Embracer Group AB (EMBRAC.B) AI Stock Analysis

• Market Cap: kr23.88B
• Dividend Yield: N/A
• Average Volume (3M): 681.17K
• Price to Earnings (P/E): 4.0
• Beta (1Y): 1.22
• Revenue Growth: -30.73%
• EPS Growth: N/A
• Country: SE
• Employees: 7,873
• Sector: Communication Services
• Sector Strength: 87
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.19
• Shares Outstanding: 216,119,700
• 10 Day Avg. Volume: 505,391
• 30 Day Avg. Volume: 681,166
• PEG Ratio: 0.01
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -96.29
• 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: kr112.70
• Price Target Upside: 7.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 65 Neutral
• Price Target: kr116.00 ▲(10.58%Upside)

Embracer Group AB's overall stock score is driven by a mixed financial performance with strong profitability improvements but significant revenue and cash flow challenges. The technical analysis reveals bearish momentum, while the low P/E ratio indicates potential undervaluation. Strategic adjustments may be needed to sustain growth.

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 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 Money

Embracer Group AB generates revenue primarily through the development and sale of video games across multiple platforms, including console, PC, and mobile. The company earns income through digital and physical sales of its titles, licensing agreements, and distribution partnerships. A significant portion of its revenue is derived from the back catalog of games, which provides ongoing sales long after initial releases. Embracer also benefits from its strategic acquisitions, which often bring in new revenue streams and intellectual properties that can be monetized through sequels, expansions, and merchandise.

Embracer Group AB Financial Statement Overview

Summary

Embracer Group AB exhibited a mixed financial performance with improvements in profitability metrics but a significant revenue decline. The balance sheet is strong with low leverage, but cash flow challenges, particularly in free cash flow, highlight potential risks.

Income Statement

Embracer Group AB showed mixed performance on the income statement. The company faced a significant decline in revenue from 2024 to 2025, reflecting a -47.0% revenue growth rate. Gross Profit Margin remained strong at 82.2% in 2025, indicating efficient production processes. However, there were challenges in profitability, with a shift from negative to positive Net Profit Margin of 26.7% in 2025, recovering from a significant loss in 2024. EBIT and EBITDA Margins improved substantially to 15.8% and 56.1% respectively in 2025, showcasing operational improvements.

Balance Sheet

The balance sheet of Embracer Group AB reflects a strong equity position with an Equity Ratio of 73.9% in 2025, indicating financial stability. The Debt-to-Equity Ratio was relatively low at 0.08, suggesting manageable leverage. Return on Equity improved to 19.1% in 2025, a positive sign of profitability relative to shareholder equity. However, the company experienced a shrinking asset base in 2025, which could pose future growth challenges.

Cash Flow

The cash flow statement revealed some concerns for Embracer Group AB. The Free Cash Flow Growth Rate turned negative, indicating a significant decline in free cash flow due to capital expenditures. The Operating Cash Flow to Net Income Ratio was 0.59 in 2025, reflecting decent cash conversion from earnings. Free Cash Flow to Net Income Ratio was -0.04, illustrating challenges in translating profits to free cash flow.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	22.37B	42.21B	37.66B	17.04B	9.02B
Gross Profit	18.38B	30.78B	27.68B	14.63B	6.70B
EBITDA	12.54B	4.76B	11.69B	4.07B	4.07B
Net Income	5.96B	-18.18B	4.45B	-4.29B	287.00M
Balance Sheet
Total Assets	42.13B	95.70B	116.07B	93.45B	33.75B
Cash, Cash Equivalents and Short-Term Investments	7.10B	3.34B	4.68B	5.81B	14.30B
Total Debt	2.35B	21.18B	21.75B	20.31B	1.48B
Total Liabilities	10.94B	43.21B	51.35B	48.64B	6.59B
Stockholders Equity	31.13B	52.42B	64.67B	44.59B	27.15B
Cash Flow
Free Cash Flow	-252.00M	529.00M	-1.61B	220.70M	1.69B
Operating Cash Flow	3.49B	7.89B	5.38B	4.28B	3.90B
Investing Cash Flow	14.02B	-9.95B	-15.49B	-37.89B	-6.80B
Financing Cash Flow	-12.65B	832.00M	8.50B	25.02B	14.73B

Embracer Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 104.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 104.9 is below the 20-day moving average (MA) of 107.42, below the 50-day MA of 113.05, and below the 200-day MA of 108.06, indicating a bearish trend. The MACD of -1.65 indicates Negative momentum. The RSI at 42.97 is Neutral, neither overbought nor oversold. The STOCH value of 48.19 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMBRAC.B	65 Neutral	kr23.88B	3.97	5.32%	―	-30.73%	―
Sector *	64 Neutral	£1.77B	9.97	-12.53%	286.57%	2.55%	-474.83%
PRXXF	―	$1.96B	35.98	19.48%	1.79%	―	―
FLEXM	―	kr376.76M	―		―	―	―
GENTF	―	$96.07M	10.35	16.63%	6.85%	―	―
5WF	―	€19.75M	―	-253.32%	―	―	―
5ZD0	―	€6.79M	―	-60.20%	―	―	―

Embracer Group AB Corporate Events

Embracer Group Announces Leadership Changes and Spin-off Plans

Embracer Group AB has announced significant leadership changes as part of its ongoing transformation process. Phil Rogers will assume the role of CEO on August 1, 2025, while co-founder Lars Wingefors is proposed to become Executive Chair of the Board. Additionally, the company plans to spin off Coffee Stain Group as an independent entity listed on Nasdaq First North Premier Growth Market by the end of 2025, with several board appointments already outlined to ensure compliance with governance standards.

The most recent analyst rating on ($SE:EMBRAC.B) stock is a Hold with a SEK97.88 price target. To see the full list of analyst forecasts on Embracer Group AB stock, see the SE:EMBRAC.B Stock Forecast page.

Embracer Group Reports Mixed Financials and Strategic Spin-Off Plans

Embracer Group AB reported a mixed financial performance for the fiscal year ending March 2025, with a notable organic growth in net sales by 19% in the fourth quarter, driven by the success of ‘Kingdom Come: Deliverance II’. The company plans to spin off Coffee Stain Group by the end of 2025 to enhance its strategic focus and efficiency, while continuing to optimize its operations and unlock shareholder value.

The most recent analyst rating on ($SE:EMBRAC.B) stock is a Hold with a SEK96.16 price target. To see the full list of analyst forecasts on Embracer Group AB stock, see the SE:EMBRAC.B Stock Forecast page.

Embracer Group to Spin Off Coffee Stain Group and Rebrand as Fellowship Entertainment

Embracer Group AB has announced its plan to spin off Coffee Stain Group into a standalone entity by the end of 2025, with the intention of listing it on the Nasdaq First North Premier Growth Market in Stockholm. This strategic move aims to provide Coffee Stain Group with greater autonomy to focus on its core strengths in community-driven game development. Concurrently, Embracer will rebrand as Fellowship Entertainment, continuing to leverage its vast array of intellectual properties and creative assets to enhance its market position and foster innovation across its global operations.

The most recent analyst rating on ($SE:EMBRAC.B) stock is a Hold with a SEK96.16 price target. To see the full list of analyst forecasts on Embracer Group AB stock, see the SE:EMBRAC.B Stock Forecast page.

Embracer Group to Present Year-End Financial Report

Embracer Group has announced an upcoming presentation of its Year End Report for the fiscal year 2024/2025 and the interim report for the fourth quarter. The presentation, scheduled for May 22, 2025, will be led by the company’s CEO and CFO, and will include a Q&A session hosted by an equity research analyst from Nordea Equities. This event is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction.

The most recent analyst rating on ($SE:EMBRAC.B) stock is a Hold with a SEK144.00 price target. To see the full list of analyst forecasts on Embracer Group AB stock, see the SE:EMBRAC.B Stock Forecast page.