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Playtika Holding Corp. (PLTK)
:PLTK
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Playtika Holding
(NASDAQ:PLTK)
60Neutral
Positive Factors
Growth Potential
Shares are undervalued as the growth potential is not yet well understood, creating an opportunity for shares to double in the next few years.
Revenue and Profit Growth
Playtika's core games and recent acquisitions should drive both revenue and profit growth for the next several years.
Negative Factors
Mobile Gaming Challenges
Analyst downgrades the stock to Neutral due to headwinds in mobile gaming and concerning trends within core franchises.
Revenue Impact
Management's revenue outlook indicates that contributions from new titles are not expected to significantly impact revenues.
Playtika Holding (PLTK) vs. S&P 500 (SPY)
Market Cap
$2.04B
Dividend Yield7.35%
Average Volume (3M)2.73M
Price to Earnings (P/E)12.5
Beta (1Y)0.92
Revenue Growth-0.69%
EPS Growth-31.96%
CountryUS
Employees3,500
SectorCommunication Services
Sector Strength81
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)0.44
Shares Outstanding375,435,940
10 Day Avg. Volume1,508,553
30 Day Avg. Volume2,729,776
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.21
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit2.43
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.25Price Target Upside51.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Playtika Holding Business Overview & Revenue Model
Company DescriptionPlaytika Holding Corp. develops mobile games in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company owns a portfolio of casual and casino-themed games. It distributes its games to the end customer through various web and mobile platforms, such as Apple, Facebook, Google, and other web and mobile platforms and its own proprietary platforms. The company was founded in 2010 and is headquartered in Herzliya Pituarch, Israel. Playtika Holding Corp. is a subsidiary of Playtika Holding Uk Ii Limited.
How the Company Makes MoneyPlaytika primarily generates revenue through a freemium model, where games are free to download and play, but offer in-app purchases for virtual items, currency, and other premium features. This model encourages player engagement and monetization through microtransactions. Additionally, the company earns revenue from in-game advertising, which is integrated into its mobile games. Playtika's strategy involves leveraging advanced data analytics to optimize user acquisition, retention, and monetization, ensuring sustained revenue growth. Furthermore, Playtika benefits from strategic partnerships and collaborations with other gaming and technology companies, enhancing its distribution and market reach.
Playtika Holding Financial Statement Overview
Summary
Playtika Holding's financials show stability in revenue generation and cash flow management. However, challenges in profitability and a highly leveraged balance sheet are concerning. The negative equity and profit margin pressures suggest the need for strategic financial improvement.Income Statement
Playtika Holding has shown stable revenue with slight fluctuations over the years. The gross profit margin remains strong, indicating efficient production. However, the net profit margin has decreased in recent years due to increasing costs affecting net income. The decline in EBIT margins also points to pressure on operational efficiency.68
Positive
Balance Sheet
The company has a negative stockholders' equity, indicating a leveraged position with more liabilities than assets. The debt-to-equity ratio is concerning, highlighting financial risk. Despite this, the company maintains significant cash reserves, which provide some liquidity cushion.45
Neutral
Cash Flow
Playtika has managed to maintain a steady free cash flow, with recent growth in free cash flow despite operational challenges. The operating cash flow to net income ratio is strong, reflecting efficient cash generation relative to earnings, though the high leverage remains a concern.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.55B | 2.57B | 2.62B | 2.58B | 2.37B | Gross Profit |
| 1.86B | 1.85B | 1.88B | 1.85B | 1.66B | EBIT |
| 391.60M | 568.00M | 309.40M | 416.70M | 268.00M | EBITDA |
| 601.40M | 703.60M | 640.30M | 703.10M | 511.90M | Net Income Common Stockholders |
| 162.20M | 235.00M | 275.30M | 308.50M | 92.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 565.80M | 1.03B | 768.70M | 1.12B | 520.10M | Total Assets |
| 3.64B | 3.17B | 2.70B | 2.80B | 1.78B | Total Debt |
| 2.50B | 2.52B | 2.53B | 2.53B | 2.40B | Net Debt |
| 1.93B | 1.49B | 1.76B | 1.52B | 1.88B | Total Liabilities |
| 3.77B | 3.40B | 3.27B | 3.18B | 3.02B | Stockholders Equity |
| -131.10M | -221.50M | -568.60M | -377.70M | -1.24B |
| Cash Flow | Free Cash Flow | |||
| 449.20M | 436.40M | 383.70M | 452.10M | 419.60M | Operating Cash Flow |
| 490.10M | 515.60M | 493.70M | 551.70M | 517.70M | Investing Cash Flow |
| -782.10M | -240.20M | -74.60M | -609.40M | -98.10M | Financing Cash Flow |
| -167.10M | -18.20M | -652.00M | 559.70M | -181.30M |
Playtika Holding Technical Analysis
Neutral
5.44
Price Trends
5.07
Positive
6.07
Negative
6.75
Negative
Market Momentum
0.06
Negative
62.00
Neutral
85.49
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLTK, the sentiment is Neutral. The current price of 5.44 is above the 20-day moving average (MA) of 5.03, above the 50-day MA of 5.07, and below the 200-day MA of 6.75, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 62.00 is Neutral, neither overbought nor oversold. The STOCH value of 85.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PLTK.
Playtika Holding Risk Analysis
Playtika Holding disclosed 72 risk factors in its most recent earnings report. Playtika Holding reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Playtika Holding Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $194.13M | ― | -19.83% | 3.37% | -10.12% | 74.20% | |
60 Neutral | $2.04B | 12.48 | -220.61% | 7.35% | -0.69% | -31.96% | |
60 Neutral | $215.93M | 5.55 | ― | -5.57% | ― | ||
59 Neutral | $13.76B | 7.65 | -2.18% | 3.85% | 2.32% | -36.56% | |
54 Neutral | $169.42M | ― | -10.76% | ― | -6.90% | -57.81% | |
51 Neutral | $92.05M | ― | -25.25% | ― | -36.40% | 49.91% | |
49 Neutral | $233.58M | ― | -5.44% | ― | -24.10% | -953.50% |
* Communication Services Sector Average
Performance Comparison
PLTK
Playtika Holding
5.44
-1.92
-26.09%
DOYU
DouYu International Holdings
7.74
5.95
332.40%
CURI
CuriosityStream
3.41
2.29
204.46%
SKLZ
Skillz
5.16
-1.49
-22.41%
GDEV
Nexters
11.91
-6.30
-34.60%
MYPS
PLAYSTUDIOS
1.35
-0.98
-42.06%
Playtika Holding Earnings Call Summary
Earnings Call Date:Feb 27, 2025
(Q4-2024)
| % Change Since: -18.81%|
Next Earnings Date:May 08, 2025
Earnings Call Sentiment Neutral
Playtika's earnings call reflected a mixed sentiment. While there were significant achievements such as the acquisition of SuperPlay and growth in DTC revenue, the company also faced challenges, including a decline in overall revenue, net income, and performance issues with some key games like Slotomania and Solitaire Grand Harvest. The strategic moves and future game launches indicate potential for growth, but the financial declines and increased expenses present notable concerns.Q4-2024 Updates
Positive Updates
Acquisition of SuperPlay
Playtika completed the largest acquisition in its history by acquiring SuperPlay, adding two strong game franchises to its portfolio.
New Game Launches
Three new games are planned for market release, including Claire's Chronicles and Disney's Solitaire, with promising early metrics for Disney's Solitaire.
Direct-to-Consumer (DTC) Revenue Growth
DTC revenue increased by 8% year-over-year, highlighting the effectiveness of Playtika's DTC platforms.
Bingo Blitz Performance
Bingo Blitz achieved $159.1 million in revenue for the quarter, up 5.8% year-over-year, marking another record quarter for its DTC business.
Record Performance for Acquired Titles
Animals & Coins achieved a record quarter, and Governor of Poker 3 maintained robust momentum, highlighting the value of acquisitions.
Negative Updates
Overall Revenue and Net Income Decline
Annual revenue decreased by 0.7% year-over-year, and GAAP net income fell to $162.2 million from $235 million in 2023.
Slotomania Revenue Decline
Slotomania revenue fell by 13.5% year-over-year, affected by game economy issues, although corrective measures were implemented in January.
Solitaire Grand Harvest Underperformance
Revenue for Solitaire Grand Harvest was down 4.3% year-over-year, not meeting performance expectations.
Negative GAAP Net Income for Q4
GAAP net income for Q4 was negative $16.7 million, a decline from $37.3 million in Q4 2023.
Operating Expenses Increase
Operating expenses increased by 13.7% year-over-year, driven by the acquisition of SuperPlay.
Company Guidance
During the Q4 2024 earnings call, Playtika Holding Corp. provided guidance for 2025, anticipating full-year revenue between $2.8 billion and $2.85 billion, with adjusted EBITDA expected to range from $715 million to $740 million. The company plans to deploy $95 million in capital expenditures and estimates an effective tax rate of 35%. Despite a 0.7% year-over-year decline in 2024 revenue to $2.549 billion, Playtika is focused on transitioning its portfolio by investing in growth titles and stabilizing its slot portfolio. The acquisition of SuperPlay is expected to contribute positively from 2026, supporting long-term financial goals. Additionally, Playtika's direct-to-consumer platform demonstrated strong performance, with revenue up 8% year-over-year. The company forecasts a transitional year in 2025, with investments aimed at positioning for renewed growth momentum in subsequent years.Playtika Holding Corporate Events
Executive/Board Changes
Playtika Holding’s Chief Accounting Officer Announces Retirement
Neutral
Apr 21, 2025
On April 17, 2025, Troy Vanke, Chief Accounting Officer of Playtika Holding Corp., announced his intention to retire and resign from his position, effective June 30, 2025.
Spark’s Take on PLTK Stock
According to Spark, TipRanks’ AI Analyst, PLTK is a Neutral.
Playtika’s overall stock score reflects a balance between solid cash flow management and attractive valuation, offset by challenges in profitability and technical indicators signaling bearish momentum. The company’s strategic investments and acquisitions indicate potential for future growth, but current financial pressures remain a concern.
To see Spark’s full report on PLTK stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.