MGI - Media & Games Invest SE (M8G) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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MGI - Media & Games Invest SE

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Why is MGI - Media & Games Invest SE ?

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.47

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.47
The company has been able to generate a Return on Equity (avg) of 5.58% signifying low profitability per unit of shareholders funds

Healthy long term growth as Net Sales has grown by an annual rate of 32.95% and Operating profit at 51.23%

The company declared positive results in Dec'24 after negative results in Sep'24

INTEREST COVERAGE RATIO(Q) Highest at 290.62
NET SALES(Q) Highest at SEK 2,122.28 MM

With ROE of 5.92%, it has a attractive valuation with a 1.03 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -58.67%, its profits have fallen by -53.3%

Below par performance in long term as well as near term

Along with generating -58.67% returns in the last 1 year, the stock has also underperformed OMX Stockholm 30 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to MGI - Media & Games Invest SE should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is MGI - Media & Games Invest SE for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

MGI - Media & Games Invest SE

-58.67%

-0.31

62.43%

OMX Stockholm 30

10.97%

0.59

18.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

32.95%

EBIT Growth (5y)

51.23%

EBIT to Interest (avg)

1.47

Debt to EBITDA (avg)

1.16

Net Debt to Equity (avg)

1.04

Sales to Capital Employed (avg)

0.50

Tax Ratio

23.48%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

14.32%

ROE (avg)

5.58%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.03

EV to EBIT

9.15

EV to EBITDA

6.41

EV to Capital Employed

1.01

EV to Sales

1.83

PEG Ratio

Dividend Yield

ROCE (Latest)

11.06%

ROE (Latest)

5.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 290.62

NET SALES(Q)

Highest at SEK 2,122.28 MM

-18What is not working for the Company

NET PROFIT(Q)

At SEK 40.37 MM has Fallen at -75.46%

OPERATING CASH FLOW(Y)

Lowest at SEK 88.22 MM

ROCE(HY)

Lowest at 0.14%

RAW MATERIAL COST(Y)

Grown by 38.81% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 116.74 %

PRE-TAX PROFIT(Q)

Fallen at -21.82%

Here's what is working for MGI - Media & Games Invest SE

Interest Coverage Ratio

Highest at 290.62

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at SEK 2,122.28 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (SEK MM)

Depreciation

Highest at SEK 181.37 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (SEK MM)

Here's what is not working for MGI - Media & Games Invest SE

Net Profit

At SEK 40.37 MM has Fallen at -75.46%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SEK MM)

Operating Cash Flow

Lowest at SEK 88.22 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SEK MM)

Pre-Tax Profit

Fallen at -21.82%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SEK MM)

Debt-Equity Ratio

Highest at 116.74 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 38.81% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales