Nitro Games Plc (NITRO) AI Stock Analysis

• Market Cap: kr35.99M
• Dividend Yield: N/A
• Average Volume (3M): 27.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• Revenue Growth: -18.60%
• EPS Growth: -118.88%
• Country: SE
• Employees: 49
• Sector: Technology
• Sector Strength: 88
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.07
• Shares Outstanding: 24,924,364
• 10 Day Avg. Volume: 20,491
• 30 Day Avg. Volume: 27,064
• PEG Ratio: -0.09
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 0.43
• P/FCF Ratio: -7.40
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: kr1.50 ▲(7.91% Upside)

Nitro Games Plc's overall stock score is primarily impacted by its financial performance, which is challenged by declining revenues, high debt, and negative cash flow growth. Technical analysis suggests bearish momentum, and the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively result in a low overall stock score.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates efficient cost management, which can support long-term profitability as the company scales its operations.

Innovative Game Development

Nitro Games' focus on innovative game mechanics positions it well to capture and retain a global audience, driving user engagement and revenue growth.

Diverse Revenue Streams

Diversified revenue streams from in-app purchases, ads, and partnerships reduce reliance on a single income source, enhancing financial stability.

Negative Factors

High Debt Burden

A high debt burden can strain financial resources and limit flexibility, posing risks to long-term financial health and investment capacity.

Declining Revenue

Declining revenue growth suggests challenges in market expansion and product adoption, potentially impacting future profitability and market position.

Negative Free Cash Flow Growth

Negative free cash flow growth indicates difficulties in generating cash, which can hinder reinvestment in business growth and operational improvements.

Nitro Games Plc Business Overview & Revenue Model

Company Description

Nitro Games Oyj develops and publishes games for mobiles worldwide. It also provides development services to third parties in the form of contracting work. The company was incorporated in 2007 and is headquartered in Kotka, Finland.

How the Company Makes Money

Nitro Games generates revenue primarily through in-app purchases within its mobile games, allowing players to buy virtual goods, upgrades, and additional content. The company also earns money through advertising partnerships, implementing ads within its games to monetize user engagement. Additionally, Nitro Games may enter into strategic partnerships with other gaming companies or platforms to enhance distribution and marketing efforts, further contributing to its revenue streams. The combination of these monetization strategies enables Nitro Games to capitalize on its active user base and maximize earnings from its portfolio of games.

Nitro Games Plc Financial Statement Overview

Summary

Nitro Games Plc is facing financial challenges with declining revenues and profitability issues. The company has a high debt burden, posing financial risks. Cash flow management is a concern, with negative free cash flow growth. Despite strong gross profit margins, improvements in profitability and cash flow generation are needed.

Income Statement

Nitro Games Plc has shown a decline in revenue with a negative growth rate of -10.97% in the TTM period. The gross profit margin remains strong at 73.50%, indicating efficient cost management. However, the net profit margin is negative at -0.61%, reflecting challenges in achieving profitability. The EBIT and EBITDA margins are low at 0.81% and 16.41%, respectively, suggesting limited operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is high at 1.43, indicating significant leverage and potential financial risk. Return on equity is negative at -2.61%, showing that the company is not generating positive returns for shareholders. The equity ratio is moderate, reflecting a balanced asset structure but with room for improvement in equity financing.

Cash Flow

Nitro Games Plc faces challenges in cash flow management, with a negative free cash flow growth rate of -29.08% in the TTM period. The operating cash flow to net income ratio is 0.56, indicating some ability to convert earnings into cash. However, the free cash flow to net income ratio is negative, highlighting difficulties in generating free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.93M	11.39M	8.84M	7.25M	2.64M	1.17M
Gross Profit	7.30M	8.26M	4.38M	3.19M	1.51M	1.21M
EBITDA	1.63M	2.41M	-1.72M	-2.80M	―	―
Net Income	-60.90K	475.33K	-3.28M	―	―	―
Balance Sheet
Total Assets	6.03M	7.54M	10.67M	7.95M	7.02M	5.98M
Cash, Cash Equivalents and Short-Term Investments	1.30M	2.02M	3.83M	1.60M	3.74M	2.98M
Total Debt	2.92M	2.92M	2.68M	3.69M	1.72M	3.32M
Total Liabilities	3.98M	5.16M	8.98M	7.44M	3.12M	4.48M
Stockholders Equity	2.05M	2.38M	1.69M	507.67K	3.90M	1.49M
Cash Flow
Free Cash Flow	-338.00K	-661.30K	-2.70M	-4.12M	-2.93M	-3.24M
Operating Cash Flow	845.10K	538.70K	-537.10K	-2.92M	-2.38M	-1.51M
Investing Cash Flow	-1.19M	-1.20M	-2.11M	-1.20M	-545.50K	-1.73M
Financing Cash Flow	-1.41M	-1.15M	4.88M	1.98M	3.68M	4.54M

Nitro Games Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:NITRO, the sentiment is Negative. The current price of 1.39 is below the 20-day moving average (MA) of 1.39, below the 50-day MA of 1.44, and below the 200-day MA of 1.57, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 42.67 is Neutral, neither overbought nor oversold. The STOCH value of 62.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:NITRO.

Nitro Games Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SOZAP	51 Neutral	€5.56M	-0.55	―	―	-22.05%	51.46%
NITRO	41 Neutral	kr35.99M	-19.75	―	―	-18.60%	-118.88%
GCOR	41 Neutral	€148.35M	―	―	―	32.83%	13.34%
FRAG	41 Neutral	€69.14M	-0.47	-229.41%	―	-10.21%	-1.15%
THUNDR	40 Underperform	kr86.06M	―	―	―	-81.92%	26.19%
QIIWI	39 Underperform	€29.32M	-5.15	-31.43%	―	-34.32%	70.25%