G5 Entertainment AB (G5EN) AI Stock Analysis

• Market Cap: kr744.00M
• Dividend Yield: 9.28%
• Average Volume (3M): 19.19K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.97
• Revenue Growth: -14.68%
• EPS Growth: -29.97%
• Country: SE
• Employees: 845
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 1.72
• Shares Outstanding: 8,383,650
• 10 Day Avg. Volume: 17,432
• 30 Day Avg. Volume: 19,188
• PEG Ratio: -1.85
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 4.82
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: kr102.00 ▲(12.21% Upside)

G5 Entertainment AB's overall stock score is driven by strong financial management and attractive valuation metrics, including a low P/E ratio and high dividend yield. However, the stock faces challenges with declining revenues and bearish technical indicators. Positive developments from the earnings call, such as record gross margins and increased user acquisition, provide some optimism for future performance.

Positive Factors

Record Gross Margin

A record gross margin indicates effective cost management and operational efficiency, which can enhance profitability and provide a competitive edge in the gaming industry.

G5 Store Growth

The growth of the G5 Store as a revenue contributor shows successful diversification and strengthens the company's distribution channels, supporting long-term revenue stability.

Sherlock Game Performance

The strong performance of the Sherlock game highlights successful product development and market appeal, contributing positively to the company's revenue and market position.

Negative Factors

Declining Revenue

Negative revenue growth suggests challenges in market expansion and product competitiveness, potentially impacting long-term financial health and strategic positioning.

Lower Operating Profit and EBIT Margin

A decline in operating profit and EBIT margin indicates reduced profitability, which may affect the company's ability to reinvest in growth and sustain competitive advantages.

Cash Flow Reduction

Reduced cash flow can limit the company's financial flexibility and ability to fund new projects or weather economic downturns, posing a risk to long-term operations.

G5 Entertainment AB Business Overview & Revenue Model

Company Description

G5 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 Money

G5 Entertainment generates revenue primarily through in-app purchases within its free-to-play games, allowing players to buy virtual goods or enhancements that enhance their gaming experience. The company also earns income from advertisements placed within its games, which can be monetized through various advertising networks. Additionally, G5 has established partnerships with other developers and publishers to co-promote games and expand its user base, further contributing to its earnings. The company's focus on user retention and engagement through regular updates and new content also plays a crucial role in sustaining its revenue streams.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	999.83M	1.13B	1.32B	1.40B	1.32B	1.36B
Gross Profit	699.05M	776.10M	892.37M	936.42M	810.45M	786.32M
EBITDA	100.85M	262.10M	294.70M	227.20M	215.57M	205.65M
Net Income	65.69M	118.97M	127.57M	66.95M	198.21M	167.27M
Balance Sheet
Total Assets	578.85M	666.71M	610.15M	657.88M	625.79M	593.19M
Cash, Cash Equivalents and Short-Term Investments	247.21M	275.54M	182.33M	185.49M	162.16M	188.41M
Total Debt	667.00K	1.80M	1.87M	2.86M	12.29M	6.38M
Total Liabilities	111.75M	112.39M	118.75M	158.15M	133.38M	161.38M
Stockholders Equity	467.10M	554.32M	491.40M	499.73M	492.41M	431.81M
Cash Flow
Free Cash Flow	118.61M	178.17M	130.85M	129.15M	188.41M	140.09M
Operating Cash Flow	191.61M	283.33M	241.16M	304.76M	360.63M	269.09M
Investing Cash Flow	-98.65M	-119.32M	-113.25M	-176.66M	-208.53M	-129.00M
Financing Cash Flow	-73.85M	-76.64M	-119.48M	-108.62M	-192.34M	-97.63M

G5 Entertainment AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 90.90
• 50DMA: Positive
• 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:G5EN, the sentiment is Positive. The current price of 90.9 is above the 20-day moving average (MA) of 88.45, above the 50-day MA of 89.99, and below the 200-day MA of 100.84, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 57.07 is Neutral, neither overbought nor oversold. The STOCH value of 48.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:G5EN.

G5 Entertainment AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
G5EN	74 Outperform	kr744.00M	10.77	12.65%	9.28%	-14.68%	-29.97%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
MAGI	59 Neutral	kr201.89M	-21.45	-3.04%	13.12%	-3.51%	-192.91%
EG7	49 Neutral	kr1.22B	-7.03	―	―	1.74%	-5214.06%
GCOR	41 Neutral	kr170.17M	-3.74	―	―	32.83%	13.34%
STAR.B	40 Neutral	kr168.19M	-0.42	-76.88%	―	8.38%	-48.41%

G5 Entertainment AB Corporate Events

G5 Entertainment Reports Q3 2025 Revenue Decline Amidst Growth in Direct Channel

G5 Entertainment AB reported a 15% decrease in revenue for Q3 2025 compared to the same period in 2024, with a gross margin increase to 71.2% due to a higher share of revenue from its direct-to-consumer channel. Despite a decline in EBIT by 45% and a reduction in average monthly active users by 17%, the G5 Store saw a 30% year-over-year gross revenue growth, indicating a shift in consumer purchasing behavior towards the company’s platform.

G5 Entertainment Appoints Nomination Committee for 2026 AGM

G5 Entertainment AB has appointed a Nomination Committee ahead of its 2026 Annual General Meeting, consisting of representatives from its five largest shareholders as of August 2025. This committee will play a crucial role in shaping the company’s governance by selecting board members, potentially impacting the company’s strategic direction and stakeholder interests.

G5 Entertainment to Announce Q3 2025 Financial Results

G5 Entertainment AB announced it will release its financial results for the third quarter of 2025 on November 5, 2025. The company will host a presentation for investors, analysts, and media, followed by a Q&A session, providing stakeholders an opportunity to engage with the company’s leadership and gain insights into its financial performance.