Starbreeze AB (STAR.B) AI Stock Analysis

• Market Cap: kr181.37M
• Dividend Yield: N/A
• Average Volume (3M): 2.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: 8.38%
• EPS Growth: -48.41%
• Country: SE
• Employees: 186
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.01
• Shares Outstanding: 1,482,310,500
• 10 Day Avg. Volume: 3,311,392
• 30 Day Avg. Volume: 2,089,109
• PEG Ratio: <0.01
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 1.67
• P/FCF Ratio: -1.65
• 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: 40 Neutral
• Price Target: kr0.11 ▲(3.64% Upside)

Starbreeze AB's overall stock score is primarily impacted by its poor financial performance and valuation. The company faces significant profitability and cash flow challenges, reflected in its negative margins and P/E ratio. Technical analysis also indicates bearish trends, further weighing down the stock's attractiveness. Strategic improvements are crucial for enhancing financial stability and investor confidence.

Positive Factors

Revenue Growth

The positive revenue growth indicates Starbreeze's ability to expand its market presence and enhance its product offerings, which is crucial for long-term sustainability in the competitive gaming industry.

Low Leverage

Low leverage suggests that Starbreeze has a manageable debt load, providing it with greater financial flexibility to invest in growth opportunities and weather economic downturns.

Diverse Revenue Streams

Starbreeze's diverse revenue streams reduce dependency on any single source, enhancing its resilience against market fluctuations and supporting sustained financial health.

Negative Factors

Negative Margins

Persistent negative margins highlight operational inefficiencies and profitability challenges, which could hinder long-term financial stability and growth potential.

Cash Flow Challenges

Cash flow challenges limit Starbreeze's ability to reinvest in its business, potentially restricting its capacity to innovate and compete effectively in the gaming industry.

Negative Return on Equity

A negative return on equity suggests that Starbreeze is not effectively utilizing shareholder investments, which could deter future investment and impact its growth trajectory.

Starbreeze AB Business Overview & Revenue Model

Company Description

Starbreeze AB (publ) operates as an independent developer, creator, publisher, and distributor of computer and video games in Europe, North America, Asia, and internationally. The company develops and publishes games for PC and console, as well as mobile. It also acts as a publisher for games developed by other game developers. Starbreeze AB (publ) was incorporated in 1998 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Starbreeze AB generates revenue through multiple streams, primarily from the sale of video games, both digital and physical. The company's flagship franchise, 'Payday', has been a significant revenue driver through its sales, downloadable content (DLC), and expansions. Additionally, Starbreeze earns income from licensing agreements and partnerships, which allow third-party developers to use its proprietary game engines and technology. The company also explores opportunities in publishing, where it collaborates with other developers to bring new titles to market, sharing profits from sales. Furthermore, Starbreeze engages in merchandise sales related to its games, enhancing revenue through branded products. Overall, the combination of game sales, DLC, licensing, and publishing partnerships forms the core of Starbreeze's revenue model.

Starbreeze AB Financial Statement Overview

Summary

Starbreeze AB faces significant financial difficulties across all verticals. The company struggles with profitability, as evidenced by negative margins and returns. While leverage is low, cash flow issues persist, impacting overall financial stability. Strategic improvements are necessary to enhance financial performance and sustainability.

Income Statement

Starbreeze AB's income statement reveals significant challenges. The company has experienced negative gross and net profit margins, indicating operational inefficiencies and substantial losses. Although there is a slight revenue growth in the TTM, the EBIT and EBITDA margins remain negative, reflecting ongoing profitability issues.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio in the TTM, suggesting manageable leverage. However, the return on equity is negative, indicating that the company is not generating sufficient returns on shareholders' investments. The equity ratio is stable, but overall financial health remains a concern due to persistent losses.

Cash Flow

Cash flow analysis indicates a negative free cash flow growth rate, highlighting cash management issues. The operating cash flow to net income ratio is positive, suggesting some ability to generate cash from operations, but the free cash flow to net income ratio is negative, underscoring cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	226.21M	185.85M	633.51M	127.60M	125.69M	118.01M
Gross Profit	-269.90M	-263.00M	324.24M	67.08M	69.39M	86.93M
EBITDA	-280.33M	102.38M	457.47M	64.32M	6.35M	41.49M
Net Income	-386.43M	-317.85M	207.63M	-59.81M	-103.47M	-130.28M
Balance Sheet
Total Assets	403.08M	830.13M	1.11B	746.40M	674.15M	708.71M
Cash, Cash Equivalents and Short-Term Investments	135.13M	191.91M	347.75M	108.22M	128.57M	157.42M
Total Debt	43.33M	22.14M	16.82M	400.16M	440.68M	393.89M
Total Liabilities	120.21M	124.69M	216.84M	689.62M	551.33M	480.21M
Stockholders Equity	282.87M	705.44M	894.65M	56.79M	122.82M	228.50M
Cash Flow
Free Cash Flow	-156.06M	-188.14M	-87.80M	-88.33M	-38.70M	-120.43M
Operating Cash Flow	48.93M	64.87M	114.58M	57.83M	73.87M	-24.64M
Investing Cash Flow	-207.42M	-245.46M	-202.38M	-143.94M	-109.01M	-96.22M
Financing Cash Flow	44.47M	24.52M	327.44M	65.55M	6.17M	195.60M

Starbreeze AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:STAR.B, the sentiment is Neutral. The current price of 0.11 is above the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.12, and below the 200-day MA of 0.17, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.32 is Neutral, neither overbought nor oversold. The STOCH value of 82.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:STAR.B.

Starbreeze AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
MAGI	59 Neutral	kr222.56M	-23.64	-3.04%	13.12%	-3.51%	-192.91%
FRAG	45 Neutral	kr70.43M	-0.52	-229.41%	―	-10.21%	-1.15%
SCOUT	43 Neutral	kr30.29M	-3.44	―	―	―	―
GCOR	41 Neutral	kr167.26M	-3.67	―	―	32.83%	13.34%
STAR.B	40 Neutral	kr181.37M	-0.45	-76.88%	―	8.38%	-48.41%

Starbreeze AB Corporate Events

Starbreeze AB Enhances PAYDAY 3 with Skills 2.0 Update

Starbreeze AB has launched a major update for PAYDAY 3 called Skills 2.0, which revamps the game’s skill system to offer players more impactful choices and deeper buildcrafting options. This update is expected to enhance player engagement by providing a more dynamic and personalized gaming experience, potentially strengthening Starbreeze’s position in the competitive gaming market.

The most recent analyst rating on ($SE:STAR.B) stock is a Hold with a SEK0.11 price target. To see the full list of analyst forecasts on Starbreeze AB stock, see the SE:STAR.B Stock Forecast page.

Starbreeze AB Announces Share Conversion

Starbreeze AB has announced a conversion of 134,236 series A-shares into series B-shares, as part of its ongoing program to eventually issue only series B-shares. This conversion reduces the total number of votes in the company but does not affect the ownership in terms of capital. The total number of registered shares now stands at 1,624,438,244, with 142,127,683 series A-shares and 1,482,310,561 series B-shares.

The most recent analyst rating on ($SE:STAR.B) stock is a Hold with a SEK0.11 price target. To see the full list of analyst forecasts on Starbreeze AB stock, see the SE:STAR.B Stock Forecast page.

Starbreeze AB Shifts Focus to PAYDAY Amid Financial Challenges

Starbreeze AB’s Q3 2025 report highlights a strategic shift towards the PAYDAY franchise, with the discontinuation of the Baxter project. Despite increased net sales, the company reported a significant loss before taxes due to high depreciation and impairment costs, particularly related to the Baxter project. The strategic focus on PAYDAY aims to strengthen its market position in the heisting genre.