SOZAP AB (SOZAP) AI Stock Analysis

• Market Cap: €13.12M
• Dividend Yield: N/A
• Average Volume (3M): 24.02K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.17
• Revenue Growth: 16.78%
• EPS Growth: 12.64%
• Country: SE
• Employees: 14
• Sector: Communication Services
• Sector Strength: 90
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.10
• Shares Outstanding: 22,238,210
• 10 Day Avg. Volume: 49,821
• 30 Day Avg. Volume: 24,021
• PEG Ratio: -0.10
• Price to Book (P/B): 2.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.12
• 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: 51 Neutral
• 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 Business Overview & Revenue Model

Company Description

SOZAP 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 Money

SOZAP 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
17.47M	14.96M	16.58M	17.49M	10.54M
	Gross Profit
24.68M	26.74M	26.89M	23.22M	15.26M
	EBIT
-11.29M	-8.94M	-14.27M	-8.17M	-2.49M
	EBITDA
146.00K	-8.59M	-13.99M	-8.15M	691.00K
	Net Income Common Stockholders
-11.29M	-8.94M	-14.34M	-8.18M	-2.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.73M	6.30M	12.29M	27.81M	1.59M
	Total Assets
28.68M	33.32M	31.30M	45.70M	29.78M
	Total Debt
0.00	0.00	0.00	0.00	0.00
	Net Debt
-4.73M	-6.30M	-12.29M	-27.81M	-1.59M
	Total Liabilities
2.35M	3.38M	2.84M	2.97M	1.35M
	Stockholders Equity
26.32M	29.94M	28.46M	42.73M	28.44M
Cash Flow		Free Cash Flow
-9.19M	-16.56M	-15.52M	-10.24M	-6.34M
	Operating Cash Flow
-284.00K	-3.01M	-3.10M	3.00K	605.00K
	Investing Cash Flow
-8.90M	-13.50M	-12.42M	-10.24M	-6.94M
	Financing Cash Flow
7.63M	10.60M	0.00	36.40M	-1.00K

SOZAP AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAGI	71 Outperform	kr257.00M	35.43	2.20%	10.18%	-13.90%	8.35%
Sector *	61 Neutral	$14.75B	5.86	-3.99%	6.11%	2.67%	-30.24%
SOZAP	51 Neutral	€13.12M	―	-37.92%	―	16.78%	12.64%
GCOR	41 Neutral	kr151.99M	―	-253.32%	―	13.74%	21.17%
FRAG	40 Underperform	kr31.20M	―	-60.20%	―	-13.48%	34.61%
QIIWI	39 Underperform	kr16.14M	―	-25.37%	―	-23.00%	74.94%
ADVBOX	26 Underperform	kr33.40M	―	-730.10%	―	-70.70%	-19.31%