Frontier Developments (FDEV) AI Stock Analysis

• Market Cap: £124.15M
• Dividend Yield: N/A
• Average Volume (3M): 160.85K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 1.18
• Revenue Growth: 1.49%
• EPS Growth: N/A
• Country: UK
• Employees: 700
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.20
• Shares Outstanding: 36,167,458
• 10 Day Avg. Volume: 121,822
• 30 Day Avg. Volume: 160,846
• PEG Ratio: -0.03
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 1.06
• P/FCF Ratio: 2.29
• 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: £602.50
• Price Target Upside: 24.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.24
• Revenue Forecast (FY): £100.39M

• Rating: 63 Neutral
• Price Target: 379.00 p ▼(-21.69% Downside)
• Action: Downgraded Date: 03/20/26
• Date: Action: Downgraded 03/20/26

The score is primarily driven by improving financial performance (profitability recovery, strong cash generation, and low leverage), partially offset by weak technical signals (price below key moving averages and bearish momentum). Valuation is supportive due to the low P/E.

Positive Factors

Strong cash generation

Consistent conversion of earnings into cash (OCF/NetIncome 2.83; FCF/NetIncome ~0.99) provides durable funding for live‑service support, DLC development and capital allocation without relying on external financing, improving resilience through cyclical downturns.

Negative Factors

Sharp gross margin decline

A material drop in gross margin signals meaningful cost or mix pressure (higher platform fees, development or distribution costs, or weaker high-margin content). If structural, it can erode the benefits of improved operating margins and constrain long-term profitability.

Frontier Developments Business Overview & Revenue Model

Company Description

Frontier Developments plc develops and publishes video games for personal computers and videogame consoles in the United Kingdom. The company develops games across various platforms using its cross-platform technology, Cobra. It also publishes gam...

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Frontier Developments plc develops and publishes video games for personal computers and videogame consoles in the United Kingdom. The company develops games across various platforms using its cross-platform technology, Cobra. It also publishes gam...

How the Company Makes Money

Frontier primarily generates revenue by selling video games it develops and publishes across major digital storefronts and platforms (e.g., PC and console ecosystems), earning income when customers purchase base games and additional paid content. ...

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Frontier primarily generates revenue by selling video games it develops and publishes across major digital storefronts and platforms (e.g., PC and console ecosystems), earning income when customers purchase base games and additional paid content. ...

Frontier Developments Financial Statement Overview

Breakdown	TTM	May 2024	May 2023	May 2022	May 2021	May 2020
Income Statement
Total Revenue	102.94M	90.60M	89.27M	104.58M	114.03M	90.69M
Gross Profit	45.02M	39.91M	61.32M	67.34M	73.61M	63.15M
EBITDA	40.78M	36.89M	9.88M	14.86M	33.73M	38.08M
Net Income	20.00M	16.39M	-21.47M	-20.91M	9.63M	21.56M
Balance Sheet
Total Assets	136.59M	130.69M	117.39M	141.01M	169.58M	161.52M
Cash, Cash Equivalents and Short-Term Investments	40.11M	42.50M	29.52M	28.31M	38.70M	42.42M
Total Debt	18.56M	19.47M	21.28M	19.28M	20.74M	22.16M
Total Liabilities	42.42M	35.53M	40.56M	45.04M	51.21M	48.37M
Stockholders Equity	94.17M	95.16M	76.82M	95.97M	118.37M	113.15M
Cash Flow
Free Cash Flow	50.13M	41.97M	31.50M	4.49M	2.41M	6.08M
Operating Cash Flow	50.40M	42.31M	32.46M	47.88M	41.16M	38.95M
Investing Cash Flow	-24.68M	-26.71M	-28.70M	-52.31M	-38.69M	-32.83M
Financing Cash Flow	-12.85M	-2.64M	-2.51M	-6.02M	-6.17M	-9.47M

Frontier Developments Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 484.00
• 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 GB:FDEV, the sentiment is Negative. The current price of 484 is above the 20-day moving average (MA) of 357.55, above the 50-day MA of 401.94, and above the 200-day MA of 425.59, indicating a bearish trend. The MACD of -16.00 indicates Negative momentum. The RSI at 41.01 is Neutral, neither overbought nor oversold. The STOCH value of 54.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:FDEV.

Frontier Developments Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMR	74 Outperform	£89.70M	14.08	22.77%	―	21.27%	21.93%
EVPL	67 Neutral	£337.15M	17.66	8.06%	1.12%	-6.90%	―
FDEV	63 Neutral	£124.15M	6.19	21.13%	―	1.49%	―
DEVO	62 Neutral	£104.60M	-4.40	-6.37%	―	-10.51%	-63.78%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TBLD	59 Neutral	£26.55M	-11.49	-22.74%	―	-20.54%	86.22%
GFIN	50 Neutral	£2.74M	-1.64	-169.50%	―	-54.59%	―

Frontier Developments Corporate Events