Starbreeze AB (STAR.B) AI Stock Analysis

Compare

0 Followers

SE:STAR.B Dividends

Top Page

Starbreeze AB

(OTC:STAR.B)

50Neutral

Starbreeze AB's overall stock score is primarily influenced by significant financial challenges, including declining profitability and revenue inconsistency. The weak technical position and poor valuation metrics further reflect investor caution. The absence of dividend yield and negative earnings highlight the company's current struggles in the market.

Starbreeze AB (STAR.B) vs. S&P 500 (SPY)

Market Cap

kr296.86M

Dividend YieldN/A

Average Volume (3M)1.89M

Price to Earnings (P/E)―

Beta (1Y)0.56

Revenue Growth-70.66%

EPS Growth-189.52%

CountrySE

Employees159

SectorCommunication Services

Sector Strength80

IndustryInteractive Multi-Media

Share Statistics

EPS (TTM)-0.14

Shares Outstanding1,334,499,400

10 Day Avg. Volume1,359,713

30 Day Avg. Volume1,891,307

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

Price to Cash Flow (P/CF)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Starbreeze AB Business Overview & Revenue Model

Company DescriptionStarbreeze AB is a Swedish video game development company, primarily known for creating immersive and engaging video game experiences. The company operates in the entertainment and gaming industry, focusing on the development and publishing of high-quality games for various platforms. Starbreeze is renowned for its popular game titles, including the Payday series, which has garnered a significant following and commercial success. The company is headquartered in Stockholm, Sweden, and seeks to push the boundaries of interactive entertainment through innovative game design and storytelling.

How the Company Makes MoneyStarbreeze AB generates revenue primarily through the sale of video games, both digital and physical copies, across multiple gaming platforms, such as PC, consoles, and mobile devices. The company earns money through direct consumer sales on platforms like Steam, PlayStation Network, and Xbox Live. Additional revenue streams include downloadable content (DLC) and in-game purchases, which enhance the gaming experience and provide continuous engagement for players. Starbreeze also benefits from partnerships and collaborations with other game developers and publishers, which can include co-development deals, licensing agreements, and distribution partnerships that expand its market reach and revenue potential. The company may also generate revenue from merchandising and other related services associated with its game titles.

Starbreeze AB Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
121.05M	185.85M	633.51M	127.60M	125.69M	118.01M
	Gross Profit
61.43M	-144.44M	324.24M	67.08M	69.39M	86.93M
	EBIT
106.45M	-201.15M	211.72M	6.75M	15.03M	3.07M
	EBITDA
58.19M	-192.39M	457.47M	64.32M	6.35M	41.49M
	Net Income Common Stockholders
-57.86M	-199.29M	207.63M	-59.81M	-103.47M	-130.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
191.91M	191.91M	347.75M	108.22M	128.57M	157.42M
	Total Assets
830.13M	830.13M	1.11B	746.40M	674.15M	708.71M
	Total Debt
17.70M	17.70M	16.82M	400.16M	440.68M	393.89M
	Net Debt
-174.21M	-174.21M	-330.93M	291.94M	312.11M	236.47M
	Total Liabilities
124.69M	124.69M	216.84M	689.62M	551.33M	480.21M
	Stockholders Equity
705.44M	705.44M	894.65M	56.79M	122.82M	228.50M
Cash Flow		Free Cash Flow
-51.60M	-188.14M	-87.80M	-88.33M	-38.70M	-120.43M
	Operating Cash Flow
70.70M	64.87M	114.58M	57.83M	73.87M	-24.64M
	Investing Cash Flow
-119.50M	-245.46M	-202.38M	-143.94M	-109.01M	-96.22M
	Financing Cash Flow
21.28M	24.52M	327.44M	65.55M	6.17M	195.60M

Starbreeze AB Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.18

Price Trends

50DMA

0.19

Negative

100DMA

0.19

Negative

200DMA

0.23

Negative

Market Momentum

MACD

<0.01

Negative

RSI

52.84

Neutral

STOCH

86.53

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:STAR.B, the sentiment is Negative. The current price of 0.18 is below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.19, and below the 200-day MA of 0.23, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.84 is Neutral, neither overbought nor oversold. The STOCH value of 86.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:STAR.B.

Starbreeze AB Peers Comparison

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAGI	60 Neutral	€195.00M	26.88	2.20%	12.36%	-13.90%	8.35%
Sector *	58 Neutral	$13.61B	6.75	-2.45%	3.85%	2.33%	-35.55%
STAR.B	50 Neutral	kr296.86M	―	-26.50%	―	-70.66%	-189.52%
FRAG	48 Neutral	kr54.02M	―	-78.42%	―	-10.10%	15.98%
GCOR	41 Neutral	kr144.57M	―	-594.93%	―	13.74%	21.17%
QIIWI	39 Underperform	kr19.42M	―	-25.37%	―	-23.00%	74.94%

* Communication Services Sector Average

Performance Comparison

SE:STAR.B

Starbreeze AB

0.19

0.02

9.94%

SE:FRAG

Fragbite Group AB

7.86

-52.21

-86.91%

SE:GCOR

Gaming Corps AB

0.99

-0.27

-21.11%

SE:MAGI

MAG Interactive AB

7.70

-0.31

-3.86%

SE:QIIWI

Qiiwi Games AB

2.10

-0.40

-16.00%

Starbreeze AB Earnings Call Summary

Earnings Call Date: Feb 18, 2025 | % Change Since: -7.22% | Next Earnings Date: May 13, 2025

Earnings Call Sentiment Neutral

The earnings call highlights a strong financial performance with significant cash reserves and positive trends in product reviews and market reach, particularly for PAYDAY 3. However, there are challenges with the current performance of PAYDAY 3 and high direct costs impacting the bottom line. The company's focus on future investments and solid financial position provide a positive outlook.

Highlights

Strong Financial Quarter

Net sales amounted to SEK 56.6 million, with an EBITDA of SEK 28.6 million after adjustments. Positive cash flow from operating activities was SEK 78.4 million, resulting in a healthy cash position of about SEK 387 million.

Positive Trends and Investments

Positive review trends for PAYDAY 3 and continued investment in PAYDAY and Project Baxter, expected to release in 2026. PAYDAY 2 generated SEK 10.9 million in sales, with Third-party Games, mainly Roboquest, contributing SEK 17.4 million.

Solid Financial Position

The company has a strong cash position of almost SEK 400 million with no external debt, and is fully funded for the development of Baxter.

Positive Market Trends

Game Pass and PlayStation platforms have shown better than expected player base numbers for PAYDAY 3.

Lowlights

PAYDAY 3 Performance Below Expectations

PAYDAY 3 is not performing at expected levels, generating SEK 23.3 million, but positive trends are observed with ongoing content updates.

High Direct Costs

Direct costs amounted to SEK 86.5 million, driven by higher depreciation of intangible assets.

Loss After Tax

Reported a loss after tax of SEK 21 million due to ongoing investments.

Company Guidance

During the Q1 2024 earnings call for Starbreeze, executives Hans-Jurgen Goeldner and Mats Juhl provided an optimistic update on the company's financial and operational performance. The quarter saw net sales of SEK 56.6 million and an EBITDA of SEK 48.5 million, adjusted to SEK 28.6 million after long-term incentive program impacts. Despite a loss of SEK 21 million due to ongoing investments, the company maintained a solid cash position of SEK 387 million, with a positive cash flow of SEK 78.4 million from operations. The newly launched game Roboquest performed well, contributing SEK 17.4 million to net sales, while PAYDAY 2 and PAYDAY 3 generated SEK 10.9 million and SEK 23.3 million, respectively, with PAYDAY games accounting for 60% of total sales. Despite PAYDAY 3's initial underperformance, positive trends are emerging, bolstered by the launch of Operation Medic Bag. The company is focused on enhancing PAYDAY 3 and advancing Project Baxter, set for a 2026 release, with a development team of 150 people split between the two projects. Starbreeze is also in the final stages of appointing a new CEO, with an announcement expected soon.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.