Playtika Holding Corp. (NASDAQ: PLTK)

Sector: Communication Services Industry: Electronic Gaming & Multimedia CIK: 0001828016
Market Cap 1.22 Bn
P/B -16.37
P/E 14.21
P/S 0.45
ROIC (Qtr) 9.09
Div Yield % 14.66
Rev 1y % (Qtr) 8.67
Total Debt (Qtr) 2.54 Bn
Debt/Equity (Qtr) -33.95
Add ratio to table...

About

Playtika Holding Corp., a prominent name in the gaming industry and publicly traded under the ticker symbol PLTK, has made impressive strides in the mobile gaming sector. The company's primary business activities encompass the development and publishing of mobile games, available for download on various platforms such as iOS and Android. Playtika's game offerings are engaging, interactive, and entertaining, with features such as social sharing, leaderboards, and rewards. Playtika's operations span across multiple regions, including North America,...

Read more

Investment thesis

Bull case

  • Healthy cash reserves of 589.40M provide 16.74x coverage of short-term debt 35.20M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 346.40M exceeds capital expenditure of 88.50M by 3.91x, indicating strong organic growth funding capability.
  • Operating cash flow of 434.90M provides solid 0.62x coverage of current liabilities 703.10M, showing strong operational health.
  • Retained earnings of (904.10M) represent substantial 12.09x of equity (74.80M), indicating strong internal capital generation.
  • Robust tangible asset base of 1.53B provides 5.27x coverage of working capital 290.10M, indicating strong operational backing.

Bear case

  • Operating cash flow of 434.90M barely covers its investment activities of (772.40M), with a coverage ratio of -0.56, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (772.40M) provide weak support for R&D spending of 413.40M, which is -1.87x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 434.90M provides thin coverage of dividend payments of (149.70M) with a -2.91 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 589.40M provide limited coverage of acquisition spending of (689.50M), which is -0.85x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 434.90M shows concerning coverage of stock compensation expenses of 93.80M, with a 4.64 ratio indicating potential earnings quality issues.

Customer Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

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 0.88 0.73
EV to Cash from Ops. EV/CFO 7.47 9.02
EV to Debt EV to Debt 1.28 42.93
EV to EBIT EV/EBIT 9.81 5.14
EV to EBITDA EV/EBITDA 5.81 -0.17
EV to Free Cash Flow [EV/FCF] EV/FCF 9.38 2.00
EV to Market Cap EV to Market Cap 2.65 0.31
EV to Revenue EV/Rev 1.19 -278.61
Price to Book Value [P/B] P/B -16.37 5.21
Price to Earnings [P/E] P/E 14.21 5.61
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.58 1,143.22
Dividend Payout Ratio % Div Payout % (Qtr) 166.70 15.62
Dividend per Basic Share Div per Share (Qtr) 0.40 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 42.46 21.95
Interest Coverage Int. cover (Qtr) 2.00 2.42
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 6.15 -144.92
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -48.63 2,047.52
Dividend Growth (1y) % Div 1y % (Qtr) 33.33 2.39
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -39.59 10.58
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -9.12 -40.36
EBIT Growth (1y) % EBIT 1y % (Qtr) -27.42 28.44
EBT Growth (1y) % EBT 1y % (Qtr) -52.09 -25.09
EPS Growth (1y) % EPS 1y % (Qtr) -58.62 -25.14
FCF Growth (1y) % FCF 1y % (Qtr) -17.91 -203.71
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 7.24 977.78
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.74 0.61
Cash Payout Ratio Cash Payout (Qtr) 0.29 0.03
Cash Ratio Cash Ratio (Qtr) 0.84 1.98
Current Ratio Curr Ratio (Qtr) 1.41 4.93
Debt to Equity Ratio Debt/Equity (Qtr) -33.95 -1.05
Interest Cover Ratio Int Coverage (Qtr) 2.00 2.42
Times Interest Earned Times Interest Earned (Qtr) 2.00 2.42
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 20.50 9,395.66
EBIT Margin % EBIT Margin % (Qtr) 12.15 10,488.08
EBT Margin % EBT Margin % (Qtr) 6.08 -43,333.75
Gross Margin % Gross Margin % (Qtr) 72.50 57.20
Net Profit Margin % Net Margin % (Qtr) 3.20 -43,332.40