Acast AB (ACAST) AI Stock Analysis

• Market Cap: kr3.40B
• Dividend Yield: N/A
• Average Volume (3M): 201.56K
• Price to Earnings (P/E): 33.6
• Beta (1Y): 0.56
• Revenue Growth: 21.20%
• EPS Growth: 37.02%
• Country: SE
• Employees: 409
• Sector: Communication Services
• Sector Strength: 92
• Industry: Entertainment
• EPS (TTM): -0.44
• Shares Outstanding: 181,068,100
• 10 Day Avg. Volume: 154,536
• 30 Day Avg. Volume: 201,556
• 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: kr21.26
• Price Target Upside: 13.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• Price Target: kr18.50 ▼(-1.39% Downside)

Acast AB's stock score is primarily influenced by its financial performance and technical analysis. While the company shows positive revenue growth and technical momentum, its profitability and cash flow challenges, combined with a negative P/E ratio, weigh down the overall score. The lack of earnings call data and corporate events further limits the assessment.

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 is experiencing strong revenue growth and maintains a solid balance sheet with low leverage. Despite these strengths, the company faces challenges in achieving profitability and improving return on equity. Cash flow metrics show positive trends, suggesting better cash management and operational efficiency. The focus should be on enhancing profitability while maintaining growth momentum.

Income Statement

Acast AB has shown impressive growth in revenue over the years, with a TTM (Trailing-Twelve-Months) revenue of 2.07 billion, marking a significant increase from 591.53 million in 2020. The gross profit margin has remained relatively stable with a TTM margin of 39.0%. However, the company has struggled with profitability as indicated by negative EBIT and net profit margins, although there has been an improvement in EBITDA margin from negative values in 2021 to a less negative figure in the TTM. Overall, Acast is on a strong growth trajectory, but profitability remains a challenge.

Balance Sheet

Acast maintains a solid equity base, with a stockholders' equity of over 1.17 billion. The debt-to-equity ratio is low at 0.12 in the TTM, indicating low leverage, which is a positive indicator of financial stability. However, the return on equity is negative due to net losses, suggesting inefficiencies in generating profit from shareholders' equity. The equity ratio remains robust at 59.8% for the TTM, reflecting strong balance sheet stability.

Cash Flow

Acast's cash flow from operations turned positive in the TTM, showing an improvement over previous years. The free cash flow also improved significantly, with a positive TTM free cash flow of 41.14 million, compared to negative figures in prior years. The operating cash flow to net income ratio is favorable, suggesting solid cash generation relative to net income. However, the free cash flow to net income ratio needs further improvement to ensure sustainable cash flow growth.

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: Positive
• Last Price: 18.76
• 50DMA: Positive
• 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 Positive. The current price of 18.76 is above the 20-day moving average (MA) of 18.45, above the 50-day MA of 16.96, and above the 200-day MA of 16.04, indicating a bullish trend. The MACD of 0.51 indicates Positive momentum. The RSI at 58.69 is Neutral, neither overbought nor oversold. The STOCH value of 55.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:ACAST.

Acast AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$44.04B	1.91	-11.93%	3.99%	2.50%	-38.33%
ACAST	54 Neutral	kr3.40B	33.56	-6.84%	―	21.20%	37.02%
GENTF	―	$80.66M	11.62	15.05%	7.33%	―	―
NENTF	―	$471.43M	2.99	-14.02%	―	―	―
5WF	―	€17.29M	―	-253.32%	―	―	―
MHK	―	€35.40M	39.33	>-0.01%	―	―	―
5ZD0	―	€8.99M	―	-60.20%	―	―	―