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): 1.39
• 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: 57 Neutral
• Price Target: ―

iCandy Interactive Ltd’s overall stock score reflects stable financial performance with positive profitability and cash flow trends, albeit challenged by revenue growth and return on equity. The technical analysis suggests a neutral market position, lacking strong momentum. Valuation is a concern due to a high P/E ratio and absence of dividends, indicating potential overvaluation. These factors collectively contribute to a moderate stock score.

Positive Factors

Operational Efficiency

Improved gross profit margin signifies strong operational efficiency, enhancing profitability and enabling reinvestment in growth initiatives.

Cash Flow Improvement

Positive operating cash flow indicates robust cash generation, supporting business expansion and providing financial stability.

Strategic Expansion

Global expansion efforts, especially in the USA, enhance market reach and growth potential, leveraging industry expertise for strategic advantage.

Negative Factors

Revenue Decline

Declining revenue suggests challenges in market penetration or product demand, potentially impacting long-term growth prospects.

Return on Equity

Low return on equity indicates inefficiency in using equity capital to generate profits, potentially limiting shareholder value creation.

Financial Misconduct Investigation

Investigation into financial misconduct can lead to reputational damage and operational disruptions, affecting investor confidence and stability.

iCandy Interactive Ltd Business Overview & Revenue Model

Company Description

iCandy Interactive Ltd (ICI) is a leading mobile games developer based in Australia, primarily focused on creating engaging and high-quality gaming experiences for a global audience. The company operates in the interactive entertainment sector, specializing in the development, publishing, and distribution of mobile games across various platforms. With a diverse portfolio that includes popular titles, ICI aims to leverage innovative gameplay and captivating narratives to attract a wide range of players, thereby establishing itself as a key player in the competitive gaming industry.

How the Company Makes Money

iCandy Interactive Ltd generates revenue primarily through the sale of in-game purchases, advertising, and partnerships. The company monetizes its games by offering users additional content, such as virtual goods, upgrades, and special features that enhance the gaming experience. Additionally, ICI earns revenue from advertising placements within their games, collaborating with advertisers to showcase products or services to their user base. Strategic partnerships with other gaming developers and platforms also contribute to its earnings, enabling ICI to expand its reach and improve its game offerings. This combination of direct sales, advertising revenue, and collaborative efforts forms the foundation of ICI's revenue model.

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%
ICI	57 Neutral	AU$20.49M	53.33	―	―	-2.82%	―
MXO	54 Neutral	AU$18.05M	-570.00	-1.65%	―	12.07%	98.72%
PLY	48 Neutral	AU$101.88M	-7.63	-26.76%	―	-24.66%	-206.50%
SHO	44 Neutral	$30.12M	-8.60	―	―	340.15%	-168.75%
SP8	44 Neutral	AU$14.10M	-5.00	-19.65%	―	201.07%	-69.23%
FTI	38 Underperform	AU$28.86M	―	-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.