Playgon Games (DEAL) AI Stock Analysis

• Market Cap: C$4.06M
• Dividend Yield: N/A
• Average Volume (3M): 48.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: -36.96%
• EPS Growth: 8.70%
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 89
• Industry: Software - Application
• EPS (TTM): -0.06
• Shares Outstanding: 406,255,920
• 10 Day Avg. Volume: 81,824
• 30 Day Avg. Volume: 48,344
• PEG Ratio: 0.22
• Price to Book (P/B): -7.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.58
• 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

• Rating: 28 Underperform
• Price Target: ―

Playgon Games faces significant financial challenges with declining revenues and negative profitability, leading to a low financial performance score. While technical analysis shows some positive momentum, the valuation metrics reflect the company's unprofitability, further lowering the overall stock score.

Playgon Games Business Overview & Revenue Model

Company Description

Playgon Games Inc. (DEAL) is a technology company that specializes in developing and licensing digital content for the iGaming industry. The company offers innovative live dealer casino games and a mobile-first eTable game experience, catering to online casinos, sportsbook operators, and land-based operators worldwide. Its core products include a suite of live dealer casino games such as blackjack, roulette, and baccarat, as well as proprietary eTable games designed to enhance user engagement and gaming experience.

How the Company Makes Money

Playgon Games generates revenue primarily through licensing agreements with online and land-based gaming operators. These agreements typically involve the integration of Playgon's live dealer and eTable games into the operators' platforms, where Playgon earns a percentage of the gross gaming revenue generated from these games. Additionally, the company may charge setup fees or fixed monthly fees for its technology and services. Significant partnerships with established gaming operators and continual innovation in game offerings are crucial factors contributing to Playgon's earnings.

Playgon Games Financial Statement Overview

Summary

Overall, Playgon Games is experiencing significant financial instability with declining revenues, poor profitability, and high leverage. The company faces liquidity challenges with persistent negative cash flows, raising concerns about its financial sustainability.

Income Statement

Playgon Games shows a declining revenue trend with a significant decrease in gross profit margin. The net profit margin is negative, indicating consistent losses. There is also a substantial decline in EBIT and EBITDA margins, reflecting poor operational efficiency and profitability.

Balance Sheet

The company has a highly negative stockholders' equity, indicating financial distress. The debt-to-equity ratio cannot be calculated due to negative equity, showing high leverage risk. The equity ratio is negative, reflecting a lack of asset coverage by equity.

Cash Flow

Negative free cash flow growth highlights liquidity challenges. Operating cash flow to net income ratio is negative, indicating cash outflows exceed net losses. Although financing inflows exist, they are not sufficient to cover operational deficiencies.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	896.45K	1.47M	957.75K	159.71K	0.00	50.79K
Gross Profit	-1.99M	-1.53M	-8.21M	-6.64M	-1.60M	-362.16K
EBITDA	-12.03M	-12.21M	-13.23M	-11.56M	-4.66M	-2.25M
Net Income	-17.80M	-16.51M	-16.82M	-14.84M	-6.52M	-2.26M
Balance Sheet
Total Assets	3.23M	5.51M	8.21M	17.08M	13.68M	253.38K
Cash, Cash Equivalents and Short-Term Investments	66.73K	208.45K	206.78K	5.93M	781.46K	90.29K
Total Debt	24.76M	16.00M	6.93M	1.34M	2.11M	300.00K
Total Liabilities	30.84M	20.87M	10.63M	3.29M	4.62M	1.44M
Stockholders Equity	-27.61M	-15.36M	-2.42M	13.79M	9.06M	-1.19M
Cash Flow
Free Cash Flow	-11.06M	-11.48M	-11.22M	-11.69M	-5.04M	-1.73M
Operating Cash Flow	-11.05M	-11.36M	-11.19M	-11.21M	-3.82M	-1.73M
Investing Cash Flow	-4.30K	-126.26K	-29.63K	-480.56K	-1.19M	0.00
Financing Cash Flow	11.11M	11.50M	5.52M	16.86M	5.56M	1.55M

Playgon Games Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 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 TSE:DEAL, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.01, below the 50-day MA of 0.01, and below the 200-day MA of 0.02, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.43 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DEAL.

Playgon Games Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCR	77 Outperform	C$6.51B	9.25	12.43%	3.95%	796.07%	-35.52%
Sector *	69 Neutral	¥228.21B	14.44	7.64%	2.70%	9.09%	8.37%
BRAG	68 Neutral	C$144.14M	―	-8.37%	―	12.10%	-8.43%
EGLX	47 Neutral	$7.96M	―	-105.94%	―	-61.29%	12.95%
DEAL	28 Underperform	C$4.06M	―		―	-36.96%	8.70%

Playgon Games Corporate Events

Playgon Games Announces New Studio and Platform Enhancements

Playgon Games Inc. has announced a corporate update involving the resumption of live dealer operations with a new studio location, following a thorough evaluation of potential sites in various global regions. The company has also utilized the operational downtime to implement significant platform enhancements, such as improved scalability and a refreshed mobile user experience, aiming to deliver an elevated experience for players and operators once operations resume.