Playtech plc
Playtech plc Fundamental Analysis
Playtech plc (PYTCF) shows weak financial fundamentals with a PE ratio of 0.79, profit margin of 1.95%, and ROE of 1.01%. The company generates $0.8B in annual revenue with weak year-over-year growth of -50.31%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 9.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PYTCF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPYTCF demonstrates superior asset utilization.
Valuation Score
ExcellentPYTCF trades at attractive valuation levels.
Growth Score
WeakPYTCF faces weak or negative growth trends.
Financial Health Score
ExcellentPYTCF maintains a strong and stable balance sheet.
Profitability Score
ModeratePYTCF maintains healthy but balanced margins.
Key Financial Metrics
Is PYTCF Expensive or Cheap?
P/E Ratio
PYTCF trades at 0.79 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PYTCF's PEG of -0.00 indicates potential undervaluation.
Price to Book
The market values Playtech plc at 0.85 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 142.13 times EBITDA. This signals the market has high growth expectations.
How Well Does PYTCF Make Money?
Net Profit Margin
For every $100 in sales, Playtech plc keeps $1.95 as profit after all expenses.
Operating Margin
Core operations generate -13.80 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.01 in profit for every $100 of shareholder equity.
ROA
Playtech plc generates $67.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Playtech plc produces operating cash flow of $98.06M, showing steady but balanced cash generation.
Free Cash Flow
Playtech plc produces free cash flow of $50.21M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.17 in free cash annually.
FCF Yield
PYTCF converts 4.17% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
0.79
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.24
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.42
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.01
vs 25 benchmark
ROA
Return on assets percentage
0.67
vs 25 benchmark
ROCE
Return on capital employed
-0.06
vs 25 benchmark
How PYTCF Stacks Against Its Sector Peers
| Metric | PYTCF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 0.79 | 23.80 | Better (Cheaper) |
| ROE | 101.41% | 1105.00% | Weak |
| Net Margin | 194.52% | -512.00% (disorted) | Strong |
| Debt/Equity | 0.24 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 1.42 | 2.64 | Neutral |
| ROA | 67.16% | -8048.00% (disorted) | Strong |
PYTCF outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Playtech plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-44.44%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
1493.19%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
20.44%
Industry Style: Cyclical, Growth, Discretionary
High Growth