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

• Market Cap: kr11.91B
• Dividend Yield: N/A
• Average Volume (3M): 210.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• 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): 2.37
• Shares Outstanding: 121,622,440
• 10 Day Avg. Volume: 197,346
• 30 Day Avg. Volume: 210,355
• 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: kr125.50
• Price Target Upside: 24.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 55 Neutral
• Price Target: kr108.00 ▲(6.82% Upside)

Modern Times Group AB exhibits strong revenue growth and operational efficiency, which are significant positives. However, the company's profitability issues, reflected in negative net income and ROE, are major concerns. The technical analysis indicates weak market momentum, and valuation metrics are unfavorable due to a negative P/E ratio and lack of dividend yield, resulting in a moderate overall score.

Modern Times Group AB Business Overview & Revenue Model

Company Description

Modern Times Group MTG AB (publ), through its subsidiaries, operates as a digital entertainment company in the United States, the United Kingdom, Germany, rest of Europe, Singapore, India, New Zealand, and internationally. It operates through Esport and Gaming segments. The Esport segment operates national and international tournaments, as well as grassroots amateur cups, leagues, and festivals; and engages in the gaming technology, event management, advertising, and TV production business. This segment offers its products under the ESL and Dreamhack brands. The Gaming segment develops and publishes mobile and online games under the InnoGames and Kongregate names. The company was founded in 1987 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Modern Times Group AB generates revenue through a diversified model that includes the sale of mobile and online games, in-game purchases, and advertising. The company also earns income from organizing and broadcasting esports events, which attract sponsorship and media rights deals. Additionally, MTG forms strategic partnerships with other companies to enhance its product offerings and expand its market reach, further contributing to its revenue streams.

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	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: Negative
• Last Price: 101.10
• 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 SE:MTG.B, the sentiment is Negative. The current price of 101.1 is below the 20-day moving average (MA) of 107.11, below the 50-day MA of 110.47, and below the 200-day MA of 104.88, indicating a bearish trend. The MACD of -3.86 indicates Positive momentum. The RSI at 36.18 is Neutral, neither overbought nor oversold. The STOCH value of 25.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Sector *	61 Neutral	₹132.29B	23.84	9.75%	1.22%	12.34%	1.43%
MTG.B	55 Neutral	kr11.91B	―	-0.52%	―	44.55%	-8.92%
STBEF	―	$32.65M	―	-28.05%	―	―	―
4UJ	―	€3.15M	―	-25.37%	―	―	―
5WF	―	€18.40M	―	-253.32%	―	―	―
MHK	―	€29.97M	39.33	>-0.01%	7.00%	―	―
5ZD0	―	€6.92M	―	-60.20%	―	―	―