MAG Interactive AB (MAGI) AI Stock Analysis

• Market Cap: kr139.89M
• Dividend Yield: 13.12%
• Average Volume (3M): 61.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.56
• 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

Sustained positive operating cash flow (~49.3m TTM) and material free cash flow (~26.0m) show the company converts revenue into cash. That cash buffer supports ongoing live-ops, marketing, product investment and gives financial flexibility for buybacks, dividends or opportunistic M&A without heavy external funding.

High gross margins and revenue rebound

A strong revenue rebound (+63.6% TTM) combined with very high gross margins (~69%) indicate robust unit economics in the free-to-play model. High margins provide room to scale user acquisition and live-ops profitably, making monetization through ads/IAP durable if engagement holds.

Conservative balance sheet

Low-to-moderate leverage (debt-to-equity ~0.21 TTM) and sizable equity offer resilience in a cyclical gaming market. This capital conservatism preserves strategic optionality for sustained marketing spend, product development and handling user-acquisition volatility without jeopardizing solvency.

Negative Factors

Negative profitability

Despite top-line growth and healthy gross margins, the company reports negative net and EBIT margins (~-4% to -5%) and negative ROE. Persistent operating losses mean cash generation must persist to fund operations; profitability must improve to sustainably support dividends or long-term capital returns.

Earnings volatility

Historic swings from profit to loss across recent years show execution and demand sensitivity. Volatility complicates forecasting and strategic planning: management may need recurring marketing spend or new hits to stabilize margins, increasing risk that a single product cycle can swing results materially.

Revenue sensitivity to user engagement and platform dynamics

Revenue depends heavily on active user levels, ad rates and IAP conversion; sustaining that requires continuous live-ops and UA spend. Platform fee changes or ad market pressure can materially affect margins. This structural sensitivity makes revenue and margin durability contingent on ongoing engagement and spend.

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 primarily generates revenue from its free-to-play mobile games. The main revenue streams are (1) in-app purchases, where players pay for virtual goods and benefits such as hints, boosters, extra content, ad removal, or other gameplay advantages depending on the title; and (2) in-game advertising, where the company earns money by showing ads to players (e.g., rewarded video ads that grant in-game rewards, and interstitial/banner ads). Revenue is typically collected through platform storefronts (such as Apple’s App Store and Google Play), which process payments for in-app purchases and remit proceeds to the company net of platform fees. Advertising revenue is generally earned via ad networks and mediation platforms that sell ad inventory inside the games and pay the company based on impressions, clicks, or completed views (especially for rewarded ads). A key factor affecting earnings is the size and engagement of the active user base (which drives ad impressions and conversion to paying users), as well as ongoing live-ops, content updates, and marketing/user-acquisition spend to sustain player activity.

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: Negative
• 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 Negative. The current price of 8.2 is above the 20-day moving average (MA) of 5.27, above the 50-day MA of 5.84, and below the 200-day MA of 9.85, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 44.07 is Neutral, neither overbought nor oversold. The STOCH value of 70.02 is Neutral, 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	61 Neutral	kr416.61M	23.65	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	kr34.05M	13.91	―	―	-18.60%	-118.88%
MAGI	56 Neutral	kr139.89M	-84.11	-3.04%	13.12%	-3.51%	-192.91%
FRAG	48 Neutral	kr64.45M	5.93	27.44%	―	-10.21%	-1.15%
GCOR	41 Neutral	kr116.35M	-3.85	―	―	32.83%	13.34%