UBISOFT Entertainment (UBI) AI Stock Analysis

• Market Cap: €788.79M
• Dividend Yield: N/A
• Average Volume (3M): 479.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: -11.78%
• EPS Growth: -28.61%
• Country: FR
• Employees: 18,666
• Sector: Technology
• Sector Strength: 88
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.28
• Shares Outstanding: 134,697,070
• 10 Day Avg. Volume: 470,026
• 30 Day Avg. Volume: 479,912
• PEG Ratio: 0.04
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 11.18
• 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: €7.48
• Price Target Upside: 27.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: €6.50 ▲(10.92% Upside)

Ubisoft's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. The company's high leverage and negative profitability metrics are significant concerns. Additionally, the stock's technical analysis indicates a strong downtrend, with oversold conditions suggesting potential for further declines. The negative P/E ratio and lack of dividend yield further detract from its valuation appeal.

Positive Factors

New Product Launch

The launch of 'Assassin’s Creed Shadows' on a new platform expands Ubisoft's market reach and potential revenue streams, supporting long-term growth.

Franchise Strength

By strengthening key franchises and technologies, Ubisoft enhances its competitive edge and ensures sustained player engagement and revenue.

Operational Efficiency

Realigning resources to focus on core franchises and technologies can improve operational efficiency and long-term strategic execution.

Negative Factors

Revenue Decline

A significant decline in revenue indicates challenges in maintaining sales momentum, which may impact long-term financial stability.

High Leverage

High leverage poses financial risks and limits flexibility, potentially affecting Ubisoft's ability to invest in growth opportunities.

Negative Profitability

Negative profitability highlights operational inefficiencies and could hinder Ubisoft's ability to generate sustainable long-term returns.

UBISOFT Entertainment Business Overview & Revenue Model

Company Description

UBISOFT Entertainment (UBI) is a leading global video game developer and publisher headquartered in France, known for its innovative and immersive gaming experiences. Established in 1986, UBI operates in the interactive entertainment sector, creating popular franchises such as Assassin's Creed, Far Cry, and Tom Clancy's series. The company develops games across various platforms, including PC, consoles, and mobile devices, while also focusing on online services and community engagement to enhance player experiences.

How the Company Makes Money

UBISOFT generates revenue through multiple streams, primarily from the sale of video games and downloadable content (DLC). The company's revenue model includes retail sales of physical and digital copies of games, subscription services like Ubisoft+, and microtransactions within games. Additionally, UBI benefits from in-game advertising, partnerships with hardware and software manufacturers, and collaborations with other media franchises. Seasonal events and live service models also contribute to ongoing player engagement and revenue, enhancing the company's financial performance.

UBISOFT Entertainment Financial Statement Overview

Summary

Ubisoft faces significant financial challenges, with declining revenues and profitability issues impacting its income statement. The balance sheet shows high leverage, posing financial risks, while cash flow generation is weak. The company must focus on improving operational efficiency, managing debt, and enhancing cash flow to stabilize its financial position.

Income Statement

Ubisoft's income statement shows significant volatility. The company experienced a revenue decline of 11.12% in the most recent year, indicating challenges in maintaining sales momentum. Gross profit margins remain strong at 89.33%, but the net profit margin is negative at -8.37%, reflecting operational inefficiencies and losses. The EBIT margin is also negative, suggesting struggles in core operations. Despite a healthy EBITDA margin of 35.29%, the overall profitability is concerning.

Balance Sheet

Ubisoft's balance sheet reveals a high debt-to-equity ratio of 1.21, indicating significant leverage and potential financial risk. The return on equity is negative at -8.86%, highlighting inefficiencies in generating returns for shareholders. However, the equity ratio is reasonable, suggesting a balanced asset structure. The company needs to manage its debt levels to improve financial stability.

Cash Flow

The cash flow statement shows a concerning trend with a significant decline in free cash flow growth at -78.54%. The operating cash flow to net income ratio is 0.17, indicating challenges in converting income into cash. Although the free cash flow to net income ratio is 0.75, the overall cash flow position is weak, necessitating improvements in cash generation and management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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	2.09B	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

• Technical Analysis Sentiment: Negative
• Last Price: 5.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 5.86 is below the 20-day moving average (MA) of 6.49, below the 50-day MA of 7.10, and below the 200-day MA of 9.18, indicating a bearish trend. The MACD of -0.29 indicates Negative momentum. The RSI at 43.59 is Neutral, neither overbought nor oversold. The STOCH value of 23.40 is Neutral, 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
ALPUL	63 Neutral	€124.48M	5.97	-0.44%	6.65%	-14.35%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GUI	52 Neutral	€67.00M	-13.76	-4.89%	―	-4.89%	-178.32%
NACON	45 Neutral	€56.43M	-53.40	-0.36%	―	-4.48%	-105.25%
UBI	43 Neutral	€788.79M	-11.21	-4.52%	―	-11.78%	-28.61%
ALDNE	38 Underperform	€7.55M	-0.17	-78.20%	―	90.92%	24.05%
ALATA	38 Underperform	€68.09M	-4.37	-514.29%	―	63.11%	10.97%