Enad Global 7 AB (EG7) AI Stock Analysis

• Market Cap: kr1.21B
• Dividend Yield: N/A
• Average Volume (3M): 457.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• Revenue Growth: 1.74%
• EPS Growth: -5214.06%
• Country: SE
• Employees: 546
• Sector: Technology
• Sector Strength: 88
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.22
• Shares Outstanding: 88,603,520
• 10 Day Avg. Volume: 482,581
• 30 Day Avg. Volume: 457,838
• PEG Ratio: 0.02
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.75
• P/FCF Ratio: -10.47
• 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: kr12.00
• Price Target Upside: -12.41% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: kr13.50 ▼(-1.46% Downside)

Enad Global 7 AB's stock score reflects significant financial and operational challenges, including declining revenues and profitability issues. Technical analysis indicates weak momentum, and valuation metrics are unattractive with a negative P/E ratio. While there are promising growth areas, such as Palia and Piranha, overall performance is hindered by broader declines and project delays.

Positive Factors

Revenue Growth

EG7's strong revenue growth indicates effective market penetration and product demand, supporting long-term business expansion and stability.

Diversified Portfolio

A diversified portfolio across gaming platforms mitigates risk and enhances revenue stability by catering to various audience segments.

Low Leverage

Low leverage provides financial flexibility and reduces risk, allowing EG7 to invest in growth opportunities without excessive debt burden.

Negative Factors

Profitability Challenges

Ongoing profitability issues could hinder EG7's ability to reinvest in growth and may impact long-term financial health.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues, limiting EG7's ability to fund operations and strategic initiatives internally.

Negative ROE

Negative ROE suggests EG7 is not effectively utilizing shareholder equity to generate profits, which may affect investor confidence and growth potential.

Enad Global 7 AB Business Overview & Revenue Model

Company Description

Enad Global 7 AB (publ) develops, markets, publishes, and distributes PC, console, and mobile games in Sweden, rest of Europe, North America, South America, Asia, Africa, and Oceania. The company also provides consulting services for development strategies and marketing of games; and marketing services. In addition, it released approximately 1,500 titles under the Call of Duty, Destiny, Dark Souls, Elden Ring, and Rage brands. The company was formerly known as Toadman Interactive AB (publ) and changed its name to Enad Global 7 AB (publ) in March 2020. Enad Global 7 AB (publ) was incorporated in 2013 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

EG7 generates revenue primarily through game sales, in-game purchases, and subscription services. The company benefits from a diversified portfolio of titles, which allows it to capture different segments of the gaming market. Key revenue streams include direct sales of games through digital and physical distribution channels, as well as ongoing revenue from downloadable content (DLC) and microtransactions within their games. Additionally, EG7 may engage in partnerships and collaborations with other gaming companies, enhancing its reach and distribution capabilities, which can further contribute to its earnings. The company may also explore licensing agreements and merchandise related to its game franchises, adding another layer to its revenue generation strategy.

Enad Global 7 AB Financial Statement Overview

Summary

Enad Global 7 AB shows strong revenue growth and efficient cost management, but faces significant profitability challenges with negative net income and EBIT margins. The balance sheet is stable with low leverage, yet negative ROE and cash flow issues highlight inefficiencies and liquidity concerns.

Income Statement

Enad Global 7 AB shows a mixed performance in its income statement. The company has experienced revenue growth in the TTM period, but it is accompanied by negative net and EBIT margins, indicating profitability challenges. The gross profit margin remains strong, suggesting efficient cost management. However, the negative net profit margin highlights ongoing losses, which could be a concern for long-term sustainability.

Balance Sheet

The balance sheet of Enad Global 7 AB is relatively stable with a low debt-to-equity ratio, indicating conservative leverage. However, the return on equity is negative, reflecting the company's struggle to generate profits from shareholders' equity. The equity ratio is healthy, suggesting a strong capital structure, but the negative ROE indicates inefficiencies in utilizing equity.

Cash Flow

The cash flow statement presents challenges, with negative free cash flow growth and a negative free cash flow to net income ratio, indicating cash flow issues. The operating cash flow to net income ratio is positive, suggesting some operational cash generation, but the overall cash flow position is weak, highlighting potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.87B	1.92B	2.09B	1.88B	2.04B	614.30M
Gross Profit	1.47B	1.56B	1.55B	1.41B	1.50B	276.30M
EBITDA	434.80M	471.10M	489.10M	472.10M	576.30M	19.80M
Net Income	-174.00M	-236.40M	156.10M	-268.10M	96.80M	-148.40M
Balance Sheet
Total Assets	4.53B	4.91B	4.87B	4.95B	6.01B	4.57B
Cash, Cash Equivalents and Short-Term Investments	395.90M	321.50M	478.30M	405.20M	481.20M	1.08B
Total Debt	377.80M	69.00M	80.90M	145.10M	458.50M	516.40M
Total Liabilities	1.09B	939.80M	972.30M	1.05B	1.41B	1.43B
Stockholders Equity	3.44B	3.97B	3.90B	3.90B	4.60B	3.14B
Cash Flow
Free Cash Flow	-82.10M	-137.90M	190.70M	174.50M	4.20M	-178.10M
Operating Cash Flow	242.40M	194.10M	437.80M	374.60M	162.70M	-125.10M
Investing Cash Flow	-345.40M	-306.50M	-231.60M	-58.00M	-625.80M	-1.35B
Financing Cash Flow	301.70M	-66.30M	-126.00M	-331.80M	-164.20M	2.47B

Enad Global 7 AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:EG7, the sentiment is Positive. The current price of 13.7 is above the 20-day moving average (MA) of 13.43, below the 50-day MA of 14.85, and above the 200-day MA of 13.26, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 50.51 is Neutral, neither overbought nor oversold. The STOCH value of 66.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:EG7.

Enad Global 7 AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
G5EN	74 Outperform	kr708.80M	10.26	12.65%	9.74%	-14.68%	-29.97%
PDX	67 Neutral	kr17.01B	26.67	22.69%	3.13%	-18.54%	71.38%
EMBRAC.B	62 Neutral	$13.35B	1.62	10.27%	―	-46.66%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MAGI	59 Neutral	€225.20M	-23.92	-3.04%	11.76%	-3.51%	-192.91%
SF	52 Neutral	kr3.25B	-0.43	―	―	-11.82%	-7499.16%
EG7	49 Neutral	kr1.21B	-6.98	―	―	1.74%	-5214.06%

Enad Global 7 AB Corporate Events

Enad Global 7 Releases New Expansion for The Lord of the Rings Online

Enad Global 7’s subsidiary, Standing Stones Games, has launched the ‘Kingdoms of Harad’ expansion for The Lord of the Rings Online, a free-to-play MMORPG. This expansion, priced between $39.99 and $129.99, introduces four new zones and over 400 quests, enhancing the game’s content. As the only MMORPG based on J.R.R. Tolkien’s Middle-earth, following the cancellation of a competing title, this release strengthens the game’s unique position in the market.

EG7 Expands MechWarrior 5: Clans with New DLC Release

Enad Global 7’s subsidiary, Piranha Games, has released the second DLC for MechWarrior 5: Clans, titled ‘Wolves of Tukayyid’. This expansion follows the storyline of the Battle of Luthien and introduces new missions and ‘Mechs, enhancing the gaming experience. The release is part of EG7’s strategy to expand its gaming portfolio and strengthen its position in the global gaming market.

Enad Global 7 AB Announces Board Restructuring

Enad Global 7 AB held an extra general meeting where shareholders elected new directors to the board, including Alexander Albedj as chairman and Jason Epstein as deputy chairman. The meeting also confirmed the remuneration for board members and committee members, maintaining the amounts set at the 2025 annual general meeting. These changes are expected to influence the company’s governance structure and strategic direction.

Eros Capital Pushes for Strategic Changes at Enad Global 7

Eros Capital Partners AB, the largest shareholder of Enad Global 7, has called for an Extraordinary General Meeting to propose new board members and implement strategic changes. Eros aims to enhance shareholder value through governance improvements, potential share buy-backs, and strategic partnerships, while also considering taking the company private if beneficial.

EG7 Increases Investment in Cold Iron’s Project Avo, Delays Release to 2026

Enad Global 7 AB, through its subsidiary Daybreak Games, has announced an additional investment of up to USD 6.5 million in Project Avo, a co-op action shooter developed by Cold Iron Studios. This investment, which is a related-party transaction, has been approved by EG7’s Contract Oversight Committee and aligns with the company’s long-term growth strategy. The game’s release has been postponed to the third quarter of 2026 to ensure high quality and maximize performance, reflecting EG7’s commitment to maintaining shareholder interests and corporate governance best practices.

EG7 Appoints Nomination Committee for 2026 AGM

Enad Global 7 AB has announced the appointment of its Nomination Committee for the 2026 Annual General Meeting, consisting of representatives from its three largest shareholders and the Chairman of the Board. This committee, representing about 27% of the company’s shares and votes, will play a crucial role in shaping the company’s governance and strategic direction ahead of the meeting.

Enad Global 7 Announces Extra General Meeting for Shareholders

Enad Global 7 AB has announced an extra general meeting for its shareholders, scheduled for November 26, 2025, in Stockholm. The meeting will address various participation methods, including in-person, proxy, and advance voting, with specific instructions for each. Shareholders must register by November 18, 2025, to participate, and those with nominee-registered shares must temporarily register in their own name. The meeting will also be accessible via video conference, although voting rights cannot be exercised remotely.

Enad Global 7 AB Announces Q3 2025 Results Presentation

Enad Global 7 AB has announced a live presentation for its third-quarter results of 2025, scheduled for November 11, 2025. This event, led by CEO Ji Ham and Deputy CEO and CFO Fredrik Rüdén, aims to engage shareholders and interested parties, providing insights into the company’s recent performance and future outlook. The announcement underscores EG7’s commitment to transparency and stakeholder engagement, potentially impacting its market perception and investor relations.