iCandy Interactive Ltd (ICI) AI Stock Analysis

• Market Cap: AU$20.49M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 53.3
• Beta (1Y): 1.51
• Revenue Growth: -2.82%
• EPS Growth: N/A
• Country: AU
• Employees: 650
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.00
• Shares Outstanding: 1,280,407,300
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -0.66
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 1.03
• P/FCF Ratio: 10.14
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: AU$0.02 ▼(-20.00% Downside)

The overall stock score is primarily influenced by the company's financial performance, which shows improvement in profitability and operational efficiency. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests overvaluation. These factors combined result in a cautious outlook for the stock.

Positive Factors

Board Enhancement

The proposed board appointment of Mr. Dominic Virgara, with his expertise in corporate finance and governance, is expected to strengthen strategic oversight and align with shareholder interests, promoting sustainable long-term value for iCandy Interactive.

Operational Efficiency

The improvement in gross profit margin to 62% indicates efficient cost management, which can enhance profitability and provide a competitive edge in the gaming industry, supporting long-term financial health.

Market Expansion

Expanding operations in South Korea, Japan, and North America through Lemon Sky Studios positions iCandy Interactive to capture new market opportunities and diversify revenue streams, enhancing its competitive position.

Negative Factors

Revenue Decline

A 7% year-over-year revenue decline raises concerns about iCandy Interactive's ability to grow its top line, which could impact its market position and long-term growth potential if not addressed.

Cash Flow Challenges

The significant decline in free cash flow growth suggests challenges in cash generation, which could limit iCandy Interactive's ability to invest in new projects and sustain operations, affecting long-term financial stability.

Revenue Growth Trend

Negative revenue growth of -2.82% indicates a declining trend, which could hinder iCandy Interactive's ability to maintain its market position and achieve sustainable growth in the competitive gaming industry.

iCandy Interactive Ltd Business Overview & Revenue Model

Company Description

iCandy Interactive Limited, together with its subsidiaries, designs, develops, and publishes mobile games and digital entertainment in Australia, Singapore, Malaysia, and Indonesia. It operates through Development of Digital Media, Development of Intellectual Properties, and All Other segments. The company also offers software for interactive digital media, as well as engages in the design and development of intellectual properties for software applications and games. iCandy Interactive Limited was incorporated in 2015 and is headquartered in Melbourne, Australia.

How the Company Makes Money

iCandy Interactive Ltd generates revenue through multiple streams, primarily from in-app purchases, advertising, and game sales. The company monetizes its mobile games by offering free-to-play models where users can download games at no cost, with optional in-game purchases to enhance gameplay or accelerate progress. Additionally, ICI earns revenue through partnerships with advertising networks, allowing them to integrate ads into their games and share in the advertising revenue. Collaborations with other game developers and platforms also contribute to their earnings, as they may engage in co-development or licensing agreements that expand their reach and user base. The company's strategic focus on user engagement and retention is critical in maximizing these revenue streams.

iCandy Interactive Ltd Financial Statement Overview

Summary

iCandy Interactive Ltd has shown improvement in financial performance with positive profitability and cash flow trends. The company has achieved better operational efficiency, as indicated by improved margins and positive cash flows. However, revenue growth is a challenge, and there is room to enhance return on equity to increase shareholder value. Overall, the financial health is stable with low leverage, supporting future growth.

Income Statement

iCandy Interactive Ltd shows a mixed performance in its income statement. The gross profit margin improved significantly in 2024, reaching 62.1%, indicating effective cost management. However, the company experienced a decline in total revenue from 2023 to 2024, indicating potential challenges in market expansion or sales. Despite this, the net profit margin turned positive in 2024 at 1.5%, a noteworthy recovery from negative margins in previous years. The EBIT and EBITDA margins also improved, suggesting better operational efficiency.

Balance Sheet

The balance sheet displays a strong equity position with a high equity ratio of 88.9% in 2024, reflecting a solid capital foundation. The debt-to-equity ratio is low at 0.07, indicating low leverage and financial stability. Return on equity, however, is modest at 0.6%, suggesting room for improvement in generating returns on shareholder investments. Overall, the balance sheet reflects a stable financial structure with minimal risk from debt.

Cash Flow

The cash flow statement shows positive developments with a significant turnaround in operating cash flow to $4.29 million in 2024, from negative figures in previous years. This improvement indicates enhanced cash generation from operations. The free cash flow also turned positive in 2024 at $2.56 million, a notable recovery from negative figures in the previous years. The operating cash flow to net income ratio is strong, reflecting efficient cash conversion, although the free cash flow to net income ratio could be improved.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.37M	26.11M	29.15M	1.94M	3.59M
Gross Profit	15.75M	12.33M	4.26M	-2.06M	438.84K
EBITDA	3.98M	-7.85M	3.50M	-2.93M	755.44K
Net Income	381.56K	-13.18M	-1.50M	-4.12M	-435.78K
Balance Sheet
Total Assets	75.16M	74.10M	93.25M	36.05M	17.75M
Cash, Cash Equivalents and Short-Term Investments	4.27M	7.17M	19.02M	18.77M	11.83M
Total Debt	4.57M	7.14M	6.13M	133.65K	201.97K
Total Liabilities	8.20M	9.40M	10.31M	2.34M	2.30M
Stockholders Equity	66.81M	64.56M	81.92M	33.62M	15.32M
Cash Flow
Free Cash Flow	2.56M	-13.44M	-3.92M	-2.24M	-1.15M
Operating Cash Flow	4.29M	-7.55M	-60.94K	-1.96M	530.74K
Investing Cash Flow	-3.56M	-5.18M	-14.12M	-4.39M	-1.88M
Financing Cash Flow	-2.61M	760.49K	14.03M	12.84M	12.73M

iCandy Interactive Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Neutral
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ICI, the sentiment is Negative. The current price of 0.02 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.02, indicating a bearish trend. The MACD of >-0.01 indicates Neutral momentum. The RSI at 100.00 is Negative, neither overbought nor oversold. The STOCH value of 500.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ICI.

iCandy Interactive Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
MXO	54 Neutral	AU$16.15M	-540.00	-1.65%	―	12.07%	98.72%
PLY	48 Neutral	AU$106.65M	-8.14	-26.76%	―	-24.66%	-206.50%
ICI	47 Neutral	AU$20.49M	53.33	―	―	-2.82%	―
SHO	44 Neutral	AU$37.59M	-11.40	―	―	340.15%	-168.75%
SP8	44 Neutral	AU$14.10M	-5.45	-19.65%	―	201.07%	-69.23%
FTI	38 Underperform	AU$53.28M	-10.39	-53.59%	―	-15.18%	89.75%

iCandy Interactive Ltd Corporate Events

iCandy Interactive Receives Shareholder Proposal for Board Appointment

iCandy Interactive Limited has received a notice from shareholders holding approximately 5.5% of the company’s issued capital, proposing the appointment of Mr. Dominic Virgara as a director at the upcoming Annual General Meeting. The shareholders believe Mr. Virgara’s extensive experience in corporate finance and governance will enhance the board’s capabilities, aligning with shareholder interests and promoting sustainable long-term value. The company is also working towards reinstating its securities on the Australian Securities Exchange, with plans to convene the 2025 Annual General Meeting after completing the audit of the 2024 financial statements, expected in the first quarter of 2026.

iCandy Interactive Ltd: Strategic Shifts and Market Expansion Amidst Industry Challenges

iCandy Interactive Ltd reports steady progress in its operations despite challenges in the global video game market. Lemon Sky Studios has secured several mid-size projects in South Korea and Japan, while also strengthening its presence in North America. The Animation Division has shifted focus to Tier 2 markets outside North America, securing projects in Europe. The Metal Genesis project has expanded its scope, launching a playtest version and receiving positive feedback. ZKCandy continues to roll out AI-enabled Web3 games, enhancing its market presence.