Remedy: Buying opportunity for those who play the long game
As we expected, Remedy’s Q4 result was exceptionally strong, partially because of timing-related factors. Thanks to the company’s outlook and the Tencent agreement for the Vanguard projects, the earnings growth outlook for 2023-2025 starts to clear up. Materializing the earnings potential of the games currently under development seem to focus more strongly on 2024-2025, in contrast to our previous estimates (2023-2024). Thus, a bit of patience is required. Then, the share’s valuation becomes so low that we consider the expected return very attractive for investors who play the long game.
Remedy Entertainment
Remedy Entertainment is a game developer. The business is primarily focused on the development of action games, with a particular focus on 3D technology. Examples of games developed by the company include several different versions of Alan Wake, Max Payne, and Control. Remedy also develops its own game engine and utility technology that powers many of the games. The company was founded in 1995 and has its headquarters in Espoo.
Read more on company pageKey Estimate Figures14.02.2022
2021 | 22e | 23e | |
---|---|---|---|
Revenue | 44.7 | 47.4 | 60.9 |
growth-% | 8.86 % | 5.98 % | 28.48 % |
EBIT (adj.) | 14.7 | 11.5 | 15.8 |
EBIT-% (adj.) | 32.88 % | 24.29 % | 25.96 % |
EPS (adj.) | 0.88 | 0.68 | 0.93 |
Dividend | 0.17 | 0.20 | 0.25 |
Dividend % | 0.43 % | 1.05 % | 1.31 % |
P/E (adj.) | 45.33 | 28.15 | 20.41 |
EV/EBITDA | 29.87 | 14.95 | 7.47 |