UBISOFT Entertainment (FR:UBI)
:UBI
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UBISOFT Entertainment
(UBI)
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Rating:45Neutral
Price Target:
€5.00
▼(-1.38% Downside)
Action:ReiteratedDate:02/14/26
The score is driven primarily by weak financial performance (declining revenue, negative margins, high leverage, and sharply lower free cash flow). Technical indicators also point to a bearish longer-term trend with negative MACD. Valuation provides limited support because earnings are negative and no dividend yield is available.
Positive Factors
Recurring digital revenue model
Ubisoft's shift toward digital distribution and post-launch monetization (DLC, season passes, microtransactions, live ops) creates higher-margin, recurring revenue streams. This structural mix improves revenue visibility, lifetime value per player, and reduces reliance on physical retail economics over the medium term.
Negative Factors
Declining revenue and negative profitability
An ongoing revenue decline combined with negative EBIT and net margin indicates core operations are not yet self-sustaining. Even with strong gross margins, operating losses signal high fixed costs or elevated investment that can erode ability to fund growth internally and undermine long-term margin recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring digital revenue model
Ubisoft's shift toward digital distribution and post-launch monetization (DLC, season passes, microtransactions, live ops) creates higher-margin, recurring revenue streams. This structural mix improves revenue visibility, lifetime value per player, and reduces reliance on physical retail economics over the medium term.
Read all positive factors
UBISOFT Entertainment (UBI) vs. iShares MSCI France ETF (EWQ)
Market Cap
€666.03M
Dividend YieldN/A
Average Volume (3M)479.91K
Price to Earnings (P/E)―
Beta (1Y)1.02
Revenue Growth-11.78%
EPS Growth-28.61%
CountryFR
Employees18,666
SectorGeneral
Sector StrengthN/A
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-0.54
Shares Outstanding134,769,320
10 Day Avg. Volume470,026
30 Day Avg. Volume479,912
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)0.79
Price to Sales (P/S)0.75
P/FCF Ratio11.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€4.73Price Target Upside-6.64% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)-0.83
Revenue Forecast (FY)€1.62B
UBISOFT Entertainment Business Overview & Revenue Model
Company Description
Ubisoft Entertainment SA produce, publishes, and distributes video games for consoles, PC, smartphones, and tablets in both physical and digital formats in Europe, North America, and internationally. The company designs and develops software, incl...
How the Company Makes Money
Ubisoft primarily generates revenue from selling video games and related digital content across console, PC, and mobile platforms. A large and growing portion of sales comes from digital channels (e.g., full-game downloads, digital editions, and o...
UBISOFT Entertainment Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
55
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.89B | 1.90B | 2.30B | 1.81B | 2.13B | 2.22B |
| Gross Profit | 1.43B | 1.70B | 2.10B | 1.60B | 1.86B | 1.90B |
| EBITDA | 460.10M | 670.30M | 1.11B | 719.30M | 799.90M | 804.60M |
| Net Income | -73.70M | -159.00M | 157.80M | -494.20M | 79.10M | 103.10M |
Balance Sheet | ||||||
| Total Assets | 4.31B | 4.70B | 5.12B | 4.67B | 4.96B | 4.88B |
| Cash, Cash Equivalents and Short-Term Investments | 668.40M | 990.00M | 1.21B | 1.49B | 1.45B | 1.87B |
| Total Debt | 2.31B | 2.17B | 2.51B | 2.46B | 2.07B | 2.09B |
| Total Liabilities | 2.75B | 2.90B | 3.24B | 3.19B | 3.15B | 3.22B |
| Stockholders Equity | 1.56B | 1.79B | 1.88B | 1.48B | 1.81B | 1.66B |
Cash Flow | ||||||
| Free Cash Flow | 780.70M | 126.90M | -465.60M | -425.80M | -282.20M | 107.90M |
| Operating Cash Flow | 819.30M | 168.80M | 537.60M | -354.20M | -191.60M | 957.90M |
| Investing Cash Flow | -778.00M | -49.00M | -1.01B | -107.90M | -152.00M | -868.20M |
| Financing Cash Flow | -270.50M | -300.40M | 204.70M | 588.60M | 139.90M | 463.80M |
UBISOFT Entertainment Technical Analysis
Positive
5.07
Price Trends
4.13
Positive
5.06
Positive
6.88
Negative
Market Momentum
0.15
Negative
71.83
Negative
86.06
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:UBI, the sentiment is Positive. The current price of 5.07 is above the 20-day moving average (MA) of 4.09, above the 50-day MA of 4.13, and below the 200-day MA of 6.88, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 71.83 is Negative, neither overbought nor oversold. The STOCH value of 86.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:UBI.
UBISOFT Entertainment Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | €73.59M | ― | -0.44% | 6.54% | -14.34% | -105.46% | |
56 Neutral | €24.56M | 7.83 | -0.36% | ― | -4.49% | -117.42% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
49 Neutral | €69.20M | 15.33 | -4.95% | ― | 1.67% | -315.74% | |
45 Neutral | €666.03M | -1.98 | -4.52% | ― | -11.78% | -28.61% | |
43 Neutral | €5.16M | -0.24 | -97.87% | ― | 313.15% | 44.51% | |
38 Underperform | €57.38M | -2.54 | -514.29% | ― | ― | ― |
* General Sector Average
FR:UBI
UBISOFT Entertainment
5.15
-5.81
-53.05%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.