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Frontier Developments
(LSE:FDEV)
Select Model
Select Model
Rating:72Outperform
Price Target:
486.00 p
▲(15.99% Upside)
Action:Upgraded
Date:06/12/26
The score is driven mainly by improving profitability/cash generation and a strong, low-leverage balance sheet, supported by a clear uptrend in technicals. Offsetting factors include the significant gross margin compression and signs of near-overbought momentum, while valuation appears relatively attractive based on the low P/E.
Positive Factors
Low Leverage / Strong Equity Base
A low debt-to-equity ratio (0.20) and high equity ratio provide durable financial flexibility. This reduces refinancing and interest rate risk, supports investment in game development and live-ops, and cushions the business through cyclical sales swings over months to years.
Negative Factors
Gross Margin Compression
A large fall in gross margin suggests rising direct costs or lower realized pricing for products. This erodes the primary profitability buffer and leaves less room for SG&A and R&D, making long-term margin sustainability and funding of new titles more challenging.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage / Strong Equity Base
A low debt-to-equity ratio (0.20) and high equity ratio provide durable financial flexibility. This reduces refinancing and interest rate risk, supports investment in game development and live-ops, and cushions the business through cyclical sales swings over months to years.
Read all positive factors
Frontier Developments (FDEV) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£151.61M
Dividend YieldN/A
Average Volume (3M)160.85K
Price to Earnings (P/E)8.4
Beta (1Y)1.38
Revenue Growth15.81%
EPS Growth26.32%
CountryUK
Employees696
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)0.52
Shares Outstanding35,530,680
10 Day Avg. Volume121,822
30 Day Avg. Volume160,846
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)1.01
Price to Sales (P/S)1.06
P/FCF Ratio2.29
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£625.00Price Target Upside49.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.33
Revenue Forecast (FY)£102.55M
Frontier Developments Business Overview & Revenue Model
Company Description
Frontier Developments plc, a UK-based company, specializes in the creation and distribution of video games for both personal computers and console systems. The firm utilizes its proprietary 'Cobra' technology to develop titles compatible across di...
How the Company Makes Money
Frontier Developments makes money primarily by selling video games and downloadable content (DLC) across digital storefronts and console platforms. Key revenue streams include: (1) Base game sales: upfront purchase revenues from new releases and c...
Frontier Developments Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
75
Positive
| 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
Positive
419.00
Price Trends
432.94
Positive
395.18
Positive
434.75
Positive
Market Momentum
-3.51
Positive
48.47
Neutral
29.52
Neutral
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 419 is below the 20-day moving average (MA) of 426.48, below the 50-day MA of 432.94, and below the 200-day MA of 434.75, indicating a bullish trend. The MACD of -3.51 indicates Positive momentum. The RSI at 48.47 is Neutral, neither overbought nor oversold. The STOCH value of 29.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:FDEV.
Frontier Developments Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | £151.61M | 8.39 | 21.13% | ― | 15.81% | 26.32% | |
71 Outperform | £83.58M | 15.32 | 15.38% | ― | 10.22% | -32.00% | |
67 Neutral | £337.87M | 12.10 | 9.60% | 1.33% | -0.38% | 34.88% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | £37.36M | -19.12 | -8.26% | ― | -0.92% | 85.78% | |
53 Neutral | £79.30M | -6.18 | -10.73% | ― | -0.58% | -140.19% | |
47 Neutral | £2.14M | 3.60 | -200.26% | ― | -39.71% | 33.33% |
* Communication Services Sector Average
GB:FDEV
Frontier Developments
436.50
56.50
14.87%
GB:GMR
Gaming Realms
30.80
-22.20
-41.89%
GB:GFIN
Gfinity
0.04
-0.05
-60.00%
GB:EVPL
everplay Group
234.50
-142.92
-37.87%
GB:TBLD
tinyBuild Inc.
9.50
3.25
52.00%
GB:DEVO
Devolver Digital, Inc.
16.00
-7.50
-31.91%
Frontier Developments Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Frontier Developments CFO Exercises Options via Employee Benefit Trust
Neutral
Jun 24, 2026
Frontier Developments has disclosed a share transaction involving Chief Financial Officer and executive director Alex Bevis, who exercised options over 5,084 ordinary shares under the company’s all-staff Sharesave Plan at 354 pence per share...
Business Operations and StrategyRegulatory Filings and Compliance
Frontier Developments Expands Employee Share Trust Holding
Positive
Jun 16, 2026
Frontier Developments has disclosed that its Employee Benefit Trust has acquired 59,943 ordinary shares at an average price of 480 pence each, funded from the group’s existing cash resources. The shares will be held in the trust to satisfy f...
Business Operations and Strategy
Frontier Developments Expands Employee Benefit Trust Stake to Support Share Options
Positive
Jun 15, 2026
Frontier Developments has disclosed that its Employee Benefit Trust purchased 472,689 ordinary shares at an average price of 464 pence, using existing cash resources, to support future exercises of employee share options. Following this transactio...
Business Operations and StrategyStock BuybackFinancial Disclosures
Frontier Developments Posts Record Results on CMS Game Strategy and Sets Up New Planet Franchise
Positive
Jun 10, 2026
Frontier Developments reported record provisional results for the year to 31 May 2026, with revenue up 16% to £104.8m and adjusted operating profit up 44% to £19.0m, driven by its focus on creative management simulation games. The strong...
Business Operations and Strategy
Frontier Developments Boosts Employee Trust Stake with New Share Purchase
Positive
Jun 8, 2026
Frontier Developments plc, a Cambridge-based developer and publisher of creative management simulation video games, has expanded the shareholding of its Employee Benefit Trust through a new purchase of company stock. The trust, which supports long...
Business Operations and StrategyStock Buyback
Frontier Developments Boosts Employee Benefit Trust With Share Purchase
Positive
Jun 1, 2026
Frontier Developments has expanded the holdings of its Employee Benefit Trust with the purchase of 230,000 ordinary shares at an average price of 418 pence, funded from existing cash resources. The shares will be used to satisfy employee share opt...
Business Operations and StrategyProduct-Related Announcements
Frontier Developments Unveils Planet Zoo 2 With Aquatic and Flying Species
Positive
May 28, 2026
Frontier Developments has unveiled Planet Zoo 2, a new instalment in its flagship animal management franchise that adds fully featured aquariums, aviaries and a deeper conservation focus. Launching on 13 October 2026 for PC, PlayStation 5 and Xbox...
Business Operations and StrategyProduct-Related Announcements
Frontier unveils new Warhammer 40,000: Chaos Gate – Deathwatch sequel for PC and consoles
Positive
May 22, 2026
Frontier Developments and its subsidiary Complex Games have announced Warhammer 40,000: Chaos Gate – Deathwatch, a sequel to the critically acclaimed Chaos Gate – Daemonhunters, to be released on PC, PlayStation 5 and Xbox Series X|S. ...
Business Operations and StrategyStock Buyback
Frontier Developments boosts Employee Benefit Trust with new share purchase
Positive
May 18, 2026
Frontier Developments has expanded the holdings of its Employee Benefit Trust with the purchase of 302,174 ordinary shares at an average price of 360 pence, funded from existing cash resources. The shares, which lift the EBT’s stake to about...
Business Operations and StrategyStock BuybackFinancial Disclosures
Frontier Developments Lifts FY26 Outlook on Hit Game and Tax Benefits
Positive
May 12, 2026
Frontier Developments has upgraded its guidance for the year to 31 May 2026, lifting expected revenue to about £103 million and adjusted operating profit to roughly £16 million. The improvement is driven by the strong performance of Jura...
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.