Playtech (PTEC) AI Stock Analysis

• Market Cap: £1.09B
• Dividend Yield: N/A
• Average Volume (3M): 984.30K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 1.44
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 8,300
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.26
• Shares Outstanding: 309,294,250
• 10 Day Avg. Volume: 1,321,103
• 30 Day Avg. Volume: 984,296
• PEG Ratio: 0.11
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 3.11
• P/FCF Ratio: 11.21
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £446.00
• Price Target Upside: 24.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: 417.00p ▲(16.81% Upside)

Playtech's overall stock score is driven by a mixed financial performance with strong gross profitability but challenges in revenue growth and leverage. The technical analysis indicates weak momentum, while the valuation suggests the stock is reasonably priced. The earnings call provides a cautiously optimistic outlook, focusing on strategic growth in high-potential markets.

Positive Factors

Strong Cash Position

A strong cash position enhances Playtech's financial flexibility, allowing for strategic investments and debt repayment, supporting long-term growth.

Expansion in Regulated Markets

Focusing on regulated markets reduces regulatory risks and aligns with global trends, potentially leading to sustainable revenue growth and market expansion.

Live Casino Growth

The growing Live Casino segment indicates robust consumer demand and positions Playtech to capitalize on this trend, enhancing its competitive edge.

Negative Factors

Revenue Decline

A decline in revenue due to revised agreements indicates potential challenges in maintaining stable income streams, affecting long-term financial performance.

Challenges in Emerging Markets

Regulatory challenges in emerging markets can hinder growth prospects and create uncertainty, impacting Playtech's ability to expand in these regions.

B2C Division Struggles

Struggles in the B2C division, particularly with HappyBet, highlight operational challenges that could affect overall profitability and market presence.

Playtech Business Overview & Revenue Model

Company Description

Playtech Plc, a technology company, provides gambling software, services, content, and platform technologies worldwide. The company offers technologies across various product verticals, including casino, live casino, sports betting, virtual sports, bingo, and poker. It also owns the intellectual property rights and licenses the software; provides marketing and advertising, consulting and online technical support, data mining processing, turnkey, operational and hosting, live game, and video stream services; and operates betting shops. In addition, the company designs, develops, and sells software. Playtech Plc was founded in 1999 and is based in Douglas, the Isle of Man.

How the Company Makes Money

Playtech generates revenue primarily through the licensing of its software products and services to online gaming operators. Key revenue streams include the sale of gaming content, platform services, and the provision of technology solutions to both B2B (business-to-business) and B2C (business-to-consumer) clients. The company also earns income from its own online gaming operations. Significant partnerships with operators and a diversified portfolio of games, including slots, table games, and live dealer products, contribute to its financial performance. Additionally, Playtech's strategic collaborations with established brands and its expansion into regulated markets enhance its earnings potential.

Playtech Financial Statement Overview

Summary

Playtech exhibits a mixed financial performance with strong gross profitability and a healthy cash flow position. However, challenges in revenue growth, net profitability, and leverage persist. The company is showing positive signs of financial stabilization, but it needs to address profitability and growth consistency to improve its financial standing further.

Income Statement

Playtech's revenue has shown a somewhat erratic pattern over the years, with a significant drop in 2024 compared to 2023. The gross profit margin for 2024 was strong at 100%, but the net profit margin was notably lower than the gross profit margin, indicating high operating expenses or other costs. The EBIT and EBITDA margins demonstrate decent operational efficiency, although there was a notable decline in EBIT margin from 2023 to 2024. Overall, the income statement reflects a company with strong gross profitability but facing challenges in maintaining consistent revenue growth and net profitability.

Balance Sheet

The balance sheet displays a relatively stable financial position with a decreasing trend in total debt over the years, which is positive. However, the debt-to-equity ratio remains a concern, indicating that Playtech relies significantly on debt financing. The equity ratio has shown improvement, suggesting enhanced reliance on equity financing, which is a positive aspect. Return on equity has varied significantly, highlighting profitability challenges. Overall, the balance sheet suggests a company aiming to stabilize its financial structure but facing leverage concerns.

Cash Flow

Playtech's cash flow statement indicates positive free cash flow, though the growth rate has been inconsistent. The operating cash flow to net income ratio is robust, demonstrating strong cash generation relative to net income. However, fluctuations in free cash flow and investing cash flows suggest variability in investment activities and cash generation. Overall, the cash flow position is healthy, but the inconsistency in growth and cash allocation strategies could pose potential risks.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	848.00M	771.90M	1.60B	1.21B	1.08B
Gross Profit	848.00M	771.90M	1.60B	1.21B	1.08B
EBITDA	316.50M	282.50M	313.70M	822.90M	212.50M
Net Income	223.20M	156.80M	87.60M	674.60M	-297.40M
Balance Sheet
Total Assets	3.30B	3.33B	3.02B	3.65B	3.06B
Cash, Cash Equivalents and Short-Term Investments	268.10M	516.20M	426.50M	575.40M	683.68M
Total Debt	494.00M	732.90M	633.40M	1.13B	1.26B
Total Liabilities	1.48B	1.52B	1.32B	2.07B	2.16B
Stockholders Equity	1.82B	1.82B	1.70B	1.58B	899.59M
Cash Flow
Free Cash Flow	235.30M	216.90M	285.50M	110.80M	247.47M
Operating Cash Flow	391.10M	366.90M	410.90M	225.00M	366.92M
Investing Cash Flow	-188.40M	-309.50M	-358.30M	-127.60M	-89.35M
Financing Cash Flow	-266.00M	39.90M	-566.90M	-218.40M	104.62M

Playtech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 357.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PTEC, the sentiment is Negative. The current price of 357 is below the 20-day moving average (MA) of 394.33, below the 50-day MA of 401.83, and above the 200-day MA of 328.11, indicating a neutral trend. The MACD of -12.50 indicates Positive momentum. The RSI at 28.45 is Positive, neither overbought nor oversold. The STOCH value of 2.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:PTEC.

Playtech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNK	72 Outperform	620.20M	14.10	0.00%	1.96%	8.26%	263.36%
PTEC	68 Neutral	£1.09B	11.29	6.42%	―	―	―
GMR	63 Neutral	134.20M	16.44	26.04%	―	21.27%	21.93%
ENT	55 Neutral	5.54B	-10.90	-29.29%	1.92%	5.14%	-7.80%
EVOK	49 Neutral	242.06M	-2.14	164.95%	―	5.26%	32.20%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Playtech Corporate Events

Playtech Reports Strong H1 2025 Performance, Exceeds Expectations

Playtech reported strong financial performance for the first half of 2025, with adjusted EBITDA of €91.6 million, aligning with upgraded expectations. The company completed the sale of Snaitech, distributing €1.8 billion to shareholders, and made significant strategic progress in core markets, particularly in the Americas. The revised agreement with Caliente Interactive and the transition to a predominantly B2B business model have positioned Playtech for future growth. Despite a decline in overall revenue and EBITDA, the company maintains a strong balance sheet with a net cash position of €77.1 million, and it is on track to exceed full-year expectations. Playtech plans to increase investments in the US and Brazil, leveraging its market-leading technology and partnerships to drive growth.

The most recent analyst rating on (GB:PTEC) stock is a Hold with a £439.00 price target. To see the full list of analyst forecasts on Playtech stock, see the GB:PTEC Stock Forecast page.

Playtech Aligns Leadership Incentives with Transformation Plan

Playtech has announced the granting of conditional awards under its Transformation Plan following the sale of Snaitech S.p.A. These awards, part of a pool of 10,000 Incentive Units, align the interests of Playtech’s senior team with shareholders by tying potential rewards to the company’s performance in terms of EBITDA and cash generation. The plan aims to drive earnings growth and improve cash generation, ultimately benefiting shareholders.

The most recent analyst rating on (GB:PTEC) stock is a Buy with a £7.80 price target. To see the full list of analyst forecasts on Playtech stock, see the GB:PTEC Stock Forecast page.