Embracer Group AB (SE:EMBRAC.B)
:EMBRAC.B
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Embracer Group AB
(EMBRAC.B)
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Rating:60Neutral
Price Target:
kr65.00
▲(24.40% Upside)
Action:Reiterated
Date:05/21/26
The score is held back mainly by weak and volatile financial performance (large recent losses and negative free cash flow, despite positive operating cash flow and moderate leverage). Supporting the score are strong technical momentum (price above key moving averages, positive MACD) and very attractive headline valuation metrics (low P/E and very high dividend yield).
Positive Factors
Large IP & Studio Portfolio
Embracer's broad collection of studios and owned IPs is a durable competitive asset: it supports recurring back-catalog sales, sequels, and cross‑media licensing. This diversified creative base reduces dependence on single hits and enables long-term monetization and portfolio risk mitigation.
Negative Factors
Large Net and Operating Losses
Material operating and net losses coupled with declining revenue signal persistent profitability weakness. Over a multi‑month horizon this erodes retained earnings and could force cost cuts, studio divestments, or impaired ability to fund big new projects from internal profits, raising execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Large IP & Studio Portfolio
Embracer's broad collection of studios and owned IPs is a durable competitive asset: it supports recurring back-catalog sales, sequels, and cross‑media licensing. This diversified creative base reduces dependence on single hits and enables long-term monetization and portfolio risk mitigation.
Read all positive factors
Embracer Group AB (EMBRAC.B) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr14.17B
Dividend YieldN/A
Average Volume (3M)749.02K
Price to Earnings (P/E)―
Beta (1Y)0.88
Revenue Growth-44.20%
EPS Growth-197.33%
CountrySE
Employees7,873
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-27.37
Shares Outstanding219,853,130
10 Day Avg. Volume694,113
30 Day Avg. Volume749,019
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.52
Price to Sales (P/S)0.64
P/FCF Ratio-18.74
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
kr79.00Price Target Upside51.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)5.49
Revenue Forecast (FY)kr16.76B
Embracer Group AB Business Overview & Revenue Model
Company Description
Operating from its Karlstad, Sweden headquarters, Embracer Group AB (publ) is a global entertainment powerhouse. The company develops and publishes a diverse portfolio of video games across various platforms, including PC, console, mobile, virtual...
How the Company Makes Money
Embracer primarily makes money by creating, publishing, and monetizing video games and related IP. Key revenue streams include: (1) Sales of new games (premium/full-game releases) across PC and console via physical and digital channels, where reve...
Embracer Group AB Earnings Call Summary
Earnings Call Date:Nov 14, 2024
(Q2-2025)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with significant achievements such as Asmodee's solid performance and the strategic divestment of Easybrain. However, these were countered by notable challenges including a decline in net sales, negative free cash flow, and underperformance in several game releases. While there are promising prospects with upcoming game releases and a strengthened financial position post-divestment, the current challenges balance out the positive aspects.Positive Updates
Asmodee's Solid Earnings Growth
Asmodee achieved SEK 700 million in profitability for the quarter, demonstrating strong earnings growth year-over-year ahead of their listing and Capital Market Day.
Negative Updates
Decline in Net Sales
Net sales declined by SEK 2.3 billion year-over-year, primarily due to the absence of major releases like Remnant II and Payday 3 and the divestments of Saber and Gearbox.
Read all updates
Q2-2025 Updates
Positive
Negative
Asmodee's Solid Earnings Growth
Asmodee achieved SEK 700 million in profitability for the quarter, demonstrating strong earnings growth year-over-year ahead of their listing and Capital Market Day.
Read all positive updates
Company Guidance
In the recent call, Embracer Group's CEO Lars Wingefors provided guidance for the second quarter of the fiscal year 2025, highlighting several key financial metrics and strategic updates. The company reported net sales of SEK 8.5 billion, a decrease from the previous year due to the absence of significant releases like Remnant and Payday. Despite this, Asmodee, a key segment, showed solid earnings growth with SEK 700 million in profitability. However, the PC/Console segment faced challenges, with a 33% decline in organic growth and an adjusted EBIT margin of 8% due to delays and weaker returns on investment. The mobile games segment performed well, generating SEK 1.3 billion in revenue with a 28% adjusted EBIT margin. The company also announced the transformative divestment of Easybrain for USD 1.2 billion, expected to significantly strengthen Embracer's financial position, reducing net debt to SEK 500 million on a pro forma basis. Looking ahead, key releases like Kingdom Come: Deliverance II and the remastered Legacy of Kain series are expected to support future growth.Embracer Group AB Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
55
Neutral
Cash Flow
40
Negative
| Breakdown | Mar 2026 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 15.91B | 22.37B | 37.66B | 17.04B | 9.02B |
| Gross Profit | 11.93B | 18.38B | 27.68B | 14.63B | 6.70B |
| EBITDA | 4.15B | 12.54B | 12.24B | 4.07B | 4.26B |
| Net Income | -5.82B | 5.96B | 4.45B | -4.29B | 287.00M |
Balance Sheet | |||||
| Total Assets | 26.80B | 42.13B | 116.07B | 93.45B | 33.75B |
| Cash, Cash Equivalents and Short-Term Investments | 4.96B | 7.10B | 4.68B | 5.81B | 14.30B |
| Total Debt | 1.65B | 2.35B | 21.75B | 20.31B | 1.48B |
| Total Liabilities | 7.27B | 10.94B | 51.35B | 48.64B | 6.59B |
| Stockholders Equity | 19.50B | 31.13B | 64.67B | 44.59B | 27.15B |
Cash Flow | |||||
| Free Cash Flow | -546.00M | -252.00M | -1.61B | 220.70M | 1.69B |
| Operating Cash Flow | 2.46B | 3.49B | 5.38B | 4.28B | 3.90B |
| Investing Cash Flow | -3.04B | 14.02B | -15.49B | -37.89B | -6.80B |
| Financing Cash Flow | -1.51B | -12.65B | 8.50B | 25.02B | 14.73B |
Embracer Group AB Technical Analysis
Negative
52.25
Price Trends
62.82
Negative
56.22
Positive
59.80
Positive
Market Momentum
-0.48
Positive
38.12
Neutral
10.70
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:EMBRAC.B, the sentiment is Negative. The current price of 52.25 is below the 20-day moving average (MA) of 67.46, below the 50-day MA of 62.82, and below the 200-day MA of 59.80, indicating a neutral trend. The MACD of -0.48 indicates Positive momentum. The RSI at 38.12 is Neutral, neither overbought nor oversold. The STOCH value of 10.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:EMBRAC.B.
Embracer Group AB Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | kr502.55M | 19.13 | 12.65% | 9.28% | -19.83% | -72.63% | |
61 Neutral | kr15.17B | 1,368.32 | -1.61% | ― | 70.95% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | kr14.17B | -2.25 | 10.27% | ― | -44.20% | -197.33% | |
60 Neutral | kr14.03B | 159.36 | 22.69% | 3.16% | -1.05% | -84.87% | |
60 Neutral | kr1.59B | -0.82 | ― | ― | -15.13% | -602.18% | |
51 Neutral | kr2.29B | -0.95 | ― | ― | -15.98% | 69.06% |
* Communication Services Sector Average
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Embracer Group AB Corporate Events
Embracer Buys Back 253,700 B Shares in Ongoing SEK 750m Program
Jun 9, 2026
Embracer Group AB has repurchased 253,700 of its own B shares on Nasdaq Stockholm between 1 and 5 June 2026 as part of a previously announced SEK 750 million share buyback program running until March 2027. The transactions, executed by Nordea Bank...
Embracer Group Buys Back Additional B Shares to Optimize Capital Structure
Jun 2, 2026
Embracer Group AB has continued its share repurchase program, buying back 245,200 B shares on Nasdaq Stockholm between 25 and 29 May 2026 under a SEK 750 million mandate running until March 2027. The transactions, executed by Nordea Bank on the co...
Embracer Group Steps Up SEK 750m Buyback With New B-Share Purchases
May 26, 2026
Embracer Group AB has repurchased 151,300 of its own B shares on Nasdaq Stockholm between 20 and 22 May 2026 under a SEK 750 million share buyback program launched on 20 May. The transactions, executed by Nordea Bank on Embracer’s behalf at ...
Embracer to Spin Off Fellowship Entertainment in 2027 Restructuring
May 20, 2026
Embracer Group plans to split into two publicly listed companies by spinning off Fellowship Entertainment, an IP-led entertainment business built around game development, publishing and licensing, with a planned Nasdaq Stockholm listing in 2027. S...
Embracer Posts Heavy Loss but Boosts Cash Flow as It Refocuses on Core IPs and Cash EBIT
May 20, 2026
Embracer Group reported a sharp decline in net sales and profitability for the fourth quarter and full year 2025/26, with annual revenue down 25% to SEK 15.9 billion and EBIT plunging into a loss of SEK 7.1 billion. Despite weaker topline and a 68...
Embracer launches SEK 750 million share buyback to streamline capital structure
May 20, 2026
Embracer Group AB, the Karlstad-headquartered video games and media group listed on Nasdaq Stockholm, has launched a share buyback program of up to SEK 750 million targeting its class B shares. The move is aimed at optimizing the company’s c...
Embracer to Spin Off Fellowship Entertainment in 2027 to Unlock Value in Major Gaming IPs
May 20, 2026
Embracer Group plans to spin off its Fellowship Entertainment segment and list it on Nasdaq Stockholm in 2027, creating a standalone company with a unified strategy and business plan. The move is intended to sharpen management focus, unlock what t...
Embracer Group Sets May 20 Date for Q4 and Full-Year 2025/26 Results
May 13, 2026
Embracer Group AB has scheduled the release of its fourth-quarter and full-year 2025/26 financial report for May 20, with publication at 07:00 CEST followed by an English-language webcast and conference call at 09:00 CEST led by CEO Phil Rogers an...
Embracer Group Updates Share Capital After Earn-Out Share Issue
Apr 30, 2026
Embracer Group AB has increased its share capital following the issuance of 75,162 new B shares as part of earn-out consideration payments, lifting total share capital to about SEK 1,907,109.97. The company now has 228,853,127 shares outstanding, ...
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.