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G5 Entertainment AB (SE:G5EN)
:G5EN
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G5 Entertainment AB
(OTC:G5EN)
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Rating:66Neutral
Price Target:
kr95.00
▲(2.59% Upside)
G5 Entertainment AB's stock score is primarily influenced by its strong financial health and attractive valuation, offering a high dividend yield and low P/E ratio. However, the bearish technical indicators suggest potential short-term challenges, which weigh down the overall score.
G5 Entertainment AB (G5EN) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
$757.91M
Dividend Yield9.1%
Average Volume (3M)23.56K
Price to Earnings (P/E)9.4
Beta (1Y)0.82
Revenue Growth-15.26%
EPS Growth-22.70%
CountrySE
Employees845
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)0.89
Shares Outstanding8,383,650
10 Day Avg. Volume18,658
30 Day Avg. Volume23,558
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.80
Enterprise Value/Revenue0.58
Enterprise Value/Gross Profit0.84
Enterprise Value/Ebitda5.39
Forecast
1Y Price Target
$93.86Price Target Upside1.36% Upside
Rating ConsensusHold
Number of Analyst Covering0
G5 Entertainment AB Business Overview & Revenue Model
Company DescriptionG5 Entertainment AB (publ) develops and publishes free-to-play games for smartphones, tablets, and personal computers in Sweden. Its primary portfolio of games includes Hidden City, Jewels of Rome, Sherlock, Jewels of the Wild West, Mahjong Journey, The Secret Society, Jewels of Egypt, Homicide Squad, Sheriff of Mahjong, and Match Town Makeover. The company distributes games through Apple App Store, Microsoft Store, Google Play, Amazon Appstore, and Mac App Store, as well as its proprietary store.G5 Entertainment AB (publ) was founded in 2001 and is headquartered in Stockholm, Sweden.
How the Company Makes MoneyG5 Entertainment generates revenue primarily through in-game purchases, where players can buy virtual goods, currency, and other enhancements to enhance their gaming experience. Additionally, the company employs a freemium model, allowing users to download games for free while monetizing through optional purchases. Advertisements within their games also contribute to revenue, as G5 integrates advertising partnerships that provide income based on user engagement. Furthermore, G5 has established partnerships with various platforms and distribution channels, enhancing its visibility and accessibility to a larger audience, which in turn drives downloads and in-game spending.
G5 Entertainment AB Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in the G5 store, a record gross margin, and a robust cash position. However, the company faced challenges with a decline in overall revenue, a drop in EPS, and decreased operating profit and cash flow. Despite these setbacks, the underlying business remains stable, and strategic initiatives are in place for future growth.Q1-2025 Updates
Positive Updates
Record Gross Margin
The company achieved a record gross margin of 69.8%, up from 68.1% last year, primarily driven by the growth of the G5 store.
Growth in G5 Store
G5 store revenue grew by 39% year-over-year in SEK and 35% in USD, now accounting for 21% of total net revenue, up from 13.5% last year.
Strong Cash Position
The company's cash position reached a record SEK295 million, up from SEK256 million last year, with no debt.
Record Monthly Average Gross Revenue Per Paying User
The monthly average gross revenue per paying user reached a new record of $65.4, up 3% compared to the previous year.
Negative Updates
Revenue Decline
Quarterly revenue was SEK200 million, 12% lower in Swedish krona and 13% lower in USD terms compared to last year.
EPS Decrease
Earnings per share for the quarter decreased to SEK1.53 from SEK4.76 last year, primarily due to FX impact and a one-time legal expense.
Operating Profit Decline
Operating profit for the period was SEK10.7 million, down from SEK39 million last year, resulting in an EBIT margin of 4.1%, negatively affected by exchange rate reevaluations and a one-time legal fee.
Cash Flow Decrease
Total cash flow for the period was SEK33 million, down from SEK71 million last year.
Company Guidance
During the call, G5 Entertainment provided several key metrics and guidance for the future. The company reported a quarterly revenue of SEK200 million, which represented a 12% decrease in Swedish krona and a 13% decrease in USD terms compared to the previous year. The Jewel family of games contributed 31% to the total net revenue, while Sherlock accounted for 27%. The G5 store showed strong growth, now making up 21% of revenue versus 13% the previous year, and helped achieve a record gross margin of 69.8%, up from 68.1% last year. The monthly average gross revenue per paying user reached a new high of $65.4, a 3% increase from the prior year. User acquisition accounted for 15% of revenue, down from 17% last year, but the company plans to return to its long-term range of 17% to 22% in the coming quarters. The cash position was at a record SEK295 million, up from SEK256 million last year, despite a one-time legal expense of SEK1.3 million. The operating profit for the quarter was SEK10.7 million, with an EBIT margin of 4.1%, impacted by exchange rate reevaluations. Adjusting for these factors, the EBIT margin would have been 10.2%. The company expects continued growth through the G5 store and web shop, new game launches, and strategic partnerships, with a disciplined approach to user acquisition and operational efficiencies.G5 Entertainment AB Financial Statement Overview
Summary
G5 Entertainment AB demonstrates strong financial health with efficient cost management and a solid balance sheet. However, declining revenue and profit margins indicate challenges in sustaining growth and profitability. The company maintains strong cash flow generation, though careful cash management is essential to navigate potential headwinds.Income Statement
G5 Entertainment AB shows a solid gross profit margin of 68.7% TTM, indicating efficient cost management. However, the net profit margin has declined to 8.5% TTM, reflecting reduced profitability. Revenue growth has been negative, with a 5.1% decline TTM, suggesting challenges in maintaining sales momentum. The EBIT and EBITDA margins have also decreased, indicating pressure on operational efficiency.72
Positive
Balance Sheet
The company maintains a strong balance sheet with a negligible debt-to-equity ratio, highlighting low financial leverage. The return on equity is healthy at 17.7% TTM, though it has decreased from previous years, indicating a slight decline in shareholder returns. The equity ratio remains robust, showcasing a solid capital structure.80
Positive
Cash Flow
Operating cash flow remains strong with a coverage ratio of 2.22 TTM, indicating good cash generation relative to net income. Free cash flow growth is positive at 7.5% TTM, reflecting improved cash management. However, the free cash flow to net income ratio has slightly decreased, suggesting a need for careful cash allocation.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.04B | 1.13B | 1.32B | 1.40B | 1.32B | 1.36B |
| Gross Profit | 722.34M | 776.10M | 892.37M | 936.42M | 810.45M | 786.32M |
| EBITDA | 112.13M | 262.10M | 294.70M | 227.20M | 227.45M | 205.65M |
| Net Income | 76.77M | 118.97M | 127.57M | 66.95M | 198.21M | 167.27M |
Balance Sheet | ||||||
| Total Assets | 581.06M | 666.71M | 610.15M | 657.88M | 625.79M | 593.19M |
| Cash, Cash Equivalents and Short-Term Investments | 246.96M | 275.54M | 182.33M | 185.49M | 162.16M | 188.41M |
| Total Debt | 1.54M | 1.80M | 1.87M | 2.86M | 12.29M | 6.38M |
| Total Liabilities | 114.30M | 112.39M | 118.75M | 158.15M | 133.38M | 161.38M |
| Stockholders Equity | 466.75M | 554.32M | 491.40M | 499.73M | 492.41M | 431.81M |
Cash Flow | ||||||
| Free Cash Flow | 137.39M | 178.17M | 130.85M | 129.15M | 188.41M | 140.09M |
| Operating Cash Flow | 235.33M | 283.33M | 241.16M | 304.76M | 360.63M | 269.09M |
| Investing Cash Flow | -103.56M | -119.32M | -113.25M | -176.66M | -208.53M | -129.00M |
| Financing Cash Flow | -65.28M | -76.64M | -119.48M | -108.62M | -192.34M | -97.63M |
G5 Entertainment AB Technical Analysis
Neutral
92.60
Price Trends
98.28
Negative
103.63
Negative
108.64
Negative
Market Momentum
-1.56
Negative
47.21
Neutral
83.05
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:G5EN, the sentiment is Neutral. The current price of 92.6 is above the 20-day moving average (MA) of 91.59, below the 50-day MA of 98.28, and below the 200-day MA of 108.64, indicating a neutral trend. The MACD of -1.56 indicates Negative momentum. The RSI at 47.21 is Neutral, neither overbought nor oversold. The STOCH value of 83.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:G5EN.
G5 Entertainment AB Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $757.91M | 9.41 | 15.05% | 9.10% | -15.26% | -22.70% | |
60 Neutral | 378.87M | 2,383.33 | 0.05% | 6.99% | -11.35% | -92.00% | |
55 Neutral | 1.15B | -5.17 | -6.42% | ― | 5.10% | -623.00% | |
41 Neutral | 303.01M | -1.69 | -28.18% | ― | -68.13% | -229.75% | |
41 Neutral | 152.71M | -3.47 | 0.00% | ― | 31.74% | 21.54% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
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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.