Super League Enterprise, Inc. (NASDAQ: SLE)

Sector: Communication Services Industry: Internet Content & Information CIK: 0001621672
Market Cap 320,147.40
P/B -0.16
P/E -0.02
P/S 0.03
ROIC (Qtr) -991.07
Div Yield % 0.00
Rev 1y % (Qtr) -45.32
Total Debt (Qtr) 3.30 Mn
Debt/Equity (Qtr) -1.65

About

Super League Enterprise, Inc. (SLE), a prominent player in the metaverse and open-world gaming space, has carved out a niche for itself as a leading creator and publisher of content experiences and media solutions. The company's primary focus lies in virtual world gaming, a rapidly growing industry with over 3 billion gamers worldwide and more than 500 million monthly active players on metaverse and open-world game platforms. SLE's main business activities revolve around generating revenue through innovative advertising, direct-to-consumer offers,...

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Price action

Investment thesis

Bull case

  • Tangible assets of 4.48M provide exceptional 5.51x coverage of deferred revenue 813000, showing strong service capability backing.
  • Operating cash flow of (10.11M) provides strong 70.68x coverage of operating expenses (143000), showing operational efficiency.
  • Tangible assets of 4.48M provide robust 5.25x coverage of other current liabilities 852000, indicating strong asset backing.
  • Retained earnings of (273.61M) represent substantial 136.46x of equity (2M), indicating strong internal capital generation.
  • R&D investment of 3.33M represents healthy 4.10x of deferred revenue 813000, indicating strong future innovation pipeline.

Bear case

  • Operating cash flow of (10.11M) barely covers its investment activities of 1.10M, with a coverage ratio of -9.21, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 1.10M provide weak support for R&D spending of 3.33M, which is 0.33x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 1.06M provide limited coverage of acquisition spending of 1.35M, which is 0.79x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (10.11M) provides insufficient coverage of deferred revenue obligations of 813000, which is -12.43x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (10.11M) shows concerning coverage of stock compensation expenses of 1.68M, with a -6.03 ratio indicating potential earnings quality issues.

Peer comparison

Companies in the Internet Content & Information
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GOOGL Alphabet Inc. 4,538.16 Bn 131.46 27.23 33.71 Bn
2 META Meta Platforms, Inc. 1,747.49 Bn 74.30 23.25 51.06 Bn
3 SPOT Spotify Technology S.A. 103.00 Bn 62.32 5.18 2.57 Bn
4 BIDU Baidu, Inc. 62.73 Bn 49.63 3.42 13.66 Bn
5 RDDT Reddit, Inc. 32.18 Bn 92.16 16.90 0.03 Bn
6 NBIS Nebius Group N.V. 27.81 Bn 127.53 81.80 4.51 Bn
7 TME Tencent Music Entertainment Group 24.66 Bn 15.77 5.54 0.54 Bn
8 PINS Pinterest, Inc. 16.95 Bn 8.53 4.18 0.21 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.64 1.10
EV to Cash from Ops. EV/CFO -0.55 -3.08
EV to Debt EV to Debt 1.69 28.98
EV to EBIT EV/EBIT -0.43 -26.54
EV to EBITDA EV/EBITDA -0.46 9.30
EV to Free Cash Flow [EV/FCF] EV/FCF -0.54 -67.01
EV to Market Cap EV to Market Cap 17.41 0.90
EV to Revenue EV/Rev 0.48 61.25
Price to Book Value [P/B] P/B -0.16 1.56
Price to Earnings [P/E] P/E -0.02 2.92
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.33
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -8.92
Dividend per Basic Share Div per Share (Qtr) 0.00 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.58
Interest Coverage Int. cover (Qtr) -4.79 -202.56
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 64.09 -24.06
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 267.13 175.36
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.94
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 46.51 31.53
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 43.91 -472.14
EBIT Growth (1y) % EBIT 1y % (Qtr) 47.06 32.66
EBT Growth (1y) % EBT 1y % (Qtr) 36.23 -25.80
EPS Growth (1y) % EPS 1y % (Qtr) 88.64 -18.36
FCF Growth (1y) % FCF 1y % (Qtr) -1.56 20.83
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -48.07 19.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.33 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.11 1.54
Current Ratio Curr Ratio (Qtr) 0.47 3.38
Debt to Equity Ratio Debt/Equity (Qtr) -1.65 -0.39
Interest Cover Ratio Int Coverage (Qtr) -4.79 -202.56
Times Interest Earned Times Interest Earned (Qtr) -4.79 -202.56
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -92.70 -4,283.87
EBIT Margin % EBIT Margin % (Qtr) -112.29 -4,786.62
EBT Margin % EBT Margin % (Qtr) -135.74 -5,002.12
Gross Margin % Gross Margin % (Qtr) 39.60 58.65
Net Profit Margin % Net Margin % (Qtr) -137.10 -5,003.08