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

• Market Cap: kr12.24B
• Dividend Yield: N/A
• Average Volume (3M): 175.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• 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: 116,723,140
• 10 Day Avg. Volume: 196,365
• 30 Day Avg. Volume: 175,718
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 15.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 56 Neutral
• Price Target: kr108.00 ▼(-0.64% Downside)

Modern Times Group AB's overall stock score is primarily influenced by its strong revenue growth and operational efficiency, despite challenges in profitability and cash flow alignment. The technical analysis indicates a bearish trend, and the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively result in a moderate overall stock 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

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 shows strong revenue growth and operational efficiency but struggles 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: Positive
• Last Price: 108.70
• 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 108.7 is above the 20-day moving average (MA) of 103.55, above the 50-day MA of 101.48, and above the 200-day MA of 108.09, indicating a bullish trend. The MACD of 1.49 indicates Negative momentum. The RSI at 65.28 is Neutral, neither overbought nor oversold. The STOCH value of 61.62 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
PDX	70 Outperform	18.27B	27.44	25.44%	2.91%	-16.72%	106.55%
EMBRAC.B	70 Outperform	22.84B	2.95	25.28%	―	-37.87%	―
G5EN	66 Neutral	738.27M	9.26	16.45%	9.35%	-15.26%	-22.70%
MTG.B	56 Neutral	kr12.24B	―	-0.52%	―	44.55%	-8.92%
EG7	55 Neutral	1.22B	-5.50	-6.42%	―	5.10%	-623.00%
SF	50 Neutral	3.39B	-0.45	-110.44%	―	-9.57%	-6078.38%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%