Embracer Group AB (publ)
Embracer Group AB (publ) Fundamental Analysis
Embracer Group AB (publ) (THQQF) shows strong financial fundamentals with a PE ratio of 1.31, profit margin of 48.09%, and ROE of 28.96%. The company generates $18.0B in annual revenue with weak year-over-year growth of -47.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 13.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze THQQF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentTHQQF demonstrates superior asset utilization.
Valuation Score
ExcellentTHQQF trades at attractive valuation levels.
Growth Score
WeakTHQQF faces weak or negative growth trends.
Financial Health Score
ExcellentTHQQF maintains a strong and stable balance sheet.
Profitability Score
ModerateTHQQF maintains healthy but balanced margins.
Key Financial Metrics
Is THQQF Expensive or Cheap?
P/E Ratio
THQQF trades at 1.31 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, THQQF's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Embracer Group AB (publ) at 0.43 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.08 times EBITDA. This is generally considered low.
How Well Does THQQF Make Money?
Net Profit Margin
For every $100 in sales, Embracer Group AB (publ) keeps $48.09 as profit after all expenses.
Operating Margin
Core operations generate 26.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $28.96 in profit for every $100 of shareholder equity.
ROA
Embracer Group AB (publ) generates $24.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Embracer Group AB (publ) produces operating cash flow of $3.01B, showing steady but balanced cash generation.
Free Cash Flow
Embracer Group AB (publ) generates weak or negative free cash flow of $-296.03M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.38 in free cash annually.
FCF Yield
THQQF converts -2.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.64
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.74
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.25
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How THQQF Stacks Against Its Sector Peers
| Metric | THQQF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1.31 | 35.62 | Better (Cheaper) |
| ROE | 28.96% | 1160.00% | Weak |
| Net Margin | 48.09% | -136515.00% (disorted) | Strong |
| Debt/Equity | 0.10 | 0.39 | Strong (Low Leverage) |
| Current Ratio | 1.74 | 4.79 | Neutral |
| ROA | 24.55% | -311498.00% (disorted) | Strong |
THQQF outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Embracer Group AB (publ)'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
1079.61%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
5693.67%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
459.26%
Industry Style: Growth, Innovation, High Beta
High Growth