UBISOFT Entertainment (UBSFY) AI Stock Analysis

• Market Cap: $1.00B
• Dividend Yield: N/A
• Average Volume (3M): 8.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: -11.04%
• EPS Growth: -45.92%
• Country: US
• Employees: 18,666
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.06
• Shares Outstanding: 673,485,350
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 8,239
• 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: 3.03
• Enterprise Value/Revenue: 1.53
• Enterprise Value/Gross Profit: 2.05
• Enterprise Value/Ebitda: 6.31
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.16
• Revenue Forecast (FY): $2.09B

• Rating: 44 Neutral
• Price Target: $1.50 ▼(-2.60% Downside)

UBISOFT Entertainment's overall stock score reflects significant financial and technical challenges. The company's declining revenues, high leverage, and negative cash flow growth weigh heavily on the score. Technical indicators suggest bearish momentum, further impacting the outlook. While the earnings call provided some positive strategic insights, these are not enough to offset the broader financial and technical concerns.

Positive Factors

Strategic Partnership

The partnership with Tencent provides significant cash inflow, aiding in debt reduction and enhancing financial stability, crucial for long-term growth.

Innovation in Gaming Technology

Investing in AI technology positions Ubisoft at the forefront of gaming innovation, potentially enhancing user engagement and creating new revenue streams.

Assassin's Creed Franchise Success

The strong performance of Assassin's Creed underscores Ubisoft's ability to maintain and grow its flagship franchises, ensuring sustained revenue.

Negative Factors

Declining Revenue Growth

Negative revenue growth indicates challenges in market competitiveness and product appeal, potentially impacting long-term financial health.

High Leverage

High leverage can limit financial flexibility and increase risk, especially in volatile markets, affecting long-term operational stability.

Negative Cash Flow

Negative cash flow highlights difficulties in generating cash from operations, which can hinder investment in growth and innovation.

UBISOFT Entertainment Business Overview & Revenue Model

Company Description

UBISOFT Entertainment (UBSFY) is a leading global video game publisher and developer, headquartered in Montreuil, France. Founded in 1986, Ubisoft operates in the interactive entertainment sector, creating and distributing a wide array of video games across various platforms, including consoles, PCs, and mobile devices. The company is renowned for its franchises, such as Assassin's Creed, Far Cry, and Just Dance, and is committed to delivering immersive gaming experiences through innovative gameplay and rich storytelling.

How the Company Makes Money

Ubisoft generates revenue through multiple streams, primarily from game sales, both physical and digital. The sale of video games represents a significant portion of its income, with the company releasing new titles regularly. Additionally, Ubisoft monetizes its games through downloadable content (DLC), season passes, and in-game purchases, which enhance the gaming experience and provide ongoing revenue after the initial sale. The company also earns income from subscription services, such as Ubisoft+, which offers players access to a library of games for a monthly fee. Furthermore, Ubisoft collaborates with various partners for marketing and distribution, and it engages in licensing agreements that can contribute to its revenue. The growth of esports and online gaming further supports Ubisoft's earnings, as the company often hosts events and tournaments that can drive engagement and additional revenue opportunities.

UBISOFT Entertainment Financial Statement Overview

Summary

UBISOFT Entertainment faces financial headwinds with declining revenues and profitability. High leverage and negative cash flow growth present risks, while strong gross margins offer some resilience. The company needs to address operational inefficiencies and improve cash generation to enhance financial stability.

Income Statement

UBISOFT Entertainment's income statement shows a challenging financial performance. The company experienced a significant decline in revenue growth, with a negative growth rate of -11.12% in the latest period. Gross profit margins remain strong at 89.33%, indicating efficient cost management, but the net profit margin is negative at -8.37%, reflecting substantial losses. EBIT and EBITDA margins have also deteriorated, highlighting operational challenges.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio is relatively high at 1.21, indicating significant leverage which could pose risks in a volatile market. Return on equity is negative, suggesting inefficiencies in generating returns for shareholders. However, the equity ratio stands at a reasonable level, providing some stability.

Cash Flow

Cash flow analysis reveals concerning trends. Free cash flow growth is significantly negative, and the operating cash flow to net income ratio is low, indicating challenges in converting income into cash. The free cash flow to net income ratio is positive, suggesting some ability to generate cash despite net losses, but overall cash flow performance is weak.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.98B	1.90B	2.30B	1.81B	2.13B	2.22B
Gross Profit	1.48B	1.70B	2.10B	1.60B	1.86B	1.90B
EBITDA	481.73M	670.30M	1.11B	719.30M	799.90M	804.60M
Net Income	-98.14M	-159.00M	157.80M	-494.20M	79.10M	103.10M
Balance Sheet
Total Assets	4.31B	4.70B	5.12B	4.67B	4.96B	4.88B
Cash, Cash Equivalents and Short-Term Investments	668.40M	990.00M	1.21B	1.49B	1.45B	1.87B
Total Debt	2.45B	2.17B	2.51B	2.46B	2.07B	2.09B
Total Liabilities	2.75B	2.90B	3.24B	3.19B	3.15B	3.22B
Stockholders Equity	1.56B	1.79B	1.88B	1.48B	1.81B	1.66B
Cash Flow
Free Cash Flow	797.22M	126.90M	-465.60M	-425.80M	-282.20M	107.90M
Operating Cash Flow	837.31M	168.80M	537.60M	-354.20M	-191.60M	957.90M
Investing Cash Flow	-831.11M	-49.00M	-1.01B	-107.90M	-152.00M	-868.20M
Financing Cash Flow	-281.99M	-300.40M	204.70M	588.60M	139.90M	463.80M

UBISOFT Entertainment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1.54 is above the 20-day moving average (MA) of 1.49, below the 50-day MA of 1.62, and below the 200-day MA of 2.10, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 46.06 is Neutral, neither overbought nor oversold. The STOCH value of 98.59 is Negative, 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	70 Outperform	$51.09B	59.71	13.20%	0.37%	-1.45%	-11.99%
PLTK	66 Neutral	$1.51B	17.34	―	9.98%	7.49%	-60.32%
BILI	62 Neutral	$10.34B	97.23	5.30%	―	16.84%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TTWO	53 Neutral	$46.05B	-11.04	-86.61%	―	13.98%	-6.71%
RBLX	51 Neutral	$56.85B	-56.82	-324.24%	―	32.70%	12.57%
UBSFY	44 Neutral	$1.00B	-10.55	-4.98%	―	-11.04%	-45.92%

UBISOFT Entertainment Corporate Events

Ubisoft’s Earnings Call: Positive Outlook Amidst Challenges

Ubisoft’s Latest Earnings Call: A Positive Outlook Amidst Challenges

Ubisoft Reports Strong Growth and Strategic Moves

Ubisoft, a leading video game publisher known for franchises like Assassin’s Creed and Tom Clancy’s series, has reported its first-half earnings for the fiscal year 2025-26. The company operates in the interactive entertainment industry and is recognized for its creative game development and global reach.