Nitro Games Plc (NITRO) AI Stock Analysis

• Market Cap: kr33.90M
• Dividend Yield: N/A
• Average Volume (3M): 27.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.37
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: kr1.50 ▲(20.00% Upside)

The score is primarily constrained by weak cash flow quality (minimal free cash flow) and elevated leverage from a sharp increase in debt, despite improved revenue growth and a return to profitability. Technicals also weigh on the score as the stock trades below major moving averages, while valuation support is limited given the negative P/E and no dividend yield data.

Positive Factors

Strong Revenue Expansion

Revenue jumped ~209% TTM vs prior year, reflecting a material scale-up. Sustained higher top-line provides a larger base to amortize fixed development and marketing costs, supports product-market fit validation and enables longer-term investment in new titles.

Return to Operating Profitability

Operating profitability returned with EBIT ~5.5% and EBITDA ~22%, indicating core game economics can be profitable at scale. Durable operating profits improve capacity to fund R&D and live-ops, strengthen cash generation potential and competitive positioning.

Positive ROE and Equity Growth

TTM ROE around 17% and rising equity signal the company is generating returns on invested capital and improving its capital base. This enhances resilience to shocks, helps finance new development internally and reduces reliance on immediate external funding.

Negative Factors

Elevated Leverage from Large Debt Increase

Debt now exceeds equity with a sharp jump to ~32.3m TTM from ~2.9m in 2024, creating meaningful leverage. Higher fixed obligations reduce strategic flexibility, increase interest burden and amplify downside risk if episodic revenue or monetization weakens.

Weak Free Cash Flow and Cash Conversion

Free cash flow is nearly breakeven (~0.13m) with FCF growth down ~-140% and FCF only ~4% of net income. Poor cash conversion limits the firm's ability to fund growth, repay or service debt, and build reserves, increasing reliance on external financing.

Material Margin Compression

Gross margin has compressed sharply (TTM ~35% vs ~72% prior), while net margin remains thin (~4.4%), implying worse mix or higher direct costs as scale shifts. Sustained margin pressure reduces reinvestment capacity and makes profits more sensitive to cost or monetization shifts.

Nitro Games Plc Business Overview & Revenue Model

Company Description

Nitro Games Plc (NITRO) is a mobile game development company based in Finland, specializing in the creation of engaging free-to-play games across various genres, including action, strategy, and simulation. The company focuses on delivering high-quality gaming experiences through innovative gameplay mechanics and appealing graphics. Nitro Games aims to capture a global audience by leveraging its expertise in game design and user engagement.

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	30.73M	11.39M	8.84M	7.25M	2.64M	1.17M
Gross Profit	10.79M	8.26M	4.38M	3.19M	1.51M	1.21M
EBITDA	6.79M	2.41M	-1.72M	-2.80M	―	―
Net Income	1.34M	475.33K	-3.28M	―	―	―
Balance Sheet
Total Assets	65.99M	7.54M	10.67M	7.95M	7.02M	5.98M
Cash, Cash Equivalents and Short-Term Investments	13.70M	2.02M	3.83M	1.60M	3.74M	2.98M
Total Debt	32.34M	2.92M	2.68M	3.69M	1.72M	3.32M
Total Liabilities	41.48M	5.16M	8.98M	7.44M	3.12M	4.48M
Stockholders Equity	24.52M	2.38M	1.69M	507.67K	3.90M	1.49M
Cash Flow
Free Cash Flow	134.30K	-661.30K	-2.70M	-4.12M	-2.93M	-3.24M
Operating Cash Flow	3.06M	538.70K	-537.10K	-2.92M	-2.38M	-1.51M
Investing Cash Flow	-3.52M	-1.20M	-2.11M	-1.20M	-545.50K	-1.73M
Financing Cash Flow	-1.20M	-1.15M	4.88M	1.98M	3.68M	4.54M

Nitro Games Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.25 is below the 20-day moving average (MA) of 1.41, below the 50-day MA of 1.41, and below the 200-day MA of 1.49, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 44.65 is Neutral, neither overbought nor oversold. The STOCH value of 15.93 is Positive, 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%
NITRO	45 Neutral	kr33.90M	-18.60	―	―	-18.60%	-118.88%
FRAG	45 Neutral	kr70.43M	-0.52	-229.41%	―	-10.21%	-1.15%
QIIWI	42 Neutral	kr18.96M	-3.06	-31.43%	―	-34.32%	70.25%
THUNDR	42 Neutral	kr117.47M	-0.03	―	―	-81.92%	26.19%
GCOR	41 Neutral	€167.26M	-3.67	―	―	32.83%	13.34%