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

• Market Cap: kr14.03B
• Dividend Yield: N/A
• Average Volume (3M): 205.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: 19.35%
• EPS Growth: -213.30%
• Country: SE
• Employees: 1,054
• Sector: Communication Services
• Sector Strength: 84
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 2.92
• Shares Outstanding: 121,622,440
• 10 Day Avg. Volume: 218,871
• 30 Day Avg. Volume: 205,030
• PEG Ratio: -0.28
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.44
• 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: 18.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: kr116.00 ▼(-3.57%Downside)

The overall stock score of 58 reflects strong operational efficiency and revenue growth, partially offset by significant profitability challenges. Technical indicators suggest a neutral market sentiment, while valuation metrics are unattractive due to the high negative P/E ratio and lack of dividend yield.

Modern Times Group AB Business Overview & Revenue Model

Company Description

Modern Times Group AB (MTG.B) is a Swedish digital entertainment company primarily engaged in the gaming and esports sectors. The company operates a diverse portfolio of gaming studios and esports brands, providing a wide range of interactive entertainment products and services to a global audience. MTG focuses on developing and publishing online games, as well as organizing and broadcasting esports events, thereby catering to the rapidly growing digital entertainment market.

How the Company Makes Money

Modern Times Group AB generates revenue through several key streams. Primarily, the company earns money from its gaming segment, which includes the sale of in-game items and virtual currencies, subscriptions, and advertisements within its online games. Additionally, MTG's esports division contributes significantly to its revenue through sponsorships, media rights, ticket sales, and merchandise associated with esports events and tournaments. The company also benefits from strategic partnerships and collaborations with other gaming and media companies, enhancing its distribution capabilities and expanding its market reach. MTG's focus on digital platforms allows it to capitalize on the increasing demand for online gaming and esports entertainment.

Modern Times Group AB Financial Statement Overview

Summary

Modern Times Group AB demonstrates strong revenue growth and efficient operations, reflected in healthy gross profit and EBIT margins. However, the company faces profitability challenges, as indicated by negative net income and ROE. The balance sheet is stable with moderate leverage, and cash flow from operations is strong, though the free cash flow growth has slowed. Overall, the company is positioned well in terms of growth and operational efficiency, but improving profitability remains a key focus.

Income Statement

The company has shown a consistent revenue growth trajectory over the years, with a notable increase from the previous periods. The gross profit margin is strong at 72.7% TTM, reflecting efficient cost management. However, the net profit margin is negative at -1.6% TTM, indicating challenges in achieving profitability. The EBIT and EBITDA margins are relatively healthy at 13.3% and 17.3% TTM, respectively, suggesting operational efficiency but also highlighting the impact of non-operating expenses.

Balance Sheet

The balance sheet shows a solid equity base with an equity ratio of 52.4% TTM, indicating strong financial stability. However, the debt-to-equity ratio is 0.45 TTM, which is moderate and suggests leverage is being utilized but not excessively. The return on equity (ROE) is negative, which is concerning as it indicates the company is not generating profit relative to shareholder equity.

Cash Flow

The cash flow situation is favorable with a strong operating cash flow to net income ratio of 10.74 TTM, suggesting good cash generation from operations despite negative net income. The free cash flow to net income ratio is also robust. However, the free cash flow growth rate has declined compared to past periods, which could suggest increased capital expenditures or other cash uses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.13B	6.01B	5.83B	5.54B	5.31B	4.00B
Gross Profit	5.18B	4.46B	4.25B	4.01B	2.58B	2.22B
EBITDA	1.23B	760.00M	1.43B	1.42B	594.00M	348.00M
Net Income	-114.00M	-210.00M	164.00M	252.00M	-455.00M	-96.00M
Balance Sheet
Total Assets	22.76B	18.07B	17.50B	18.77B	17.44B	10.80B
Cash, Cash Equivalents and Short-Term Investments	2.18B	3.54B	2.96B	4.73B	943.00M	1.15B
Total Debt	5.37B	753.00M	708.00M	771.00M	2.77B	3.08B
Total Liabilities	10.83B	4.33B	3.79B	4.83B	7.51B	5.58B
Stockholders Equity	11.93B	13.74B	13.71B	13.93B	8.00B	3.84B
Cash Flow
Free Cash Flow	1.11B	1.24B	1.05B	634.00M	54.00M	62.00M
Operating Cash Flow	1.22B	1.34B	1.26B	868.00M	306.00M	270.00M
Investing Cash Flow	-6.55B	-551.00M	-2.35B	-636.00M	-3.37B	-2.47B
Financing Cash Flow	4.31B	-388.00M	-536.00M	-4.97B	2.81B	1.56B

Modern Times Group AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 120.30
• 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 SE:MTG.B, the sentiment is Positive. The current price of 120.3 is above the 20-day moving average (MA) of 114.57, above the 50-day MA of 112.13, and above the 200-day MA of 102.00, indicating a bullish trend. The MACD of 2.42 indicates Negative momentum. The RSI at 63.26 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
MAGI	69 Neutral	€340.46M	2,141.67	>-0.01%	7.78%	-11.35%	-92.00%
Sector *	61 Neutral	$40.70B	-0.98	-11.97%	3.93%	2.03%	-69.70%
MTG.B	58 Neutral	kr14.03B	―	-0.89%	―	19.35%	-213.30%
FRAG	52 Neutral	€60.78M	―	-60.20%	―	-13.48%	34.61%
STAR.B	43 Neutral	$316.95M	―	-28.05%	―	-70.32%	-184.31%
GCOR	41 Neutral	kr180.35M	―	-253.32%	―	13.74%	21.17%
QIIWI	39 Underperform	€36.63M	―	-25.37%	―	-23.00%	74.94%