Fragbite Group AB (FRAG) AI Stock Analysis

• Market Cap: €69.14M
• Dividend Yield: N/A
• Average Volume (3M): 29.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• 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: 7,340,223
• 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: 39 Underperform
• Price Target: kr7.50 ▼(-3.85% Downside)

The overall stock score is heavily influenced by the company's poor financial performance and unattractive valuation. Technical analysis indicates bearish momentum, further weighing on the score. The absence of earnings call data and corporate events means these factors do not contribute to the 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 (publ) operates as a digital gaming entertainment company in the Nordic region. It develops, publishes, distributes, and markets mobile games through its game development studios, including Lucky Kat, FunRock Development, and Prey Studios; and arranges and broadcasts e-sports tournaments live. The company was founded in 2002 and is headquartered in Stockholm, Sweden. Fragbite Group AB was a former subsidiary of FunRock Media AB.

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 faces significant financial challenges with declining revenues and persistent losses. The balance sheet shows financial instability with negative equity, and cash flow issues further exacerbate the situation. The company needs to address its operational inefficiencies to improve its financial health.

Income Statement

The income statement shows a declining trend in revenue with a negative revenue growth rate of -2.96% TTM. The company has been struggling with profitability, as evidenced by negative net profit margins and EBIT margins over the periods. Despite a relatively strong gross profit margin of 49.51% TTM, the net income remains negative, indicating challenges in managing operating expenses and achieving profitability.

Balance Sheet

The balance sheet reflects financial instability with negative stockholders' equity TTM, leading to an undefined debt-to-equity ratio. The return on equity is also negative, indicating that the company is not generating positive returns on its equity. The equity ratio is not calculable due to negative equity, highlighting potential solvency issues.

Cash Flow

The cash flow statement indicates negative operating cash flow and free cash flow TTM, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is negative, suggesting inefficiencies in converting net income into cash. However, the free cash flow to net income ratio is positive, indicating some ability to generate cash relative to net losses.

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: 7.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 7.8 is below the 20-day moving average (MA) of 8.95, below the 50-day MA of 11.15, and below the 200-day MA of 9.28, indicating a bearish trend. The MACD of -0.93 indicates Positive momentum. The RSI at 34.98 is Neutral, neither overbought nor oversold. The STOCH value of 21.54 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	€148.35M	―	―	―	32.83%	13.34%
NITRO	41 Neutral	kr35.99M	-19.75	―	―	-18.60%	-118.88%
THUNDR	40 Underperform	kr86.06M	―	―	―	-81.92%	26.19%
QIIWI	39 Underperform	€29.32M	-5.15	-31.43%	―	-34.32%	70.25%
FRAG	39 Underperform	€69.14M	-0.47	-229.41%	―	-10.21%	-1.15%