Playgon Games (DEAL) AI Stock Analysis

• Market Cap: C$4.72M
• Dividend Yield: N/A
• Average Volume (3M): 19.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.05
• Revenue Growth: -81.78%
• EPS Growth: 33.87%
• Country: CA
• Employees: N/A
• Sector: Services
• Sector Strength: N/A
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 471,908,420
• 10 Day Avg. Volume: 23,110
• 30 Day Avg. Volume: 19,017
• PEG Ratio: 0.02
• Price to Book (P/B): -0.10
• Price to Sales (P/S): 5.18
• P/FCF Ratio: -0.35
• 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: 41 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, which is the most significant factor. The technical analysis provides some neutral signals, but the valuation remains unattractive due to negative earnings and no dividend yield. The absence of earnings call data and corporate events means these factors do not influence the score.

Playgon Games Business Overview & Revenue Model

Company Description

Playgon Games (DEAL) is a technology company specializing in the development of innovative gaming solutions for the online casino sector. The company focuses on creating engaging and interactive live dealer games and other online gaming applications, catering primarily to the growing demand in the iGaming industry. Its core products include live dealer games such as blackjack, roulette, and baccarat, which are designed to enhance player engagement and provide a unique gaming experience through advanced technology and user-friendly interfaces.

How the Company Makes Money

Playgon Games generates revenue primarily through the licensing of its proprietary gaming software to online casinos and gaming operators. The company earns money from a revenue-sharing model where it receives a percentage of the gaming operators' revenues generated from its games. Additionally, Playgon may charge upfront fees for the integration of its gaming platforms and services. Key partnerships with established online casinos and gaming platforms also bolster its earnings, as these collaborations expand its market reach and user base, allowing for increased game distribution and higher revenue potential.

Playgon Games Financial Statement Overview

Summary

Playgon Games is facing severe financial difficulties, characterized by declining revenues, negative profitability margins, and a precarious balance sheet. The company's cash flow situation is also strained, indicating the need for strategic changes to improve financial health and sustainability.

Income Statement

Playgon Games has experienced a significant decline in revenue, with a negative revenue growth rate of -32.56% in the most recent year. The company is struggling with negative margins across the board, including a gross profit margin of -8.70% and a net profit margin of -30.09%. These figures indicate substantial operational challenges and inefficiencies.

Balance Sheet

The balance sheet reveals a concerning financial structure, with negative stockholders' equity and a debt-to-equity ratio of -0.82. The return on equity is positive at 56.09%, but this is due to the negative equity, which is not a sustainable situation. The equity ratio is also negative, indicating a high level of financial risk.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, with a slight improvement in free cash flow to net income ratio at 1.00. However, the company is still facing significant cash flow challenges, as indicated by a negative free cash flow growth rate of -17.90%.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	215.69K	604.58K	1.47M	957.75K	159.71K	0.00
Gross Profit	-2.32M	-5.26M	-1.53M	-8.21M	-6.64M	-1.60M
EBITDA	-7.49M	-10.25M	-12.21M	-13.23M	-11.56M	-4.66M
Net Income	-13.86M	-18.19M	-16.51M	-16.82M	-14.84M	-6.52M
Balance Sheet
Total Assets	1.11M	1.22M	5.51M	8.21M	17.08M	13.68M
Cash, Cash Equivalents and Short-Term Investments	194.57K	378.56K	208.45K	206.78K	5.93M	781.46K
Total Debt	29.18M	26.67M	16.00M	6.93M	1.34M	2.11M
Total Liabilities	37.13M	33.65M	20.87M	10.63M	3.29M	4.62M
Stockholders Equity	-36.02M	-32.44M	-15.36M	-2.42M	13.79M	9.06M
Cash Flow
Free Cash Flow	-5.71M	-9.08M	-11.48M	-11.22M	-11.69M	-5.04M
Operating Cash Flow	-5.71M	-9.07M	-11.36M	-11.19M	-11.21M	-3.82M
Investing Cash Flow	-33.00	-3.95K	-126.26K	-29.63K	-480.56K	-1.19M
Financing Cash Flow	4.68M	9.22M	11.50M	5.52M	16.86M	5.56M

Playgon Games Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 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 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 0.01, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.55 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, 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
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ISFT	45 Neutral	C$4.48M	-17.39	―	―	11.20%	-76.92%
DEAL	41 Neutral	C$4.72M	―	―	―	-81.78%	33.87%
ZONE	29 Underperform	$5.61M	-6.90	―	―	-0.69%	-38.10%

Playgon Games Corporate Events

Playgon Games Seeks Extension and Upsizing of Financial Instruments

Playgon Games Inc. has announced its intention to seek approval for extending the maturity dates of its unsecured convertible debentures and upsizing its secured promissory note. The company aims to extend the maturity dates of the debentures from November 3, 2025, to March 31, 2026, and increase the promissory note amount from CAD$5 million to CAD$14 million. These financial maneuvers are intended to provide Playgon with greater financial flexibility and stability, potentially impacting its operational capacity and market positioning positively.

Playgon Games to Settle Debt with Share Issuance

Playgon Games Inc. has announced its intention to settle $124,275 of debt through the issuance of 12,427,500 common shares at a price of $0.01 per share. This transaction involves converting interest payments owed on previously issued convertible unsecured debentures into common shares, with 95% of these shares being issued to insiders of the company. The proposed transaction is subject to the approval of the TSX Venture Exchange and is classified as a ‘related party transaction’ under regulatory policies. Playgon intends to use an exemption from certain shareholder approval requirements due to the transaction’s limited impact on market capitalization.