Leaf Mobile Inc (EAGR) AI Stock Analysis

• Market Cap: C$34.25M
• Dividend Yield: N/A
• Average Volume (3M): 151.16K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.48
• Revenue Growth: -4.44%
• EPS Growth: -638.10%
• Country: CA
• Employees: 120
• Sector: Communication Services
• Sector Strength: 85
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.01
• Shares Outstanding: 81,536,390
• 10 Day Avg. Volume: 318,418
• 30 Day Avg. Volume: 151,161
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.82
• 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: C$3.00
• Price Target Upside: 614.06% 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 (EAGR) is a leading mobile game company specializing in the development and publishing of free-to-play mobile games. The company operates primarily in the mobile gaming sector, offering a diverse portfolio of entertaining games that cater to various audiences. Leaf Mobile Inc focuses on creating engaging and immersive gaming experiences, leveraging innovative game mechanics and high-quality graphics to attract and retain users.

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 demonstrates a mixed financial performance with strengths in operational efficiency and capital structure. However, declining revenues, profitability challenges, and inconsistent cash flow generation highlight potential risks. The company's lack of debt is a positive aspect, yet achieving stable revenue growth and profitability remains critical for future success.

Income Statement

Leaf Mobile Inc experienced fluctuating revenues with a negative trajectory, as seen in the TTM (Trailing-Twelve-Months) data showing a decline from the previous year. Gross profit margin remains relatively healthy, yet net profit margin is negative, indicating challenges in achieving profitability. The EBITDA margin suggests some operational efficiency improvements, but overall earnings remain under pressure.

Balance Sheet

The balance sheet is relatively stable with no debt, which is a positive aspect. However, a declining equity base and a decrease in total assets highlight potential risks. Return on equity remains negative, reflecting challenges in generating shareholder returns. The equity ratio is strong, indicating a solid capital structure.

Cash Flow

Cash flow from operations shows improvement, yet free cash flow growth is inconsistent. The free cash flow to net income ratio is positive, which indicates cash generation capacity, but operating cash flow to net income is volatile. This inconsistency in cash flow generation could pose challenges for future investments.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
83.12M	86.98M	116.28M	93.19M	31.09M
	Gross Profit
50.77M	54.33M	59.71M	59.91M	2.02M
	EBIT
-492.65K	979.33K	-7.84M	-3.23M	-5.30M
	EBITDA
9.25M	12.11M	22.76M	4.70M	20.45M
	Net Income Common Stockholders
-925.21K	86.67K	10.76M	-1.88M	-4.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.55M	5.24M	5.71M	9.24M	7.20M
	Total Assets
62.57M	69.46M	80.25M	82.35M	21.01M
	Total Debt
0.00	0.00	870.00K	131.20K	305.59K
	Net Debt
-7.55M	-5.24M	-4.79M	-9.11M	-6.90M
	Total Liabilities
15.71M	20.57M	31.73M	58.31M	10.19M
	Stockholders Equity
46.86M	48.88M	48.52M	24.03M	10.82M
Cash Flow		Free Cash Flow
4.18M	912.05K	5.91M	-86.22K	2.29M
	Operating Cash Flow
8.38M	1.57M	10.02M	1.02M	2.37M
	Investing Cash Flow
-4.21M	-660.94K	-4.12M	8.02M	1.11M
	Financing Cash Flow
-1.86M	-1.33M	-9.49M	-4.21M	3.69M

Leaf Mobile Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.42
• 50DMA: Positive
• 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 TSE:EAGR, the sentiment is Positive. The current price of 0.42 is below the 20-day moving average (MA) of 0.42, above the 50-day MA of 0.40, and below the 200-day MA of 0.55, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.84 is Neutral, neither overbought nor oversold. The STOCH value of 57.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EAGR.

Leaf Mobile Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCR	77 Outperform	C$6.75B	9.52	12.43%	3.81%	796.07%	-35.52%
YOO	71 Outperform	C$5.31M	9.77	54.59%	―	2.87%	―
KDOZ	63 Neutral	C$36.11M	22.36	15.79%	―	7.31%	―
Sector *	61 Neutral	$14.56B	5.82	-4.02%	6.41%	2.72%	-31.67%
TGO	50 Neutral	C$23.84M	―	-170.20%	―	0.38%	7.22%
EAGR	48 Neutral	C$34.25M	9.66	-6.91%	―	-4.44%	-638.10%
EGLX	40 Underperform	$7.96M	―	-105.94%	―	-61.29%	12.95%

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.