Fact based stock research
Frontier Developments (AIM:FDEV)
GB00BBT32N39
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Frontier Developments stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 98 (better than 98% compared with investment alternatives), Frontier Developments (Interactive Home Entertainment, United Kingdom) shares have much better financial characteristics than comparable stocks. Shares of Frontier Developments are low in value (priced high) with a consolidated Value Rank of 43 (worse than 57% of alternatives). But they show above-average growth (Growth Rank of 71) and are safely financed (Safety Rank of 94, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 98, is a strong buy recommendation based on Frontier Developments's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Frontier Developments exhibits low value (Obermatt Value Rank of 43), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 71). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 94) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | United Kingdom |
| Industry | Interactive Home Entertainment |
| Index | |
| Size class | Small |
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Frontier Developments
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 38 |
|
51 |
|
65 |
|
43 |
|
| GROWTH | ||||||||
| GROWTH | 24 |
|
17 |
|
9 |
|
71 |
|
| SAFETY | ||||||||
| SAFETY | 63 |
|
82 |
|
82 |
|
94 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
8 |
|
1 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
3 |
|
10 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 98 (better than 98% compared with investment alternatives), Frontier Developments (Interactive Home Entertainment, United Kingdom) shares have much better financial characteristics than comparable stocks. Shares of Frontier Developments are low in value (priced high) with a consolidated Value Rank of 43 (worse than 57% of alternatives). But they show above-average growth (Growth Rank of 71) and are safely financed (Safety Rank of 94, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 98, is a strong buy recommendation based on Frontier Developments's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Frontier Developments exhibits low value (Obermatt Value Rank of 43), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 71). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 94) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 38 |
|
51 |
|
65 |
|
43 |
|
| GROWTH | ||||||||
| GROWTH | 24 |
|
17 |
|
9 |
|
71 |
|
| SAFETY | ||||||||
| SAFETY | 63 |
|
82 |
|
82 |
|
94 |
|
| COMBINED | ||||||||
| COMBINED | 61 |
|
64 |
|
64 |
|
98 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 43 (worse than 57% compared with alternatives), Frontier Developments shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Frontier Developments. Price-to-Sales (P/S) is 76, which means that the stock price compared with what market professionals expect for future sales is lower than for 76% of comparable companies, indicating a good value concerning Frontier Developments's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio), which is more favorable than for 74% of alternatives (26% of peers have a higher ratio). But expected dividend yields with a Dividend Yield rank of 1 are lower than average (dividends are expected to be lower than 99% of other stocks) while the Price to Profit ratio (or Price to Earnings (P/E) ratio) is higher than average with a Price-to-Profit Rank of 1, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 43, is a hold recommendation based on Frontier Developments's stock price compared with the company's operational size and dividend yields. Low profits and low dividends as seen here for Frontier Developments may indicate a restructuring phase. This could be transitory, making the company a good value when profits recover and dividends return to higher levels. If the stock price is compared with the size indicators for revenue and invested capital, it is on the lower side, making this stock a good value investment (apart from current profit and dividend expectations). We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 32 |
|
59 |
|
89 |
|
76 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 84 |
|
50 |
|
3 |
|
1 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 31 |
|
52 |
|
81 |
|
74 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
1 |
|
1 |
|
1 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 38 |
|
51 |
|
65 |
|
43 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 71 (better than 71% compared with alternatives), Frontier Developments shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Frontier Developments. Profit Growth has a rank of 93, which means that currently professionals expect the company to grow its profits more than 93% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 91 (above 91% of alternative investments). But Sales Growth has a below the median rank of 33, which means that, currently, professionals expect the company to grow less than 67% of its competitors, and Capital Growth also has a lower rank of 32. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 71, is a buy recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Frontier Developments. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 63 |
|
60 |
|
26 |
|
33 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | n/a |
|
9 |
|
47 |
|
93 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
63 |
|
9 |
|
32 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 18 |
|
7 |
|
5 |
|
91 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 24 |
|
17 |
|
9 |
|
71 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 94 (better than 94% compared with alternatives) for 2024, the company Frontier Developments has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Frontier Developments is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Frontier Developments. Leverage is at 52, meaning the company has a below-average debt-to-equity ratio. It has less debt than 52% of its competitors. Refinancing is at a rank of 88, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 88% of its competitors. Finally, Liquidity is also good at a rank of 100, which means that the company generates more profit to service its debt than 100% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 94 (better than 94% compared with alternatives), Frontier Developments has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Frontier Developments but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 45 |
|
62 |
|
62 |
|
52 |
|
| REFINANCING | ||||||||
| REFINANCING | 73 |
|
56 |
|
92 |
|
88 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 63 |
|
62 |
|
62 |
|
100 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 63 |
|
82 |
|
82 |
|
94 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
19 |
|
21 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
40 |
|
5 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
36 |
|
1 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
30 |
|
23 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
8 |
|
1 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Frontier Developments from December 19, 2024.
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