Nitro Games Plc (NITRO) AI Stock Analysis

• Market Cap: kr38.38M
• Dividend Yield: N/A
• Average Volume (3M): 61.87K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.50
• Revenue Growth: -11.59%
• EPS Growth: 98.18%
• Country: SE
• Employees: 49
• Sector: Technology
• Sector Strength: 85
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.20
• Shares Outstanding: 24,924,364
• 10 Day Avg. Volume: 25,591
• 30 Day Avg. Volume: 61,872
• 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: kr1.50
• Price Target Upside: 1.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: kr1.50 ▲(1.35% Upside)

Nitro Games Plc's overall stock score is primarily impacted by its financial performance, which is challenged by declining revenues and profitability issues. Technical analysis shows some medium-term stability, but short-term bearish momentum is present. Valuation is a significant concern due to a negative P/E ratio and lack of dividend yield.

Positive Factors

Strong Gross Profit Margins

High gross profit margins suggest effective cost control and pricing strategies, providing a buffer against revenue fluctuations and aiding in long-term financial stability.

Innovative Game Development

The company's focus on innovative game development positions it well in the competitive gaming industry, potentially driving user engagement and long-term growth.

Diverse Revenue Streams

A diverse revenue model, including in-app purchases and partnerships, enhances financial resilience and reduces reliance on a single income source, supporting sustainable growth.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market penetration or product appeal, potentially impacting the company's ability to invest in future growth and innovation.

High Debt Burden

A high debt burden can strain cash flows and limit financial flexibility, posing risks to long-term operational stability and investment capacity.

Negative Free Cash Flow Growth

Negative free cash flow growth highlights difficulties in generating cash, which can hinder the company's ability to fund operations, pay down debt, or invest in new opportunities.

Nitro Games Plc Business Overview & Revenue Model

Company Description

Nitro Games Plc (NITRO) is a mobile game developer based in Finland, specializing in the development and publishing of free-to-play games. The company operates primarily in the entertainment and gaming sectors, focusing on creating engaging and innovative gaming experiences for global audiences. Nitro Games is known for its expertise in developing and launching mobile games that combine strategic gameplay with captivating narratives.

How the Company Makes Money

Nitro Games Plc generates revenue primarily through a free-to-play model, where the games are available to download and play for free, but revenue is earned from in-app purchases and advertising. Players can purchase virtual goods, currency, or premium features within the games to enhance their gaming experience. Additionally, the company may collaborate with other gaming or technology firms through partnerships and licensing agreements, which can provide additional revenue streams. Nitro Games may also generate income from publishing agreements where they partner with other developers to distribute and market games, earning a share of the revenue generated from those games.

Nitro Games Plc Financial Statement Overview

Summary

Nitro Games Plc shows strong revenue growth and improved profitability with a positive net profit margin and efficient cost management. However, high leverage and negative free cash flow present risks that need addressing.

Income Statement

Nitro Games Plc has shown impressive revenue growth over the years, with a notable increase of 28.8% from 2023 to 2024. The company has also improved its profitability, as evidenced by a positive net profit margin of 4.2% in 2024 compared to a significant net loss in 2023. The gross profit margin has increased to 72.5% in 2024, indicating efficient cost management. However, the EBIT margin at 5.7% suggests room for improvement in operational efficiency.

Balance Sheet

The balance sheet of Nitro Games Plc indicates a moderate financial position. The debt-to-equity ratio is relatively high at 1.23 in 2024, reflecting potential leverage risks. The equity ratio of 31.6% shows a fair proportion of equity financing. Return on equity is 19.9%, which is a positive indicator of profitability for shareholders. Despite these strengths, the high level of debt may pose a risk if revenue growth slows.

Cash Flow

Cash flow statements reveal an improving trend, with operating cash flow turning positive in 2024. Free cash flow is still negative, but the free cash flow to net income ratio of -1.39 indicates that the company is moving towards better cash management. The operating cash flow to net income ratio of 1.13 in 2024 suggests efficient cash conversion from profits. Nonetheless, consistent negative free cash flow remains a concern for long-term sustainability.

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: 1.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 1.48 is below the 20-day moving average (MA) of 1.61, below the 50-day MA of 1.52, and below the 200-day MA of 1.86, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 42.18 is Neutral, neither overbought nor oversold. The STOCH value of 26.30 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 *	54 Neutral	$300.49M	3.24	-13.34%	2.78%	5.71%	-76.50%
NITRO	44 Neutral	kr38.38M	6.43		―	-11.59%	98.18%
4UJ	―	€2.34M	―	-27.12%	―	―	―
9RI	―	€605.62K	―	-37.45%	―	―	―
5WF	―	€15.63M	―	-541.56%	―	―	―
5ZD0	―	€10.66M	―	-295.85%	―	―	―
THUNDR	38 Underperform	kr16.02M	―		―	-86.73%	36.81%