Stillfront Group AB (SF) AI Stock Analysis

• Market Cap: kr3.25B
• Dividend Yield: N/A
• Average Volume (3M): 2.19M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: -11.82%
• EPS Growth: -7499.16%
• Country: SE
• Employees: 1,255
• Sector: Services
• Sector Strength: N/A
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.11
• Shares Outstanding: 517,968,500
• 10 Day Avg. Volume: 1,897,818
• 30 Day Avg. Volume: 2,190,783
• PEG Ratio: <0.01
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 4.01
• 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: kr12.00
• Price Target Upside: 88.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: kr6.00 ▼(-5.96% Downside)

Stillfront Group AB's overall stock score reflects its financial challenges, particularly in profitability and revenue growth, despite improved cash flow. Technical indicators suggest potential stability, but valuation concerns due to negative profitability weigh heavily. The earnings call highlighted some positive strategic initiatives, but revenue declines remain a significant risk.

Positive Factors

Cost Optimization

Early completion of the cost optimization program indicates effective management and operational efficiency, which can improve profitability and provide financial stability over the long term.

Growth in MENA and APAC

Strong growth in MENA and APAC regions highlights successful market expansion and product adoption, contributing to diversified revenue streams and long-term business resilience.

Improved Gross Margin

An improved gross margin signifies better cost management and pricing strategies, enhancing profitability and providing a buffer against revenue fluctuations.

Negative Factors

Revenue Decline

A decline in group revenues indicates challenges in maintaining sales momentum and market competitiveness, potentially impacting long-term growth prospects.

Significant Revenue Decline in North America

A significant revenue drop in North America suggests regional market challenges, affecting overall company performance and requiring strategic adjustments to regain growth.

Decrease in Free Cash Flow

A decrease in free cash flow can limit the company's ability to invest in growth opportunities and manage debt, posing a risk to financial flexibility and sustainability.

Stillfront Group AB Business Overview & Revenue Model

Company Description

Stillfront Group AB is a leading free-to-play gaming company that specializes in developing, publishing, and distributing games across various platforms, including PC, mobile, and console. Headquartered in Stockholm, Sweden, the company operates through a portfolio of multiple game studios, each focused on creating unique and engaging gaming experiences. Stillfront's core products include a diverse range of games that appeal to different audiences, with a strong emphasis on live operations and community engagement to enhance player retention and monetization.

How the Company Makes Money

Stillfront Group AB generates revenue primarily through in-game purchases and microtransactions within its free-to-play games. Players can buy virtual goods, upgrades, and in-game currency, which contributes significantly to the company's earnings. Additionally, Stillfront benefits from advertising revenue generated through in-game ads and partnerships with other gaming companies. The company also explores strategic acquisitions of game studios to expand its portfolio and enhance its market presence, which can lead to increased revenue streams from new and existing titles. Overall, the combination of direct player spending, advertising, and portfolio expansion through acquisitions constitutes the core of Stillfront's revenue model.

Stillfront Group AB Financial Statement Overview

Summary

Stillfront Group AB faces significant financial challenges, with declining sales and negative profitability margins. The income statement shows a negative revenue growth rate and substantial operational difficulties. The balance sheet indicates moderate leverage but poor returns on equity. Cash flow is a relative strength, with adequate operating cash flow, but declining free cash flow growth is concerning.

Income Statement

The income statement reveals significant challenges for Stillfront Group AB. The TTM data shows a negative revenue growth rate of -4.61%, indicating declining sales. Additionally, the company is experiencing negative profitability margins, with a net profit margin of -116.76% and an EBIT margin of -110.15%. These figures suggest substantial operational and financial difficulties, likely due to high costs or declining demand. The gross profit margin remains positive at 61.77%, but the overall financial health is concerning.

Balance Sheet

The balance sheet presents a mixed picture. The debt-to-equity ratio is 0.77, indicating a moderate level of leverage, which is manageable but could pose risks if profitability does not improve. The return on equity is negative at -84.23%, reflecting the company's inability to generate profits from shareholders' equity. However, the equity ratio is relatively healthy, suggesting some stability in asset financing.

Cash Flow

Cash flow analysis shows some resilience despite the company's challenges. The operating cash flow to net income ratio is 1.28, indicating that the company generates sufficient cash from operations relative to its net losses. However, the free cash flow growth rate is negative at -168.6%, highlighting potential issues in sustaining cash flow. The free cash flow to net income ratio of 0.66 suggests that the company is still able to convert a portion of its earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.03B	6.74B	7.01B	7.06B	5.46B	3.99B
Gross Profit	3.07B	1.40B	4.17B	7.67B	5.92B	4.32B
EBITDA	-5.61B	-6.05B	2.24B	2.04B	1.68B	1.26B
Net Income	-7.26B	-7.38B	7.00M	559.00M	590.00M	580.00M
Balance Sheet
Total Assets	13.84B	16.37B	22.61B	24.13B	20.05B	12.37B
Cash, Cash Equivalents and Short-Term Investments	773.00M	957.00M	807.00M	989.00M	1.13B	1.00B
Total Debt	4.74B	5.86B	4.94B	4.76B	4.58B	2.90B
Total Liabilities	7.19B	8.89B	8.76B	9.88B	10.25B	6.22B
Stockholders Equity	6.65B	7.48B	13.84B	14.24B	9.77B	6.13B
Cash Flow
Free Cash Flow	1.12B	1.07B	857.00M	971.00M	761.00M	788.00M
Operating Cash Flow	1.52B	1.69B	1.69B	2.03B	1.62B	1.25B
Investing Cash Flow	-1.14B	-1.14B	-1.67B	-3.76B	-4.18B	-4.74B
Financing Cash Flow	-421.00M	-452.00M	-175.00M	1.46B	2.62B	4.21B

Stillfront Group AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.38
• 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:SF, the sentiment is Positive. The current price of 6.38 is below the 20-day moving average (MA) of 6.40, above the 50-day MA of 6.27, and above the 200-day MA of 5.97, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.39 is Neutral, neither overbought nor oversold. The STOCH value of 64.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SF.

Stillfront Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
G5EN	74 Outperform	kr708.80M	10.26	12.65%	9.74%	-14.68%	-29.97%
PDX	67 Neutral	kr17.01B	26.67	22.69%	3.13%	-18.54%	71.38%
MAGI	59 Neutral	€225.20M	-23.92	-3.04%	11.76%	-3.51%	-192.91%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SF	52 Neutral	kr3.25B	-0.43	―	―	-11.82%	-7499.16%
EG7	49 Neutral	kr1.21B	-6.98	―	―	1.74%	-5214.06%
STAR.B	40 Neutral	$172.34M	-0.42	-76.88%	―	8.38%	-48.41%

Stillfront Group AB Corporate Events

Stillfront Group Initiates Share Repurchase Program

Stillfront Group AB’s Board of Directors has decided to acquire its own shares on Nasdaq Stockholm, as authorized by the Annual General Meeting. This repurchase program, managed by DNB Carnegie Investment Bank AB, aims to facilitate payment using Stillfront’s shares for certain acquisition-related earn-out payments, with a total acquisition limit of SEK 210 million.

Stillfront Expects Higher Q3 2025 EBITDAC Surpassing Market Expectations

Stillfront Group AB has announced that it expects to report an adjusted EBITDAC of SEK 436 million for the third quarter of 2025, surpassing market expectations and reflecting a 13% increase from the previous year. This growth is attributed to reduced user acquisition costs, early achievement of cost-saving targets, and improved profitability in North America and MENA & APAC regions. Despite a 7.8% decline in organic net revenue, the company maintains a focus on profitability and the launch of new games, which may impact net revenue growth in the fourth quarter.

Stillfront Group to Announce Q3 2025 Financial Results

Stillfront Group AB announced it will release its third-quarter results for 2025 on October 23. The results will be presented in a live webcast by the company’s President & Group CEO, Alexis Bonte, and interim Group CFO, Tim Holland. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction.