UBISOFT Entertainment (UBSFY) AI Stock Analysis

• Market Cap: $1.37B
• Dividend Yield: N/A
• Average Volume (3M): 2.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: -18.50%
• EPS Growth: -205.73%
• Country: US
• Employees: 18,666
• Sector: Communication Services
• Sector Strength: 80
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.24
• Shares Outstanding: 662,993,200
• 10 Day Avg. Volume: 2,941
• 30 Day Avg. Volume: 2,734
• PEG Ratio: 0.04
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 10.92
• Enterprise Value/Market Cap: 2.08
• Enterprise Value/Revenue: 1.50
• Enterprise Value/Gross Profit: 1.68
• Enterprise Value/Ebitda: 31.41
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• Price Target: $2.00 ▼(-0.50% Downside)

UBISOFT Entertainment's overall stock score is primarily impacted by its challenging financial performance and weak technical indicators. The company's negative valuation metrics further weigh on the score. While strong gross margins provide some resilience, the stock faces significant risks due to operational inefficiencies and bearish market momentum.

UBISOFT Entertainment Business Overview & Revenue Model

Company Description

Ubisoft Entertainment SA produce, publishes, and distributes video games for consoles, PC, smartphones, and tablets in both physical and digital formats in Europe, North America, and internationally. The company designs and develops software, including scenarios, animation, gameplay, layouts, and game rules, as well as develops design tools and game engines. It is also involved in the development in the area of online and mobile gaming; and film business. The company was incorporated in 1986 and is headquartered in Saint-Mandé, France.

How the Company Makes Money

UBISOFT generates revenue through multiple streams, primarily from the sale of video games across physical and digital platforms. The company benefits significantly from its successful franchises, which contribute to substantial sales during product launches and seasonal promotions. In addition to game sales, Ubisoft earns revenue from downloadable content (DLC), in-game purchases, and microtransactions, enhancing player engagement and extending the lifespan of its games. Furthermore, the company has developed subscription services such as Ubisoft+ that provide access to its library of games for a monthly fee. Strategic partnerships with console manufacturers and other technology firms also bolster its earnings by enhancing distribution and marketing efforts. Overall, Ubisoft's revenue model is characterized by a combination of traditional game sales, ongoing service offerings, and collaborative ventures that capitalize on the growing gaming market.

UBISOFT Entertainment Financial Statement Overview

Summary

Ubisoft demonstrates strong recovery with a 26.8% revenue growth and robust gross profit margin of 91.1%. However, past profitability volatility, moderate leverage, and cash flow issues, including negative free cash flow, are concerns that need addressing for sustainable growth.

Income Statement

Ubisoft has shown a strong recovery in revenue with a 26.8% growth from 2023 to 2024. The gross profit margin remains robust at 91.1%, indicating efficient cost management, but the net profit margin improved only modestly to 6.9% after a significant loss in 2023. The EBIT margin rebounded to 13.6%, and the EBITDA margin is healthy at 48.0%, reflecting improved operational performance. Overall, the company is recovering well, but the past volatility in profitability is a concern.

Balance Sheet

The debt-to-equity ratio stands at 1.34, suggesting moderate leverage, which is manageable given the industry norms. Return on equity improved significantly to 8.4%, reflecting better profitability. The equity ratio of 36.6% indicates a balanced funding structure but shows a declining trend in equity proportion over the years. The company needs to maintain control over its leverage to ensure financial stability.

Cash Flow

Free cash flow remains negative, though the growth rate from 2023 to 2024 is not favorable, which is a concern for liquidity. The operating cash flow to net income ratio is 3.41, indicating strong cash generation compared to net income. However, the free cash flow to net income ratio is negative, highlighting ongoing cash utilization issues. Overall, cash flow management is crucial for future financial health.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.90B	1.90B	2.30B	1.81B	2.13B	2.22B
Gross Profit	1.70B	1.70B	2.10B	1.60B	1.86B	1.90B
EBITDA	90.70M	670.30M	1.11B	719.30M	898.40M	915.00M
Net Income	-159.00M	-159.00M	157.80M	-494.20M	79.10M	103.10M
Balance Sheet
Total Assets	4.70B	4.70B	5.12B	4.67B	4.96B	4.88B
Cash, Cash Equivalents and Short-Term Investments	990.00M	990.00M	1.21B	1.49B	1.45B	1.87B
Total Debt	2.17B	2.17B	2.51B	2.46B	2.07B	2.09B
Total Liabilities	2.90B	2.90B	3.24B	3.19B	3.15B	3.22B
Stockholders Equity	1.79B	1.79B	1.88B	1.48B	1.81B	1.66B
Cash Flow
Free Cash Flow	967.00M	126.90M	-465.60M	-425.80M	-282.20M	107.90M
Operating Cash Flow	1.01B	168.80M	537.60M	-354.20M	-191.60M	957.90M
Investing Cash Flow	-846.00M	-49.00M	-1.01B	-107.90M	-152.00M	-868.20M
Financing Cash Flow	-343.50M	-300.40M	204.70M	588.60M	139.90M	463.80M

UBISOFT Entertainment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UBSFY, the sentiment is Negative. The current price of 2.01 is below the 20-day moving average (MA) of 2.16, below the 50-day MA of 2.18, and below the 200-day MA of 2.46, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 40.91 is Neutral, neither overbought nor oversold. The STOCH value of 6.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UBSFY.

UBISOFT Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EA	76 Outperform	$40.28B	40.42	15.46%	0.48%	2.68%	-6.15%
RBLX	72 Outperform	$88.12B	―	-401.21%	―	27.39%	16.59%
BILI	69 Neutral	$9.49B	―	-4.29%	―	21.11%	87.93%
Sector *	66 Neutral	¥440.91B	15.12	2.58%	2.33%	5.79%	-10.55%
PLTK	61 Neutral	$1.63B	18.87	-220.61%	9.37%	1.64%	-32.31%
TTWO	52 Neutral	$41.67B	―	-114.76%	―	5.31%	-15.57%
UBSFY	43 Neutral	$1.37B	―	-8.84%	―	-18.50%	-205.73%