Fractal Gaming Group AB (FRACTL) AI Stock Analysis

• Market Cap: kr420.06M
• Dividend Yield: 4.22%
• Average Volume (3M): 58.05K
• Price to Earnings (P/E): 26.6
• Beta (1Y): 0.02
• Revenue Growth: 30.33%
• EPS Growth: 83.74%
• Country: SE
• Employees: 106
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): -0.03
• Shares Outstanding: 29,170,500
• 10 Day Avg. Volume: 34,698
• 30 Day Avg. Volume: 58,049
• PEG Ratio: -0.82
• Price to Book (P/B): 2.10
• Price to Sales (P/S): 1.07
• P/FCF Ratio: 129.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.4
• Revenue Forecast (FY): kr711.03M

• Rating: 56 Neutral
• Price Target: kr15.50 ▼(-47.81% Downside)
• Action: Reiterated Date: 02/08/26
• Date: Action: Reiterated 02/08/26

The score is held back primarily by deteriorating 2025 cash generation and margin compression, alongside clearly bearish technicals with the stock far below key moving averages. These risks are partially offset by a modest P/E and a very high dividend yield, plus a low-leverage balance sheet.

Positive Factors

Low leverage and conservative capital structure

The company’s very low debt-to-equity (~0.07) and sizable equity base provide durable financial flexibility. A conservative capital structure reduces refinancing risk, supports investment in product development and distribution, and helps absorb demand cyclicality in the gaming hardware market.

Established brand with multi-channel distribution

Fractal’s recognized Fractal Design brand and presence across retail, distributors and direct e-commerce create durable channel diversification and brand equity. This helps sustain unit volumes, supports new-product introductions, and reduces single-channel exposure in the global PC-enthusiast niche.

Recent positive top-line growth

Reported revenue growth near 16% indicates the business can expand sales despite a cyclical market. Sustained top-line momentum supports scale benefits, inventory turns and R&D investment potential, aiding medium-term recovery of margins if product mix tailwinds persist.

Negative Factors

Deteriorating cash generation in 2025

A sharp fall in operating and free cash flow limits internal funding for capex, new product investment or working-capital cushions. Weak cash conversion (F‑CF ~41% of net income) increases reliance on operational improvement or external financing to sustain dividends and strategic initiatives over the medium term.

Marked margin compression

A dramatic drop in gross and net margins signals pressure on pricing power, cost structure or adverse product-mix shifts. Sustaining profitability will require either cost reductions or higher-margin product adoption; otherwise margin volatility could persist and impair reinvestment capacity.

Volatile revenue performance

Material swings in year-to-year revenue undermine predictability for inventory, production and channel planning. In a cyclical PC hardware market, such volatility raises execution risk for product launches and can amplify working-capital swings, constraining steady margin recovery.

Fractal Gaming Group AB Business Overview & Revenue Model

Company Description

Fractal Gaming Group AB (publ) offers PC gaming products worldwide. The company's products include computer chassis, power supply units, water cooling products, fans, and accessories for gaming computers. It offers its products through distributors, retailers, and system integrators. Fractal Gaming Group AB (publ) was founded in 2010 and is headquartered in Gothenburg, Sweden.

How the Company Makes Money

Fractal Gaming Group makes money primarily by selling physical PC hardware products under its brands (notably Fractal Design). Revenue is generated through wholesale sales to distributors and retailers and, where applicable, direct-to-consumer e-commerce sales. The core revenue streams typically come from its product categories such as PC cases and other PC hardware accessories/components; earnings are driven by unit volumes sold and product mix (e.g., higher-priced or higher-margin models). The company’s ability to generate revenue is influenced by its product development and launch cycle, demand in the DIY PC/gaming market, channel reach (distribution and retail partners), and global logistics and manufacturing arrangements. Specific material partnerships, customer concentration, licensing income, subscription/software revenue, or advertising-based monetization are not available here and are therefore null.

Fractal Gaming Group AB Financial Statement Overview

Summary

Balance sheet strength and low leverage support stability, but earnings quality is pressured by a sharp 2025 drop in operating/free cash flow and weak cash conversion. Profitability also deteriorated materially in 2025 as gross and net margins compressed after prior strength, and revenue remains volatile.

Income Statement

Revenue has been volatile, with strong growth in 2023 and 2025 but a decline in 2024. Profitability weakened materially in 2025: gross margin fell sharply (to ~6% from ~41% in 2024), and net margin compressed to ~4% (from ~7% in 2024 and ~12% in 2023). While the business remains profitable in the latest annual period, the large swing in margins raises questions about pricing power, product mix, or one-off effects.

Balance Sheet

Leverage is low in the latest annual period (debt-to-equity ~0.07) and equity remains sizable, indicating a relatively conservative capital structure. Returns on equity are positive but have moderated versus prior peaks (notably 2020–2023), suggesting profitability has normalized. A key positive is the reduction in leverage compared with 2021–2022, when debt levels were meaningfully higher.

Cash Flow

Cash generation deteriorated significantly in 2025: operating cash flow dropped to 16.2m and free cash flow to 6.7m, with a steep free-cash-flow decline versus 2024. Cash flow conversion also looks weak in the latest year (free cash flow at ~41% of net income), contrasting with much stronger conversion in 2023–2024. The trend points to higher working-capital needs and/or increased cash costs, making earnings quality a near-term concern.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	809.50M	697.90M	773.30M	485.57M	478.56M
Gross Profit	49.20M	293.70M	315.33M	188.14M	167.02M
EBITDA	77.80M	88.00M	138.30M	39.58M	12.15M
Net Income	32.50M	47.70M	89.65M	10.69M	-4.36M
Balance Sheet
Total Assets	642.50M	661.90M	597.09M	536.83M	564.55M
Cash, Cash Equivalents and Short-Term Investments	17.00M	50.60M	20.35M	3.89M	4.27M
Total Debt	27.20M	9.31M	23.35M	121.55M	145.19M
Total Liabilities	230.10M	245.96M	229.59M	258.65M	297.56M
Stockholders Equity	412.40M	415.90M	367.50M	278.18M	266.99M
Cash Flow
Free Cash Flow	6.70M	62.91M	117.60M	25.01M	-74.27M
Operating Cash Flow	16.20M	75.65M	146.41M	56.93M	-48.29M
Investing Cash Flow	-28.60M	-31.03M	-28.85M	-31.92M	-25.75M
Financing Cash Flow	-18.50M	-16.70M	-101.06M	-24.39M	63.21M

Fractal Gaming Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.70
• 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:FRACTL, the sentiment is Negative. The current price of 29.7 is above the 20-day moving average (MA) of 14.42, above the 50-day MA of 19.23, and below the 200-day MA of 33.55, indicating a neutral trend. The MACD of -1.08 indicates Negative momentum. The RSI at 35.65 is Neutral, neither overbought nor oversold. The STOCH value of 45.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:FRACTL.

Fractal Gaming Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FIRE	76 Outperform	kr1.11B	25.24	―	2.85%	-3.93%	-7.54%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KJELL	57 Neutral	kr737.88M	-1.50	-42.09%	―	-4.54%	-1024.16%
FRACTL	56 Neutral	kr420.06M	26.59	―	4.22%	30.33%	83.74%
ADVE	55 Neutral	kr657.15M	52.29	22.29%	0.48%	27.82%	305.33%