Acast AB (ACAST) AI Stock Analysis

• Market Cap: €3.14B
• Dividend Yield: N/A
• Average Volume (3M): 150.21K
• Price to Earnings (P/E): 33.6
• Beta (1Y): 0.48
• Revenue Growth: 21.20%
• EPS Growth: 37.02%
• Country: SE
• Employees: 409
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.44
• Shares Outstanding: 182,465,260
• 10 Day Avg. Volume: 140,150
• 30 Day Avg. Volume: 150,209
• PEG Ratio: -0.26
• Price to Book (P/B): 2.31
• Price to Sales (P/S): 1.50
• P/FCF Ratio: 126.19
• 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: €24.01
• Price Target Upside: 39.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 43 Neutral
• Price Target: kr16.50 ▼(-4.18% Downside)

Acast AB's overall stock score is primarily impacted by its financial performance, which shows revenue growth but significant profitability and cash flow challenges. Technical analysis indicates a bearish trend with weak momentum, and the valuation is unattractive due to a negative P/E ratio. The lack of earnings call data and corporate events means these factors do not influence the score.

Acast AB Business Overview & Revenue Model

Company Description

Acast AB (publ) operates a podcast marketplace worldwide. The company connects podcasters and advertisers through its podcast marketplace that offers reach to podcast listeners with host-front advertising campaigns, audio ads, and branded content. It allows advertisers to target an engaged audience of listeners through ad insertion; and offers podcasters a range of monetization opportunities and tools to expand their listener base. As of June 7, 2021, the company had approximately 28,000 hosted shows with approximately 3 billion listens. Acast AB (publ) was founded in 2014 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Acast AB generates revenue primarily through its advertising solutions, which connect brands with podcast listeners via dynamic ad insertion and sponsorships. The company partners with a wide range of advertisers to deliver targeted ad campaigns within podcasts. In addition to advertising revenue, Acast earns income from premium subscription services, which offer ad-free listening experiences and exclusive content. Acast's significant partnerships with major podcast creators and networks enhance its ability to attract advertisers and expand its content library, further driving its revenue growth.

Acast AB Financial Statement Overview

Summary

Acast AB shows moderate revenue growth but struggles with profitability and cash flow management. The company benefits from a strong equity base and low leverage, indicating financial stability, but negative margins and cash flow challenges highlight the need for improved operational efficiency.

Income Statement

Acast AB shows a moderate revenue growth rate of 6.24% in the TTM, indicating some positive momentum. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is stable at around 39.45%, but the negative EBITDA margin highlights operational inefficiencies. Overall, while revenue is growing, profitability remains a significant challenge.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.12, indicating low leverage and financial stability. However, the return on equity is negative, suggesting that the company is not generating sufficient returns on its equity base. The equity ratio is solid, showing a strong asset base supported by equity.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth and a negative free cash flow to net income ratio. The operating cash flow to net income ratio is low, indicating limited cash generation relative to net income. These factors suggest cash flow management issues, despite some improvement in operating cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.20B	1.94B	1.64B	1.39B	1.03B	591.53M
Gross Profit	866.01M	764.20M	520.84M	469.86M	373.48M	219.43M
EBITDA	-110.75M	25.94M	-88.99M	-219.24M	-250.06M	-147.27M
Net Income	-72.53M	78.22M	-179.68M	-286.38M	-300.39M	-172.22M
Balance Sheet
Total Assets	1.96B	2.01B	1.72B	1.86B	1.86B	687.64M
Cash, Cash Equivalents and Short-Term Investments	572.32M	713.70M	759.46M	867.76M	1.36B	288.60M
Total Debt	130.92M	141.15M	21.95M	48.41M	47.23M	147.12M
Total Liabilities	853.03M	742.34M	580.44M	554.86M	370.17M	381.73M
Stockholders Equity	1.11B	1.27B	1.14B	1.31B	1.49B	305.90M
Cash Flow
Free Cash Flow	-11.85M	23.17M	-81.29M	-337.04M	-141.30M	-207.01M
Operating Cash Flow	26.67M	34.39M	-28.14M	-294.28M	-106.58M	-188.80M
Investing Cash Flow	-121.40M	-75.88M	-53.30M	-251.27M	-35.31M	-18.19M
Financing Cash Flow	-20.26M	-22.94M	-25.02M	-27.01M	1.21B	333.25M

Acast AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.22
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ACAST, the sentiment is Negative. The current price of 17.22 is below the 20-day moving average (MA) of 17.90, below the 50-day MA of 18.22, and above the 200-day MA of 16.47, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 34.81 is Neutral, neither overbought nor oversold. The STOCH value of 20.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:ACAST.

Acast AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
G5EN	66 Neutral	kr738.27M	9.16	16.45%	9.35%	-15.26%	-22.70%
MAGI	54 Neutral	kr303.36M	1,908.33	0.05%	8.73%	-11.35%	-92.00%
FRAG	51 Neutral	kr103.13M	-0.70	11034.41%	―	-12.12%	23.81%
VPLAY.B	48 Neutral	kr5.96B	-10.80	-16.16%	―	-3.99%	99.12%
ACAST	43 Neutral	€3.14B	33.56	-6.84%	―	21.20%	37.02%
GCOR	41 Neutral	kr155.62M	-3.53	―	―	31.74%	21.54%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%