Nacon SASU (NACON) AI Stock Analysis

• Market Cap: €15.69M
• Dividend Yield: N/A
• Average Volume (3M): 146.49K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 1.23
• Revenue Growth: -4.48%
• EPS Growth: -105.25%
• Country: FR
• Employees: 1,070
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.00
• Shares Outstanding: 109,172,490
• 10 Day Avg. Volume: 135,591
• 30 Day Avg. Volume: 146,490
• PEG Ratio: 0.42
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 1.01
• 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): 0.02
• Revenue Forecast (FY): €175.95M

• Rating: 47 Neutral
• Price Target: €0.14 ▼(-73.40% Downside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is held down primarily by very weak technicals (price well below key moving averages, negative MACD, and extremely low RSI/Stoch). Financial performance is also pressured by declining revenue, negative profitability, and weaker cash flow trends, though moderate leverage and a healthy equity base provide some support. Valuation is relatively attractive on P/E, but it does not outweigh the operational and momentum headwinds.

Positive Factors

Diversified business model

Nacon’s dual revenue streams—publishing/distribution of games and branded gaming accessories—provide structural diversification. This reduces reliance on single-title hits, smooths cyclicality between content and hardware cycles, and supports more stable medium-term revenue and margin profiles.

High gross profit margin

A sustained ~63% gross margin indicates effective cost management and favorable product economics (digital/game sales and higher-margin accessories). Structurally high gross margins give room to absorb SG&A or R&D while preserving the potential to return to operating profitability if overheads are controlled.

Moderate leverage and healthy equity base

A moderate debt-to-equity (0.50) and healthy equity ratio provide financial flexibility to fund game development cycles, inventory for peripherals, or targeted M&A without excessive interest burden. This capital structure supports resilience across multi-quarter content and product investment timelines.

Negative Factors

Declining revenue trend

Recent revenue decline (~5%) and negative short-term growth indicate weakening top-line momentum. In a hit-driven games industry, sustained revenue contraction reduces scale benefits, limits marketing and development budgets, and raises the risk that product pipelines and accessory volumes cannot offset future revenue shocks.

Negative profitability

Erosion from solid gross margins to negative net margins shows operating and fixed-cost pressures or unfavorable mix. Persistently negative profitability undermines internal funding for game development, weakens ROE, and can force cost cuts or external financing that constrain strategic investment over the medium term.

Soft cash flow generation

Declining free cash flow growth and operating cash flow lagging net income point to weaker cash conversion. Over multiple quarters this limits the company’s ability to self-fund development cycles, manage inventory for peripherals, or absorb delays in game revenue, increasing reliance on external financing.

Nacon SASU Business Overview & Revenue Model

Company Description

Nacon S.A. designs and distributes gaming accessories in France and internationally. The company offers accessories, including headsets, microphones, controllers, racing wheels, gaming chairs, keyboards, mice, mats, audio accessories, and console accessories. It also develops and publishes video games in various categories, such as action-adventure, racing, sport, and simulation. The company was founded in 2019 and is based in Fretin, France. Nacon S.A. is a subsidiary of BigBen Interactive SA.

How the Company Makes Money

NACON generates revenue through multiple streams, primarily from the sale of video games, which includes both physical and digital formats. The company publishes its own titles and collaborates with various developers to bring games to market, earning royalties and sales revenue. Additionally, NACON profits from the sale of gaming accessories, which cater to both casual and professional gamers. Partnerships with leading gaming platforms and participation in licensing deals further enhance its revenue potential. The company also benefits from seasonal sales and promotional events, which boost sales figures during peak gaming periods.

Nacon SASU Financial Statement Overview

Summary

Financials are mixed but pressured: revenue declined (-5.09%) and profitability weakened with negative net margin alongside deteriorating EBIT/EBITDA margins. Balance sheet leverage is moderate (debt-to-equity 0.50) with a healthy equity ratio, but negative ROE and soft free cash flow growth (-5.34%) limit the score.

Income Statement

Nacon SASU has experienced fluctuating revenue growth, with a recent decline of 5.09% in the latest period. The gross profit margin remains relatively stable at 63.22%, indicating efficient cost management. However, the net profit margin has turned negative, reflecting challenges in maintaining profitability. The EBIT and EBITDA margins have also deteriorated, suggesting operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.50, indicating a balanced approach to leveraging. However, the return on equity has turned negative, highlighting issues in generating returns for shareholders. The equity ratio remains healthy, suggesting a solid capital structure.

Cash Flow

Nacon SASU's free cash flow growth has declined by 5.34%, indicating potential cash flow challenges. The operating cash flow to net income ratio is below 1, suggesting that cash flow generation is not fully supporting net income. However, the free cash flow to net income ratio is close to 1, indicating that free cash flow is almost covering net income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	169.03M	167.94M	167.71M	155.98M	155.91M	177.83M
Gross Profit	64.26M	21.59M	28.14M	35.88M	37.61M	49.93M
EBITDA	-21.75M	-1.28M	70.54M	48.56M	39.84M	54.96M
Net Income	-1.03M	-1.34M	17.53M	12.77M	9.96M	18.30M
Balance Sheet
Total Assets	516.51M	512.93M	478.96M	483.31M	412.25M	317.51M
Cash, Cash Equivalents and Short-Term Investments	16.48M	29.27M	26.24M	47.60M	82.15M	96.75M
Total Debt	136.16M	143.48M	142.80M	168.85M	145.00M	59.45M
Total Liabilities	233.26M	228.57M	215.41M	240.76M	183.84M	107.05M
Stockholders Equity	283.26M	284.36M	263.55M	242.55M	228.41M	210.72M
Cash Flow
Free Cash Flow	69.45M	59.34M	71.88M	45.04M	31.04M	54.46M
Operating Cash Flow	70.12M	60.46M	73.09M	47.35M	32.38M	55.66M
Investing Cash Flow	-78.66M	-79.99M	-87.30M	-115.94M	-81.35M	-53.70M
Financing Cash Flow	4.14M	19.14M	-8.55M	33.89M	35.28M	-15.58M

Nacon SASU Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:NACON, the sentiment is Negative. The current price of 0.53 is above the 20-day moving average (MA) of 0.31, above the 50-day MA of 0.41, and below the 200-day MA of 0.63, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 8.08 is Positive, neither overbought nor oversold. The STOCH value of 12.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:NACON.

Nacon SASU Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALREW	73 Outperform	€85.23M	2.65	12.60%	1.29%	-3.53%	28.87%
ALPUL	62 Neutral	€102.77M	―	-0.44%	6.54%	-14.35%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
NACON	47 Neutral	€15.69M	7.83	-0.36%	―	-4.48%	-105.25%
UBI	45 Neutral	€528.43M	-1.98	-4.52%	―	-11.78%	-28.61%
ALDNE	38 Underperform	€7.32M	-0.16	-78.20%	―	90.92%	24.05%
ALATA	38 Underperform	€64.76M	-2.54	-514.29%	―	63.11%	10.97%