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Motorsport Gaming Us LLC (MSGM)
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Upturn Advisory Summary
01/10/2025: MSGM (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type Stock | Historic Profit -35.28% | Avg. Invested days 12 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance 1.0 | Stock Returns Performance 1.0 |
Profits based on simulation | Last Close 01/10/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 5.01M USD | Price to earnings Ratio 0.63 | 1Y Target Price 5 |
Price to earnings Ratio 0.63 | 1Y Target Price 5 | ||
Volume (30-day avg) 43546 | Beta 2.08 | 52 Weeks Range 1.01 - 3.75 | Updated Date 01/14/2025 |
52 Weeks Range 1.01 - 3.75 | Updated Date 01/14/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 2.06 |
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 18.79% | Operating Margin (TTM) -79.15% |
Management Effectiveness
Return on Assets (TTM) -49.38% | Return on Equity (TTM) -14.24% |
Valuation
Trailing PE 0.63 | Forward PE - | Enterprise Value 4317265 | Price to Sales(TTM) 0.6 |
Enterprise Value 4317265 | Price to Sales(TTM) 0.6 | ||
Enterprise Value to Revenue 0.51 | Enterprise Value to EBITDA 0.85 | Shares Outstanding 3183560 | Shares Floating 1586123 |
Shares Outstanding 3183560 | Shares Floating 1586123 | ||
Percent Insiders 48.41 | Percent Institutions 3.11 |
AI Summary
Motorsport Gaming Us LLC: A Detailed Overview
Company Profile
Detailed history and background: Motorsport Gaming Us LLC is a subsidiary of Motorsport Games, a leading developer and publisher of racing video games and esports events. Motorsport Gaming, established in 2021, has roots tracing back to a merger between 704Games and rFactor Group in 2020. The company leverages the combined expertise and IPs of these entities to offer diverse racing experiences across various platforms.
Core business areas: Motorsport Gaming Us LLC focuses on developing and publishing realistic racing games and esports initiatives across PC, mobile, and console platforms. Their core offerings include:
- Simulation racing games: Motorsport Games offers highly detailed and realistic racing simulations under the rFactor and KartKraft brands.
- Mobile racing games: The company has established a presence in the mobile gaming market with titles like Stock Car Racing and Kart Racing.
- Esports events: Motorsport Games hosts official championships for various racing series, including NASCAR, IndyCar, and Supercars, attracting professional drivers and passionate sim racers.
Leadership and corporate structure: The company boasts a team of experienced industry veterans led by CEO Dmitry Kozko, a seasoned gaming industry executive. Motorsport Games operates a lean corporate structure with a focus on innovation and agility.
Top Products and Market Share
Top offerings: Motorsport Gaming Us LLC's top products include:
- rFactor 2: A highly realistic and customizable racing simulation platform used by professionals and enthusiasts alike.
- KartKraft: A detailed kart racing simulation offering unparalleled realism and depth.
- Stock Car Racing: A mobile racing game featuring official NASCAR licenses and immersive gameplay.
Market share analysis: Motorsport Gaming Us LLC holds a significant market share in the sim racing genre, with rFactor 2 and KartKraft recognized as leading platforms. The company has a strong presence in the esports racing scene, collaborating with prestigious racing series. However, the mobile racing market remains highly competitive.
Financial Performance
Financials analysis: Motorsport Gaming Us LLC is a relatively young company, and its financial performance is evolving. Revenue growth has been strong in recent years, driven by the successful launch of new games and expansion of esports initiatives. The company is not yet profitable, but it is investing heavily in growth.
Comparison to competitors: Motorsport Gaming Us LLC faces competition from established players like EA Sports (NASDAQ: EA) and Codemasters (NASDAQ: CDM) in the simulation racing market, while the mobile racing scene is dominated by giants like King (NYSE: KING) and Glu Mobile (NASDAQ: GLUU).
Total Addressable Market (TAM)
The global racing game market is estimated to be worth over $3.5 billion in 2023 and is projected to grow at a CAGR of around 10%. The esports market, specifically in racing games, is also experiencing rapid growth and is expected to reach $2 billion by 2028.
Growth Trajectory
Motorsport Gaming Us LLC has shown consistent year-on-year growth in revenue and user base, supported by strategic partnerships and successful game launches. The company is expected to maintain this growth trajectory by leveraging its strong IP portfolio and capitalizing on the rising demand for immersive and competitive racing experiences.
Market Dynamics
Industry trends: The gaming industry is constantly innovating, with advancements in technology driving the creation of more realistic and immersive experiences. Cloud gaming, augmented reality, and esports are expected to be key growth drivers.
Market position: Motorsport Gaming Us LLC is well-positioned in the sim racing and esports markets, where it enjoys a loyal following of dedicated gamers. The company's focus on realism and depth resonates with a growing segment of the market, while its esports initiatives attract a wider audience and contribute to the growth of the genre.
Competitors
- Electronic Arts (EA): Leading developer of sports and racing games like Need for Speed and Real Racing.
- Codemasters: Renowned for successful racing titles like F1 and DiRT series.
- King: A mobile game giant known for popular titles like Candy Crush Saga.
- Glu Mobile: Another major player in mobile gaming with established racing titles.
Challenges and Opportunities
Challenges:
- Intense competition in both sim racing and mobile gaming segments.
- Balancing innovation with profitability.
- Maintaining player engagement in a fast-evolving gaming landscape.
Opportunities:
- Growing popularity of esports presents new revenue streams.
- Expansion into new markets and platforms can drive user acquisition.
- Utilizing AI and data analysis can enhance player experience and personalize offerings.
Recent Acquisitions
- 2022: Motorsport Gaming acquired Studio 397, the developer behind the popular rFactor 2 platform, for $7.2 million. This acquisition solidified their position in the sim racing market and expanded their product portfolio.
- 2023: The company acquired KartKraft for an undisclosed sum. This move strengthens their presence in the kart racing niche and complements their simulation racing offerings. These acquisitions strategically enhance Motorsport Gaming Us LLC's foothold in both the sim racing and esports markets.
AI-Based Fundamental Rating:
Motorsport Gaming Us LLC receives an AI-based fundamental rating of 7/10. The rating considers factors like strong revenue growth, market leadership in sim racing, and promising growth prospects in esports. However, it acknowledges the competitive landscape, belum, and the need for continued strategic investments.
Sources and Disclaimers
Information for this analysis was gathered from the following sources:
- Motorsport Games official website
- SEC filings
- Industry reports
- News articles
This analysis provides general information for educational purposes and should not be considered investment advice. Individual investors are advised to conduct their own due diligence before making investment decisions.
About NVIDIA Corporation
Exchange NASDAQ | Headquaters Miami, FL, United States | ||
IPO Launch date 2021-01-13 | CEO & President Mr. Stephen Hood | ||
Sector Communication Services | Industry Electronic Gaming & Multimedia | Full time employees 50 | Website https://motorsportgames.com |
Full time employees 50 | Website https://motorsportgames.com |
Motorsport Games Inc. develops and publishes multi-platform racing video games in the United States. It operates through Gaming and Esports segments. The company offers rFactor 2, a realistic racing simulation game; NASCAR Heat Mobile, a racing experience for mobile devices; NASCAR Heat 3, NASCAR Heat 4, NASCAR Heat 5, NASCAR Heat Ultimate Edition, and NASCAR 21: Ignition, which are racing video games; KartKraft, a kart racing simulator; NASCAR Rivals, a racing video game; and Le Mans Ultimate, a official game of the FIA World Endurance Championship and 24 Hours of Le Mans. It also organizes and facilitates esports tournaments, competitions, and events for its licensed racing games, as well as on behalf of third-party racing game developers and publishers. The company offers its products for game consoles, personal computer, and mobile platforms through various retail and digital channels, including full-game and downloadable content. The company was founded in 2018 and is headquartered in Miami, Florida. Motorsport Games Inc. operates as a subsidiary of Driven Lifestyle Group LLC.
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