Modern Times Group AB (MTG.B) AI Stock Analysis

• Market Cap: kr14.25B
• Dividend Yield: N/A
• Average Volume (3M): 258.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: 44.55%
• EPS Growth: -8.92%
• Country: SE
• Employees: 1,054
• Sector: Services
• Sector Strength: N/A
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 2.46
• Shares Outstanding: 116,723,140
• 10 Day Avg. Volume: 324,122
• 30 Day Avg. Volume: 258,357
• PEG Ratio: 0.24
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 1.90
• P/FCF Ratio: 9.21
• 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: kr143.00
• Price Target Upside: 16.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: kr131.00 ▲(6.68% Upside)

The overall stock score is primarily influenced by strong technical momentum, despite overbought signals, and solid revenue growth. However, the negative P/E ratio and lack of profitability significantly weigh down the score. The absence of earnings call and corporate events data means these factors do not influence the score.

Modern Times Group AB Business Overview & Revenue Model

Company Description

Modern Times Group AB (MTG.B) is a leading global entertainment group based in Sweden, specializing in digital entertainment and gaming. The company operates in various sectors, including esports, online gaming, and digital video content, with a focus on engaging audiences through innovative and interactive experiences. MTG's core products and services encompass esports tournaments, gaming platforms, and content production for streaming services, contributing to its reputation as a significant player in the entertainment and media landscape.

How the Company Makes Money

MTG generates revenue through multiple streams, primarily from its esports and gaming divisions. Key revenue streams include tournament sponsorships, advertising, and broadcasting rights associated with its esports events, as well as in-game purchases and subscriptions from its online gaming platforms. Additionally, MTG earns income from content production and distribution, leveraging partnerships with streaming services and platforms to monetize its media content. Significant collaborations with brands and advertisers also enhance its revenue potential, allowing MTG to capitalize on the growing demand for digital entertainment and gaming experiences.

Modern Times Group AB Financial Statement Overview

Summary

Modern Times Group AB demonstrates strong revenue growth and operational efficiency, but faces challenges with profitability and cash flow alignment. The balance sheet is stable with moderate leverage, yet the negative return on equity and net income highlight areas for improvement.

Income Statement

Modern Times Group AB has shown strong revenue growth with a 20.69% increase in TTM, indicating a positive trajectory. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -0.74% in TTM. The gross profit margin remains healthy at 71.23%, and the EBIT margin has improved to 10.36%, suggesting operational efficiency. Despite these strengths, the negative net income is a concern.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.38 in TTM, indicating manageable leverage. However, the return on equity is negative at -0.50%, reflecting challenges in generating returns for shareholders. The equity ratio is not explicitly calculated, but the company's equity position appears stable given the total assets and stockholders' equity figures.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth at -2.34% in TTM, which is a concern. The operating cash flow to net income ratio is 0.28, indicating that cash flow generation is not fully aligned with net income. The free cash flow to net income ratio is high at 92.17%, suggesting strong cash conversion despite negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.60B	6.01B	5.83B	5.54B	5.31B	4.00B
Gross Profit	6.13B	4.46B	4.25B	4.01B	2.58B	2.22B
EBITDA	1.17B	760.00M	1.43B	1.42B	594.00M	348.00M
Net Income	-64.00M	-210.00M	164.00M	252.00M	-455.00M	-96.00M
Balance Sheet
Total Assets	21.14B	18.07B	17.50B	18.77B	17.44B	10.80B
Cash, Cash Equivalents and Short-Term Investments	1.23B	3.54B	2.96B	4.73B	943.00M	1.15B
Total Debt	4.40B	753.00M	708.00M	771.00M	2.77B	3.08B
Total Liabilities	9.58B	4.33B	3.79B	4.83B	7.51B	5.58B
Stockholders Equity	11.56B	13.74B	13.71B	13.93B	8.00B	3.84B
Cash Flow
Free Cash Flow	1.08B	1.24B	1.05B	634.00M	54.00M	62.00M
Operating Cash Flow	1.18B	1.34B	1.26B	868.00M	306.00M	270.00M
Investing Cash Flow	-7.25B	-551.00M	-2.35B	-636.00M	-3.37B	-2.47B
Financing Cash Flow	4.32B	-388.00M	-536.00M	-4.97B	2.81B	1.56B

Modern Times Group AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 122.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:MTG.B, the sentiment is Neutral. The current price of 122.8 is below the 20-day moving average (MA) of 124.43, above the 50-day MA of 114.05, and above the 200-day MA of 111.74, indicating a neutral trend. The MACD of 2.91 indicates Positive momentum. The RSI at 53.60 is Neutral, neither overbought nor oversold. The STOCH value of 12.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:MTG.B.

Modern Times Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
G5EN	74 Outperform	$752.18M	9.34	12.65%	8.97%	-14.68%	-29.97%
PDX	71 Outperform	$18.96B	29.73	22.69%	2.87%	-18.54%	71.38%
EG7	64 Neutral	kr1.44B	-6.45	―	―	5.10%	-623.00%
MTG.B	61 Neutral	kr14.25B	-220.60	-0.52%	―	44.55%	-8.92%
EMBRAC.B	59 Neutral	$22.15B	2.82	9.51%	―	-37.87%	―
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SF	51 Neutral	kr3.37B	-0.45	―	―	-11.82%	-7499.16%