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SOZAP AB (SE:SOZAP)
:SOZAP

SOZAP AB (SOZAP) AI Stock Analysis

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SOZAP AB

(Frankfurt:SOZAP)

Rating:51Neutral
Price Target:
SE:SOZAP shows robust revenue growth but struggles with profitability and cash flow, posing risks to long-term viability. The technical analysis suggests potential for recovery, though valuation metrics reflect ongoing financial challenges. Investors should be cautious due to the company's negative earnings and reliance on external financing.

SOZAP AB (SOZAP) vs. iShares MSCI Sweden ETF (EWD)

SOZAP AB Business Overview & Revenue Model

Company DescriptionSOZAP AB is a Swedish-based company operating in the interactive entertainment industry, specifically focusing on the development and publishing of mobile games. Known for creating engaging and high-quality gaming experiences, SOZAP specializes in crafting games that cater to a broad audience, leveraging cutting-edge technology and innovative design to enhance user engagement and retention.
How the Company Makes MoneySOZAP AB generates revenue primarily through the freemium model prevalent in the mobile gaming sector. This model allows users to download and play games for free while offering in-game purchases that enhance the gaming experience, such as virtual goods, character upgrades, and additional levels. Additionally, the company monetizes through in-game advertising, partnering with ad networks to display ads within their games, thus generating ad revenue. Collaborations with distribution platforms and other game developers also contribute to their earnings, allowing for broader reach and joint marketing initiatives.

SOZAP AB Financial Statement Overview

Summary
The company shows strong revenue growth but faces significant challenges with profitability and cash flow management. While the debt-free balance sheet is a strength, continuous net losses and cash burn raise concerns about long-term sustainability.
Income Statement
40
Negative
The income statement reveals a volatile revenue trajectory, with recent revenue growth of 16.77% in 2024 from 2023. However, the company is facing challenges with profitability, as indicated by negative EBIT and net income margins. The gross profit margin is strong, suggesting cost management in production, but overall profitability is hampered by high operating losses.
Balance Sheet
65
Positive
The balance sheet indicates a strong equity position with zero debt, maintaining a debt-to-equity ratio of 0. However, the return on equity is negative due to consistent net losses. The equity ratio remains robust, indicating stability, but the shrinking asset base and equity raise concerns about sustainability without improved profitability.
Cash Flow
45
Neutral
Cash flow analysis shows negative free cash flow, although there is a slight improvement in operating cash flow. The company's reliance on external financing to support cash flow needs is evident. The free cash flow to net income ratio is negative, reflecting ongoing cash burn and the need for operational adjustments.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
17.47M14.96M16.58M17.49M10.54M
Gross Profit
24.68M26.74M26.89M23.22M15.26M
EBIT
-11.29M-8.94M-14.27M-8.17M-2.49M
EBITDA
146.00K-8.59M-13.99M-8.15M691.00K
Net Income Common Stockholders
-11.29M-8.94M-14.34M-8.18M-2.50M
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.73M6.30M12.29M27.81M1.59M
Total Assets
28.68M33.32M31.30M45.70M29.78M
Total Debt
0.000.000.000.000.00
Net Debt
-4.73M-6.30M-12.29M-27.81M-1.59M
Total Liabilities
2.35M3.38M2.84M2.97M1.35M
Stockholders Equity
26.32M29.94M28.46M42.73M28.44M
Cash FlowFree Cash Flow
-9.19M-16.56M-15.52M-10.24M-6.34M
Operating Cash Flow
-284.00K-3.01M-3.10M3.00K605.00K
Investing Cash Flow
-8.90M-13.50M-12.42M-10.24M-6.94M
Financing Cash Flow
7.63M10.60M0.0036.40M-1.00K

SOZAP AB Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.66
Price Trends
50DMA
0.48
Positive
100DMA
0.42
Positive
200DMA
0.45
Positive
Market Momentum
MACD
0.03
Negative
RSI
67.35
Neutral
STOCH
92.54
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SOZAP, the sentiment is Positive. The current price of 0.66 is above the 20-day moving average (MA) of 0.43, above the 50-day MA of 0.48, and above the 200-day MA of 0.45, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 67.35 is Neutral, neither overbought nor oversold. The STOCH value of 92.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SOZAP.

SOZAP AB Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
kr257.00M35.432.20%10.18%-13.90%8.35%
61
Neutral
$14.75B5.86-3.99%6.11%2.67%-30.24%
51
Neutral
€13.12M-37.92%16.78%12.64%
41
Neutral
kr151.99M-253.32%13.74%21.17%
40
Underperform
kr31.20M-60.20%-13.48%34.61%
39
Underperform
kr16.14M-25.37%-23.00%74.94%
26
Underperform
kr33.40M-730.10%-70.70%-19.31%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:SOZAP
SOZAP AB
0.66
-0.16
-19.51%
SE:ADVBOX
Adventure Box Technology AB
0.03
-0.35
-92.63%
SE:FRAG
Fragbite Group AB
4.11
-3.25
-44.13%
SE:GCOR
Gaming Corps AB
1.06
0.05
4.95%
SE:MAGI
MAG Interactive AB
9.84
0.93
10.44%
SE:QIIWI
Qiiwi Games AB
1.67
-0.07
-4.31%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.