses as they decline sequentially throughout the year.

Playtika Holding Corporate Events

Executive/Board Changes

Playtika Holding’s Chief Accounting Officer Announces Retirement

Neutral

Apr 21, 2025

On April 17, 2025, Troy Vanke, Chief Accounting Officer of Playtika Holding Corp., announced his intention to retire and resign from his position, effective June 30, 2025.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.