UBISOFT Entertainment (UBI) AI Stock Analysis

• Market Cap: €1.23B
• Dividend Yield: N/A
• Average Volume (3M): 698.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: 11.34%
• EPS Growth: 83.95%
• Country: FR
• Employees: 18,666
• Sector: Technology
• Sector Strength: 84
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 1.02
• Shares Outstanding: 131,482,970
• 10 Day Avg. Volume: 508,883
• 30 Day Avg. Volume: 698,958
• PEG Ratio: 0.23
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.94
• 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: €11.58
• Price Target Upside: 25.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 50 Neutral
• Price Target: ―

UBISOFT Entertainment is showing recovery in financial performance with revenue growth and profitability improvements, but significant challenges remain in terms of cash flow and valuation. The technical analysis indicates a bearish trend, and the lack of earnings and dividend yield highlight valuation concerns. The stock's overall score reflects a cautious stance due to these mixed signals.

Positive Factors

Financial Flexibility

The investment proceeds from Tencent will strengthen Ubisoft’s balance sheet by reducing net debt, increasing financial flexibility, and supporting further franchise growth.

Game Launch Success

The launch of Assassin’s Creed Shadows exceeded expectations with strong engagement and monetization, offering a potential multi-quarter tailwind.

Strategic Investment

The Tencent-backed subsidiary transaction is set to fully deleverage Ubisoft and strengthen liquidity, providing strategic flexibility amid its ongoing portfolio transformation.

Negative Factors

Execution Risks

Execution risk remains elevated given uncertainty around leadership, capital control, and long-term governance in the Tencent transaction.

Profitability Challenges

The near-term content gaps and breakeven FY26 profitability outlook present real challenges, with no clear evidence yet that structural cost cuts or franchise expansion will deliver meaningful long-term benefit.

Transparency Issues

Without segment-level financial disclosure, there is limited visibility into how this structure will affect margins or capital allocation.

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, including scenarios, animation, gameplay, layouts, and game rules, as well as develops design tools and game engines. It is also involved in the development in the area of online and mobile gaming; and film business. The company was incorporated in 1986 and is headquartered in Saint-Mandé, France.

How the Company Makes Money

Ubisoft generates revenue primarily through the sale of video games and related content. This includes income from physical and digital game sales, in-game purchases, downloadable content (DLC), and subscription services. The company leverages its popular franchises to create long-lasting revenue streams by continually releasing new titles, expansions, and updates to engage players. Additionally, Ubisoft benefits from its partnerships with hardware manufacturers, digital distribution platforms, and other media companies which further enhance its market reach and profitability. Key revenue streams also include licensing agreements and merchandise sales related to its game franchises.

UBISOFT Entertainment Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.14B	2.30B	1.81B	2.13B	2.22B	1.59B
	Gross Profit
1.57B	2.10B	370.10M	1.27B	1.35B	822.74M
	EBIT
45.80M	313.60M	-487.40M	350.20M	399.80M	41.31M
	EBITDA
425.60M	1.11B	667.00M	932.50M	948.10M	460.19M
	Net Income Common Stockholders
-54.20M	157.80M	-494.20M	79.10M	103.10M	-125.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.05B	1.21B	1.49B	1.45B	1.87B	1.08B
	Total Assets
3.29B	5.12B	4.67B	4.96B	4.88B	3.60B
	Total Debt
1.34B	2.51B	2.46B	2.07B	2.09B	1.42B
	Net Debt
293.77M	1.30B	970.80M	617.40M	467.20M	343.24M
	Total Liabilities
2.37B	3.24B	3.19B	3.15B	3.22B	2.28B
	Stockholders Equity
920.02M	1.88B	1.48B	1.81B	1.66B	1.31B
Cash Flow		Free Cash Flow
591.40M	-465.60M	-380.70M	-240.90M	107.90M	-155.78M
	Operating Cash Flow
627.40M	537.60M	689.60M	705.70M	957.90M	600.33M
	Investing Cash Flow
-943.10M	-1.01B	-1.11B	-1.01B	-868.20M	-904.87M
	Financing Cash Flow
-28.30M	204.70M	543.60M	98.60M	463.80M	431.57M

UBISOFT Entertainment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:UBI, the sentiment is Negative. The current price of 9.23 is below the 20-day moving average (MA) of 9.81, below the 50-day MA of 9.98, and below the 200-day MA of 11.83, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 39.65 is Neutral, neither overbought nor oversold. The STOCH value of 7.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:UBI.

UBISOFT Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$11.96B	10.09	-7.50%	3.10%	7.33%	-8.11%
UBI	50 Neutral	€1.23B	―	-8.66%	―	11.34%	83.95%
0KUV		€79.98M	―	-264.35%	―	―	―
0HF		€159.18M	7.93	13.73%	―	―	―
GUL		€73.01M	57.99	1.17%	―	―	―
RFV		€13.92M	―	-72.21%	―	―	―
4AW		€70.30M	3.05	-0.47%	―	―	―