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Team17 Group PLC (GB:EVPL)
LSE:EVPL

Team17 Group (EVPL) AI Stock Analysis

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GB

Team17 Group

(LSE:EVPL)

Rating:82Outperform
Price Target:
360.00p
▲(14.29%Upside)
Team17 Group's stock is rated highly due to its strong financial performance, evidenced by robust revenue growth and high profitability margins. The positive sentiment from the recent earnings call supports this strength, despite some technical indicators suggesting potential short-term volatility. The stock's moderate valuation provides a balanced view of its growth potential.
Positive Factors
Financial Performance
The Board confirmed the delivery of an improved trading performance, marginally ahead of current market expectations.
Management Change
A new management team is seen as a catalyst for potential upside, focusing on higher return on investment first-party IP and a low-investment game-development model.
Valuation
Everplay trades on a low FY25E EV/EBITDA multiple, suggesting it is undervalued compared to its earnings potential.
Negative Factors
Leadership
There is initial disappointment that CEO Steve Bell departs after just two years.

Team17 Group (EVPL) vs. iShares MSCI United Kingdom ETF (EWC)

Team17 Group Business Overview & Revenue Model

Company DescriptionTeam17 Group (EVPL) is a prominent British video game developer and publisher, renowned for creating and distributing engaging and innovative gaming experiences. The company operates primarily in the interactive entertainment industry, focusing on developing, publishing, and distributing a wide array of games across various platforms, including PC, console, and mobile. Team17 is best known for its critically acclaimed titles such as the Worms series, as well as for supporting a diverse portfolio of independent game developers in bringing unique and creative games to market.
How the Company Makes MoneyTeam17 Group generates revenue through several key streams: game sales, publishing services, and licensing agreements. The company earns money directly from the sale of its own developed games and from games developed by independent studios that Team17 publishes. A significant portion of revenue comes from digital game sales on platforms like Steam, Xbox Live, PlayStation Network, and the App Store, as well as from physical retail sales. Additionally, Team17 offers publishing services to independent developers, sharing in the revenue generated by these games. Licensing deals for in-game content and merchandise also contribute to Team17's earnings. The company's strategic partnerships with platform holders and technology providers further bolster its financial performance.

Team17 Group Earnings Call Summary

Earnings Call Date:Mar 26, 2025
(Q4-2024)
|
% Change Since: 40.61%|
Next Earnings Date:Sep 16, 2025
Earnings Call Sentiment Positive
The earnings call conveyed a predominantly positive sentiment, highlighting strong financial growth, successful strategic initiatives, and increased community engagement. Despite some challenges in Team17's revenue and new releases, the overall performance was robust, driven by significant growth in first-party IP and back catalogue revenues.
Q4-2024 Updates
Positive Updates
Strong Financial Performance
Revenues increased by 5% to £167 million, and adjusted EBITDA rose by 46% to £44 million, indicating strong recovery in profits and margin.
First-Party IP Revenue Growth
First-party IP revenues grew to 37% of total revenue, a 10% increase year-on-year, driven by strong performance from Hell Let Loose, Construction Sim, and Golf With Friends.
Record Community Engagement
Hell Let Loose saw a 90% increase in concurrent users, reaching a peak of 45,000, signaling strong community engagement.
Successful Rebranding to Everplay
The rebranding to Everplay was successful, simplifying the company structure and reducing internal and external confusion.
Back Catalogue Performance
Back catalogue revenue grew 27% year-on-year, contributing £144 million to total revenue, highlighting effective lifecycle management.
Astragon and StoryToys Growth
Astragon achieved 22% revenue growth while StoryToys reported 25% growth, with strong performance in first-party IP and new licensed apps.
Successful Strategic Initiatives
Strategic focus on evergreen brands, relationship building, and innovation is driving growth and efficiency.
Negative Updates
Team17 Revenue Decline
Team17 revenues fell by 5% due to some new releases not meeting expectations and delayed title launches.
Challenges in Game Releases
New release revenue declined from £45 million to £23 million due to a combination of slippage and strategic delays.
Company Guidance
In the call, Everplay provided a comprehensive overview of its financial performance and strategic direction for fiscal year 2024 and beyond. The company reported a 5% increase in revenues reaching £167 million, and a significant 46% rise in adjusted EBITDA to £44 million, showcasing robust growth and profitability. First-party IP revenues accounted for 37% of the total, a 10% increase year-on-year, driven by successful titles like "Hell Let Loose" and "Golf With Friends." The back catalogue saw a 27% revenue growth, highlighting effective lifecycle management. Astragon and StoryToys divisions posted revenue growths of 22% and 25%, respectively. The company also discussed strategic priorities, including the rebranding to Everplay, focusing on evergreen brands, relationship building, operational synergies, talent retention, and M&A strategies. Looking ahead to 2025, Everplay expects continued revenue and profit growth, with ten new titles in development, supported by a strong cash position and a maiden dividend, underscoring confidence in its financial health and strategic direction.

Team17 Group Financial Statement Overview

Summary
Team17 Group demonstrates a strong financial position with robust revenue growth, impressive profitability margins, and strong cash flow management. The balance sheet is particularly strong, with low leverage and high equity, reducing financial risk. Excellent cash flow metrics ensure liquidity and operational resilience.
Income Statement
85
Very Positive
Team17 Group has demonstrated strong revenue growth over recent years, with a notable increase of 5% in 2024. The gross profit margin stands healthy at 44.5%, and the net profit margin improved significantly from a negative 2.4% in 2023 to 12.1% in 2024, indicating enhanced operational efficiency. The EBIT and EBITDA margins also show robust performance at 14.4% and 24.5% respectively.
Balance Sheet
90
Very Positive
The company's balance sheet is strong, with a low debt-to-equity ratio of 0.01, indicating minimal financial leverage and risk. The return on equity is impressive at 7.7%, showcasing effective utilization of equity to generate profits. The equity ratio is high at 84.5%, reflecting a solid capital structure with significant equity financing.
Cash Flow
88
Very Positive
Team17 Group has displayed excellent cash flow management, with a 24.5% increase in free cash flow in 2024, highlighting strong cash generation abilities. The operating cash flow to net income ratio is strong at 2.54, indicating efficient conversion of net income into cash flow. The free cash flow to net income ratio is a robust 2.52, further confirming healthy cash profitability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue166.62M159.13M142.28M90.51M82.97M
Gross Profit74.12M69.64M69.62M45.52M39.15M
EBITDA40.81M36.30M41.28M33.84M28.46M
Net Income20.19M-3.75M23.48M23.74M21.94M
Balance Sheet
Total Assets310.65M297.66M327.73M158.63M124.22M
Cash, Cash Equivalents and Short-Term Investments62.88M42.82M50.83M55.30M61.47M
Total Debt2.92M3.57M2.99M2.34M1.47M
Total Liabilities48.08M50.88M75.27M31.00M20.87M
Stockholders Equity262.57M246.78M252.46M127.64M103.35M
Cash Flow
Free Cash Flow50.95M40.91M48.70M30.42M27.95M
Operating Cash Flow51.27M41.38M49.43M30.99M28.29M
Investing Cash Flow-30.14M-49.41M-127.94M-37.02M-8.51M
Financing Cash Flow-771.00K-635.00K73.71M-408.00K-164.00K

Team17 Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price315.00
Price Trends
50DMA
293.02
Positive
100DMA
263.63
Positive
200DMA
245.96
Positive
Market Momentum
MACD
6.66
Positive
RSI
55.44
Neutral
STOCH
17.84
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:EVPL, the sentiment is Positive. The current price of 315 is above the 20-day moving average (MA) of 312.90, above the 50-day MA of 293.02, and above the 200-day MA of 245.96, indicating a bullish trend. The MACD of 6.66 indicates Positive momentum. The RSI at 55.44 is Neutral, neither overbought nor oversold. The STOCH value of 17.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:EVPL.

Team17 Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$453.86M22.458.03%0.86%4.71%
76
Outperform
£127.82M7.9821.85%-6.57%
GBLBG
75
Outperform
£209.08M25.3812.42%
71
Outperform
£720.97M9.177.77%0.48%-0.08%-0.72%
70
Outperform
£109.14M-3.77%10.40%53.88%
66
Neutral
£1.91B10.30-3.58%3.60%3.34%-85.67%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:EVPL
Team17 Group
315.00
32.50
11.50%
GB:FUTR
Future plc
700.50
-368.51
-34.47%
GB:FDEV
Frontier Developments
331.00
86.50
35.38%
GB:DEVO
Devolver Digital, Inc.
23.00
-12.50
-35.21%
GB:LBG
LBG Media Plc
100.00
-10.00
-9.09%

Team17 Group Corporate Events

Other
Liontrust Reduces Stake in Everplay Group plc
Neutral
Jun 6, 2025

Everplay Group plc, a UK-based company, has recently experienced a change in its shareholder structure. Liontrust Investment Partners LLP has reduced its voting rights in Everplay Group plc from 10.5496% to 9.8805%, as of June 5, 2025. This adjustment in voting rights indicates a slight divestment by Liontrust, which may influence the company’s governance and decision-making processes.

The most recent analyst rating on (GB:EVPL) stock is a Buy with a £3.10 price target. To see the full list of analyst forecasts on Team17 Group stock, see the GB:EVPL Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Everplay Group Issues Share Options to Key Executives and Directors
Neutral
Jun 4, 2025

Everplay Group plc has announced the issuance of share options to its Group CFO/COO Rashid Varachia and its Non-Executive Directors as part of its Long Term Incentive Plan and Non-Executive Director Share Option Plan. The options are granted over a total of 149,837 Ordinary Shares with no exercise price, subject to performance criteria over the next three years. This move is aimed at aligning the interests of the management and directors with those of the shareholders, potentially impacting the company’s operational focus and market positioning by incentivizing key personnel to achieve strategic goals.

The most recent analyst rating on (GB:EVPL) stock is a Buy with a £3.10 price target. To see the full list of analyst forecasts on Team17 Group stock, see the GB:EVPL Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Everplay Group Announces Successful AGM Resolutions
Positive
Jun 3, 2025

Everplay Group plc announced that all resolutions at its Annual General Meeting were passed, except for the re-election of Steve Bell, who resigned. The successful AGM resolutions indicate stability and continued strategic direction for the company, potentially reassuring stakeholders about its governance and future plans.

The most recent analyst rating on (GB:EVPL) stock is a Buy with a £3.10 price target. To see the full list of analyst forecasts on Team17 Group stock, see the GB:EVPL Stock Forecast page.

Other
Liontrust Adjusts Stake in Everplay Group
Neutral
Jun 3, 2025

Everplay Group plc, a UK-based company, has experienced a change in its shareholder structure as Liontrust Investment Partners LLP has adjusted its voting rights. The adjustment reflects a decrease in Liontrust’s voting rights from 11.3198% to 10.5496%, impacting Everplay Group’s shareholder dynamics and potentially influencing future corporate decisions.

The most recent analyst rating on (GB:EVPL) stock is a Buy with a £3.10 price target. To see the full list of analyst forecasts on Team17 Group stock, see the GB:EVPL Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Liontrust Reduces Stake in Everplay Group plc
Neutral
Jun 2, 2025

Everplay Group plc, a UK-based company, has seen a change in its shareholder structure as Liontrust Investment Partners LLP has adjusted its voting rights in the company. The notification indicates that Liontrust’s total voting rights have decreased from 13.223% to 11.3198%, reflecting a reduction in their stake. This adjustment in voting rights could impact Everplay Group’s governance and decision-making processes, potentially influencing its strategic direction and stakeholder relations.

The most recent analyst rating on (GB:EVPL) stock is a Buy with a £3.10 price target. To see the full list of analyst forecasts on Team17 Group stock, see the GB:EVPL Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Everplay Group Announces Leadership Change and Reaffirms Growth Strategy
Positive
May 16, 2025

Everplay Group plc has announced a significant leadership change with Steve Bell stepping down as CEO, and Frank Sagnier taking over as interim Executive Chair. The company remains on track with its FY 2025 trading expectations, indicating stability and potential growth in the medium to long term. The board is actively seeking a new CEO while maintaining its strategic focus on growth and profitability, particularly through first-party IP and evergreen franchises.

The most recent analyst rating on (GB:EVPL) stock is a Buy with a £3.10 price target. To see the full list of analyst forecasts on Team17 Group stock, see the GB:EVPL Stock Forecast page.

Shareholder MeetingsFinancial Disclosures
Everplay Group Announces 2024 Annual Report and Upcoming AGM
Neutral
May 9, 2025

Everplay Group plc has announced the posting of its Annual Report and Financial Statements for the year ended 31 December 2024, along with the Notice of its Annual General Meeting (AGM) scheduled for 3 June 2025. The AGM will be held in London, and the results of the resolutions will be published on the company’s website. This announcement is significant as it provides shareholders with insights into the company’s financial health and strategic direction, potentially impacting investor confidence and future business operations.

Other
Everplay Group’s Shareholder Voting Rights Adjusted
Neutral
Apr 24, 2025

Everplay Group plc, a UK-based company, has recently experienced a change in its shareholder voting rights. Octopus Investments Limited, based in London, has adjusted its holdings, now possessing 10.99% of the voting rights in Everplay Group, down from a previous 11.01%. This change reflects a minor adjustment in the company’s shareholder structure, which could have implications for its governance and decision-making processes.

Business Operations and Strategy
Octopus Investments Increases Stake in Everplay Group
Neutral
Apr 23, 2025

Everplay Group plc, a UK-based company, has recently experienced a change in its shareholder structure. Octopus Investments Limited has increased its voting rights in Everplay Group to 11.01%, up from a previous 10.09%. This acquisition of voting rights signifies a strengthened position for Octopus Investments within the company, potentially influencing future strategic decisions and impacting stakeholders.

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.Date of analysis: Jun 04, 2025