ESE Entertainment (ESE) AI Stock Analysis

• Market Cap: $2.74M
• Dividend Yield: N/A
• Average Volume (3M): 79.94K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.15
• Revenue Growth: -81.23%
• EPS Growth: 86.94%
• Country: CA
• Employees: 70
• Sector: Communication Services
• Sector Strength: 83
• Industry: Entertainment
• EPS (TTM): -0.01
• Shares Outstanding: 91,384,520
• 10 Day Avg. Volume: 35,882
• 30 Day Avg. Volume: 79,936
• PEG Ratio: 0.29
• Price to Book (P/B): -4.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.71
• 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: 40 Underperform
• Price Target: C$0.00 ▼(-100.00%Downside)

ESE Entertainment's overall stock score is primarily driven by its challenging financial performance and weak technical indicators. Persistent losses, high leverage, and negative cash flows pose significant risks, overshadowing the positive corporate event.

ESE Entertainment Business Overview & Revenue Model

Company Description

ESE Entertainment (ESE) is a global entertainment and technology company focused on gaming and esports. The company operates across several key sectors, including esports infrastructure, gaming technology, and content creation. ESE provides a range of services such as organizing and hosting esports events, managing esports teams, and distributing digital gaming content to a worldwide audience.

How the Company Makes Money

ESE Entertainment makes money through multiple revenue streams, primarily centered around its core sectors of esports and gaming. The company generates revenue by organizing and producing esports events, which includes ticket sales, sponsorship deals, and advertising revenue. Additionally, ESE earns income through the management and monetization of esports teams, including player endorsements and media rights. The company also profits from digital content distribution, where it sells and licenses gaming content to various platforms and consumers. Strategic partnerships with gaming brands, technology companies, and media outlets further enhance ESE's revenue potential by expanding its reach and creating new monetization opportunities.

ESE Entertainment Financial Statement Overview

Summary

ESE Entertainment faces significant financial challenges, including declining revenues, extremely low gross profit margins, and consistent operational losses. High debt levels and negative cash flows further heighten financial risks, indicating a critical need for strategic financial restructuring.

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	5.76M	2.85M	19.10M	58.82M	11.38M	390.17K
Gross Profit	424.29K	231.76K	176.92K	7.70M	1.15M	390.17K
EBITDA	-6.28M	-6.16M	-7.26M	-22.40M	-18.62M	-3.80M
Net Income	-6.85M	-6.72M	-6.35M	-29.84M	-18.66M	-5.42M
Balance Sheet
Total Assets	7.26M	6.86M	9.11M	21.45M	15.94M	842.09K
Cash, Cash Equivalents and Short-Term Investments	881.11K	909.58K	2.13M	1.11M	4.83M	550.01K
Total Debt	1.10M	939.10K	3.30M	6.44M	198.13K	0.00
Total Liabilities	9.18M	6.88M	6.43M	19.22M	1.43M	378.46K
Stockholders Equity	-915.20K	991.58K	3.59M	2.71M	14.54M	463.63K
Cash Flow
Free Cash Flow	-1.18M	-2.19M	-1.53M	-2.32M	-4.51M	-1.97M
Operating Cash Flow	-1.17M	-2.19M	-1.53M	-1.75M	-4.49M	-1.97M
Investing Cash Flow	3.35M	3.36M	3.02M	-7.22M	-2.34M	103.70K
Financing Cash Flow	-1.97M	-2.44M	-210.93K	5.00M	11.20M	2.25M

ESE Entertainment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 0.03 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.04, and below the 200-day MA of 0.06, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 34.07 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 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	73 Outperform	C$73.99M	12.43	9.94%	―	25.69%	―
Sector *	58 Neutral	C$3.43B	8.16	-17.94%	5.52%	-2.58%	-15.59%
BRMI	56 Neutral	C$51.76M	―	-49.83%	―	-58.70%	-711.28%
OAM	51 Neutral	C$35.26M	311.11	0.17%	―	59.77%	―
EGLX	50 Neutral	$18.30M	―	-105.94%	―	-61.29%	12.95%
ESE	40 Underperform	$2.74M	―	-337.09%	―	-81.23%	86.94%

ESE Entertainment Corporate Events

ESE Entertainment’s Bombee Partners with EQCO for Construction Innovation

ESE Entertainment’s subsidiary, Bombee North America, has partnered with Évolution du Québec en Construction (EQCO) to sponsor an inaugural event aimed at uniting leaders from Quebec’s construction industry. This partnership highlights Bombee’s commitment to fostering innovation and sustainability through a day of keynote talks and networking, potentially enhancing its industry positioning and influence in event production.

ESE Entertainment Grants 530,000 Restricted Share Units

ESE Entertainment Inc. has announced the approval of a grant of 530,000 Restricted Share Units (RSUs) to certain consultants and an employee under its equity incentive plan. These RSUs are set to vest on April 12, 2026, and will expire if not vested by April 12, 2028. This move, pending approval from the TSX Venture Exchange, reflects ESE’s strategy to incentivize and retain key personnel, potentially enhancing its operational capabilities and market positioning in the competitive gaming industry.