MAG Interactive AB (MAGI) AI Stock Analysis

• Market Cap: kr143.07M
• Dividend Yield: 13.12%
• Average Volume (3M): 61.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: -3.51%
• EPS Growth: -192.91%
• Country: SE
• 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: kr5.50 ▼(-32.93% Downside)
• Action: Reiterated Date: 01/24/26
• Date: Action: Reiterated 01/24/26

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

Cash generation strength

Sustained positive operating and free cash flow gives the company durable internal funding for product development, marketing and potential buybacks or dividends. Strong cash generation reduces dependence on external financing and supports reinvestment even while earnings are negative.

High gross margins and revenue rebound

Very high gross margins and a strong recent revenue rebound indicate attractive unit economics and effective monetization. If management sustains user engagement, these structural margins support long-term operating leverage as fixed costs scale and can convert growth into durable profit expansion.

Conservative balance sheet

A modest debt load and solid equity base provide financial flexibility to weather game cycles, fund content investment, or pursue M&A. Low leverage reduces refinancing risk in downturns and preserves the ability to prioritize growth or shareholder returns without stretching liquidity.

Negative Factors

Negative margins and net losses

Despite revenue and cash strengths, the company still fails to generate accounting profits or positive ROE, meaning capital deployed has not produced lasting shareholder returns. Persistent negative margins limit retained earnings and constrain the firm's ability to scale profitably over time.

Earnings volatility across years

Material swings in profitability point to execution and demand variability risks in a hit-driven mobile gaming market. This unpredictability complicates capacity planning, marketing cadence and long-term forecasting, making sustainable margin improvement and strategic investment harder to rely on.

Inconsistent free cash flow

While recent FCF is strong, historical volatility in free cash flow raises questions about the durability of cash generation through product cycles and seasonality. Inconsistent FCF can stress dividend/takeback programs and reduce ability to fund multi-year content roadmaps without external funding.

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	TTM	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	277.57M	275.82M	283.43M	362.18M	327.77M	286.58M
Gross Profit	192.46M	24.53M	222.07M	190.36M	198.13M	183.22M
EBITDA	27.98M	13.29M	57.76M	25.33M	72.71M	56.80M
Net Income	-12.74M	-9.41M	-3.22M	561.00K	11.30M	7.03M
Balance Sheet
Total Assets	374.22M	361.03M	402.05M	435.04M	460.78M	476.57M
Cash, Cash Equivalents and Short-Term Investments	78.29M	87.45M	121.83M	122.43M	125.94M	95.52M
Total Debt	61.65M	12.66M	19.94M	29.00M	40.62M	45.66M
Total Liabilities	76.94M	62.85M	67.08M	95.81M	124.79M	153.15M
Stockholders Equity	297.27M	298.18M	334.97M	339.22M	335.99M	323.42M
Cash Flow
Free Cash Flow	25.97M	54.21M	22.29M	8.90M	36.85M	12.76M
Operating Cash Flow	49.30M	54.54M	68.79M	42.97M	68.00M	50.02M
Investing Cash Flow	-46.94M	-46.99M	-56.35M	-37.07M	-34.46M	-100.40M
Financing Cash Flow	-38.27M	-38.21M	-10.88M	-10.38M	-10.38M	-14.92M

MAG Interactive AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.20
• 50DMA: Negative
• 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:MAGI, the sentiment is Neutral. The current price of 8.2 is above the 20-day moving average (MA) of 5.53, above the 50-day MA of 6.70, and below the 200-day MA of 10.07, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 42.75 is Neutral, neither overbought nor oversold. The STOCH value of 65.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	61 Neutral	kr404.74M	12.96	12.65%	9.28%	-14.68%	-29.97%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
NITRO	59 Neutral	kr35.84M	23.23	―	―	-18.60%	-118.88%
MAGI	56 Neutral	kr143.07M	-11.23	-3.04%	13.12%	-3.51%	-192.91%
FRAG	44 Neutral	kr55.73M	53.24	-229.41%	―	-10.21%	-1.15%
GCOR	41 Neutral	kr131.48M	-3.10	―	―	32.83%	13.34%