Embracer Group AB (SE:EMBRAC.B)
:EMBRAC.B
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Embracer Group AB
(EMBRAC.B)
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Rating:66Neutral
Price Target:
kr67.00
▲(28.23% Upside)
Action:ReiteratedDate:02/18/26
The score is driven by very strong valuation (low P/E and high yield) and a currently conservative balance sheet, offset by weak cash-flow quality (sharp FCF decline and low cash conversion) and a softer technical setup (below key longer-term moving averages with negative MACD).
Positive Factors
Diverse IP & studio portfolio
Embracer's broad ownership of studios and IP creates durable revenue mix: new releases, back-catalog sales, DLC and licensing. Scale across multiple teams and franchises spreads development risk, supports recurring long-tail sales and cross‑media monetization over the medium term.
Negative Factors
Weak free cash flow
A steep FCF decline and thin absolute free cash generation constrain the company's ability to self-fund game development, live-ops, licensing deals or dividends. Persistent weak cash conversion raises reliance on financing and increases vulnerability to cyclical sales swings.
Read all positive and negative factors
Positive Factors
Negative Factors
Diverse IP & studio portfolio
Embracer's broad ownership of studios and IP creates durable revenue mix: new releases, back-catalog sales, DLC and licensing. Scale across multiple teams and franchises spreads development risk, supports recurring long-tail sales and cross‑media monetization over the medium term.
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)2.2
Beta (1Y)0.95
Revenue Growth-45.71%
EPS GrowthN/A
CountrySE
Employees7,873
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)1.77
Shares Outstanding219,777,970
10 Day Avg. Volume694,113
30 Day Avg. Volume749,019
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)3.82
Price to Sales (P/S)4.74
P/FCF Ratio378.06
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
kr90.00Price Target Upside72.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)5.69
Revenue Forecast (FY)kr17.16B
Embracer Group AB Business Overview & Revenue Model
Company Description
Embracer 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 S...
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:May 20, 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
58
Neutral
Balance Sheet
76
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.77B | 22.37B | 42.21B | 37.66B | 17.04B | 9.02B |
| Gross Profit | 13.99B | 18.38B | 30.78B | 27.68B | 14.63B | 6.70B |
| EBITDA | 12.67B | 12.54B | 4.70B | 12.24B | 4.07B | 4.26B |
| Net Income | 8.54B | 5.96B | -18.18B | 4.45B | -4.29B | 287.00M |
Balance Sheet | ||||||
| Total Assets | 34.80B | 42.13B | 95.70B | 116.07B | 93.45B | 33.75B |
| Cash, Cash Equivalents and Short-Term Investments | 4.88B | 7.10B | 3.34B | 4.68B | 5.81B | 14.30B |
| Total Debt | 2.51B | 2.35B | 21.18B | 21.75B | 20.31B | 1.48B |
| Total Liabilities | 8.73B | 10.94B | 43.21B | 51.35B | 48.64B | 6.59B |
| Stockholders Equity | 26.04B | 31.13B | 52.42B | 64.67B | 44.59B | 27.15B |
Cash Flow | ||||||
| Free Cash Flow | 176.00M | -252.00M | 529.00M | -1.61B | 220.70M | 1.69B |
| Operating Cash Flow | 2.68B | 3.49B | 7.89B | 5.38B | 4.28B | 3.90B |
| Investing Cash Flow | 9.17B | 14.02B | -9.95B | -15.49B | -37.89B | -6.80B |
| Financing Cash Flow | -10.05B | -12.65B | 832.00M | 8.50B | 25.02B | 14.73B |
Embracer Group AB Technical Analysis
Positive
52.25
Price Trends
50.55
Positive
53.21
Positive
60.48
Positive
Market Momentum
2.46
Negative
81.70
Negative
94.36
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:EMBRAC.B, the sentiment is Positive. The current price of 52.25 is above the 20-day moving average (MA) of 50.13, above the 50-day MA of 50.55, and below the 200-day MA of 60.48, indicating a bullish trend. The MACD of 2.46 indicates Negative momentum. The RSI at 81.70 is Negative, neither overbought nor oversold. The STOCH value of 94.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | kr13.95B | -216.77 | -1.61% | ― | 92.49% | 68.44% | |
66 Neutral | kr14.17B | 2.23 | 10.27% | ― | -45.71% | ― | |
61 Neutral | kr13.63B | -21.32 | 22.69% | 3.16% | -0.41% | -78.54% | |
61 Neutral | kr507.46M | 23.65 | 12.65% | 9.28% | -17.01% | -74.62% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
53 Neutral | kr2.72B | -1.37 | ― | ― | -15.26% | 67.89% | |
44 Neutral | kr1.42B | -0.62 | ― | ― | -5.06% | -718.26% |
* Communication Services Sector Average
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Embracer Group AB Corporate Events
Embracer Tightens Focus on Core IP as Sales Slide but Profitability Improves
Feb 12, 2026
Embracer Group reported third-quarter net sales of SEK 5.2 billion, down 26% year-on-year, with sharp declines in mobile games and softer PC/console and entertainment revenues, while adjusted EBIT fell 44% to SEK 528 million and free cash flow tur...
Embracer Group Sets February 12 Presentation for Q3 2025/26 Results
Feb 5, 2026
Embracer Group has invited investors, analysts and media to a presentation of its interim report for the third quarter of fiscal year 2025/26, to be held on 12 February, with the report scheduled for publication that morning and followed by an Eng...
Embracer Names Shareholder-Backed Nomination Committee Ahead of 2026 AGM
Feb 4, 2026
Embracer Group AB has appointed a five-member Nomination Committee for its 2026 Annual General Meeting, with representatives from its largest shareholders by voting rights, including Lars Wingefors AB, Savvy Gaming Group, Alecta, SEB Asset Managem...
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.