Education
About Us
Working with TipRanks
Follow Us
Embracer Group AB (SE:EMBRAC.B)
:EMBRAC.B
Top Page
Embracer Group AB
(OTC:EMBRAC.B)
Rating:48Neutral
Price Target:―
Embracer Group AB (EMBRAC.B) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
$24.39B
Dividend YieldN/A
Average Volume (3M)1.27M
Price to Earnings (P/E)4.1
Beta (1Y)1.27
Revenue Growth-23.34%
EPS Growth-1681.97%
CountrySE
Employees7,873
SectorCommunication Services
Sector Strength93
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-0.19
Shares Outstanding216,119,700
10 Day Avg. Volume840,370
30 Day Avg. Volume1,268,356
Financial Highlights & Ratios
PEG Ratio-0.37
Price to Book (P/B)4.81
Price to Sales (P/S)0.00
P/FCF Ratio-192.86
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$107.80Price Target Upside-0.52% Downside
Rating ConsensusHold
Number of Analyst Covering4
Embracer Group AB Business Overview & Revenue Model
Company DescriptionEmbracer Group AB (publ), together with its subsidiaries, develops and publishes PC, console, mobile, VR, and board games for the games market worldwide. The company has a catalogue of approximately 850 owned franchises, such as Saints Row, Goat Simulator, Dead Island, Darksiders, Metro, MX vs ATV, Kingdoms of Amalur, TimeSplitters, Satisfactory, Wreckfest, Insurgency, World War Z, and Borderlands, and others. It also publishes films and comics. It distributes games through retailers and digital distributors. The company was formerly known as THQ Nordic AB (publ) and changed its name to Embracer Group AB (publ) in October 2019. Embracer Group AB (publ) was incorporated in 1999 and is headquartered in Karlstad, Sweden.
How the Company Makes MoneyEmbracer Group AB generates revenue primarily through the sale of video games and related content. The company's key revenue streams include direct sales of video game titles across digital and physical platforms, licensing of its extensive library of intellectual properties, and monetization of in-game content such as downloadable content (DLC), expansions, and microtransactions. Additionally, Embracer Group benefits from strategic partnerships and collaborations with other companies in the gaming industry, which can include co-publishing deals, distribution agreements, and development collaborations. The company also invests in acquiring gaming studios and intellectual property rights to expand its portfolio and enhance its revenue potential.
Embracer Group AB Earnings Call Summary
Earnings Call Date:May 22, 2025
(Q2-2025)
| % Change Since: -14.34%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with significant challenges including declining sales and cash flow issues, particularly in the PC/Console and Entertainment & Services segments. However, the divestment of Easybrain and strong Asmodee performance provide a positive outlook for financial stabilization and future growth opportunities.Q2-2025 Updates
Positive Updates
Successful Easybrain Divestment
The divestment of Easybrain to Miniclip for USD 1.2 billion (SEK 12.9 billion) is expected to significantly strengthen Embracer's financial position, reducing net debt to approximately SEK 500 million on a pro forma basis.
Strong Asmodee Performance
Asmodee reported a solid earnings growth year-over-year with a profitability of SEK 700 million in the quarter, driven by a favorable product mix and successful game releases.
Mobile Games Profitability
The Mobile Games segment reported SEK 1.3 billion in revenues with a 28% adjusted EBIT margin, despite a decline in daily active users.
Positive Outlook for Kingdom Come: Deliverance II
No delays are expected for the release of Kingdom Come: Deliverance II in February 2025, and it is anticipated to be a significant contributor to future earnings.
Negative Updates
Decline in Net Sales
Net sales decreased by SEK 2.3 billion year-over-year, primarily due to the lack of major new releases and divestments of Saber and Gearbox.
Negative Free Cash Flow
Free cash flow was negative at minus SEK 473 million for the quarter, largely due to increased working capital and inventory buildup.
PC/Console Segment Underperformance
The PC/Console segment experienced a negative organic growth of 33% and a profitability of only 8%, impacted by weaker ROI and delayed game releases.
Challenges in Entertainment & Services
The Entertainment & Services segment saw a negative 9% organic growth year-over-year, with only a 2% adjusted EBIT margin.
Company Guidance
During the Q2 2025 earnings call for Embracer Group, CEO Lars Wingefors provided comprehensive guidance on several key performance metrics. The company reported SEK 8.5 billion in net sales for the quarter, reflecting a decline year-over-year, primarily due to the absence of significant releases like Remnant and Payday from the previous year. The adjusted EBIT was SEK 1.2 billion, with free cash flow showing a negative SEK 500 million, influenced by increased working capital and inventory buildup. Notably, Asmodee exhibited strong earnings growth with profitability reaching SEK 700 million. PC/Console segment's organic growth was down by 33%, affected by weaker ROI and game release delays, though an improved performance is expected in the second half of the year. The mobile games segment recorded revenues of SEK 1.3 billion with a 28% adjusted EBIT margin, despite a decline in daily active users attributed to a business model shift within CrazyLabs. The divestment of Easybrain for USD 1.2 billion is expected to significantly enhance Embracer's financial position, reducing net debt substantially.Embracer Group AB Financial Statement Overview
Summary
Embracer Group AB faces significant financial challenges, with declining revenues and profitability, as well as cash flow inefficiencies. While the balance sheet shows a reasonable leverage position, the liquidity and asset base have weakened. The company must address operational inefficiencies and improve cash generation to stabilize its financial position and support future growth.Income Statement
The TTM (Trailing-Twelve-Months) income statement shows a significant decline in revenue compared to the previous year, with total revenue dropping from 42.2 billion to 32.7 billion. The company has also faced substantial operational challenges, reflected in negative EBIT and net income margins of -43.3% and -60.2%, respectively. While EBITDA remains positive, the overall profitability has deteriorated, indicating financial instability.45
Neutral
Balance Sheet
The balance sheet reveals a moderately high debt-to-equity ratio of 0.14, indicating a manageable level of leverage. Stockholders' equity forms a substantial part of the company's total assets, with an equity ratio of 56.4%. However, the decrease in cash reserves and total assets from previous years suggests potential liquidity concerns and a decline in asset base stability.55
Neutral
Cash Flow
The cash flow analysis indicates negative free cash flow of -858 million, highlighting challenges in generating sufficient cash to cover capital expenditures. The operating cash flow to net income ratio is negative due to the substantial net loss, suggesting inefficiencies in converting earnings into cash. The decline in free cash flow from positive levels in prior years further emphasizes the need for better cash management.40
Negative
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 32.72B | 42.21B | 37.66B | 17.04B | 9.02B | 5.25B |
| Gross Profit | 2.83B | 30.78B | 27.68B | 14.63B | 6.70B | 3.43B |
| EBITDA | 219.00M | 4.76B | 11.69B | 4.07B | 4.07B | 1.90B |
| Net Income | -19.70B | -18.18B | 4.45B | -4.29B | 287.00M | 284.90M |
Balance Sheet | ||||||
| Total Assets | 89.86B | 95.70B | 116.07B | 93.45B | 33.75B | 10.64B |
| Cash, Cash Equivalents and Short-Term Investments | 3.04B | 3.34B | 4.68B | 5.81B | 14.30B | 2.51B |
| Total Debt | 7.23B | 21.18B | 21.75B | 20.31B | 1.48B | 1.46B |
| Total Liabilities | 38.24B | 43.21B | 51.35B | 48.64B | 6.59B | 4.24B |
| Stockholders Equity | 50.72B | 52.42B | 64.67B | 44.59B | 27.15B | 6.37B |
Cash Flow | ||||||
| Free Cash Flow | -858.00M | 529.00M | -1.61B | 220.70M | 1.69B | 32.60M |
| Operating Cash Flow | 3.78B | 7.89B | 5.38B | 4.28B | 3.90B | 1.73B |
| Investing Cash Flow | 371.00M | -9.95B | -15.49B | -37.89B | -6.80B | -2.63B |
| Financing Cash Flow | -3.60B | 832.00M | 8.50B | 25.02B | 14.73B | 473.40M |
Embracer Group AB Technical Analysis
Negative
108.36
Price Trends
115.54
Negative
117.81
Negative
147.90
Negative
Market Momentum
-2.60
Positive
43.71
Neutral
44.75
Neutral
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 108.36 is below the 20-day moving average (MA) of 111.94, below the 50-day MA of 115.54, and below the 200-day MA of 147.90, indicating a bearish trend. The MACD of -2.60 indicates Positive momentum. The RSI at 43.71 is Neutral, neither overbought nor oversold. The STOCH value of 44.75 is Neutral, 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $41.22B | -1.26 | -14.49% | 3.95% | 2.29% | -73.14% | |
48 Neutral | $24.39B | 4.10 | 5.32% | ― | -23.34% | -1681.97% | |
| $2.11B | 39.32 | 19.48% | 25.48% | ― | ― | ||
| kr265.98M | ― | ― | ― | ― | |||
| $95.91M | 10.38 | 16.63% | 7.43% | ― | ― | ||
| €14.07M | ― | -253.32% | ― | ― | ― | ||
| €3.51M | ― | -60.20% | ― | ― | ― |
* Communication Services Sector Average
Performance Comparison
SE:EMBRAC.B
Embracer Group AB
108.36
-30.90
-22.19%
PRXXF
Paradox Interactive AB
20.27
7.12
54.14%
SE:FLEXM
Flexion Mobile
4.73
-4.15
-46.73%
GENTF
G5 Entertainment AB
11.68
1.59
15.76%
DE:5WF
Gaming Corps AB
0.08
<0.01
14.29%
DE:5ZD0
Fragbite Group AB
0.51
-0.19
-27.14%
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.