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CD Projekt (OTGLY)
OTHER OTC:OTGLY
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CD Projekt
(OTC:OTGLY)
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Rating:66Neutral
Price Target:
$18.50
▲(5.47% Upside)
CD Projekt's overall stock score reflects strong profitability and strategic focus on future projects, offset by challenges in revenue growth and cash flow. The technical indicators suggest neutral to bearish momentum, and the high P/E ratio indicates potential overvaluation. The earnings call provided optimism with sales milestones and future plans, but highlighted the need to address revenue and cash flow challenges.
CD Projekt (OTGLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.18B
Dividend Yield0.39%
Average Volume (3M)603.00
Price to Earnings (P/E)62.5
Beta (1Y)0.82
Revenue Growth-21.71%
EPS Growth-16.84%
CountryUS
Employees634
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)0.05
Shares Outstanding399,642,030
10 Day Avg. Volume406
30 Day Avg. Volume603
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue7.59
Enterprise Value/Gross Profit9.74
Enterprise Value/Ebitda15.76
Forecast
1Y Price Target
$18.50Price Target Upside5.47% Upside
Rating ConsensusHold
Number of Analyst Covering1
CD Projekt Business Overview & Revenue Model
Company DescriptionCD Projekt S.A., together its subsidiaries, engages in the development, publishing, and digital distribution of videogames for personal computers and video game consoles worldwide. It operates through two segments, CD PROJEKT RED and GOG.com. The company's product portfolio comprises The Witcher; The Witcher 2: Assassins of Kings; The Witcher 3: Wild Hunt; Thronebreaker: The Witcher Tales; Gwent: The Witcher Card game; and Cyberpunk 2077. It also distributes videogames through GOG.com distribution platform and the GOG GALAXY application. The company exports its products in Europe, North America, South America, Asia, Australia, and Africa. CD Projekt S.A. was incorporated in 2001 and is headquartered in Warsaw, Poland.
How the Company Makes MoneyCD Projekt generates revenue primarily through the sale of its video games, including both physical and digital copies. The success of blockbuster titles like The Witcher 3: Wild Hunt and Cyberpunk 2077 has significantly contributed to its earnings. Additionally, the company earns money through downloadable content (DLC) and expansion packs that enhance existing games, providing additional gameplay experiences for players. GOG.com serves as another revenue stream, where the company sells a curated selection of games, including indie titles and classic games, often at discounted prices. CD Projekt has also engaged in partnerships and collaborations with other developers and publishers, which can lead to shared revenue opportunities. Furthermore, the company benefits from a strong community engagement and brand loyalty, often resulting in high sales volumes upon the release of new titles.
CD Projekt Earnings Call Summary
Earnings Call Date:Aug 28, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 26, 2025
Earnings Call Sentiment Positive
The earnings call highlighted several positive developments, including successful product launches and strong sales figures for existing titles. Financial performance was robust, with notable profit and strategic decisions regarding dividends and share buybacks. However, increased operating costs and high income tax adjustments posed challenges. The positive aspects significantly outweighed the negatives.Q1-2025 Updates
Positive Updates
Cyberpunk 2077 Ultimate Edition Launch
Cyberpunk 2077 Ultimate Edition is set to be a launch title for the Nintendo Switch 2 on June 5, 2025, marking a significant milestone as the first time one of CD PROJEKT's games will debut on a new platform.
Phantom Liberty Expansion Success
The Phantom Liberty expansion for Cyberpunk 2077 has surpassed 10 million copies sold worldwide since its release in September 2023, demonstrating the expansion's quality and the enduring appeal of the Cyberpunk franchise.
The Witcher 3: Wild Hunt Sales Milestone
The Witcher 3: Wild Hunt has now sold over 60 million copies globally, contributing PLN2.4 billion in revenue over the past decade, establishing it as one of the best-selling games of all time.
Strong Financial Performance
CD PROJEKT reported a net profit of PLN86 million for Q1 2025 with an EBIT increase of 18% year-over-year, supported by strong sales and strategic amortization decisions.
Dividend and Share Buyback Plans
CD PROJEKT proposed a dividend of nearly PLN100 million and a share buyback to settle its incentive program, reflecting a strong cash position and confidence in future performance.
Negative Updates
High Income Tax Adjustments
A relatively high income tax of nearly PLN22 million was recorded for Q1 2025, mainly due to adjustments relating to prior years, impacting net results.
Increased Operating Costs
Operating costs remained stable overall but included extra expenses related to the new ERP system implementation and increased costs of incentive programs.
Company Guidance
During the Q1 2025 Earnings Conference Call held on May 28, CD PROJEKT provided several key metrics and guidance. They announced that the Cyberpunk 2077 Ultimate Edition would be a launch title for the Nintendo Switch 2 on June 5, 2025, marking the company's first game to be a launch title on a new platform. The Phantom Liberty expansion for Cyberpunk 2077 surpassed 10 million copies sold worldwide within just over 20 months since its release. The Witcher 3: Wild Hunt celebrated its tenth anniversary, with global sales exceeding 60 million copies and generating PLN2.4 billion in revenue. The company's development team has grown to over 730 developers, with 420 focused on The Witcher 4, which is in production, while Cyberpunk 2 has moved into preproduction. Financially, CD PROJEKT reported Q1 2025 sales revenue of PLN226 million, consistent with the previous year, and a net profit of PLN86 million, with a group net profitability of 38%. They also proposed a dividend of nearly PLN100 million from 2024 profits and a share buyback program valued at around PLN20 million.CD Projekt Financial Statement Overview
Summary
CD Projekt shows strong profitability with high margins and a solid balance sheet with low leverage. However, challenges include a revenue decline and significant drop in free cash flow growth, which could impact future investments.Income Statement
CD Projekt's income statement shows strong profitability with a high gross profit margin of 74.9% and a net profit margin of 47.7% for 2024. However, the company experienced a revenue decline of 11.6% compared to the previous year, indicating potential challenges in maintaining growth. Despite this, the EBIT and EBITDA margins remain robust at 43.8% and 45.5%, respectively, reflecting efficient cost management.75
Positive
Balance Sheet
The balance sheet is solid with a low debt-to-equity ratio, indicating minimal leverage and financial risk. The return on equity is healthy at 16.8%, showcasing effective use of shareholder funds. The equity ratio is strong, suggesting a stable financial position with a significant portion of assets financed by equity.80
Positive
Cash Flow
Cash flow analysis reveals a significant decline in free cash flow growth by 60.2%, which could impact future investments. However, the operating cash flow to net income ratio is strong at 2.38, indicating good cash generation relative to net income. The free cash flow to net income ratio is moderate at 33.3%, suggesting room for improvement in cash flow efficiency.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.00B | 985.03M | 1.23B | 952.58M | 888.17M | 2.14B |
| Gross Profit | 781.66M | 737.88M | 849.63M | 708.60M | 637.94M | 1.65B |
| EBITDA | 483.11M | 448.49M | 553.33M | 514.32M | 326.63M | 1.44B |
| Net Income | 454.79M | 469.87M | 481.11M | 347.09M | 208.91M | 1.15B |
Balance Sheet | ||||||
| Total Assets | 3.19B | 3.04B | 2.61B | 2.27B | 2.16B | 2.89B |
| Cash, Cash Equivalents and Short-Term Investments | 1.13B | 1.19B | 878.98M | 894.67M | 984.35M | 834.15M |
| Total Debt | 0.00 | 20.15M | 20.04M | 28.46M | 46.88M | 18.94M |
| Total Liabilities | 316.32M | 241.76M | 209.95M | 240.72M | 264.38M | 707.12M |
| Stockholders Equity | 2.88B | 2.80B | 2.40B | 2.03B | 1.89B | 2.19B |
Cash Flow | ||||||
| Free Cash Flow | 14.55M | 173.84M | 280.07M | 149.93M | 784.46M | 490.12M |
| Operating Cash Flow | 520.11M | 521.30M | 610.88M | 406.03M | 967.83M | 711.71M |
| Investing Cash Flow | -517.60M | -470.55M | -607.35M | -335.61M | -613.79M | -106.39M |
| Financing Cash Flow | -4.51M | -103.92M | -103.31M | -204.18M | -505.78M | -91.39M |
CD Projekt Technical Analysis
Positive
17.54
Price Trends
17.45
Positive
17.27
Positive
15.29
Positive
Market Momentum
0.09
Negative
49.37
Neutral
42.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OTGLY, the sentiment is Positive. The current price of 17.54 is above the 20-day moving average (MA) of 17.52, above the 50-day MA of 17.45, and above the 200-day MA of 15.29, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 49.37 is Neutral, neither overbought nor oversold. The STOCH value of 42.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OTGLY.
CD Projekt Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | 41.87B | 43.70 | 17.13% | 0.45% | 2.68% | -6.15% | |
75 Outperform | 463.32M | 4.36 | ― | ― | 0.51% | -8.46% | |
68 Neutral | 10.81B | 361.85 | -9.55% | ― | 22.89% | ― | |
66 Neutral | $7.18B | 62.45 | 16.24% | 0.39% | -21.71% | -16.84% | |
60 Neutral | 45.03B | -10.20 | -121.49% | ― | 7.33% | -7.46% | |
59 Neutral | 1.34B | 15.49 | -98.41% | 11.20% | 4.98% | -60.29% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
Performance Comparison
OTGLY
CD Projekt
17.54
6.30
56.05%
EA
Electronic Arts
167.35
26.57
18.87%
TTWO
Take-Two
244.12
93.35
61.92%
BILI
Bilibili
26.27
8.00
43.79%
DDI
Doubledown Interactive Co
9.35
-4.45
-32.25%
PLTK
Playtika Holding
3.57
-3.90
-52.21%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.