Playtika Holding (PLTK) AI Stock Analysis

• Market Cap: $1.59B
• Dividend Yield: 9.46%
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.95
• Revenue Growth: 7.49%
• EPS Growth: -60.32%
• Country: US
• Employees: 3,500
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.11
• Shares Outstanding: 376,055,820
• 10 Day Avg. Volume: 966,124
• 30 Day Avg. Volume: 1,378,836
• PEG Ratio: -0.51
• Price to Book (P/B): -19.68
• Price to Sales (P/S): 1.01
• P/FCF Ratio: 5.74
• Enterprise Value/Market Cap: 2.09
• Enterprise Value/Revenue: 1.22
• Enterprise Value/Gross Profit: 1.68
• Enterprise Value/Ebitda: 6.19
• 1Y Price Target: $7.25
• Price Target Upside: 71.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.42
• Revenue Forecast (FY): $2.74B

• Rating: 66 Neutral
• Price Target: $4.50 ▲(6.38% Upside)

Playtika's overall stock score reflects a combination of strong technical momentum and positive earnings call sentiment, tempered by financial performance concerns. The company's strategic shift towards direct-to-consumer revenue is promising, but high leverage and declining profitability pose risks. The recent executive appointment adds a positive note to the company's future outlook.

Positive Factors

Direct-to-Consumer Revenue Growth

Strong growth in direct-to-consumer revenue indicates successful strategic shift, enhancing long-term revenue stability and market position.

Disney Solitaire's Growth

The rapid success of Disney Solitaire showcases Playtika's ability to innovate and capture market interest, supporting future growth potential.

New Chief Accounting Officer

The appointment of a seasoned financial leader is likely to enhance financial oversight and operational efficiency, supporting long-term stability.

Negative Factors

High Leverage

High leverage poses a risk to financial stability, potentially limiting future investment and growth opportunities due to increased financial strain.

Declining Net Profit Margins

Declining net profit margins indicate pressure on profitability, which could affect long-term financial health and shareholder returns.

Increased Operating Expenses

Rising operating expenses can erode profit margins and reduce financial flexibility, challenging the company's ability to sustain growth.

Playtika Holding Business Overview & Revenue Model

Company Description

Playtika Holding Corp. is a leading mobile gaming company known for its innovative social casino games. Founded in 2010 and headquartered in Herzliya, Israel, Playtika operates in the digital entertainment sector, primarily focusing on the development and publishing of free-to-play games. Its portfolio includes popular titles such as Slotomania, WSOP: Texas Holdem Poker, and Bingo Blitz, which leverage social interactions and in-game purchases to enhance player engagement and monetization.

How the Company Makes Money

Playtika primarily generates revenue through in-game purchases and microtransactions within its games, allowing players to buy virtual goods and enhancements to improve their gaming experience. The free-to-play model attracts a large user base, with monetization strategies that include selling virtual currency, premium items, and seasonal content. Additionally, Playtika benefits from advertising revenue through in-game ads and partnerships with advertisers looking to reach its extensive player audience. The company also engages in strategic partnerships and collaborations with other gaming and technology companies, which can provide additional revenue streams and enhance its market presence.

Playtika Holding Financial Statement Overview

Summary

Playtika Holding shows mixed financial performance. Revenue growth and strong gross profit margins are positive, but declining net profit margins and operational efficiency are concerns. The balance sheet's high leverage and negative equity highlight financial risks. Cash flow remains relatively strong, but declining free cash flow growth could impact future liquidity.

Income Statement

Playtika Holding's income statement reveals moderate performance. The TTM (Trailing-Twelve-Months) shows a slight revenue growth of 2.01%, but net profit margins have decreased to 3.23% from 6.36% in the previous year, indicating pressure on profitability. Gross profit margins remain strong at 72.31%, suggesting efficient cost management. However, declining EBIT and EBITDA margins indicate challenges in maintaining operational efficiency.

Balance Sheet

The balance sheet presents significant concerns due to negative stockholders' equity, resulting in an unfavorable debt-to-equity ratio of -28.76 in the TTM. This high leverage poses a risk to financial stability. Return on equity is negative, reflecting losses attributable to shareholders. The equity ratio is also negative, indicating that liabilities exceed assets, which is a critical risk factor.

Cash Flow

Cash flow analysis shows a mixed picture. Operating cash flow remains strong, with a coverage ratio of 0.71, but free cash flow has declined by 10.60% in the TTM. The free cash flow to net income ratio is healthy at 0.91, indicating good cash conversion. However, the decline in free cash flow growth suggests potential challenges in sustaining cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.73B	2.55B	2.57B	2.62B	2.58B	2.37B
Gross Profit	1.98B	1.86B	1.85B	1.88B	1.85B	1.66B
EBITDA	537.70M	601.40M	704.30M	640.30M	703.10M	511.90M
Net Income	86.20M	162.20M	235.00M	275.30M	308.50M	92.10M
Balance Sheet
Total Assets	3.69B	3.64B	3.17B	2.70B	2.80B	1.78B
Cash, Cash Equivalents and Short-Term Investments	640.80M	565.80M	1.03B	768.70M	1.12B	520.10M
Total Debt	2.54B	2.50B	2.52B	2.53B	2.53B	2.40B
Total Liabilities	3.76B	3.77B	3.40B	3.27B	3.18B	3.02B
Stockholders Equity	-74.80M	-131.10M	-221.50M	-568.60M	-377.70M	-1.24B
Cash Flow
Free Cash Flow	384.70M	449.20M	483.00M	383.70M	452.10M	419.60M
Operating Cash Flow	434.90M	490.10M	515.60M	493.70M	551.70M	517.70M
Investing Cash Flow	-772.40M	-782.10M	-240.20M	-74.60M	-609.40M	-98.10M
Financing Cash Flow	-216.20M	-167.10M	-18.20M	-652.00M	559.70M	-181.30M

Playtika Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLTK, the sentiment is Positive. The current price of 4.23 is above the 20-day moving average (MA) of 4.08, above the 50-day MA of 3.88, and above the 200-day MA of 4.23, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 58.23 is Neutral, neither overbought nor oversold. The STOCH value of 67.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PLTK.

Playtika Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DDI	80 Outperform	$448.46M	3.93	12.55%	―	1.21%	0.72%
PLTK	66 Neutral	$1.59B	18.30	―	9.46%	7.49%	-60.32%
GDEV	63 Neutral	$301.68M	7.76	―	19.89%	―	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GMGI	56 Neutral	$120.05M	-21.09	-4.94%	―	53.06%	-196.63%
SKLZ	46 Neutral	$85.51M	-1.17	-48.34%	―	-8.99%	-117.83%
MYPS	46 Neutral	$89.08M	-2.36	-14.82%	―	-17.17%	-51.88%

Playtika Holding Corporate Events

Playtika Extends Credit Facility Maturity to 2027

On April 23, 2025, Playtika Holding Corp. entered into a Fourth Amendment to its Credit Agreement, extending the maturity of its $550 million revolving credit facility from March 11, 2026, to September 11, 2027, subject to certain conditions. The amendment’s effectiveness is contingent upon registration with China’s National Development and Reform Commission, which was withdrawn by the controlling shareholder, potentially affecting the credit facility’s extension.

Playtika Appoints New Chief Accounting Officer

On October 8, 2025, Playtika Holding Corp. announced the appointment of Erez Hershkovitz as the Vice President and Chief Accounting Officer. Hershkovitz brings extensive experience from his previous roles as CFO at Au10tix Ltd and Voyager Labs Ltd, and various finance roles at Check Point Software Technologies Ltd. This strategic appointment is expected to strengthen Playtika’s financial leadership, with Hershkovitz’s background in accounting and finance likely to enhance the company’s operational efficiency and industry positioning.