MAG Interactive AB (MAGI) AI Stock Analysis

• Market Cap: €378.87M
• Dividend Yield: 6.99%
• Average Volume (3M): 40.39K
• Price to Earnings (P/E): 2383.3
• Beta (1Y): 0.61
• Revenue Growth: -11.35%
• EPS Growth: -92.00%
• Country: SE
• Employees: 100
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.13
• Shares Outstanding: 26,494,654
• 10 Day Avg. Volume: 85,329
• 30 Day Avg. Volume: 40,389
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €15.00
• Price Target Upside: 4.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: kr15.00 ▲(4.90% Upside)

The overall stock score is primarily influenced by the company's strong financial structure, including a solid balance sheet and healthy cash flows. However, the high P/E ratio suggests overvaluation, and technical indicators point to potential short-term weakness. The attractive dividend yield provides some positive offset.

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

MAG Interactive AB exhibits a robust financial structure characterized by a strong balance sheet and healthy cash flows. Despite revenue challenges, the company maintains high gross margins and stable financial health. Key areas for improvement include enhancing profitability and operational efficiency to capitalize on growth prospects in the competitive gaming industry.

Income Statement

MAG Interactive AB has demonstrated fluctuating revenue trends with a decline in TTM revenue compared to the previous year. The gross profit margin remains strong at 93.5% for TTM, indicating effective cost management. However, net profit margin has been inconsistent, showing a slight profit in TTM after a net loss the previous year. EBIT and EBITDA margins have improved TTM, yet remain modest, reflecting challenges in operational efficiency.

Balance Sheet

The company maintains a solid equity position with an equity ratio of 83.4% in TTM, signifying financial stability and low leverage. The debt-to-equity ratio is favorable at 0.04, indicating prudent debt management. Return on equity remains low, influenced by inconsistent net income, highlighting areas for improvement in profitability.

Cash Flow

Strong operating cash flow relative to net income suggests efficient cash generation capabilities. Free cash flow has grown positively, although at a slower pace than previous periods. The cash flow metrics indicate sound liquidity and operational strength, enabling sustained investment in growth opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	265.48M	283.43M	362.18M	327.77M	286.58M	217.57M
Gross Profit	248.33M	222.07M	190.36M	198.13M	183.22M	121.76M
EBITDA	67.50M	57.76M	25.33M	72.71M	56.80M	-6.80M
Net Income	159.00K	-3.22M	561.00K	11.30M	7.03M	-17.37M
Balance Sheet
Total Assets	367.33M	402.05M	435.04M	460.78M	476.57M	411.99M
Cash, Cash Equivalents and Short-Term Investments	93.75M	121.83M	122.43M	125.94M	95.52M	160.63M
Total Debt	12.05M	19.94M	29.00M	40.62M	45.66M	54.35M
Total Liabilities	60.95M	67.08M	95.81M	124.79M	153.15M	98.14M
Stockholders Equity	306.38M	334.97M	339.22M	335.99M	323.42M	313.84M
Cash Flow
Free Cash Flow	19.88M	22.29M	8.90M	36.85M	12.76M	4.67M
Operating Cash Flow	68.19M	68.79M	42.97M	68.00M	50.02M	37.87M
Investing Cash Flow	-48.35M	-56.35M	-37.07M	-34.46M	-100.40M	-35.84M
Financing Cash Flow	-38.17M	-10.88M	-10.38M	-10.38M	-14.92M	-21.92M

MAG Interactive AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:MAGI, the sentiment is Positive. The current price of 14.3 is above the 20-day moving average (MA) of 14.01, above the 50-day MA of 14.29, and above the 200-day MA of 10.42, indicating a bullish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 52.25 is Neutral, neither overbought nor oversold. The STOCH value of 47.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	66 Neutral	757.91M	9.57	16.45%	9.10%	-15.26%	-22.70%
MAGI	60 Neutral	€378.87M	2,383.33	>-0.01%	6.99%	-11.35%	-92.00%
FRAG	51 Neutral	98.73M	-0.67	11034.41%	―	-12.12%	23.81%
NITRO	44 Neutral	37.69M	-78.34	-2.98%	―	-11.59%	98.18%
GCOR	41 Neutral	152.71M	-3.47	0.00%	―	31.74%	21.54%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%