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EMBR

Embracer Group OM:EMBRAC B Stock Report

Last Price

kr81.90

Market Cap

kr92.9b

7D

12.1%

1Y

-31.8%

Updated

24 May, 2022

Data

Company Financials +
EMBRAC B fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance0/6
Financial Health3/6
Dividends0/6

EMBRAC B Stock Overview

Embracer Group AB (publ), together with its subsidiaries, develops and publishes PC, console, and mobile games for the games market worldwide.

Embracer Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Embracer Group
Historical stock prices
Current Share Pricekr81.90
52 Week Highkr125.95
52 Week Lowkr55.02
Beta0.22
1 Month Change22.86%
3 Month Change1.99%
1 Year Change-31.75%
3 Year Change114.59%
5 Year Change769.74%
Change since IPO1,720.00%

Recent News & Updates

Apr 11
Is Embracer Group (STO:EMBRAC B) A Risky Investment?

Is Embracer Group (STO:EMBRAC B) A Risky Investment?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

EMBRAC BSE EntertainmentSE Market
7D12.1%6.6%-1.0%
1Y-31.8%-38.7%-13.1%

Return vs Industry: EMBRAC B exceeded the Swedish Entertainment industry which returned -37.8% over the past year.

Return vs Market: EMBRAC B underperformed the Swedish Market which returned -12.2% over the past year.

Price Volatility

Is EMBRAC B's price volatile compared to industry and market?
EMBRAC B volatility
EMBRAC B Average Weekly Movement7.7%
Entertainment Industry Average Movement8.3%
Market Average Movement7.6%
10% most volatile stocks in SE Market12.9%
10% least volatile stocks in SE Market4.9%

Stable Share Price: EMBRAC B is not significantly more volatile than the rest of Swedish stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: EMBRAC B's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199912,760Lars Wingeforshttps://www.embracer.com

Embracer Group AB (publ), together with its subsidiaries, develops and publishes PC, console, and mobile games for the games market worldwide. The company has a catalogue of approximately 240 owned franchises, such as Saints Row, Goat Simulator, Dead Island, Darksiders, Metro, MX vs ATV, Kingdoms of Amalur, TimeSplitters, Satisfactory, Wreckfest, Insurgency, World War Z, and Borderlands, among others. It also publishes and distributes films.

Embracer Group Fundamentals Summary

How do Embracer Group's earnings and revenue compare to its market cap?
EMBRAC B fundamental statistics
Market Capkr92.85b
Earnings (TTM)-kr4.28b
Revenue (TTM)kr19.33b

4.8x

P/S Ratio

-21.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EMBRAC B income statement (TTM)
Revenuekr19.33b
Cost of Revenuekr4.70b
Gross Profitkr14.63b
Other Expenseskr18.91b
Earnings-kr4.28b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 18, 2022

Earnings per share (EPS)-3.77
Gross Margin75.70%
Net Profit Margin-22.12%
Debt/Equity Ratio45.1%

How did EMBRAC B perform over the long term?

See historical performance and comparison

Valuation

Is Embracer Group undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: EMBRAC B (SEK81.9) is trading below our estimate of fair value (SEK188.26)

Significantly Below Fair Value: EMBRAC B is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EMBRAC B is unprofitable, so we can't compare its Price-To-Earnings Ratio to the Swedish Entertainment industry average.

PE vs Market: EMBRAC B is unprofitable, so we can't compare its Price-To-Earnings Ratio to the Swedish market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: EMBRAC B's Price-To-Book Ratio (2.1x) is in line with the SE Entertainment industry average.


Future Growth

How is Embracer Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EMBRAC B is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: EMBRAC B is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: EMBRAC B is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: EMBRAC B's revenue (17.5% per year) is forecast to grow faster than the Swedish market (5.8% per year).

High Growth Revenue: EMBRAC B's revenue (17.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EMBRAC B's Return on Equity is forecast to be low in 3 years time (13.3%).


Past Performance

How has Embracer Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-68.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EMBRAC B is currently unprofitable.

Growing Profit Margin: EMBRAC B is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EMBRAC B is unprofitable, and losses have increased over the past 5 years at a rate of 68.7% per year.

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

Earnings vs Industry: EMBRAC B is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (11.1%).


Return on Equity

High ROE: EMBRAC B has a negative Return on Equity (-9.58%), as it is currently unprofitable.


Financial Health

How is Embracer Group's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: EMBRAC B's short term assets (SEK14.9B) do not cover its short term liabilities (SEK21.6B).

Long Term Liabilities: EMBRAC B's short term assets (SEK14.9B) do not cover its long term liabilities (SEK27.1B).


Debt to Equity History and Analysis

Debt Level: EMBRAC B's net debt to equity ratio (32.1%) is considered satisfactory.

Reducing Debt: EMBRAC B's debt to equity ratio has increased from 8.4% to 45.1% over the past 5 years.


Balance Sheet


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: Whilst unprofitable EMBRAC B has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: EMBRAC B is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 46.4% per year.


Dividend

What is Embracer Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: EMBRAC B is not paying a notable dividend for the Swedish market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as EMBRAC B has not reported any payouts.


Discover strong dividend paying companies

Management

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

3.3yrs

Average management tenure


CEO

Lars Wingefors (44 yo)

no data

Tenure

kr1,500,000

Compensation

Mr. Lars Wingefors is founder of Lars Wingefors AB. Mr. Wingefors is also the Founder of Embracer Group AB (publ) (formerly, Nordic Games Holding AB) and serves as its Chief Executive Officer. He is a Foun...


CEO Compensation Analysis

Compensation vs Market: Lars's total compensation ($USD153.30K) is below average for companies of similar size in the Swedish market ($USD2.22M).

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


Leadership Team

Experienced Management: EMBRAC B's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: EMBRAC B's board of directors are considered experienced (4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: EMBRAC B insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.3%.


Top Shareholders

Company Information

Embracer Group AB (publ)'s employee growth, exchange listings and data sources


Key Information

  • Name: Embracer Group AB (publ)
  • Ticker: EMBRAC B
  • Exchange: OM
  • Founded: 1999
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Implied Market Cap: kr92.855b
  • Shares outstanding: 1.13b
  • Website: https://www.embracer.com

Number of Employees


Location

  • Embracer Group AB (publ)
  • Aelvgatan 1
  • Karlstad
  • Värmland County
  • 652 25
  • Sweden

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/24 00:00
End of Day Share Price2022/05/24 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.