GIGAMEDIA Ltd (NASDAQ: GIGM)

Sector: Communication Services Industry: Electronic Gaming & Multimedia CIK: 0001105101
Market Cap 17.84 Mn
P/B 0.46
P/E -14.09
P/S 5.25
ROIC (Qtr) -8.73
Div Yield % 0.00
Rev 1y % (Qtr) 19.12
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
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About

GIGAMEDIA Ltd (GIGM) operates in the digital entertainment services industry, with a focus on providing a range of digital entertainment services in Taiwan, Hong Kong, and Macau. The company's primary business is centered around FunTown, a leading digital entertainment portal in Taiwan and Hong Kong. FunTown has built a strong reputation for developing and monetizing PC-based casual games in Asia, with a particular focus on MahJong and other casual games, role-playing and sports games, and mobile games. MahJong, a traditional Chinese tile-based...

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Investment thesis

Bull case

  • Tangible assets of 41.23M provide exceptional 72.34x coverage of deferred revenue 570000, showing strong service capability backing.
  • Tangible assets of 41.23M provide robust 18.87x coverage of other current liabilities 2.19M, indicating strong asset backing.
  • Strong cash position of 29.39M provides 13.45x coverage of other current liabilities 2.19M, indicating excellent liquidity.
  • R&D investment of 681000 represents healthy 1.19x of deferred revenue 570000, indicating strong future innovation pipeline.
  • Cash reserves of 29.39M provide robust 13.18x coverage of current liabilities 2.23M, indicating strong short-term solvency.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 681000, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 0 provides insufficient coverage of deferred revenue obligations of 570000, which is 0x, raising concerns about future service delivery capabilities.
  • Long-term investments of 9.62M represent a high 99.18x of fixed assets 97000, indicating potential overexposure to financial assets versus operational capabilities.
  • Tangible assets of 41.23M provide limited backing for working capital of 27.83M, which is 1.48x, suggesting increased operational risk in market downturns.
  • Operating cash flow of 0 barely covers operating expenses of 2000 with a 0 ratio, suggesting thin operational efficiency margins and limited flexibility.

Consolidation Items Breakdown of Revenue (2023)

Product and Service Breakdown of Revenue (2023)

Peer comparison

Companies in the Electronic Gaming & Multimedia
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NTES NetEase, Inc. 76.19 Bn 15.89 4.76 0.91 Bn
2 EA Electronic Arts Inc. 50.25 Bn 73.90 6.88 1.89 Bn
3 RBLX Roblox Corp 43.57 Bn -40.91 8.91 1.64 Bn
4 TTWO Take Two Interactive Software Inc 34.06 Bn -8.59 5.19 3.51 Bn
5 PLTK Playtika Holding Corp. 1.22 Bn 14.21 0.45 2.54 Bn
6 SOHU Sohu.com Ltd 0.46 Bn 1.16 0.78 0.00 Bn
7 GRVY GRAVITY Co., Ltd. 0.45 Bn 8.02 1.09 0.00 Bn
8 DDI DoubleDown Interactive Co., Ltd. 0.43 Bn 4.17 1.19 0.04 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.32 0.73
EV to Cash from Ops. EV/CFO 5.72 9.02
EV to Debt EV to Debt 0.00 42.93
EV to EBIT EV/EBIT 10.54 5.14
EV to EBITDA EV/EBITDA 3.66 -0.17
EV to Free Cash Flow [EV/FCF] EV/FCF 5.61 2.00
EV to Market Cap EV to Market Cap -0.75 0.31
EV to Revenue EV/Rev -3.93 -278.61
Price to Book Value [P/B] P/B 0.46 5.21
Price to Earnings [P/E] P/E -14.09 5.61
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 1,143.22
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 15.62
Dividend per Basic Share Div per Share (Qtr) 0.00 0.31
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 21.95
Interest Coverage Int. cover (Qtr) 0.00 2.42
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -144.92
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -16.82 2,047.52
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.39
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 67.13 10.58
EBITDA Growth (1y) % EBITDA Growth (1y) % 0.00 -40.36
EBIT Growth (1y) % EBIT 1y % (Qtr) 67.13 28.44
EBT Growth (1y) % EBT 1y % (Qtr) 67.13 -25.09
EPS Growth (1y) % EPS 1y % (Qtr) 69.44 -25.14
FCF Growth (1y) % FCF Growth (1y) % 0.00 -203.71
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 13.22 977.78
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.08 0.61
Cash Payout Ratio Cash Payout Ratio 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 13.18 1.98
Current Ratio Curr Ratio (Qtr) 13.49 4.93
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 -1.05
Interest Cover Ratio Int Coverage (Qtr) 0.00 2.42
Times Interest Earned Times Interest Earned (Qtr) 0.00 2.42
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 9,395.66
EBIT Margin % EBIT Margin % (Qtr) -37.27 10,488.08
EBT Margin % EBT Margin % (Qtr) -37.27 -43,333.75
Gross Margin % Gross Margin % (Qtr) 52.80 57.20
Net Profit Margin % Net Margin % (Qtr) -37.30 -43,332.40