Nitro Games Plc (NITRO) AI Stock Analysis

• Market Cap: kr34.60M
• Dividend Yield: N/A
• Average Volume (3M): 27.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.27
• 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: 46 Neutral
• Price Target: kr1.50 ▲(20.00% Upside)

Nitro Games Plc's overall stock score is primarily influenced by its financial challenges, including declining revenues and profitability issues, which are significant risks. Technical analysis indicates neutral to slightly bearish momentum, while valuation metrics highlight concerns due to negative profitability. The absence of earnings call insights and corporate events limits additional context.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin suggests that Nitro Games efficiently manages production costs, which can support long-term profitability if revenue growth stabilizes.

Innovative Game Design

Innovative game design can attract and retain users, enhancing Nitro Games' competitive position and supporting revenue growth over time.

Diverse Revenue Streams

Diverse revenue streams reduce dependency on a single source, providing stability and potential for growth as the company capitalizes on its active user base.

Negative Factors

Declining Revenue

Declining revenue growth can hinder Nitro Games' ability to invest in new projects and maintain competitive positioning, impacting long-term sustainability.

High Debt Levels

High debt levels can strain Nitro Games' cash flow and limit its financial flexibility, posing risks to long-term operational stability and growth.

Negative Free Cash Flow Growth

Negative free cash flow growth indicates challenges in generating cash from operations, which can affect Nitro Games' ability to fund new initiatives and manage debt.

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: Neutral
• Last Price: 1.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:NITRO, the sentiment is Neutral. The current price of 1.25 is below the 20-day moving average (MA) of 1.33, below the 50-day MA of 1.40, and below the 200-day MA of 1.50, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 53.62 is Neutral, neither overbought nor oversold. The STOCH value of 81.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	46 Neutral	kr34.60M	-20.22	―	―	-18.60%	-118.88%
GCOR	41 Neutral	kr174.53M	-3.77	―	―	32.83%	13.34%
FRAG	41 Neutral	kr47.82M	-0.35	-229.41%	―	-10.21%	-1.15%
THUNDR	40 Underperform	kr77.49M	-0.02	―	―	-81.92%	26.19%
QIIWI	39 Underperform	kr21.83M	-3.52	-31.43%	―	-34.32%	70.25%