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: 72.20%
• EPS Growth: -166.05%
• Country: SE
• Employees: 1,054
• Sector: Services
• Sector Strength: N/A
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 3.00
• 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: 26.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: kr120.00 ▲(6.19% Upside)

Modern Times Group AB's stock score is primarily influenced by its robust revenue growth, which is overshadowed by significant profitability challenges. The technical indicators suggest bearish momentum, and the valuation metrics highlight concerns due to the negative P/E ratio and lack of dividend yield. The absence of earnings call data and corporate events means these factors did not impact the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market expansion and product adoption, supporting long-term business sustainability.

Cash Flow Generation

High free cash flow generation despite net losses suggests robust cash management, providing financial flexibility for future investments.

Balance Sheet Health

A conservative leverage position with a low debt-to-equity ratio enhances financial stability and reduces risk in economic downturns.

Negative Factors

Profitability Challenges

Ongoing profitability issues with negative net margins can hinder reinvestment and growth opportunities, impacting long-term viability.

Decline in Free Cash Flow Growth

A significant decline in free cash flow growth may limit the company's ability to fund new projects and manage debt, affecting future growth.

Negative Return on Equity

Negative ROE indicates inefficiency in generating returns on shareholders' equity, which can deter investment and affect stock performance.

Modern Times Group AB Business Overview & Revenue Model

Company Description

Modern Times Group AB (MTG.B) is a Swedish digital entertainment company that focuses on gaming and eSports, as well as the broadcasting of television and radio content. The company operates primarily through its subsidiaries and is known for its innovative approach in the media sector, with a portfolio that includes online gaming platforms, streaming services, and production of entertainment content. MTG's key business segments include the gaming division, which encompasses both mobile and PC games, and the entertainment division, which focuses on creating and distributing content across various media channels.

How the Company Makes Money

MTG generates revenue through multiple streams, primarily from its gaming and eSports operations, which include in-game purchases, subscriptions, and game sales. The company earns significant income from its digital gaming platforms and partnerships with other gaming companies. Additionally, MTG's entertainment division contributes to its revenues through advertising sales, licensing agreements, and distribution of television and radio programming. Key partnerships with other media companies and platforms also enhance MTG's reach and monetization opportunities, positioning it favorably within the competitive entertainment landscape.

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	10.15B	6.01B	5.83B	5.54B	5.31B	4.00B
Gross Profit	6.79B	4.46B	4.25B	4.01B	2.58B	2.22B
EBITDA	1.05B	760.00M	1.43B	1.42B	594.00M	348.00M
Net Income	-199.00M	-210.00M	164.00M	252.00M	-455.00M	-96.00M
Balance Sheet
Total Assets	20.21B	18.07B	17.50B	18.77B	17.44B	10.80B
Cash, Cash Equivalents and Short-Term Investments	1.22B	3.54B	2.96B	4.73B	943.00M	1.15B
Total Debt	6.85B	753.00M	708.00M	771.00M	2.77B	3.08B
Total Liabilities	8.99B	4.33B	3.79B	4.83B	7.51B	5.58B
Stockholders Equity	11.21B	13.74B	13.71B	13.93B	8.00B	3.84B
Cash Flow
Free Cash Flow	1.02B	1.24B	1.05B	634.00M	54.00M	62.00M
Operating Cash Flow	1.21B	1.34B	1.26B	868.00M	306.00M	270.00M
Investing Cash Flow	-7.48B	-551.00M	-2.35B	-636.00M	-3.37B	-2.47B
Financing Cash Flow	4.35B	-388.00M	-536.00M	-4.97B	2.81B	1.56B

Modern Times Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 113.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 113 is below the 20-day moving average (MA) of 118.12, below the 50-day MA of 119.27, and above the 200-day MA of 112.31, indicating a neutral trend. The MACD of -1.05 indicates Positive momentum. The RSI at 36.91 is Neutral, neither overbought nor oversold. The STOCH value of 36.21 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
G5EN	74 Outperform	$752.18M	9.34	12.65%	9.55%	-14.68%	-29.97%
PDX	67 Neutral	$18.96B	29.73	22.69%	2.83%	-18.54%	71.38%
EMBRAC.B	62 Neutral	$22.15B	2.82	10.27%	―	-46.66%	―
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
MTG.B	55 Neutral	kr14.25B	-220.60	-1.61%	―	72.20%	-166.05%
SF	52 Neutral	kr3.37B	-0.45	―	―	-11.82%	-7499.16%
EG7	49 Neutral	kr1.44B	-6.45	―	―	1.74%	-5214.06%