Starbreeze AB (STAR.B) AI Stock Analysis

• Market Cap: $317.84M
• Dividend Yield: N/A
• Average Volume (3M): 1.63M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: -70.32%
• EPS Growth: -184.31%
• Country: SE
• Employees: 186
• Sector: Communication Services
• Sector Strength: 83
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): <0.01
• Shares Outstanding: 1,482,176,300
• 10 Day Avg. Volume: 1,724,303
• 30 Day Avg. Volume: 1,630,460
• PEG Ratio: 0.53
• Price to Book (P/B): 24.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -16.00
• 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: 52 Neutral
• Price Target: kr0.00 ▼(-100.00%Downside)

The overall stock score is heavily influenced by financial performance challenges, including declining profitability and cash flow issues. Technical analysis suggests some short-term strength but limited momentum, while poor valuation metrics further weigh on the score.

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 primarily through the sale of video games, both digital and physical copies, across multiple gaming platforms, such as PC, consoles, and mobile devices. The company earns money through direct consumer sales on platforms like Steam, PlayStation Network, and Xbox Live. Additional revenue streams include downloadable content (DLC) and in-game purchases, which enhance the gaming experience and provide continuous engagement for players. Starbreeze also benefits from partnerships and collaborations with other game developers and publishers, which can include co-development deals, licensing agreements, and distribution partnerships that expand its market reach and revenue potential. The company may also generate revenue from merchandising and other related services associated with its game titles.

Starbreeze AB Financial Statement Overview

Summary

Starbreeze AB faces financial challenges with declining profitability and inconsistent revenue growth. The balance sheet is stable with low debt but declining asset efficiency. Cash flow issues are present due to high capital expenditures, overshadowing positive operating cash flow.

Income Statement

Starbreeze AB's revenue growth has been inconsistent with a significant drop from 2023 to 2024. The company has experienced negative net profit margins in recent years, with 2024 showing a substantial decline in profitability compared to 2023. The EBIT and EBITDA margins have also deteriorated, indicating operational challenges.

Balance Sheet

The balance sheet shows a strong equity position with a favorable debt-to-equity ratio due to low debt levels in 2024. However, the equity ratio has decreased over time, reflecting increased liabilities relative to assets. Return on equity is declining, indicating inefficiencies in generating profit from shareholders' equity.

Cash Flow

Starbreeze AB's operating cash flow has decreased, impacting free cash flow negatively. The free cash flow to net income ratio reveals challenges in converting income into cash flow. Despite positive operating cash flow, substantial capital expenditures have led to negative free cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	185.85M	633.51M	127.60M	125.69M	118.01M
Gross Profit	-144.44M	324.24M	67.08M	69.39M	86.93M
EBITDA	-192.39M	457.47M	64.32M	6.35M	41.49M
Net Income	-199.29M	207.63M	-59.81M	-103.47M	-130.28M
Balance Sheet
Total Assets	830.13M	1.11B	746.40M	674.15M	708.71M
Cash, Cash Equivalents and Short-Term Investments	191.91M	347.75M	108.22M	128.57M	157.42M
Total Debt	17.70M	16.82M	400.16M	440.68M	393.89M
Total Liabilities	124.69M	216.84M	689.62M	551.33M	480.21M
Stockholders Equity	705.44M	894.65M	56.79M	122.82M	228.50M
Cash Flow
Free Cash Flow	-188.14M	-87.80M	-88.33M	-38.70M	-120.43M
Operating Cash Flow	64.87M	114.58M	57.83M	73.87M	-24.64M
Investing Cash Flow	-245.46M	-202.38M	-143.94M	-109.01M	-96.22M
Financing Cash Flow	24.52M	327.44M	65.55M	6.17M	195.60M

Starbreeze AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.19
• 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 0.19 is below the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.20, and below the 200-day MA of 0.21, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.09 is Neutral, neither overbought nor oversold. The STOCH value of 35.24 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
Sector *	66 Neutral	¥373.55B	13.58	2.32%	2.51%	5.41%	-17.67%
STAR.B	52 Neutral	$317.84M	―	-28.05%	―	-70.32%	-184.31%
4UJ		€3.14M	―	-25.37%	―	―	―
7HH		€12.87M	―	-35.59%	―	―	―
5WF		€15.62M	―	-253.32%	―	―	―
MHK		€30.22M	39.33	>-0.01%	7.99%	―	―
5ZD0		€6.09M	―	-60.20%	―	―	―

Starbreeze AB Corporate Events

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.

Starbreeze AB Announces Share Structure Changes

Starbreeze AB has announced a change in its share structure, converting 735 series A-shares into series B-shares and issuing 147,676,204 new series B-shares. This move aims to eventually have only series B-shares issued, reducing the total number of votes but not affecting ownership in terms of capital. The total number of registered shares now stands at 1,624,438,244, with a total of 2,757,125,926 votes.

Starbreeze and RyseUp Studios Launch Roboquest on PlayStation

Starbreeze AB, in collaboration with RyseUp Studios, has announced the release of their popular FPS roguelite game, Roboquest, on PlayStation 5 and 4. This release leverages PlayStation’s advanced features to enhance gameplay, offering players an exciting and dynamic experience with high-resolution graphics and adaptive controls. The game invites players into a future world where they must combat rogue AI, featuring diverse environments, customizable builds, and a variety of weapons. This launch is a significant milestone for the developers, marking a decade of development and community support, and is expected to strengthen Starbreeze’s position in the gaming market.

Starbreeze Expands PAYDAY 3 with New Heist and Features

Starbreeze Entertainment has launched a new paid heist, Party Powder, for PAYDAY 3, alongside a free Armor 2.0 feature. This update enhances the game’s strategic depth and replayability, offering players new challenges and customization options, thereby expanding the PAYDAY 3 universe and potentially strengthening its position in the gaming industry.

Starbreeze Launches Innovative Game ‘Out of Sight’

Starbreeze Entertainment, in collaboration with The Gang, has launched ‘Out of Sight,’ a narrative adventure game available on multiple platforms including PC, consoles, and VR. The game, which originated as a student project, offers a unique second-person perspective where players guide a blind girl, Sophie, through a haunted mansion using sound and instinct. This innovative approach highlights the company’s commitment to unconventional storytelling and emotional engagement, potentially strengthening its position in the gaming industry.

Starbreeze AGM 2025: Key Resolutions and Strategic Focus

At the Annual General Meeting held on May 15, 2025, Starbreeze AB announced several key resolutions, including the adoption of the income statement and balance sheet for 2024, and the decision not to distribute dividends for the financial year. The AGM also saw the re-election of Jürgen Goeldner as Chairman of the Board and the election of new board members, along with the reappointment of Öhrlings PricewaterhouseCoopers AB as the company’s auditor. These decisions reflect the company’s strategic focus on strengthening its board and financial oversight, while also indicating a cautious approach to financial distribution, possibly to reinvest in future growth opportunities.

Starbreeze AB Receives New Board Proposal from Major Shareholder

Starbreeze AB’s nomination committee received an alternative board proposal from major shareholder Digital Bros. SpA, which holds a significant portion of the company’s capital and voting rights. The proposal suggests a board of four members, including a new candidate, Cecilia Tosting, who brings extensive industry experience from her previous roles at Activision Blizzard Nordics AB and the Walt Disney Company. This change in board composition could influence Starbreeze’s strategic direction and operations, potentially impacting its market positioning and stakeholder interests.

Starbreeze AB Reports Q1 2025 Financial Results and Strategic Developments

Starbreeze AB reported its Q1 2025 financial results, highlighting an increase in net sales to SEK 67.7 million, driven by strong performance from PAYDAY 3. Despite this, the company faced a loss before taxes of SEK 29.4 million and a decrease in cash flow from operating activities. Significant events include the announcement of PAYDAY 3 as a PlayStation Plus game, a new partnership with The Gang studio, and the appointment of Adolf Kristjansson as CEO. These developments indicate strategic moves to strengthen its market position and expand its game offerings.

Starbreeze AB to Release Q1 2025 Report and Host Investor Webcast

Starbreeze AB has announced that it will release its First Quarter 2025 report on May 13, followed by a webcast presentation for investors. The presentation will be led by CEO Adolf Kristjansson and CFO Mats Juhl, providing an opportunity for stakeholders to engage and ask questions, potentially impacting investor relations and market perception.

Starbreeze Acquires PAYDAY 3 Publishing Rights and Issues New Shares

Starbreeze AB has acquired the publishing rights for PAYDAY 3 from PLAION, allowing it to accelerate content development and explore broader strategic opportunities for the PAYDAY franchise. To finance this acquisition, Starbreeze is issuing new shares, which will result in a dilution of existing shares but is expected to strengthen its strategic alignment with major industry players.