MAG Interactive AB (MAGI) AI Stock Analysis

• Market Cap: kr161.62M
• Dividend Yield: 13.12%
• Average Volume (3M): 61.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: -3.51%
• EPS Growth: -192.91%
• Country: US
• Employees: 100
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.02
• Shares Outstanding: 26,494,654
• 10 Day Avg. Volume: 29,720
• 30 Day Avg. Volume: 61,053
• PEG Ratio: -0.20
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 1.34
• P/FCF Ratio: 6.82
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: kr6.50 ▼(-20.73% Downside)

The score is primarily supported by improving revenue momentum, positive free cash flow, and a low-to-moderate leverage balance sheet. Offsetting this are continued net losses/negative returns and a clearly bearish technical setup (below major moving averages with negative MACD), despite oversold readings. Valuation is mixed due to negative earnings alongside an unusually high dividend yield.

Positive Factors

High Gross Margin

A ~69% gross margin indicates strong unit economics for MAG’s mobile games, allowing the company to cover operating costs, invest in product and user acquisition, and sustain profitability levers even if top-line growth moderates.

Strong Cash Generation

Consistent positive operating and free cash flow provides durable financial flexibility: funds R&D, marketing, dividends or buybacks, and cushions against earnings volatility, reducing the need for external financing in downturns.

Conservative Balance Sheet

Low-to-moderate leverage gives MAG resilience in the cyclical gaming industry, enabling strategic spending or M&A without overreliance on debt, and lowers bankruptcy risk during revenue slowdowns.

Negative Factors

Negative Profitability Margins

Despite revenue and margin strengths, MAG has not converted sales into stable operating profits. Persistent negative EBIT and net margins mean the company must sustain cash generation or improve cost structure to achieve durable shareholder returns.

Earnings Volatility

Material swings between profit and loss across recent years indicate execution and demand variability. This volatility raises uncertainty for long-term planning, forecasting, and the sustainability of investments or distributions funded by cash flow.

Concentrated Monetization Mix

Heavy reliance on IAPs and ad revenue concentrates exposure to user engagement, ad market cyclicality, and platform policy changes. Structural shifts in ad pricing or app-store rules could materially affect long-term revenue unless monetization diversifies.

MAG Interactive AB Business Overview & Revenue Model

Company Description

MAG Interactive AB (publ) develops and publishes mobile games worldwide. It provides casual and social games. The company distributes its games through virtual app stores for Android and iOS operating systems. MAG Interactive AB (publ) was founded in 2010 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

MAG Interactive AB generates revenue primarily through a freemium business model, where its games are free to download and play, but offer in-app purchases and advertisements as key monetization strategies. Players can purchase virtual goods, additional levels, or premium features within the games to enhance their gaming experience. Additionally, MAG Interactive partners with advertising networks to integrate ads within its games, which serve as another significant revenue stream. The company's success is also bolstered by its strong focus on user engagement and retention, ensuring a steady and growing player base.

MAG Interactive AB Financial Statement Overview

Summary

Strong TTM revenue rebound (+63.6%) and very high gross margin (~69%) support underlying economics, and cash generation is a key positive (TTM operating cash flow ~49.3m; free cash flow ~26.0m). However, profitability remains weak with negative net and EBIT margins (about -4% to -5%) and negative ROE, with volatile results across recent years.

Income Statement

TTM (Trailing-Twelve-Months) revenue rebounded strongly (+63.6% growth) and gross margin is very high (~69%), pointing to solid underlying unit economics. However, profitability remains pressured: net margin is negative (~-4.6%) and EBIT margin is also negative (~-4.2%), indicating the company is still not converting sales into bottom-line earnings. Over the last few years, results have been volatile—profitable in 2022, near break-even in 2023, then losses again in 2024–TTM—raising execution and sustainability concerns.

Balance Sheet

The balance sheet looks conservatively levered with low-to-moderate debt versus equity (TTM debt-to-equity ~0.21; historically mostly lower), providing flexibility in a cyclical/competitive gaming environment. Equity remains sizable relative to assets, which supports resilience. The key weakness is returns: return on equity is negative in TTM and recent annual periods, showing that capital is not currently generating profits despite the healthy capital structure.

Cash Flow

Cash generation is a clear strength: TTM operating cash flow is positive (~49.3m) and free cash flow is also positive (~26.0m), with very strong TTM free-cash-flow growth. Cash flow also compares favorably to earnings, as operating cash flow exceeds net income (given net losses), suggesting working-capital and cash discipline are helping offset accounting losses. The main watch-out is variability—free cash flow has swung meaningfully across years—so consistency still needs to be proven.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	275.82M	283.43M	362.18M	327.77M	286.58M
Gross Profit	24.53M	222.07M	190.36M	198.13M	183.22M
EBITDA	13.29M	57.76M	25.33M	72.71M	56.80M
Net Income	-9.41M	-3.22M	561.00K	11.30M	7.03M
Balance Sheet
Total Assets	361.03M	402.05M	435.04M	460.78M	476.57M
Cash, Cash Equivalents and Short-Term Investments	87.45M	121.83M	122.43M	125.94M	95.52M
Total Debt	12.66M	19.94M	29.00M	40.62M	45.66M
Total Liabilities	62.85M	67.08M	95.81M	124.79M	153.15M
Stockholders Equity	298.18M	334.97M	339.22M	335.99M	323.42M
Cash Flow
Free Cash Flow	54.21M	22.29M	8.90M	36.85M	12.76M
Operating Cash Flow	54.54M	68.79M	42.97M	68.00M	50.02M
Investing Cash Flow	-46.99M	-56.35M	-37.07M	-34.46M	-100.40M
Financing Cash Flow	-38.21M	-10.88M	-10.38M	-10.38M	-14.92M

MAG Interactive AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:MAGI, the sentiment is Negative. The current price of 8.2 is above the 20-day moving average (MA) of 7.34, above the 50-day MA of 7.91, and below the 200-day MA of 10.29, indicating a bearish trend. The MACD of -0.62 indicates Positive momentum. The RSI at 29.00 is Positive, neither overbought nor oversold. The STOCH value of 12.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:MAGI.

MAG Interactive AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
G5EN	74 Outperform	kr726.81M	10.53	12.65%	9.28%	-14.68%	-29.97%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
MAGI	56 Neutral	kr161.62M	-12.06	-3.04%	13.12%	-3.51%	-192.91%
NITRO	56 Neutral	kr39.43M	-20.19	―	―	-18.60%	-118.88%
FRAG	45 Neutral	kr58.32M	-0.46	-229.41%	―	-10.21%	-1.15%
GCOR	41 Neutral	kr170.17M	-3.75	―	―	32.83%	13.34%