G5 Entertainment AB (GENTF) AI Stock Analysis

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G5 Entertainment AB (GENTF) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$104.61M

Dividend Yield6.72%

Average Volume (3M)25.00

Price to Earnings (P/E)9.9

Beta (1Y)0.44

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees845

SectorCommunication Services

Sector Strength88

IndustryElectronic Gaming & Multimedia

Share Statistics

EPS (TTM)0.15

Shares Outstanding8,383,650

10 Day Avg. Volume0

30 Day Avg. Volume25

Financial Highlights & Ratios

PEG Ratio-0.45

Price to Book (P/B)1.65

Price to Sales (P/S)0.00

P/FCF Ratio7.24

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

G5 Entertainment AB Business Overview & Revenue Model

Company DescriptionG5 Entertainment AB (publ) develops and publishes free-to-play games for smartphones, tablets, and personal computers in Sweden. Its primary portfolio of games includes Hidden City, Jewels of Rome, Sherlock, Jewels of the Wild West, Mahjong Journey, The Secret Society, Jewels of Egypt, Homicide Squad, Sheriff of Mahjong, and Match Town Makeover. The company distributes games through Apple App Store, Microsoft Store, Google Play, Amazon Appstore, and Mac App Store, as well as its proprietary store.G5 Entertainment AB (publ) was founded in 2001 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

G5 Entertainment AB Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q1-2025)

% Change Since: -12.34%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Neutral

The earnings call presented mixed results with strong growth in G5 Store and improved gross margins, but significant revenue decline and decreased operating profit. The company maintained a strong cash position and implemented strategic initiatives, but faced challenges including legal expenses and FX impacts.

Q1-2025 Updates

Positive Updates

Growth of G5 Store

G5 Store now contributes 21% of total net revenue, up from 13.5% last year, showing a 39% year-over-year growth in SEK and 35% in USD.

Record Gross Margin

The gross margin reached a record 69.8%, up from 68.1% last year, primarily driven by the growth of the G5 Store.

Strong Cash Position

The company has a record cash position of SEK295 million, up from SEK256 million last year, and remains debt-free.

Increased Revenue from Web Shop

The web shop now accounts for 3% of total net revenue from mobile platforms, allowing players to bypass high store fees.

User Acquisition Efficiency

User acquisition cost was 15% of revenue, down from 17% last year, contributing to improved profitability.

Negative Updates

Revenue Decline

Revenue in the quarter was SEK200 million, which was 12% lower than last year in Swedish krona and 13% lower in USD terms.

Operating Profit Decrease

Operating profit came in at SEK10.7 million compared to SEK39 million last year, with the EBIT margin down to 4.1% from last year's level.

Legal Expenses Impacting Profitability

A one-time legal expense of SEK1.3 million related to an M&A deal negatively affected profitability.

EPS Decline

Earnings per share for the quarter was SEK1.53, a decrease from SEK4.76 last year, primarily due to the impact of FX related to USD weakening.

Cash Flow Reduction

Total cash flow for the period was SEK33 million, down from SEK71 million last year.

Company Guidance

In the recent earnings call, G5 Entertainment's CEO, Vlad Suglobov, provided guidance reflecting both achievements and challenges. The company's revenue for the quarter was SEK200 million, marking a 12% decrease in Swedish krona and a 13% decline in USD terms compared to the previous year. Despite this, the G5 store demonstrated strong growth, contributing 21% to total net revenue, up from 13% last year, with an impressive 39% year-over-year growth in SEK and 35% in USD. The company's gross margin reached a record 69.8%, an increase from 68.1% the previous year, largely driven by the success of the G5 store. Additionally, the monthly average gross revenue per paying user hit a new record of $65.4, showing a 3% increase from the prior year. However, the operating profit for the quarter was SEK10.7 million, down from SEK39 million the previous year, primarily due to a SEK14.6 million impact from SEK to USD exchange rate fluctuations and a one-time legal expense of SEK1.3 million. The company remains optimistic about its strategic initiatives, including expanding the G5 store and incorporating third-party games, and aims to return to its user acquisition target range of 17% to 22% of revenue in the coming quarters.

G5 Entertainment AB Financial Statement Overview

Summary

G5 Entertainment AB demonstrates strong financial health with robust profitability, a solid balance sheet, and strong cash flow generation. The company effectively manages its operations and finances, maintaining a stable financial position despite minor fluctuations in revenue. The lack of debt and strong equity positioning further enhance its financial stability and growth potential.

Income Statement

Positive

G5 Entertainment AB shows strong profitability with a stable gross profit margin and robust net profit margin over the years. Despite a slight decline in revenue in the recent year, the company has maintained a solid EBIT and EBITDA margin, indicating efficient cost management and operational stability.

Balance Sheet

Very Positive

The company has a strong balance sheet with no significant debt, leading to an excellent debt-to-equity ratio. High equity ratio and increasing stockholders' equity demonstrate financial stability and a solid capital structure. The return on equity (ROE) is also commendable, reflecting effective use of shareholders' funds.

Cash Flow

Very Positive

G5 Entertainment AB exhibits a healthy cash flow position with consistent operating cash flow surpassing net income, indicating strong cash generation capability. The positive free cash flow and its growth over time further signify the company's financial health and ability to fund operations and investments without relying on external financing.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.10B	1.13B	1.32B	1.40B	1.32B	1.36B
	Gross Profit
754.30M	776.10M	892.37M	936.42M	810.45M	786.32M
	EBIT
92.04M	116.78M	111.45M	79.45M	216.12M	189.54M
	EBITDA
129.54M	262.10M	294.70M	84.05M	227.45M	205.65M
	Net Income Common Stockholders
93.44M	118.97M	127.57M	66.95M	198.21M	167.27M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
295.02M	275.54M	182.33M	185.49M	162.16M	188.41M
	Total Assets
645.27M	666.71M	610.15M	657.88M	625.79M	593.19M
	Total Debt
0.00	0.00	1.87M	2.86M	12.29M	6.38M
	Net Debt
-295.02M	-275.54M	-182.33M	-174.61M	-137.67M	-182.03M
	Total Liabilities
105.93M	112.39M	118.75M	158.15M	133.38M	161.38M
	Stockholders Equity
539.34M	554.32M	491.40M	499.73M	492.41M	431.81M
Cash Flow		Free Cash Flow
127.84M	178.17M	130.85M	129.15M	188.41M	140.09M
	Operating Cash Flow
230.62M	283.33M	241.16M	304.76M	360.63M	269.09M
	Investing Cash Flow
-118.04M	-119.32M	-113.25M	-176.66M	-208.53M	-129.00M
	Financing Cash Flow
-63.53M	-76.64M	-119.48M	-108.62M	-192.34M	-97.63M

G5 Entertainment AB Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GENTF		$104.61M	9.91	16.63%	6.72%	―	―
Sector *	61 Neutral	$14.60B	5.95	-4.32%	3.69%	2.76%	-30.49%
PRXXF		$2.15B	39.84	19.48%	2.26%	―	―
STBEF		$35.83M	―	-28.05%	―	―	―
THQQF		$2.78B	5.08	5.32%	―	―	―
MHK		€23.27M	35.46	2.20%	10.37%	―	―
5ZD0		€2.80M	―	-60.20%	―	―	―

* Communication Services Sector Average

Performance Comparison

GENTF

G5 Entertainment AB

11.15

-2.65

-19.20%

PRXXF

Paradox Interactive AB

20.54

7.34

55.61%

STBEF

Starbreeze AB

0.02

>-0.01

-33.33%

THQQF

Embracer Group AB

12.56

8.76

230.53%

DE:MHK

MAG Interactive AB

0.84

0.10

13.51%

DE:5ZD0

Fragbite Group AB

0.36

-0.36

-50.00%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.