Leaf Mobile Inc (EAGR) AI Stock Analysis

• Market Cap: $37.51M
• Dividend Yield: N/A
• Average Volume (3M): 59.34K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.50
• Revenue Growth: -4.44%
• EPS Growth: -638.10%
• Country: CA
• Employees: 120
• Sector: Communication Services
• Sector Strength: 86
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.01
• Shares Outstanding: 81,536,390
• 10 Day Avg. Volume: 82,164
• 30 Day Avg. Volume: 59,336
• PEG Ratio: -1.73
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.87
• 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: $3.00
• Price Target Upside: 581.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: ―

Leaf Mobile Inc's stock score is primarily affected by its financial challenges, including declining revenues and profitability issues. The technical analysis indicates a bearish trend, and valuation metrics highlight significant concerns due to unprofitability. While the recent corporate event is a positive development, it is not enough to significantly alter the overall risk profile.

Positive Factors

Financial Flexibility

With C$8.3M of cash on the balance sheet, up nearly 60.0% from year-end 2023 levels, the company has the flexibility to increase marketing spend, driving customer acquisition, if warranted.

Revenue Growth

New games and game features expected to drive accelerating revenue growth from current levels.

Share Repurchase

The company also continues to repurchase EAGR shares, which is viewed as a vote of confidence in the business.

Negative Factors

Marketing Spend Impact

Increased marketing spend should result in increasing revenue beginning in 3Q24.

Profitability Targets

A forward EV/revenue multiple of 0.6x for a cash-generating business with adj. EBITDA margins approaching 25.0% in 2025 offers an attractive risk-reward for investors.

Revenue Growth Timeline

The return to more meaningful revenue growth in 2025 is seen as an inflection point, which should begin to attract new investors to undervalued EAGR shares.

Leaf Mobile Inc Business Overview & Revenue Model

Company Description

Leaf Mobile Inc., through its subsidiaries, develops and publishes free-to-play casual mobile games worldwide. It owns and operates GameKit, a software platform for casual or idle narrative driven game development, as well as engages in the sale of in-game virtual items and advertising. The company was incorporated in 2018 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Leaf Mobile Inc generates revenue primarily through a free-to-play model, which includes in-app purchases and advertising. Players can download and play the games for free, but they have the option to purchase virtual goods or currency to enhance their gaming experience. This microtransaction model is a significant revenue stream, as it encourages user spending on game enhancements, character upgrades, and customizations. Additionally, the company monetizes its games through in-game advertisements, partnering with ad networks to display ads to users. These ads can be in the form of banners, interstitials, or rewarded video ads, where users can earn in-game rewards by watching advertisements. Strategic partnerships with other gaming companies and platforms also contribute to Leaf Mobile's revenue, expanding their distribution channels and user base.

Leaf Mobile Inc Financial Statement Overview

Summary

Leaf Mobile Inc. presents a balanced financial profile with strengths in operational efficiency and cash flow generation. The company has a solid equity position with an equity ratio of 73.9% and no debt, which mitigates financial risk. However, the low net profit margin and declining revenue growth indicate challenges in profitability and business momentum.

Income Statement

Leaf Mobile Inc. demonstrates a mixed performance in its income statement. The TTM gross profit margin is strong at approximately 53.9%, indicating efficient cost management. However, the net profit margin is relatively low at about 4.3%, suggesting challenges in converting revenue into profit. Revenue growth over the last year decreased by about 4.2%, indicating a potential slowdown in business momentum. Positive EBIT and EBITDA margins of 4.7% and 16.0% respectively in the TTM period show operational efficiency improvements compared to past losses.

Balance Sheet

The balance sheet of Leaf Mobile Inc. reflects a solid equity position with an equity ratio of 73.9%, indicating a low reliance on debt financing. The absence of total debt in the TTM period significantly reduces financial risk. Return on equity is modest at 7.0%, showing potential for improved shareholder returns. Overall, the company's balance sheet is stable with room for enhancing profitability.

Cash Flow

The cash flow statement reveals a robust operating cash flow to net income ratio of 2.4, demonstrating strong cash generation relative to reported earnings. Free cash flow grew significantly by 472% compared to the previous year, showcasing improved cash flow management. However, free cash flow to net income ratio stands at 1.4, highlighting the need for more alignment between cash flow and profitability.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
83.35M	86.98M	116.28M	93.19M	31.09M	37.23M
	Gross Profit
44.97M	54.33M	59.71M	59.91M	2.02M	22.24M
	EBIT
3.88M	979.33K	-7.84M	-3.23M	-5.30M	-471.71K
	EBITDA
13.32M	12.11M	22.76M	4.70M	20.45M	-471.71K
	Net Income Common Stockholders
3.62M	86.67K	10.76M	-1.88M	-4.34M	-471.71K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.52M	5.24M	5.71M	9.24M	7.20M	32.60K
	Total Assets
18.05M	69.46M	80.25M	82.35M	21.01M	1.30M
	Total Debt
305.59K	0.00	870.00K	131.20K	305.59K	305.59K
	Net Debt
-1.72M	-5.24M	-4.79M	-9.11M	-6.90M	272.99K
	Total Liabilities
6.33M	20.57M	31.73M	58.31M	10.19M	233.80K
	Stockholders Equity
11.72M	48.88M	48.52M	24.03M	10.82M	1.07M
Cash Flow		Free Cash Flow
5.22M	912.05K	5.91M	-86.22K	2.29M	-351.43K
	Operating Cash Flow
8.75M	1.57M	10.02M	1.02M	2.37M	-266.57K
	Investing Cash Flow
-3.53M	-660.94K	-4.12M	8.02M	1.11M	-1.25M
	Financing Cash Flow
-482.94K	-1.33M	-9.49M	-4.21M	3.69M	1.55M

Leaf Mobile Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.44
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EAGR, the sentiment is Neutral. The current price of 0.44 is above the 20-day moving average (MA) of 0.40, above the 50-day MA of 0.40, and below the 200-day MA of 0.57, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 55.33 is Neutral, neither overbought nor oversold. The STOCH value of 79.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:EAGR.

Leaf Mobile Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$14.12B	6.43	-3.57%	3.69%	2.49%	-35.43%
EAGR	48 Neutral	$37.51M	9.66	-6.91%	―	-4.44%	-638.10%
PLAY	31 Underperform	C$2.11M	5.95		―	―	―
EPYFF		$720.46K	―		―	―	―
EGLXF		$7.53M	―	-105.94%	―	―	―
GMETF		$771.77K	―		―	―	―
VRTS	50 Neutral	C$9.71M	―	-251.82%	―	-4.88%	93.73%

Leaf Mobile Inc Corporate Events

East Side Games Group Launches ‘RuPaul’s Drag Race Match Queen’

East Side Games Group has announced a new collaboration with World of Wonder to launch ‘RuPaul’s Drag Race Match Queen,’ a match-3 mobile game inspired by the world of drag. The game, which follows the success of ‘RuPaul’s Drag Race Superstar,’ offers players the chance to unlock exclusive rewards through a Community Rewards Challenge. This launch is expected to strengthen ESGG’s position in the mobile gaming market by leveraging the popular RuPaul’s Drag Race brand, potentially attracting a wide audience and increasing engagement through unique gameplay and regular updates.

Spark’s Take on TSE:EAGR Stock

According to Spark, TipRanks’ AI Analyst, TSE:EAGR is a Neutral.

Leaf Mobile Inc’s stock score reflects challenges in financial performance, evidenced by declining revenues and profitability issues despite a solid capital structure. Technical analysis points to a bearish trend, further weighing on the score. The negative P/E ratio highlights valuation concerns, as the company struggles with unprofitability. Overall, the stock presents significant risks, with limited positive indicators to counterbalance these challenges.

To see Spark’s full report on TSE:EAGR stock, click here.

East Side Games Group to Release Q4 2024 Financial Results

East Side Games Group announced that it will release its financial results for the fourth quarter and year ending December 31, 2024, on March 24, 2025. This announcement could provide insights into the company’s operational performance and future business outlook, potentially impacting its market positioning and stakeholder interests.