Fact based stock research
Frontier Developments (AIM:FDEV)
GB00BBT32N39
How to read the ranks
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 73 (better than 73% compared with investment alternatives), Frontier Developments (Interactive Home Entertainment, United Kingdom) shares have above-average financial characteristics compared with similar stocks. Shares of Frontier Developments are a good value (attractively priced) with a consolidated Value Rank of 54 (better than 54% of alternatives), are safely financed (Safety Rank of 95, which means low debt burdens), but show below-average growth (Growth Rank of 21). ...read more
RECOMMENDATION: A Combined Rank of 73, is a buy recommendation based on Frontier Developments's financial characteristics. As the company Frontier Developments's key financial metrics exhibit good value (Obermatt Value Rank of 54) but low growth (Obermatt Growth Rank of 21) while being safely financed (Obermatt Safety Rank of 95), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 54% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. 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 |
18-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
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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 |
|
54 |
|
| GROWTH | ||||||||
| GROWTH | 24 |
|
17 |
|
9 |
|
21 |
|
| SAFETY | ||||||||
| SAFETY | 63 |
|
82 |
|
82 |
|
95 |
|
| 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 73 (better than 73% compared with investment alternatives), Frontier Developments (Interactive Home Entertainment, United Kingdom) shares have above-average financial characteristics compared with similar stocks. Shares of Frontier Developments are a good value (attractively priced) with a consolidated Value Rank of 54 (better than 54% of alternatives), are safely financed (Safety Rank of 95, which means low debt burdens), but show below-average growth (Growth Rank of 21). ...read more
RECOMMENDATION: A Combined Rank of 73, is a buy recommendation based on Frontier Developments's financial characteristics. As the company Frontier Developments's key financial metrics exhibit good value (Obermatt Value Rank of 54) but low growth (Obermatt Growth Rank of 21) while being safely financed (Obermatt Safety Rank of 95), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 54% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. 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 |
|
54 |
|
| GROWTH | ||||||||
| GROWTH | 24 |
|
17 |
|
9 |
|
21 |
|
| SAFETY | ||||||||
| SAFETY | 63 |
|
82 |
|
82 |
|
95 |
|
| COMBINED | ||||||||
| COMBINED | 61 |
|
64 |
|
64 |
|
73 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 54 (better than 54% compared with alternatives), Frontier Developments shares are more attractively priced than the majority of comparable stocks. 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 77, which means that the stock price compared with what market professionals expect for future sales is lower than for 77% 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 71% of alternatives (29% 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 3, 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 54, is a buy 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 |
|
77 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 84 |
|
50 |
|
3 |
|
3 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 31 |
|
52 |
|
81 |
|
71 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
1 |
|
1 |
|
1 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 38 |
|
51 |
|
65 |
|
54 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 21 (better than 21% compared with alternatives), Frontier Developments shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for Frontier Developments. While Sales Growth ranks at 68, professionals currently expect the company to grow more than 68% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 13, which means that, currently, professionals expect the company to grow its profits less than 87% of its competitors, and Capital Growth has a low rank of 47. Historic stock returns were also below average with a current Stock Returns rank of 9 which means that the stock returns have recently been below 91% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 21, is a sell recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. 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 isn't stellar here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 63 |
|
60 |
|
26 |
|
68 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | n/a |
|
9 |
|
47 |
|
13 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
63 |
|
9 |
|
47 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 18 |
|
7 |
|
5 |
|
9 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 24 |
|
17 |
|
9 |
|
21 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 95 (better than 95% 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 56, meaning the company has a below-average debt-to-equity ratio. It has less debt than 56% of its competitors. Refinancing is at a rank of 84, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 84% 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 95 (better than 95% 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 |
|
56 |
|
| REFINANCING | ||||||||
| REFINANCING | 73 |
|
56 |
|
92 |
|
84 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 63 |
|
62 |
|
62 |
|
100 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 63 |
|
82 |
|
82 |
|
95 |
|
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 |
|
Stock analysis by the purely fact based Obermatt Method for Frontier Developments from April 18, 2024.
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