Starbreeze AB (STAR.B) AI Stock Analysis

• Market Cap: kr303.01M
• Dividend Yield: N/A
• Average Volume (3M): 3.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: -68.13%
• EPS Growth: -229.75%
• Country: SE
• Employees: 186
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.01
• Shares Outstanding: 1,482,176,300
• 10 Day Avg. Volume: 2,646,359
• 30 Day Avg. Volume: 3,037,487
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: kr0.00 ▼(-100.00% Downside)

Starbreeze AB's overall stock score is primarily impacted by its weak financial performance and valuation. The company's significant financial challenges, including negative profitability and cash flow issues, are the most critical factors. Technical analysis provides a neutral outlook, but the lack of profitability and dividend yield weighs heavily on the stock's attractiveness.

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 by selling video games through digital and physical distribution channels. The company earns money from direct sales of its titles, both via its own platforms and through third-party retailers. Additionally, Starbreeze benefits from in-game transactions, downloadable content (DLC), and microtransactions within its games, which enhance user engagement and provide ongoing revenue. The company also engages in partnerships with other developers, allowing it to earn a share of the revenue from published titles. Furthermore, the licensing of its game engine and technology to other developers contributes to its earnings, alongside potential revenue from merchandising and brand collaborations.

Starbreeze AB Financial Statement Overview

Summary

Starbreeze AB faces significant financial challenges with declining revenue and profitability, negative cash flow from operations, and operational inefficiencies. The manageable debt position is a slight positive, but overall financial health is concerning.

Income Statement

Starbreeze AB's income statement shows a challenging financial environment. The company has experienced a decline in revenue from 2023 to the TTM, with a significant drop in gross profit margin and persistent net losses. The negative EBIT and EBITDA margins in the TTM highlight ongoing operational inefficiencies.

Balance Sheet

The balance sheet indicates mixed stability. Despite a reduction in total assets and equity from the previous year, the company maintains a relatively low debt-to-equity ratio, suggesting manageable leverage. However, the declining equity ratio poses concerns about asset financing and overall financial health.

Cash Flow

Cash flow analysis reveals severe pressures, with negative free cash flow growth and operating cash flow to net income ratio. The company struggles to generate positive cash flow from operations, which is crucial for sustainable growth and covering capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	210.50M	185.85M	633.51M	127.60M	125.69M	118.01M
Gross Profit	-45.44M	-263.00M	324.24M	67.08M	69.39M	86.93M
EBITDA	-7.07M	102.38M	457.47M	64.32M	6.35M	41.49M
Net Income	-159.97M	-317.85M	207.63M	-59.81M	-103.47M	-130.28M
Balance Sheet
Total Assets	707.86M	830.13M	1.11B	746.40M	674.15M	708.71M
Cash, Cash Equivalents and Short-Term Investments	156.40M	191.91M	347.75M	108.22M	128.57M	157.42M
Total Debt	48.95M	22.14M	16.82M	400.16M	440.68M	393.89M
Total Liabilities	140.23M	124.69M	216.84M	689.62M	551.33M	480.21M
Stockholders Equity	567.63M	705.44M	894.65M	56.79M	122.82M	228.50M
Cash Flow
Free Cash Flow	-221.83M	-188.14M	-87.80M	-88.33M	-38.70M	-120.43M
Operating Cash Flow	11.21M	64.87M	114.58M	57.83M	73.87M	-24.64M
Investing Cash Flow	-233.29M	-245.46M	-202.38M	-143.94M	-109.01M	-96.22M
Financing Cash Flow	44.01M	24.52M	327.44M	65.55M	6.17M	195.60M

Starbreeze AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:STAR.B, the sentiment is Negative. The current price of 0.18 is below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.19, and below the 200-day MA of 0.19, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.24 is Neutral, neither overbought nor oversold. The STOCH value of 30.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:STAR.B.

Starbreeze AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAGI	60 Neutral	378.87M	2,383.33	0.05%	6.99%	-11.35%	-92.00%
FRAG	51 Neutral	98.73M	-0.67	11034.41%	―	-12.12%	23.81%
STAR.B	41 Neutral	kr303.01M	―	-22.68%	―	-68.13%	-229.75%
GCOR	41 Neutral	152.71M	-3.47	0.00%	―	31.74%	21.54%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Starbreeze AB Corporate Events

Starbreeze AB Expands PAYDAY 3 with ‘Delivery Charge’ Heist

Starbreeze AB has launched a new DLC heist for PAYDAY 3, titled ‘Delivery Charge,’ which introduces a fresh gameplay experience set in a dockside armored transport depot. This release emphasizes replayability and player choice, with new features like the favor system and various heist strategies, enhancing the game’s dynamic nature and expanding its criminal landscape.

Starbreeze Appoints Paul Keslin as General Manager of Project Baxter

Starbreeze has appointed Paul Keslin as the General Manager of Project Baxter, leveraging his extensive experience in AAA development, live service operations, and product management. Keslin’s leadership is expected to align the project’s creative vision and business strategy, enhancing Starbreeze’s position in the gaming industry and potentially delivering a game that resonates with players for years.

Starbreeze AB Reports Mixed Q2 2025 Financial Results Amid New Game Launches

Starbreeze AB’s Q2 2025 interim report highlights a mixed financial performance with net sales increasing to SEK 53.8 million, driven by PAYDAY 3 and work-for-hire projects. Despite a reduction in losses before tax, the company continues to face challenges with negative earnings per share. Significant events include the launch of new content for PAYDAY 3 and other game releases, which could impact future revenue streams and market positioning.

Starbreeze Appoints New General Manager for PAYDAY Franchise

Starbreeze has appointed Jonas Skantz as the General Manager of its PAYDAY franchise, bringing over 20 years of experience in game development and leadership. Skantz’s role will focus on guiding the creative and commercial direction of the PAYDAY series, aiming to enhance its global appeal and continue delivering top-tier co-op heist experiences. His extensive background, including work on major titles like Battlefield and FIFA, positions him to drive the franchise’s growth and innovation, which is anticipated to strengthen Starbreeze’s market position and offer enriched experiences to its community.

Starbreeze AB Announces Q2 2025 Report and Investor Webcast

Starbreeze AB is set to release its Second Quarter 2025 report on August 19, followed by an investor webcast on August 22, where CEO Adolf Kristjansson and CFO Mats Juhl will present the report. This announcement is significant for investors and stakeholders as it provides insights into the company’s financial performance and strategic direction.

Starbreeze AB Introduces ‘Smash & Grab’ Mode in PAYDAY 3 Update

Starbreeze AB has launched a new game mode called ‘Smash & Grab’ for PAYDAY 3, offering a fast-paced heisting experience designed for both new and veteran players. This update, developed in response to community feedback, aims to simplify gameplay while maintaining the series’ signature intensity, and it includes a new weapon, the Spearfish 1895 rifle, enhancing the game’s arsenal.