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1. Company Snapshot

1.a. Company Description

Strong Global Entertainment, Inc.manufactures and distributes projection screens and customized screen support systems in North America, South America, Asia, and internationally.It distributes digital cinema equipment and provides technical support services to the entertainment industry.


The company also offers eclipse curvilinear screens for use in theme parks and immersive exhibitions, and military simulation applications; and projectors, servers, audio systems, and other third-party products, including lenses and lamps.In addition, it provides technical support services, such as digital projection equipment installation and after-sale maintenance, and network support services to the cinema operators; and managed services, as well as engages in the content creation and production of feature films and series.The company was incorporated in 2021 and is headquartered in Charlotte, North Carolina.


Strong Global Entertainment, Inc.operates as a subsidiary of Strong/MDI Screen Systems, Inc.

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1.b. Last Insights on SGE

Strong Global Entertainment's recent performance was negatively driven by the proposed merger with Fundamental Global Inc., which may undervalue the company's shares. The merger agreement, which offers 1.5 shares of common stock per share of Strong Global stock, has sparked concerns among shareholders. Additionally, the company's second-quarter operating results showed a decline in revenue, which may indicate a weakening business condition. Furthermore, the settlement agreement with Ravenwood-Productions, LLC to resolve civil litigation related to the production of the original series Safehaven may have also contributed to the negative sentiment.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Strong Global Entertainment Reports Second Quarter 2024 Operating Results

Aug -14

Source: globenewswire.com

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SHAREHOLDER ALERT: The M&A Class Action Firm Investigates the Merger of Revance Therapeutics, Inc. – RVNC

Aug -13

Source: globenewswire.com

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SGE ALERT: The M&A Class Action Firm Investigates Merger of Strong Global Entertainment, Inc.

Jul -29

Source: prnewswire.com

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“Safehaven” Producers Resolve Litigation With Strong Global Entertainment

Jul -22

Source: businesswire.com

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SHAREHOLDER ALERT: The M&A Class Action Firm Investigates Merger of Primo Water Corporation – PRMW

Jul -12

Source: globenewswire.com

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SHAREHOLDER ALERT: The M&A Class Action Firm Investigates Merger of Strong Global Entertainment, Inc. - SGE

Jul -12

Source: prnewswire.com

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STRONG GLOBAL INVESTOR ALERT BY THE FORMER ATTORNEY GENERAL OF LOUISIANA: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Strong Global Entertainment, Inc. - SGE

Jun -08

Source: accesswire.com

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SHAREHOLDER INVESTIGATION: Halper Sadeh LLC Investigates AKLI, SGE on Behalf of Shareholders

Jun -06

Source: accesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.69%)

6. Segments

Screen System

Expected Growth: 12.5%

Growing demand for digital cinema solutions, increasing adoption of premium formats, and rising need for efficient content management drive the growth of the screen system market.

Digital Equipment

Expected Growth: 12.5%

Growing demand for immersive entertainment experiences, increasing adoption of digital technologies in amusement parks and arcades, and rising popularity of e-sports and competitive gaming are driving the growth of digital equipment in the entertainment industry.

Field Maintenance and Monitoring Services

Expected Growth: 8.5%

Growing demand for proactive maintenance and real-time monitoring of entertainment systems, increasing adoption of IoT and AI technologies, and rising need for minimizing downtime and ensuring optimal performance are driving the growth of Field Maintenance and Monitoring Services.

Installation Services

Expected Growth: 8.5%

Growing demand for immersive cinematic experiences, increasing adoption of advanced audio-visual technologies, and rising need for technical support and maintenance services drive the growth of installation services for cinemas.

Other Product

Expected Growth: 4.5%

Strong Global Entertainment's Other Product segment is poised for growth driven by increasing demand for licensed content, rising popularity of digital platforms, and expansion into new markets.

Other Service

Expected Growth: 4.8%

Strong Global Entertainment's Other Service segment is poised for growth driven by increasing demand for film distribution and post-production services, fueled by the rise of streaming platforms and the growing need for high-quality content.

Extended Warranty

Expected Growth: 10.2%

The extended warranty market is driven by increasing consumer demand for protection against product failures, coupled with the growing need for repair services beyond standard manufacturer warranties. Strong Global Entertainment, Inc.'s extended warranty offerings are poised to capitalize on this trend, with a forecasted CAGR of 10.2%.

7. Detailed Products

Arcade Machines

Strong Global Entertainment, Inc. offers a wide range of arcade machines, including classic video games, ticket redemption games, and prize redemption games, designed to provide entertainment for people of all ages.

Laser Tag Systems

The company's laser tag systems provide an immersive and interactive gaming experience, featuring advanced technology and customizable arena designs.

Virtual Reality (VR) Experiences

Strong Global Entertainment, Inc. offers a range of VR experiences, including VR escape rooms, VR shooters, and VR adventure games, designed to transport players to new worlds.

Playground Equipment

The company's playground equipment includes soft play structures, climbing walls, and ball pits, designed to provide a safe and fun environment for kids to play and learn.

Ticket Redemption Games

Strong Global Entertainment, Inc. offers a variety of ticket redemption games, including crane games, pusher games, and prize wheel games, designed to provide a fun and rewarding experience for players.

Amusement Park Rides

The company's amusement park rides include bumper cars, carousels, and Ferris wheels, designed to provide a thrilling and enjoyable experience for riders.

8. Strong Global Entertainment, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Strong Global Entertainment, Inc. is medium due to the availability of alternative forms of entertainment such as video games, social media, and outdoor activities.

Bargaining Power Of Customers

The bargaining power of customers is high due to the large number of entertainment options available, allowing customers to easily switch to alternative providers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the company's large scale and ability to negotiate favorable contracts with suppliers.

Threat Of New Entrants

The threat of new entrants is medium due to the high barriers to entry in the entertainment industry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the large number of established players in the entertainment industry, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.89%
Debt Cost 3.95%
Equity Weight 46.11%
Equity Cost 3.95%
WACC 3.95%
Leverage 116.86%

11. Quality Control: Strong Global Entertainment, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Quantum

A-Score: 4.4/10

Value: 10.0

Growth: 1.0

Quality: 5.8

Yield: 0.0

Momentum: 9.5

Volatility: 0.3

1-Year Total Return ->

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Identiv

A-Score: 4.4/10

Value: 8.4

Growth: 3.6

Quality: 6.3

Yield: 0.0

Momentum: 4.5

Volatility: 3.7

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Stratasys

A-Score: 4.3/10

Value: 8.6

Growth: 2.3

Quality: 3.5

Yield: 0.0

Momentum: 8.5

Volatility: 3.0

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One Stop Systems

A-Score: 3.9/10

Value: 7.4

Growth: 0.6

Quality: 4.2

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

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Strong Global Entertainment

A-Score: 3.4/10

Value: 6.6

Growth: 2.6

Quality: 6.3

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

1-Year Total Return ->

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3D Systems

A-Score: 3.0/10

Value: 8.4

Growth: 0.7

Quality: 3.8

Yield: 0.0

Momentum: 4.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.55$

Current Price

1.55$

Potential

-0.00%

Expected Cash-Flows