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Remedy: Several playable levels in the growth game

REMEDYExtensive research08.04.2021, 15.08
Atte RiikolaAnalyst
Discuss
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In 2019-2020, Remedy’s strategy moved to a growth stage thanks to a successful ramp-up of a multi-project model and the Control game launch, and in the new 2021-2025 strategy period the company plans to accelerate. Thanks to a multi-project model that has been built with controlled risks and is well-managed, as well as a strong financial position, Remedy’s preconditions for developing successful games are good. In addition, favorable market trends help the company grow into a clearly larger game studio than currently over this decade. Due to the strongly progressing growth story we play the long game when it comes to share valuation.

Remedy Entertainment is a game developer. Its operations are primarily focused on the development of action games, with a particular focus on 3D technology. Examples of games that the company has developed include several different versions of Alan Wake, Max Payne, and Control. Remedy also develops its own game engine and tooling technology that powers many of its games. The company was founded in 1995 and is headquartered in Espoo, Finland.

Read more on company page

Key Estimate Figures08.04.2021

202021e22e
Revenue41.145.948.8
growth-%29.8 %11.7 %6.3 %
EBIT (adj.)13.215.514.8
EBIT-% (adj.)32.2 %33.8 %30.3 %
EPS (adj.)0.860.940.90
Dividend0.150.200.25
Dividend %0.4 %1.1 %1.3 %
P/E (adj.)45.520.221.1
EV/EBITDA31.510.910.4

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