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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Sciplay Corporation (XNAS:SCPL) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
SCPL
Name:
SCIPLAY CORPORATION (XNAS:SCPL)
Sector:
34.60M
Industry:
Electronic Gaming & Multimedia
CEO:
Mr. Joshua J. Wilson
Total Employees:
632
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -3257.02% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF SCIPLAY CORPORATION(SCPL) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND ELECTRONIC GAMING & MULTIMEDIA INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
11.3
One Month Price Target:
$11.32
Six Month Price Target :
$11.4
Likely Price in One Year's Time:
Ticker:
$11.5
Likely Trading Range Today Under (Normal Volatility)
$11.24
Price Upper limit ($) :
$11.37
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$10.52
This week:
$9.57
This month :
$7.83
Other Primary facts
Market Cap:
1.42B
Market Cap Classification:
Small Cap
Number of Shares
IPO Date:
127.17M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
20.5%
-16.47%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$14.90
$13.25
$7.70
$9.35
Medium risk (<10%) entry points
Buy Call
Sell Call
$12.72
Buy Put:
Sell Put:
$12.36
$9.88
$10.24
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
SCPL
Sharpe Ratio:
0.98%
Comparison:
SCPL, is amongst the top 60% stocks with highest risk-adjusted returns
Sharpe ratio is -60.94% lower than the industry
& is -57.03% lower than the market/S&P 500 average
Average Returns/Yield of
SCPL
Daily returns:
0.04%
Weekly returns:
0.21%
Monthly returns:
0.84%
Yearly returns:
21.16%
Comparison of returns:
Average annual returns/yield (last 3 years) is -52.62% below industry average
Classification:
SCPL, is amongst the top 60% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.72
Statistical test of Returns:
SCPL has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
3.36%
Weekly Volatility:
7.51%
Monthly Volatility:
15.03%
Yearly Volatility:
52.06%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.48%
Volatility in last five trading days has been -56.07% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-6.86%
Weekly VaR:
-15.34%
Monthly VaR:
-30.68%
How Much Can the price of
SCPL
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-27%
Worst case (decline):
>85%
This translates to price declining to:
$8.29
This translates to price declining to:
$1.70
Severe Crash Probability
Risk of crash in next 6/12 months: High (50-70%)
What is Value at Risk (VaR)?
Risk Fundamentals
SCPL is a 116.52% riskier investment compared to the market/S&P 500 & is 85.49% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is 18.50% above industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
SCPL
Beta in relation to market/S&P 500--0.26
Expected beta in 1 year's time:
0.366
Expected beta in 3 year's time:
0.518
Unlevered (debt free) Beta:
0.246
Beta in relation to Nasdaq (XNAS):
0.423
Beta in relation to all global stocks::
0.423
Beta Comparison & Analysis
Beta of competitors/peers::
2.148
Beta is -88.03% lower than peers
Average Industry Beta:
0.604
Beta is -57.44% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
24.64%
Sustainable growth rate is 83.51% above industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.051
Alpha is -63.14% below industry average alpha yield
Alpha is 325% higher than market/& is unsustainably high
Analysis of Cost of Capital of
SCPL
Equity cost of capital:
0.049
Equity cost of capital is -32.61% below industry mean WACC
Unlevered (without debt) cost of capital:
4.70%
Before-tax cost of debt:
-
After-tax cost of debt:
-
Overall debt rating:
-
Weighted average cost of capital (WACC):
-
-
Key Per-Share Metrics & Analysis
Revenue per share:
$4.82
Revenue growth rate per share of (3Y):
2.58
Annual revenue growth rate is -38.29% below industry average
EPS:
$0.74
Expected Annual growth rate of EPS (3Y):
-18.64%
Expected future EPS growth rate is -182.77% lower than the Electronic Gaming & Multimedia industry
Free cash flow (FCF) per share:
$7.06
-
-
Debt per share
$0.04
EBITDA per share
$0.32
Valuation Analysis Today of
SCPL
P/E Ratio:
15.38
P/E Ratio of Competitors/Peers:
10.2
P/E ratio is 50.85% higher than main peers & is -53.71% lower than the industry
Stock price/value with industry average P/E ratio: $24.58
SCPL is -54.04% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
2.34
Price to sales ratio is -41.04% below the industry mean
P/B (Price to book value ratio):
2.58
Price to free cash flow: 1.60
Price to free cash flow ratio is -92.68% lower than the industry
Net income growth rate (3Y):
-55.01%
Net income growth rate is 35.03% higher than the average industry net income growth rate
Dividend Analysis
Dividend payout rate: 1.09%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
4.66%
Net debt to equity ratio:
-278.56%
Debt to assets ratio:
0.65%
Net debt to assets ratio:
-38.69%
Debt-to-asset ratio is -98.46% below industry average
Ability to repay debt:
Interest coverage ratio:
-
-
Looking forward:
Debt growth rate:
-20.00%
Annual debt growth is -350% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.00%
Analysis of Key Statistics
Correlation of price movement with the market:
0.191
Statistical significance of correlation:
SCPL has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.384
Stock price is -50.24% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.384
Correlation of price movement with Nasdaq (^IXIC):
-0.055
Covariance of price movement with the market:
-0.107
Kurtosis
4.538
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.338
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
SCPL
Gross Profit Margin Ratio:
275%
Operating Profit Margin Ratio:
46.72%
Operating profit margin is -732.65% lower than the industry
Net Profit Margin Ratio:
275%
Effective Tax Rate:
4.64%
Effective tax rate is -64.51% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
17.85%
Return on equity (ROE) is 7759.87% higher than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
2.48%
Return on assets (ROA) is -150.92% lower than the industry
Financial Leverage:
1.0x
Current Ratio:
4.62
Current ratio is 10.18% above industry average
Cash Conversion Cycle (days):
-15.1
Cash conversion cycle is -119.90% below industry average
The remaining useful life of property plant & equipment is: 7.9 years
Stock based compensation to net income ratio:
-
In-depth Efficiency Analysis
Revenue generated per employee:
969.9K
Each employee generates 43% more revenue than industry average revenue per employee
EBITDA generated per employee:
64.9K
Each employee generates -50% less EBITDA than industry average revenue per employee
Profit generated per employee:
29.1K
Each employee generates -56% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
54.7K
Each employee generates 664% more free cash flow than industry average revenue per employee
Assets/Capital per employee
618.8K
Each employee generates 664% more free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 19.22%
Growth rate in R&D investment/expenditure is 340.34% higher than the industry
Competitors/Peer firms of
SCPL
LIBERTY TRIPADVISOR HOLDINGS, INC. (XNAS:LTRPA)
TRUE
LIBERTY TRIPADVISOR HOLDINGS, INC. (XNAS:LTRPB)
WiMi Hologram Cloud Inc. (XNAS:WIMI)
Luokung Technology Corp. (XNAS:LKCO)
GENIUS BRANDS INTERNATIONAL, INC. (XNAS:GNUS)
MOTORSPORT GAMES INC. (XNAS:MSGM)
CHICKEN SOUP FOR THE SOUL ENTERTAINMENT INC. (XNAS:CSSE)
MDCA
Current Analyst Ratings
Strong buy�0%
Buy�0%
Hold�0%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: -
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
613.00M
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
191.10M
421.90M
41.70M
63.40M
204.00M
140.60M
16.80M
262.50M
-
-
16.80M
41.00M
286.40M
18.40M
124.90M
5.80M
18.40M
Statement of Cash Flow
Date:
Period:
-
Differed Income Tax :
-
Stock Based Compensation :
-
Change in Working Capital :
-
Accounts Receivables:
-
Other Working Capital:
-
Other Non-Cash Items:
36.60M
Net Cash Provided by Operating Activities:
36.60M
Investments in PP&E:
-
Net Acquisitions:
- 106200.00K
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
292.00M
-
292.00M
42.80M
-
16.50M
351.30M
9.50M
222.60M
80.90M
-
76.30M
1.80M
391.10M
-
742.40M
20.60M
-
-
-
55.40M
76.00M
4.80M
104.60M
109.40M
-
185.40M
100.00K
56.60M
800.0K
-
March 31, 2022 at 6:00:00 AM
453.60M
103.10M
288.50M
-
4.80M
- 287200.0K
-
- 2000.00K
- 108200.00K
-
-
-
- 200.00K
- 500.00K
- 700.00K
- 100.00K
- 72400.00K
292.00M
364.40M
36.60M
- 2000.00K
34.60M
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
SCPL
2023
2024
2025
2026
2027
$11.04
$11.23
$11.42
$11.62
$11.82