Frontier Developments (FDEV) AI Stock Analysis

• Market Cap: £167.43M
• Dividend Yield: N/A
• Average Volume (3M): 159.97K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.94
• Revenue Growth: 1.49%
• EPS Growth: N/A
• Country: UK
• Employees: 700
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.31
• Shares Outstanding: 36,960,007
• 10 Day Avg. Volume: 191,453
• 30 Day Avg. Volume: 159,975
• 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: £452.33
• Price Target Upside: -1.67% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: 517.00p ▲(12.39% Upside)

Frontier Developments scores well due to strong technical indicators and a solid financial performance. The stock's undervaluation based on its P/E ratio further supports a positive outlook. The absence of earnings call data and corporate events does not detract from the overall score, as the primary factors indicate a robust position.

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 games developed by selected partner studios under its Frontier Foundry games label. The company was incorporated in 1994 and is headquartered in Cambridge, the United Kingdom.

How the Company Makes Money

Frontier Developments generates revenue through multiple streams, including game sales, downloadable content (DLC), and microtransactions. The majority of its income comes from sales of its games on various platforms, including PC and consoles. Additionally, the company monetizes its titles through the release of DLC, which enhances the gaming experience and encourages further purchases from existing players. Microtransactions also contribute to revenue, particularly in games that offer cosmetic items or additional content. Frontier has established partnerships with major gaming platforms and publishers, which help in distributing its games and expanding its reach in the market. Furthermore, the company benefits from a loyal fan base that supports its ongoing development efforts, further solidifying its financial performance.

Frontier Developments Financial Statement Overview

Summary

Frontier Developments shows a recovery in profitability and cash flow generation, with improved operational efficiency and financial stability. Despite challenges in maintaining high gross profit margins, the balance sheet remains strong with low leverage and a solid equity base.

Income Statement

Frontier Developments has shown a mixed performance in its income statement. The company experienced a slight revenue growth of 1.93% in the latest year, recovering from previous declines. Gross profit margin decreased significantly from 68.69% to 44.05%, indicating increased cost pressures. However, the net profit margin improved to 18.09% from a negative position, reflecting better cost management and profitability. EBIT and EBITDA margins also improved, suggesting operational efficiency gains.

Balance Sheet

The balance sheet of Frontier Developments is relatively stable. The debt-to-equity ratio decreased to 0.20, indicating a conservative leverage position. Return on equity improved to 17.22%, showing effective use of equity to generate profits. The equity ratio stands at 72.81%, reflecting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow metrics indicate a positive trend for Frontier Developments. Free cash flow growth was 2.90%, and the operating cash flow to net income ratio is robust at 2.83, suggesting strong cash generation relative to earnings. The free cash flow to net income ratio of 0.99 indicates efficient conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	90.60M	90.60M	89.27M	104.58M	114.03M	90.69M
Gross Profit	39.91M	39.91M	61.32M	67.34M	73.61M	63.15M
EBITDA	36.09M	36.89M	9.88M	14.86M	33.73M	38.08M
Net Income	16.39M	16.39M	-21.47M	-20.91M	9.63M	21.56M
Balance Sheet
Total Assets	130.69M	130.69M	117.39M	141.01M	169.58M	161.52M
Cash, Cash Equivalents and Short-Term Investments	42.50M	42.50M	29.52M	28.31M	38.70M	42.42M
Total Debt	19.47M	19.47M	21.28M	19.28M	20.74M	22.16M
Total Liabilities	35.53M	35.53M	40.56M	45.04M	51.21M	48.37M
Stockholders Equity	95.16M	95.16M	76.82M	95.97M	118.37M	113.15M
Cash Flow
Free Cash Flow	41.97M	41.97M	31.50M	4.49M	2.41M	6.08M
Operating Cash Flow	42.31M	42.31M	32.46M	47.88M	41.16M	38.95M
Investing Cash Flow	-26.71M	-26.71M	-28.70M	-52.31M	-38.69M	-32.83M
Financing Cash Flow	-2.64M	-2.64M	-2.51M	-6.02M	-6.17M	-9.47M

Frontier Developments Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 460.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FDEV, the sentiment is Positive. The current price of 460 is above the 20-day moving average (MA) of 427.35, above the 50-day MA of 395.72, and above the 200-day MA of 277.33, indicating a bullish trend. The MACD of 21.76 indicates Negative momentum. The RSI at 78.13 is Negative, neither overbought nor oversold. The STOCH value of 85.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:FDEV.

Frontier Developments Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FDEV	76 Outperform	£167.43M	10.85	19.06%	―	1.49%	―
EVPL	76 Outperform	$540.31M	24.77	8.06%	0.99%	-6.90%	―
DEVO	70 Outperform	£128.12M	―	-8.33%	―	-10.51%	-63.78%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
ALRT	58 Neutral	$63.82M	―	―	―	―	―

Frontier Developments Corporate Events

Frontier Developments Passes Key Resolution at General Meeting

Frontier Developments plc announced the successful passage of an ordinary resolution at its general meeting on 27 June 2025. This resolution, which was approved by independent shareholders, relates to the waiver of Rule 9 of the City Code on Takeovers and Mergers. The approval is a strategic move for the company, potentially impacting its future operations and market positioning, as it allows for greater flexibility in managing shareholder interests and corporate actions.

The most recent analyst rating on (GB:FDEV) stock is a Buy with a £330.00 price target. To see the full list of analyst forecasts on Frontier Developments stock, see the GB:FDEV Stock Forecast page.

Frontier Developments Reports Strong FY25 Results and Plans for Growth

Frontier Developments plc reported strong financial results for the fiscal year ending May 31, 2025, with revenue increasing to £90.6 million and a significant rise in profitability. The company’s Creative Management Simulation (CMS) games, including Planet Coaster, Planet Zoo, and Jurassic World Evolution, contributed to 77% of total revenue. Frontier plans a share buyback program of up to £10 million and has established an Executive Board to enhance operational efficiency. The company is optimistic about future growth, with the release of Jurassic World Evolution 3 scheduled for October 2025.

The most recent analyst rating on (GB:FDEV) stock is a Buy with a £330.00 price target. To see the full list of analyst forecasts on Frontier Developments stock, see the GB:FDEV Stock Forecast page.

Frontier Developments Announces Jurassic World Evolution 3 Launch

Frontier Developments, in collaboration with Universal Products & Experiences, has announced the launch of Jurassic World Evolution 3, set for 21 October 2025. This new installment in the popular game franchise introduces juvenile dinosaurs and new global locations, enhancing the simulation experience with over 80 prehistoric species and advanced creative tools. The game aims to expand its community through cross-platform sharing and offers a Deluxe Edition with additional content, potentially strengthening Frontier’s market position and engagement with fans.

The most recent analyst rating on (GB:FDEV) stock is a Buy with a £330.00 price target. To see the full list of analyst forecasts on Frontier Developments stock, see the GB:FDEV Stock Forecast page.

Frontier Developments Exceeds FY25 Revenue Expectations

Frontier Developments plc has announced that its revenue for the fiscal year 2025 is expected to be approximately £90 million, surpassing expectations due to strong performances across its game portfolio. Additionally, a gain of £3.5 million from the sale of publishing rights for the game Stranded: Alien Dawn will contribute to stronger-than-expected profitability and a higher cash position for the company.

The most recent analyst rating on (GB:FDEV) stock is a Buy with a £330.00 price target. To see the full list of analyst forecasts on Frontier Developments stock, see the GB:FDEV Stock Forecast page.