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Playtika Holding (PLTK)
NASDAQ:PLTK
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Playtika Holding
(NASDAQ:PLTK)
58Neutral
Positive Factors
Growth Potential
Playtika's core games and recent acquisitions should drive both revenue and profit growth for the next several years.
Strategic Acquisitions
The acquisition of SuperPlay adds meaningfully to revenue and creates the backdrop for significant future growth.
Valuation
Shares are undervalued as the growth potential is not yet well understood, creating an opportunity for shares to double in the next few years.
Negative Factors
EBITDA Concerns
Q4 credit-adjusted EBITDA was below guidance, partly due to increased marketing spend to support newer titles and studios.
Market Sentiment
Investors remain uncertain about the ownership base in China and the mobile gaming sector’s challenging return to growth.
Revenue Challenges
Management's revenue outlook indicates that contributions from new titles are not expected to significantly impact revenues.
Playtika Holding (PLTK) vs. S&P 500 (SPY)
Market Cap
$1.51B
Dividend Yield9.97%
Average Volume (3M)2.21M
Price to Earnings (P/E)9.2
Beta (1Y)1.14
Revenue Growth-0.69%
EPS Growth-31.96%
CountryUS
Employees3,500
SectorCommunication Services
Sector Strength84
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)0.44
Shares Outstanding375,320,830
10 Day Avg. Volume3,871,134
30 Day Avg. Volume2,208,047
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.59
Price to Cash Flow (P/CF)2.50
P/FCF Ratio9.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.66Price Target Upside115.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
Playtika Holding Business Overview & Revenue Model
Company DescriptionPlaytika Holding Corp. develops mobile games in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company owns a portfolio of casual and casino-themed games. It distributes its games to the end customer through various web and mobile platforms, such as Apple, Facebook, Google, and other web and mobile platforms and its own proprietary platforms. The company was founded in 2010 and is headquartered in Herzliya Pituarch, Israel. Playtika Holding Corp. is a subsidiary of Playtika Holding Uk Ii Limited.
How the Company Makes MoneyPlaytika primarily generates revenue through a freemium model, where games are free to download and play, but offer in-app purchases for virtual items, currency, and other premium features. This model encourages player engagement and monetization through microtransactions. Additionally, the company earns revenue from in-game advertising, which is integrated into its mobile games. Playtika's strategy involves leveraging advanced data analytics to optimize user acquisition, retention, and monetization, ensuring sustained revenue growth. Furthermore, Playtika benefits from strategic partnerships and collaborations with other gaming and technology companies, enhancing its distribution and market reach.
Playtika Holding Financial Statement Overview
Summary
Playtika Holding's financials show stability in revenue generation and cash flow management. However, challenges in profitability and a highly leveraged balance sheet are concerning. The negative equity and profit margin pressures suggest the need for strategic financial improvement.Income Statement
Playtika Holding has shown stable revenue with slight fluctuations over the years. The gross profit margin remains strong, indicating efficient production. However, the net profit margin has decreased in recent years due to increasing costs affecting net income. The decline in EBIT margins also points to pressure on operational efficiency.68
Positive
Balance Sheet
The company has a negative stockholders' equity, indicating a leveraged position with more liabilities than assets. The debt-to-equity ratio is concerning, highlighting financial risk. Despite this, the company maintains significant cash reserves, which provide some liquidity cushion.45
Neutral
Cash Flow
Playtika has managed to maintain a steady free cash flow, with recent growth in free cash flow despite operational challenges. The operating cash flow to net income ratio is strong, reflecting efficient cash generation relative to earnings, though the high leverage remains a concern.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.55B | 2.57B | 2.62B | 2.58B | 2.37B | Gross Profit |
| 1.86B | 1.85B | 1.88B | 1.85B | 1.66B | EBIT |
| 391.60M | 568.00M | 309.40M | 416.70M | 268.00M | EBITDA |
| 601.40M | 703.60M | 640.30M | 703.10M | 511.90M | Net Income Common Stockholders |
| 162.20M | 235.00M | 275.30M | 308.50M | 92.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 565.80M | 1.03B | 768.70M | 1.12B | 520.10M | Total Assets |
| 3.64B | 3.17B | 2.70B | 2.80B | 1.78B | Total Debt |
| 2.50B | 2.52B | 2.53B | 2.53B | 2.40B | Net Debt |
| 1.93B | 1.49B | 1.76B | 1.52B | 1.88B | Total Liabilities |
| 3.77B | 3.40B | 3.27B | 3.18B | 3.02B | Stockholders Equity |
| -131.10M | -221.50M | -568.60M | -377.70M | -1.24B |
| Cash Flow | Free Cash Flow | |||
| 449.20M | 436.40M | 383.70M | 452.10M | 419.60M | Operating Cash Flow |
| 490.10M | 515.60M | 493.70M | 551.70M | 517.70M | Investing Cash Flow |
| -782.10M | -240.20M | -74.60M | -609.40M | -98.10M | Financing Cash Flow |
| -167.10M | -18.20M | -652.00M | 559.70M | -181.30M |
Playtika Holding Technical Analysis
Negative
4.01
Price Trends
6.18
Negative
6.91
Negative
7.11
Negative
Market Momentum
-0.59
Positive
30.99
Neutral
14.62
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLTK, the sentiment is Negative. The current price of 4.01 is below the 20-day moving average (MA) of 4.93, below the 50-day MA of 6.18, and below the 200-day MA of 7.11, indicating a bearish trend. The MACD of -0.59 indicates Positive momentum. The RSI at 30.99 is Neutral, neither overbought nor oversold. The STOCH value of 14.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLTK.
Playtika Holding Risk Analysis
Playtika Holding disclosed 72 risk factors in its most recent earnings report. Playtika Holding reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Playtika Holding Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $37.61B | 36.72 | 14.04% | 0.53% | -2.99% | -0.46% | |
68 Neutral | $13.84B | 36.79 | 131.11% | ― | 4.11% | 3328.10% | |
67 Neutral | $11.86B | ― | -5.37% | ― | 18.03% | 82.15% | |
62 Neutral | $37.68B | ― | -51.45% | ― | 1.00% | -148.89% | |
59 Neutral | $29.40B | 0.71 | -18.77% | 4.01% | 2.13% | -47.15% | |
58 Neutral | $1.51B | 9.20 | -220.61% | 9.97% | -0.69% | -31.96% |
* Communication Services Sector Average
Performance Comparison
PLTK
Playtika Holding
4.41
-1.97
-30.88%
EA
Electronic Arts
144.55
14.72
11.34%
TTWO
Take-Two
213.51
67.37
46.10%
ROKU
Roku
81.23
16.59
25.67%
CHWY
Chewy
34.02
18.60
120.62%
Playtika Holding Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -40.15% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
Playtika's earnings call reflected a mixed sentiment. While there were significant achievements such as the acquisition of SuperPlay and growth in DTC revenue, the company also faced challenges, including a decline in overall revenue, net income, and performance issues with some key games like Slotomania and Solitaire Grand Harvest. The strategic moves and future game launches indicate potential for growth, but the financial declines and increased expenses present notable concerns.Highlights
Acquisition of SuperPlay
Playtika completed the largest acquisition in its history by acquiring SuperPlay, adding two strong game franchises to its portfolio.
New Game Launches
Three new games are planned for market release, including Claire's Chronicles and Disney's Solitaire, with promising early metrics for Disney's Solitaire.
Direct-to-Consumer (DTC) Revenue Growth
DTC revenue increased by 8% year-over-year, highlighting the effectiveness of Playtika's DTC platforms.
Bingo Blitz Performance
Bingo Blitz achieved $159.1 million in revenue for the quarter, up 5.8% year-over-year, marking another record quarter for its DTC business.
Record Performance for Acquired Titles
Animals & Coins achieved a record quarter, and Governor of Poker 3 maintained robust momentum, highlighting the value of acquisitions.
Lowlights
Overall Revenue and Net Income Decline
Annual revenue decreased by 0.7% year-over-year, and GAAP net income fell to $162.2 million from $235 million in 2023.
Slotomania Revenue Decline
Slotomania revenue fell by 13.5% year-over-year, affected by game economy issues, although corrective measures were implemented in January.
Solitaire Grand Harvest Underperformance
Revenue for Solitaire Grand Harvest was down 4.3% year-over-year, not meeting performance expectations.
Negative GAAP Net Income for Q4
GAAP net income for Q4 was negative $16.7 million, a decline from $37.3 million in Q4 2023.
Operating Expenses Increase
Operating expenses increased by 13.7% year-over-year, driven by the acquisition of SuperPlay.
Company Guidance
During the Q4 2024 earnings call, Playtika Holding Corp. provided guidance for 2025, anticipating full-year revenue between $2.8 billion and $2.85 billion, with adjusted EBITDA expected to range from $715 million to $740 million. The company plans to deploy $95 million in capital expenditures and estimates an effective tax rate of 35%. Despite a 0.7% year-over-year decline in 2024 revenue to $2.549 billion, Playtika is focused on transitioning its portfolio by investing in growth titles and stabilizing its slot portfolio. The acquisition of SuperPlay is expected to contribute positively from 2026, supporting long-term financial goals. Additionally, Playtika's direct-to-consumer platform demonstrated strong performance, with revenue up 8% year-over-year. The company forecasts a transitional year in 2025, with investments aimed at positioning for renewed growth momentum in subsequent years.Playtika Holding Corporate Events
Executive/Board Changes
Playtika Holding Adjusts Executive Compensation Post Retention Plan
Neutral
Dec 20, 2024
Playtika Holding Corp. announced adjustments to executive compensation packages following the conclusion of its 2021-2024 Retention Plan. The changes include significant increases in base salaries for CEO Robert Antokol, President Craig Abrahams, and Chief Legal Officer Michael Cohen, while decreasing their target annual bonus opportunities, effective January 1, 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.