MAG Interactive AB (MAGI) AI Stock Analysis

• Market Cap: €255.94M
• Dividend Yield: 10.37%
• Average Volume (3M): 20.95K
• Price to Earnings (P/E): 35.3
• Beta (1Y): 0.37
• Revenue Growth: -13.90%
• EPS Growth: 8.35%
• Country: SE
• Employees: 100
• Sector: Communication Services
• Sector Strength: 86
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.02
• Shares Outstanding: 26,494,654
• 10 Day Avg. Volume: 21,734
• 30 Day Avg. Volume: 20,948
• PEG Ratio: 0.12
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.94
• 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

• Rating: 71 Outperform
• Price Target: kr10.50 ▲(6.49%Upside)

MAG Interactive AB shows a stable financial foundation with strong cash flow and a robust balance sheet. Technical indicators reveal positive momentum, though nearing overbought territory. While the P/E ratio suggests overvaluation, a high dividend yield supports the stock's appeal for dividend investors.

MAG Interactive AB Business Overview & Revenue Model

Company Description

MAG Interactive AB (MAGI) is a Sweden-based mobile gaming company that specializes in developing and publishing casual games for a global audience. The company is recognized for its focus on creating engaging, high-quality games that are easy to play yet challenging to master. MAG Interactive operates within the mobile application sector, with a portfolio that includes popular titles such as 'Ruzzle', 'Wordzee', and 'QuizDuel'. The company aims to deliver entertaining experiences across various platforms, primarily catering to the casual gaming community.

How the Company Makes Money

MAG Interactive AB generates revenue primarily through a freemium model, where games are free to download and play but offer in-app purchases to enhance the gaming experience. These purchases might include virtual currency, special items, or additional game content. The company also earns money through advertising, displaying ads within their games which provide a steady stream of revenue. Partnerships with advertising networks and collaborations with other gaming entities further bolster their revenue. Additionally, MAG Interactive may engage in licensing agreements and brand collaborations to expand their market reach and enhance their monetization strategies.

MAG Interactive AB Financial Statement Overview

Summary

Overall, MAG Interactive AB shows a stable financial position with strong cash flow and a solid balance sheet. While revenue has declined, operational improvements are evident in the TTM period. Challenges remain in achieving higher net profitability, but the company's low leverage and effective cash management provide a strong foundation for future growth.

Income Statement

MAG Interactive AB shows a mixed performance in its income statement. The TTM gross profit margin stands at 73.50%, reflecting strong cost management. However, the net profit margin is only 2.65%, indicating profitability challenges. Revenue decreased by 3.59% from the previous year, while EBIT and EBITDA margins improved to 2.53% and 23.29%, respectively, showing operational efficiency improvements but still facing profitability pressure.

Balance Sheet

The balance sheet of MAG Interactive AB is robust with a low debt-to-equity ratio of 0.05, demonstrating conservative leverage. The equity ratio is high at 83.33%, which indicates a solid financial structure with substantial equity backing. Return on equity is modest at 2.33%, suggesting limited returns from equity investments.

Cash Flow

The cash flow analysis reveals a strong free cash flow growth rate of 3.67% in the TTM period. The operating cash flow to net income ratio is high at 10.17, indicating strong cash conversion from profits. The free cash flow to net income ratio is also healthy at 3.19, reflecting efficient cash generation relative to net earnings.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
273.25M	283.43M	362.18M	327.77M	286.58M	217.57M
	Gross Profit
200.85M	222.07M	190.36M	198.13M	183.22M	121.76M
	EBIT
6.90M	-4.62M	21.00K	54.29M	7.36M	-20.62M
	EBITDA
63.63M	59.67M	25.33M	72.71M	56.80M	-6.80M
	Net Income Common Stockholders
7.25M	-3.22M	561.00K	11.30M	7.03M	-17.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
95.54M	121.83M	122.43M	125.94M	95.52M	160.63M
	Total Assets
373.28M	402.05M	435.04M	460.78M	476.57M	411.99M
	Total Debt
15.28M	19.94M	29.00M	40.62M	45.66M	54.35M
	Net Debt
-80.25M	-101.90M	-93.43M	-85.32M	-49.86M	-106.28M
	Total Liabilities
62.33M	67.08M	95.81M	124.79M	153.15M	98.14M
	Stockholders Equity
310.95M	334.97M	339.22M	335.99M	323.42M	313.84M
Cash Flow		Free Cash Flow
23.11M	22.29M	8.90M	36.85M	12.76M	4.67M
	Operating Cash Flow
73.79M	68.79M	42.97M	68.00M	50.02M	37.87M
	Investing Cash Flow
-50.72M	-56.35M	-37.07M	-34.46M	-100.40M	-35.84M
	Financing Cash Flow
-38.06M	-10.88M	-10.38M	-10.38M	-14.92M	-21.92M

MAG Interactive AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 9.86 is above the 20-day moving average (MA) of 8.18, above the 50-day MA of 8.05, and above the 200-day MA of 8.24, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 70.36 is Negative, neither overbought nor oversold. The STOCH value of 83.67 is Negative, 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
MAGI	71 Outperform	€255.94M	35.28	2.20%	10.37%	-13.90%	8.35%
Sector *	61 Neutral	$14.60B	5.88	-4.32%	3.68%	2.75%	-30.55%
SOZAP	51 Neutral	kr9.12M	―	-37.92%	―	16.78%	12.64%
GCOR	41 Neutral	€157.08M	―	-253.32%	―	13.74%	21.17%
QIIWI	39 Underperform	kr16.93M	―	-25.37%	―	-23.00%	74.94%
ADVBOX	26 Underperform	€32.40M	―	-730.10%	―	-70.70%	-19.31%