Fragbite Group AB (FRAG) AI Stock Analysis

• Market Cap: kr48.30M
• Dividend Yield: N/A
• Average Volume (3M): 29.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: -10.21%
• EPS Growth: -1.15%
• Country: SE
• Employees: 75
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -1.64
• Shares Outstanding: 8,077,044
• 10 Day Avg. Volume: 39,134
• 30 Day Avg. Volume: 29,251
• PEG Ratio: <0.01
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.23
• P/FCF Ratio: -2.54
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: kr7.50 ▲(17.55% Upside)

Fragbite Group AB's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, high leverage, and negative equity. The technical analysis further indicates bearish momentum, with the stock trading below key moving averages and technical indicators suggesting oversold conditions. The valuation is also unfavorable due to the negative P/E ratio and lack of dividend yield. These factors collectively result in a low overall stock score.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates that Fragbite Group AB is able to efficiently manage its production costs relative to revenue, which can provide a buffer against operational inefficiencies and support future profitability improvements.

Diverse Revenue Streams

Fragbite's diverse revenue streams, including esports tournaments, advertising, and subscriptions, provide resilience against market fluctuations and allow the company to capitalize on various growth opportunities within the gaming industry.

Partnerships with Developers

Strategic partnerships with game developers and hardware manufacturers enhance Fragbite's offerings, attracting larger audiences and boosting advertising and sponsorship income, which strengthens its competitive position in the gaming industry.

Negative Factors

Declining Revenue

The declining revenue trend indicates challenges in maintaining market share and competitiveness, which could hinder Fragbite's ability to invest in growth initiatives and improve profitability over the long term.

Negative Equity

Negative equity suggests potential solvency issues, limiting Fragbite's financial flexibility and ability to raise capital, which could impact its long-term operational sustainability and growth prospects.

Negative Operating Cash Flow

Negative operating cash flow indicates inefficiencies in converting revenue into cash, which can strain Fragbite's liquidity and limit its ability to invest in growth opportunities or weather economic downturns.

Fragbite Group AB Business Overview & Revenue Model

Company Description

Fragbite Group AB (FRAG) is a Swedish gaming and esports company that operates within the digital entertainment sector. The company focuses on developing and managing online gaming platforms, esports tournaments, and related content. FRAG is known for its commitment to creating engaging gaming experiences and fostering community-driven events, catering to both casual gamers and competitive esports enthusiasts.

How the Company Makes Money

Fragbite Group AB generates revenue through multiple streams, including entry fees from esports tournaments, advertising and sponsorship deals, and subscription services for premium content. The company often partners with game developers and hardware manufacturers to enhance their offerings and attract larger audiences, which in turn boosts their advertising and sponsorship income. Additionally, Fragbite may monetize its platforms through affiliate marketing and merchandise sales, contributing to its overall financial performance.

Fragbite Group AB Financial Statement Overview

Summary

Fragbite Group AB is facing significant financial challenges. The income statement shows declining revenues and profitability, with negative net profit and EBIT margins. The balance sheet reveals high leverage and negative equity, indicating potential solvency issues. The cash flow statement highlights difficulties in generating positive cash flow, although there is some ability to cover net losses with free cash flow.

Income Statement

Fragbite Group AB has experienced declining revenue growth, with a negative growth rate of -1.76% in the TTM period. The company is facing significant profitability challenges, as indicated by a negative net profit margin of -64.17% and an EBIT margin of -45.53%. The gross profit margin has decreased to 44.89% from 55.51% in the previous year, reflecting pressure on cost management. Despite a positive EBITDA margin of 5.66%, the overall income statement reflects financial instability and declining performance.

Balance Sheet

The balance sheet of Fragbite Group AB shows a concerning financial position with a negative stockholders' equity of -13.47 million, resulting in a negative debt-to-equity ratio of -8.45. This indicates high leverage and potential solvency risks. The return on equity is significantly negative at -202.03%, highlighting substantial losses relative to equity. The equity ratio is also negative, reflecting a precarious financial structure.

Cash Flow

The cash flow statement reveals a challenging cash flow situation, with a negative free cash flow growth rate of -18.23% in the TTM period. However, the free cash flow to net income ratio is positive at 5.84, indicating some ability to cover net losses with free cash flow. The operating cash flow to net income ratio is negative, suggesting difficulties in generating cash from operations relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	198.33M	213.23M	237.20M	254.06M	124.04M	4.60M
Gross Profit	84.42M	118.36M	103.94M	72.70M	42.78M	6.42M
EBITDA	10.86M	7.79M	8.88M	-2.55M	-10.48M	-13.20M
Net Income	-118.19M	-128.98M	-53.15M	-103.11M	-50.40M	-22.80M
Balance Sheet
Total Assets	114.75M	193.06M	984.52M	383.00M	304.26M	72.26M
Cash, Cash Equivalents and Short-Term Investments	5.25M	9.41M	25.05M	40.99M	87.46M	4.86M
Total Debt	16.25M	29.18M	40.40M	56.85M	46.49M	0.00
Total Liabilities	128.22M	112.17M	838.45M	221.49M	101.00M	4.60M
Stockholders Equity	-13.47M	80.89M	146.07M	161.51M	203.25M	67.66M
Cash Flow
Free Cash Flow	-22.52M	-19.36M	-35.27M	7.18M	-3.42M	-17.60M
Operating Cash Flow	4.05M	-9.01M	-1.42M	43.10M	3.93M	-10.36M
Investing Cash Flow	-32.89M	-44.04M	-55.08M	-141.24M	-73.01M	3.05M
Financing Cash Flow	29.20M	37.28M	40.27M	47.73M	151.56M	10.71M

Fragbite Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.38
• 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:FRAG, the sentiment is Negative. The current price of 6.38 is below the 20-day moving average (MA) of 7.24, below the 50-day MA of 9.26, and below the 200-day MA of 9.15, indicating a bearish trend. The MACD of -0.82 indicates Negative momentum. The RSI at 30.16 is Neutral, neither overbought nor oversold. The STOCH value of 43.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:FRAG.

Fragbite Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GCOR	41 Neutral	kr174.53M	-3.83	―	―	32.83%	13.34%
NITRO	41 Neutral	kr31.26M	-17.15	―	―	-18.60%	-118.88%
FRAG	41 Neutral	kr48.30M	-0.36	-229.41%	―	-10.21%	-1.15%
THUNDR	40 Underperform	kr74.03M	-0.02	―	―	-81.92%	26.19%
QIIWI	39 Underperform	kr22.01M	-3.55	-31.43%	―	-34.32%	70.25%