ESE Entertainment (ESE) AI Stock Analysis

• Market Cap: C$7.94M
• Dividend Yield: N/A
• Average Volume (3M): 409.69K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.49
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 70
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): >-0.01
• Shares Outstanding: 105,809,525
• 10 Day Avg. Volume: 806,369
• 30 Day Avg. Volume: 409,686
• PEG Ratio: 0.25
• Price to Book (P/B): 7.30
• Price to Sales (P/S): 2.54
• P/FCF Ratio: -3.31
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

The overall stock score is heavily influenced by ESE Entertainment's poor financial performance, characterized by declining revenues, persistent losses, and high leverage. Technical analysis indicates a bearish trend, and valuation metrics are unfavorable due to negative earnings and lack of dividends. These factors collectively result in a low stock score.

Positive Factors

Diverse Revenue Streams

ESE's diverse revenue streams from game development, esports events, and digital marketing provide resilience against sector-specific downturns.

Strategic Partnerships

Partnerships with gaming platforms and brands enable ESE to expand its audience reach and share in collaborative revenue, enhancing long-term growth potential.

Industry Focus

By focusing on the rapidly growing esports and gaming sectors, ESE is well-positioned to capitalize on industry trends and increase its market share.

Negative Factors

Declining Revenues

Declining revenues indicate challenges in maintaining market position and competitiveness, potentially impacting long-term financial health.

High Leverage

High leverage increases financial risk and limits flexibility, making it difficult for ESE to invest in growth opportunities or weather economic downturns.

Negative Cash Flow

Negative cash flow indicates liquidity challenges, requiring external funding to sustain operations, which can dilute shareholder value and increase financial risk.

ESE Entertainment Business Overview & Revenue Model

Company Description

ESE Entertainment Inc., an entertainment and technology company, focuses on gaming and esports in Europe and internationally. It consists of multiple assets and operators in the gaming and esports industries. The company's capabilities include physical infrastructure, broadcasting, global distribution for gaming and esports-related content, advertising, simulation racing business unit, and a growing esport team franchise, as well as K1CK Esports. It also engages in the infrastructure business that manages fan engagement for OTT and esports; and provision of gaming related infrastructure, technology, and support. In addition, the company offers out-sourced network services; operates telecommunications network; turnkey simulator packages; builds bespoke simulators; and Virtual Pitstop technology for video game developers, racing fans, and gamers to engage in motorsport related esports. It serves video game developers, publishers, and brands. The company was formerly known as Kepler Acquisition Corp. and changed its name to ESE Entertainment Inc. in August 12, 2020. ESE Entertainment Inc. was founded in 2019 and is headquartered in Vancouver, Canada.

How the Company Makes Money

ESE Entertainment generates revenue through multiple key streams. Primarily, it earns money from game development and publishing, where they create and distribute gaming content. Additionally, the company profits from organizing esports events, which can include ticket sales, sponsorships, and merchandise sales related to these events. Another significant revenue source is digital marketing services for gaming companies, where ESE helps brands increase their reach and engagement within the gaming community. Strategic partnerships with gaming platforms and brands also contribute to their earnings, allowing ESE to tap into larger audiences and share in revenue generated from collaborative efforts.

ESE Entertainment Financial Statement Overview

Summary

ESE Entertainment is facing significant financial challenges, including declining revenues, persistent losses, high leverage, and negative cash flows. These factors severely impact profitability and financial stability.

Income Statement

ESE Entertainment has experienced significant volatility in revenue, with a notable decline from 2022 to 2025. Gross profit margin remains extremely low at around 1% in TTM, indicating challenges in cost management. The company has been consistently operating at a loss, with negative EBIT and net profit margins, highlighting profitability concerns.

Balance Sheet

The company has a high debt-to-equity ratio, which increased notably as equity declined, suggesting elevated financial risk. The equity ratio has deteriorated over time, reflecting a weakened financial position with liabilities exceeding assets. Return on equity remains negative due to sustained losses, indicating inefficiencies in generating shareholder returns.

Cash Flow

Consistently negative operating cash flow and free cash flow highlight ongoing liquidity challenges. The free cash flow to net income ratio is unfavorable, indicating insufficient cash flow to support operational needs. With negative cash flow growth, the company faces difficulties in sustaining operations without external funding.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.82M	2.85M	19.10M	58.82M	11.38M	390.17K
Gross Profit	-392.51K	231.76K	176.92K	7.70M	1.15M	390.17K
EBITDA	-5.73M	-6.16M	-7.30M	-22.40M	-18.62M	-3.80M
Net Income	-6.10M	-6.72M	-6.35M	-29.84M	-18.66M	-5.42M
Balance Sheet
Total Assets	6.26M	6.86M	9.11M	21.45M	15.94M	842.09K
Cash, Cash Equivalents and Short-Term Investments	332.68K	909.58K	2.13M	1.11M	4.83M	550.01K
Total Debt	1.18M	939.10K	3.30M	6.44M	198.13K	0.00
Total Liabilities	8.75M	6.88M	6.43M	19.22M	1.43M	378.46K
Stockholders Equity	-1.48M	991.58K	3.59M	2.71M	14.54M	463.63K
Cash Flow
Free Cash Flow	-1.19M	-2.19M	-1.53M	-2.32M	-4.51M	-1.97M
Operating Cash Flow	-1.15M	-2.19M	-1.53M	-1.75M	-4.49M	-1.97M
Investing Cash Flow	-875.76K	3.36M	3.02M	-7.22M	-2.34M	103.70K
Financing Cash Flow	219.91K	-2.44M	-210.93K	5.00M	11.20M	2.25M

ESE Entertainment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ESE, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.09, and above the 200-day MA of 0.07, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.05 is Neutral, neither overbought nor oversold. The STOCH value of 19.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ESE.

ESE Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBRD	67 Neutral	C$77.76M	18.72	5.78%	―	-0.34%	-10.21%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
BAMI	54 Neutral	C$778.11M	-0.23	-38.53%	―	-59.51%	-545.36%
OAM	48 Neutral	C$32.31M	-2.85	-22.90%	―	45.36%	-200.67%
EGLX	41 Neutral	C$7.16M	-0.06	-183.15%	―	-53.67%	-127.21%
ESE	41 Neutral	C$7.94M	-1.87	―	―	―	―

ESE Entertainment Corporate Events

ESE Entertainment Grants 3 Million Stock Options to Leadership

ESE Entertainment Inc. has announced the grant of 3,000,000 stock options to certain directors, officers, and consultants under its stock option plan. This move, which includes 1,000,000 options granted to directors and officers, is categorized as a related party transaction but is exempt from formal valuation and minority shareholder approval requirements. This grant is part of ESE’s strategic efforts to align its leadership and consultants with the company’s growth objectives in the competitive gaming industry.

ESE Entertainment Expands Bombee Operations into US Market

ESE Entertainment Inc. has announced the expansion of its subsidiary, Bombee Global Entertainment Ltd., into the US market. This move allows Bombee to offer turnkey production and digital media services to US sports, entertainment, gaming, and corporate partners, capitalizing on growing demand and previous record performance. The expansion includes signed contracts with US clients, establishment of a US office, strategic hiring, and active partnership discussions. This initiative is expected to enhance ESE’s growth strategy by increasing revenue, margins, and profitability, positioning Bombee to integrate directly into US client infrastructure.

ESE Entertainment Completes Private Placement to Bolster Operations

ESE Entertainment Inc. has successfully closed the second and final tranche of its non-brokered private placement offering, raising a total of $750,000. The proceeds from this offering are intended for general working capital, and the completion of the offering is pending final acceptance from the TSX Venture Exchange. This financial move is expected to support ESE’s operations and potentially enhance its market position within the gaming industry.

ESE Entertainment’s Bombee Partners with FC Supra for Launch

ESE Entertainment’s subsidiary, Bombee Global Entertainment Ltd., has been chosen as the exclusive production partner for the launch of FC Supra, a new soccer team in the Canadian Premier League. This partnership highlights Bombee’s expansion into traditional sports, enhancing its industry positioning and contributing to the vibrant future of Quebec’s soccer community.

ESE Entertainment’s Bombee Partners Exclusively with New Era Productions

ESE Entertainment’s subsidiary, Bombee Global Entertainment, has been appointed as the exclusive production partner for New Era Productions, a rapidly expanding boxing and live entertainment promotion company in North America. This partnership is expected to enhance the quality of live broadcasts and fan engagement for New Era’s events, marking a significant step in Bombee’s expansion into the boxing industry and supporting New Era’s growth strategy.