ENXTPA:UBI

Stock Analysis Report

Ubisoft Entertainment

Executive Summary

Ubisoft Entertainment SA produce, publishes, and distributes video games for consoles, PC, smartphones, and tablets in both physical and digital formats worldwide.

Rewards

Earnings are forecast to grow 56.47% per year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months



Snowflake Analysis

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Ubisoft Entertainment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UBI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.1%

UBI

-0.1%

FR Entertainment

1.0%

FR Market


1 Year Return

11.3%

UBI

4.9%

FR Entertainment

17.2%

FR Market

Return vs Industry: UBI exceeded the French Entertainment industry which returned 4.9% over the past year.

Return vs Market: UBI underperformed the French Market which returned 17.2% over the past year.


Shareholder returns

UBIIndustryMarket
7 Day2.1%-0.1%1.0%
30 Day19.8%2.6%-0.3%
90 Day48.7%5.8%3.3%
1 Year11.3%11.3%6.4%4.9%21.3%17.2%
3 Year116.5%116.5%43.7%37.1%43.9%30.3%
5 Year344.8%344.8%38.8%16.9%56.4%34.4%

Price Volatility Vs. Market

How volatile is Ubisoft Entertainment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ubisoft Entertainment undervalued compared to its fair value and its price relative to the market?

7.78x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: UBI (€74.66) is trading above our estimate of fair value (€36.77)

Significantly Below Fair Value: UBI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: UBI is unprofitable, so we can't compare its PE Ratio to the Entertainment industry average.

PE vs Market: UBI is unprofitable, so we can't compare its PE Ratio to the French market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate UBI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: UBI is overvalued based on its PB Ratio (7.8x) compared to the FR Entertainment industry average (2x).


Next Steps

Future Growth

How is Ubisoft Entertainment forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

56.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UBI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.1%).

Earnings vs Market: UBI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: UBI's is expected to become profitable in the next 3 years.

Revenue vs Market: UBI's revenue (18.3% per year) is forecast to grow faster than the French market (4.5% per year).

High Growth Revenue: UBI's revenue (18.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UBI's Return on Equity is forecast to be high in 3 years time (20.7%)


Next Steps

Past Performance

How has Ubisoft Entertainment performed over the past 5 years?

18.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UBI is currently unprofitable.

Growing Profit Margin: UBI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: UBI is unprofitable, but has reduced losses over the past 5 years at a rate of 18.3% per year.

Accelerating Growth: Unable to compare UBI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: UBI is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (-15.5%).


Return on Equity

High ROE: UBI has a negative Return on Equity (-3.64%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ubisoft Entertainment's financial position?


Financial Position Analysis

Short Term Liabilities: UBI's short term assets (€2.1B) exceed its short term liabilities (€1.6B).

Long Term Liabilities: UBI's short term assets (€2.1B) exceed its long term liabilities (€1.3B).


Debt to Equity History and Analysis

Debt Level: UBI's debt to equity ratio (170%) is considered high.

Reducing Debt: UBI's debt to equity ratio has increased from 23.6% to 170% over the past 5 years.


Balance Sheet

Inventory Level: UBI has a low level of unsold assets or inventory.

Debt Coverage by Assets: UBI's debt is covered by short term assets (assets are 1.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: UBI has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: UBI has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Ubisoft Entertainment's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%4.5%industryaverage1.9%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate UBI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate UBI's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if UBI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if UBI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of UBI's dividend in 3 years as they are not forecast to pay a notable one for the French market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.7yrs

Average management tenure


CEO

Yves Guillemot (59yo)

€1,946,167

Compensation

Mr. Yves Guillemot co-founded Ubisoft Entertainment SA (alternate name: Ubisoft S.A.) in 1986 and serves as its Chairman, President and Chief Executive Officer. Mr. Guillemot has been Deputy Chief Executiv ...


CEO Compensation Analysis

Compensation vs Market: Yves's total compensation ($USD2.11M) is below average for companies of similar size in the French market ($USD3.31M).

Compensation vs Earnings: Yves's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Yves Guillemot
Co-Founder0yrs€1.95m0.78% 69.7m
Claude Guillemot
Executive VP of Operations & Director32yrs€171.02k0.61% 54.7m
Christian Guillemot
Executive VP of Administration & Director32yrs€171.02k0.090% 8.0m
Michel Guillemot
Executive VP of Development32yrs€171.02k0.33% 29.0m
Gérard Guillemot
Executive VP of Publishing & Director32yrs€763.81k0.38% 34.0m
Frédérick Duguet
Chief Financial Officer1.1yrsno datano data
Jean-Benoît Roquette
Senior Vice President of Investor Relations0yrsno datano data
Adam Novickas
Vice President of Marketing4.7yrsno datano data
Serge Hascoet
Chief Creative Officer20.1yrsno datano data
John Parkes
Managing Director of France0yrsno datano data

4.7yrs

Average Tenure

59yo

Average Age

Experienced Management: UBI's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yves Guillemot
Co-Founder0yrs€1.95m0.78% 69.7m
Claude Guillemot
Executive VP of Operations & Director32yrs€171.02k0.61% 54.7m
Christian Guillemot
Executive VP of Administration & Director32yrs€171.02k0.090% 8.0m
Michel Guillemot
Executive VP of Development32yrs€171.02k0.33% 29.0m
Gérard Guillemot
Executive VP of Publishing & Director32yrs€763.81k0.38% 34.0m
Laurence Hubert-Moy
Independent Director6.7yrs€65.00k0.00035% 31.3k
Didier Crespel
Lead Independent Director3.9yrs€67.50k0.00027% 24.1k
Frederique Dame
Independent Director3.4yrs€40.00k0.00051% 45.5k
Florence Naviner
Independent Director3.4yrs€62.50k0.00026% 23.2k
Virginie Haas
Independent Director2.4yrs€50.00k0.000040% 3.6k

6.7yrs

Average Tenure

57.5yo

Average Age

Experienced Board: UBI's board of directors are considered experienced (6.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ubisoft Entertainment SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ubisoft Entertainment SA
  • Ticker: UBI
  • Exchange: ENXTPA
  • Founded: 1986
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: €8.930b
  • Shares outstanding: 119.61m
  • Website: https://www.ubisoft.com

Number of Employees


Location

  • Ubisoft Entertainment SA
  • 28, rue Armand Carrel
  • Cedex
  • Montreuil
  • Ile-de-France
  • 93108
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UBSF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 1996
UBIENXTPA (Euronext Paris)YesCommon SharesFREURJul 1996
UENDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 1996
0NVLLSE (London Stock Exchange)YesCommon SharesGBEURJul 1996
UBIPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURJul 1996
UBISWBAG (Wiener Boerse AG)YesCommon SharesATEURJul 1996
UBISWX (SIX Swiss Exchange)YesCommon SharesCHCHFJul 1996
UBI NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJul 1996
UENETLX (Eurotlx)YesCommon SharesITEURJul 1996
UBSF.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

Ubisoft Entertainment SA produce, publishes, and distributes video games for consoles, PC, smartphones, and tablets in both physical and digital formats worldwide. The company designs and develops software, including scenarios, 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 distributes Ubisoft products to retailers and independent wholesalers. Ubisoft Entertainment SA has a strategic partnership with Tencent. The company was founded in 1986 and is headquartered in Montreuil, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 21:11
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.