Devolver Digital, Inc. (DEVO) AI Stock Analysis

• Market Cap: £111.74M
• Dividend Yield: N/A
• Average Volume (3M): 142.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• Revenue Growth: -10.51%
• EPS Growth: -63.78%
• Country: UK
• Employees: 235
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.02
• Shares Outstanding: 475,471,130
• 10 Day Avg. Volume: 210,216
• 30 Day Avg. Volume: 142,446
• PEG Ratio: 0.42
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 1.34
• P/FCF Ratio: -16.59
• 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: 62 Neutral
• Price Target: 26.00p ▲(8.33% Upside)

Devolver Digital's overall stock score is influenced primarily by its stable financial health and positive corporate events. However, the bearish technical indicators and negative valuation metrics weigh down the score. The company's strategic initiatives and strong equity position are positive signs, but profitability challenges and market sentiment remain concerns.

Positive Factors

Strong Equity Position

A strong equity position provides financial stability, allowing Devolver Digital to invest in growth opportunities and weather economic downturns.

Improving Cash Flow

Improved cash flow enhances Devolver Digital's ability to fund operations and strategic initiatives without relying heavily on external financing.

Low Debt Levels

Low debt levels reduce financial risk and interest expenses, providing Devolver Digital with greater financial flexibility to pursue growth.

Negative Factors

Profitability Challenges

Ongoing profitability issues could hinder Devolver Digital's ability to reinvest in the business and compete effectively in the long term.

Negative Free Cash Flow

Negative free cash flow limits Devolver Digital's ability to self-fund growth and may necessitate external financing, increasing financial risk.

Revenue Decline

A decline in revenue growth suggests potential market challenges or competitive pressures, which could impact Devolver Digital's market position.

Devolver Digital, Inc. Business Overview & Revenue Model

Company Description

Devolver Digital Inc. develops video games for release on PC and mobile in the United States and internationally. It publishes video games. The company was founded in 2008 and is based in Wilmington, Delaware.

How the Company Makes Money

Devolver Digital generates revenue primarily through the sale of video games. Their revenue model is based on a mix of direct game sales, digital downloads, and royalties from physical sales. The company partners with indie developers to publish their games, often taking a percentage of sales in exchange for marketing support, distribution, and funding. Additionally, Devolver Digital benefits from revenue through merchandise sales, licensing deals, and limited edition physical releases. The company's strong presence on digital storefronts like Steam, Epic Games Store, and console marketplaces contributes significantly to their earnings, alongside potential revenue from game expansions and downloadable content (DLC).

Devolver Digital, Inc. Financial Statement Overview

Summary

Devolver Digital demonstrates stable financial health with a strong equity position and improving cash flow from operations. However, the company faces challenges with profitability and free cash flow, necessitating stronger cost control and revenue management strategies moving forward.

Income Statement

Devolver Digital has shown some revenue growth from 2023 to 2024, but profitability remains a challenge with negative net income and declining gross profit margins. While the EBITDA margin is positive, EBIT remains negative, indicating operational inefficiencies or high non-cash charges.

Balance Sheet

The company maintains a solid equity base with a high equity ratio, indicating financial stability. The debt-to-equity ratio is low, suggesting manageable leverage. However, there has been a decrease in stockholders' equity over the years.

Cash Flow

Operating cash flow has improved, reflecting better cash generation capabilities. However, free cash flow remains negative due to high capital expenditures, which could be a concern if this trend continues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	83.10M	104.78M	92.36M	134.56M	98.15M	212.74M
Gross Profit	13.95M	30.07M	24.52M	22.50M	39.23M	91.69M
EBITDA	22.77M	18.84M	-3.90M	13.80M	-56.73M	84.24M
Net Income	-10.24M	-6.14M	-12.74M	-91.50M	30.55M	64.09M
Balance Sheet
Total Assets	186.60M	201.22M	196.81M	194.82M	279.14M	113.18M
Cash, Cash Equivalents and Short-Term Investments	34.73M	42.11M	42.65M	79.49M	86.24M	43.53M
Total Debt	999.00K	1.10M	1.03M	0.00	0.00	240.00K
Total Liabilities	30.74M	35.99M	38.77M	22.55M	33.67M	41.66M
Stockholders Equity	156.17M	165.54M	158.12M	170.73M	245.54M	71.51M
Cash Flow
Free Cash Flow	-7.10M	-8.44M	-13.98M	-2.42M	-50.25M	50.08M
Operating Cash Flow	23.62M	22.26M	11.73M	30.29M	-15.90M	72.25M
Investing Cash Flow	-27.66M	-30.70M	-45.97M	-32.71M	60.46M	-25.39M
Financing Cash Flow	9.96M	10.21M	-5.50M	-1.72M	-1.85M	-15.76M

Devolver Digital, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DEVO, the sentiment is Negative. The current price of 24 is below the 20-day moving average (MA) of 24.30, below the 50-day MA of 24.98, and above the 200-day MA of 23.38, indicating a neutral trend. The MACD of -0.40 indicates Positive momentum. The RSI at 15.22 is Positive, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:DEVO.

Devolver Digital, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FDEV	74 Outperform	£167.07M	11.12	19.06%	―	1.49%	―
EVPL	68 Neutral	$472.59M	21.66	8.06%	1.12%	-6.90%	―
DEVO	62 Neutral	£111.74M	-11.30	-8.33%	―	-10.51%	-63.78%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TBLD	50 Neutral	£27.53M	-3.15	-22.74%	―	-20.54%	86.22%

Devolver Digital, Inc. Corporate Events

Devolver Digital Transfers Treasury Shares to Satisfy Employee RSU Awards

Devolver Digital has transferred 970,885 common shares held in treasury to satisfy Restricted Stock Unit awards granted to certain employees under its 2022 Long Term Incentive Plan, covering grants made in 2023 and 2024. Following this transfer, the company’s issued and outstanding share capital stands at 475,471,127 shares, excluding 27,946,940 shares remaining in treasury, clarifying the denominator shareholders should use for regulatory disclosure thresholds and signaling ongoing use of equity-based compensation to retain and incentivize staff.

The most recent analyst rating on (GB:DEVO) stock is a Hold with a £26.00 price target. To see the full list of analyst forecasts on Devolver Digital, Inc. stock, see the GB:DEVO Stock Forecast page.

Devolver Digital Grants Long Term Incentive Awards to Employees

Devolver Digital, Inc. has announced the granting of awards under its 2022 Long Term Incentive Plan, involving 7,081,612 shares of common stock. These awards aim to incentivize employees across all levels by linking performance to shareholder value. The Performance Stock Units (PSUs) and Restricted Stock Units (RSUs) are subject to specific financial targets and vesting conditions, with the total dilution from these awards and existing share options amounting to 12.7% of the company’s issued share capital. This move is expected to align employee performance with the company’s growth objectives, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (GB:DEVO) stock is a Hold with a £26.00 price target. To see the full list of analyst forecasts on Devolver Digital, Inc. stock, see the GB:DEVO Stock Forecast page.

Devolver Digital Launches 2025 Equity Incentive Plan to Drive Leadership Performance

Devolver Digital, Inc. has announced the implementation of its 2025 Equity Incentive Plan, designed to motivate leadership-level employees by granting stock options that vest over three years. The plan, approved in a recent shareholder meeting, aims to enhance shareholder value and involves options representing 4.6% of the company’s share capital. The awards, which include a significant allocation to management and senior employees, are structured to manage dilution through the use of treasury shares and an Employee Benefit Trust.

The most recent analyst rating on (GB:DEVO) stock is a Hold with a £27.00 price target. To see the full list of analyst forecasts on Devolver Digital, Inc. stock, see the GB:DEVO Stock Forecast page.

Devolver Digital Successfully Passes Resolutions at Special Meeting

Devolver Digital announced that all resolutions proposed at their recent Special Meeting were successfully passed. This development reflects the company’s strategic direction and may impact its operational and market positioning, reinforcing its commitment to growth and innovation in the indie video games industry.

The most recent analyst rating on (GB:DEVO) stock is a Hold with a £27.00 price target. To see the full list of analyst forecasts on Devolver Digital, Inc. stock, see the GB:DEVO Stock Forecast page.