ESE Entertainment (ESE) AI Stock Analysis

• Market Cap: $5.48M
• Dividend Yield: N/A
• Average Volume (3M): 94.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: -81.23%
• EPS Growth: 86.94%
• Country: CA
• Employees: 70
• Sector: Communication Services
• Sector Strength: 82
• Industry: Entertainment
• EPS (TTM): -0.01
• Shares Outstanding: 91,384,520
• 10 Day Avg. Volume: 181,578
• 30 Day Avg. Volume: 94,635
• PEG Ratio: 0.41
• Price to Book (P/B): -6.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.87
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: C$0.00 ▼(-100.00%Downside)

ESE Entertainment's overall stock score reflects substantial financial challenges and poor valuation metrics. However, there's positive technical momentum and strategic partnerships boosting its corporate profile, which partially offset financial concerns.

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 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 is facing significant financial challenges, with declining revenues, negative profitability, high leverage, and ongoing liquidity issues. The company has been operating at a loss with a low gross profit margin and negative cash flows, indicating substantial financial instability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.85M	19.10M	58.82M	11.38M	390.17K
Gross Profit	231.76K	176.92K	7.70M	1.15M	390.17K
EBITDA	-6.16M	-7.26M	-22.40M	-18.62M	-3.80M
Net Income	-6.72M	-6.35M	-29.84M	-18.66M	-5.42M
Balance Sheet
Total Assets	6.86M	9.11M	21.45M	15.94M	842.09K
Cash, Cash Equivalents and Short-Term Investments	909.58K	2.13M	1.11M	4.83M	550.01K
Total Debt	939.10K	3.30M	6.44M	198.13K	0.00
Total Liabilities	6.88M	6.43M	19.22M	1.43M	378.46K
Stockholders Equity	991.58K	3.59M	2.71M	14.54M	463.63K
Cash Flow
Free Cash Flow	-2.19M	-1.53M	-2.32M	-4.51M	-1.97M
Operating Cash Flow	-2.19M	-1.53M	-1.75M	-4.49M	-1.97M
Investing Cash Flow	3.36M	3.02M	-7.22M	-2.34M	103.70K
Financing Cash Flow	-2.44M	-210.93K	5.00M	11.20M	2.25M

ESE Entertainment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ESE, the sentiment is Positive. The current price of 0.06 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and below the 200-day MA of 0.06, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 71.87 is Negative, neither overbought nor oversold. The STOCH value of 73.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ESE.

ESE Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBRD	77 Outperform	C$71.45M	12.00	9.94%	―	25.69%	―
Sector *	62 Neutral	$42.18B	-1.51	-12.07%	2.79%	2.09%	-71.01%
OAM	57 Neutral	C$37.93M	333.33	0.17%	―	59.77%	―
BRMI	52 Neutral	C$52.93M	―	-49.83%	―	-58.70%	-711.28%
ESE	51 Neutral	$5.48M	―	-337.09%	―	-81.23%	86.94%
QYOUF	―	$13.11M	―	-175.54%	―	―	―
EGLXF	―	$15.21M	―	-105.94%	―	―	―

ESE Entertainment Corporate Events

Bombee Partners with New Era for Major Boxing Event

ESE Entertainment’s subsidiary, Bombee Global Entertainment Ltd., served as the official production partner for a major boxing event featuring a WBC Interim World Title fight. The event, which drew 5,300 attendees and strong online engagement, marked a significant milestone in Bombee’s partnership with New Era Sports and Entertainment, reinforcing Bombee’s position as a key player in live sports and entertainment production.

ESE Entertainment’s Bombee Partners for Record-Breaking Call of Duty League Championships

ESE Entertainment Inc.’s subsidiary, Bombee Global Entertainment Ltd., has been selected as the production and event partner for the 2025 Call of Duty League Championships, marking a significant achievement in their partnership with OverActive Media. The event, held in Canada for the first time, set a record as the most-watched CDL event, highlighting Bombee’s expertise in technical production and its role in enhancing the esports experience for a global audience.

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.