(UBI) Ubisoft Entertainment - Overview
Sector: Communication Services | Industry: Electronic Gaming & Multimedia | Exchange: PA (France) | Market Cap: 718m EUR | Total Return: -46.7% in 12m
Avg Turnover: 6.75M
Warnings
Interest Coverage Ratio -11.5 is critical
Altman Z'' -1.79 < 1.0 - financial distress zone
Tailwinds
Confidence
Ubisoft Entertainment SA is a French video game publisher and developer that manages a global portfolio of interactive entertainment across consoles, PCs, and mobile devices. Founded in 1986, the company maintains a vertically integrated business model, overseeing the entire lifecycle of its titles from initial software engineering and engine development to international distribution.
The Interactive Home Entertainment sector has increasingly shifted toward a Games as a Service (GaaS) model, where companies prioritize recurring revenue through digital updates and in-game purchases over one-time physical sales. Ubisoft operates in a highly hits-driven industry where the success of major franchises and proprietary game engines serves as a primary barrier to entry against smaller competitors.
Investors can evaluate the company’s long-term valuation trends and financial health by reviewing the detailed metrics available on ValueRay.
- Back-catalog performance and live-service recurring revenue stabilize long-term cash flows
- Major franchise delays or underperformance impact annual net bookings and share price
- Tencents ownership stake and potential buyout rumors drive significant equity volatility
- High research and development costs for AAA titles pressure operating profit margins
- Shift toward mobile and free-to-play markets diversifies global player acquisition strategy
| Net Income: -1.63b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.31 > 0.02 and ΔFCF/TA 33.72 > 1.0 |
| NWC/Revenue: 34.21% < 20% (prev 32.49%; Δ 1.72% < -1%) |
| CFO/TA 0.33 > 3% & CFO 1.29b > Net Income -1.63b |
| Net Debt (740.1m) to EBITDA (466.8m): 1.59 < 3 |
| Current Ratio: 2.55 > 1.5 & < 3 |
| Outstanding Shares: last quarter (132.3m) vs 12m ago -22.86% < -2% |
| Gross Margin: 40.60% > 18% (prev 0.59%; Δ 4.00k% > 0.5%) |
| Asset Turnover: 72.68% > 50% (prev 74.23%; Δ -1.56% > 0%) |
| Interest Coverage Ratio: -11.51 > 6 (EBITDA TTM 466.8m / Interest Expense TTM 108.0m) |
| A: 0.29 (Total Current Assets 1.85b - Total Current Liabilities 725.3m) / Total Assets 3.95b |
| B: -0.37 (Retained Earnings -1.48b / Total Assets 3.95b) |
| C: -0.27 (EBIT TTM -1.24b / Avg Total Assets 4.53b) |
| D: -0.57 (Book Value of Equity -1.46b / Total Liabilities 2.55b) |
| Altman-Z'' = -1.79 = D |
| DSRI: 0.78 (Receivables 502.5m/746.2m, Revenue 3.29b/3.80b) |
| GMI: 1.46 (GM 40.60% / 59.32%) |
| AQI: 0.95 (AQ_t 0.44 / AQ_t-1 0.47) |
| SGI: 0.87 (Revenue 3.29b / 3.80b) |
| TATA: -0.74 (NI -1.63b - CFO 1.29b) / TA 3.95b) |
| Beneish M = -3.68 (Cap -4..+1) = AAA |
As of May 28, 2026, the stock is trading at EUR 5.32 with a total of 2,219,134 shares traded.
Over the past week, the price has changed by +3.79%,
over one month by +7.00%,
over three months by +27.71% and
over the past year by -46.70%.
Ubisoft Entertainment has no consensus analysts rating.
P/E Forward = 9.8425
P/S = 0.5147
P/B = 0.4316
P/EG = 2.3907
Revenue TTM = 3.29b EUR
EBIT TTM = -1.24b EUR
EBITDA TTM = 466.8m EUR
Long Term Debt = 1.50b EUR (from longTermDebt, two quarters ago)
Short Term Debt = 65.5m EUR (from shortTermDebt, last quarter)
Debt = 2.09b EUR (from shortLongTermDebtTotal, last quarter) + Leases 291.2m
Net Debt = 740.1m EUR (calculated: Debt 2.09b - CCE 1.35b)
Enterprise Value = 1.46b EUR (718.3m + Debt 2.09b - CCE 1.35b)
Interest Coverage Ratio = -11.51 (Ebit TTM -1.24b / Interest Expense TTM 108.0m)
EV/FCF = 1.20x (Enterprise Value 1.46b / FCF TTM 1.21b)
FCF Yield = 83.14% (FCF TTM 1.21b / Enterprise Value 1.46b)
FCF Margin = 36.80% (FCF TTM 1.21b / Revenue TTM 3.29b)
Net Margin = -49.60% (Net Income TTM -1.63b / Revenue TTM 3.29b)
Gross Margin = 40.60% ((Revenue TTM 3.29b - Cost of Revenue TTM 1.96b) / Revenue TTM)
Gross Margin QoQ = -91.94% (prev 48.57%)
Tobins Q-Ratio = 0.37 (Enterprise Value 1.46b / Total Assets 3.95b)
Interest Expense / Debt = 5.18% (Interest Expense 108.0m / Debt 2.09b)
Taxrate = 25.0% (EU avg default 25%)
NOPAT = -932.2m (EBIT -1.24b * (1 - 25.00%)) [loss with tax shield]
Current Ratio = 2.55 (Total Current Assets 1.85b / Total Current Liabilities 725.3m)
Debt / Equity = 1.42 (Debt 2.09b / totalStockholderEquity, last quarter 1.47b)
Debt / EBITDA = 1.59 (Net Debt 740.1m / EBITDA 466.8m)
Debt / FCF = 0.61 (Net Debt 740.1m / FCF TTM 1.21b)
Total Stockholder Equity = 1.63b (last 4 quarters mean from totalStockholderEquity)
RoA = -36.05% (Net Income -1.63b / Total Assets 3.95b)
RoE = -52.61% (Net Income TTM -1.63b / Total Stockholder Equity 3.11b)
RoCE = -26.96% (EBIT -1.24b / Capital Employed (Equity 3.11b + L.T.Debt 1.50b))
RoIC = -48.05% (negative operating profit) (NOPAT -932.2m / Invested Capital 1.94b)
WACC = 5.34% (E(718.3m)/V(2.80b) * Re(9.57%) + D(2.09b)/V(2.80b) * Rd(5.18%) * (1-Tc(0.25)))
Discount Rate = 9.57% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 49.44 | Cagr: 4.43%
[DCF] Terminal Value 75.44% ; FCFF base≈1.21b ; Y1≈1.22b ; Y5≈1.29b
[DCF] Fair Price = 142.1 (EV 20.1b - Net Debt 740.1m = Equity 19.3b / Shares 135.9m; r=8.35% [WACC [floored]]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.0 | # QB: 0
Revenue Correlation: -4.02 | Revenue CAGR: -1.03% | SUE: -0.24 | # QB: 0
EPS current Year (2027-03-31): EPS=-0.51 | Chg30d=N/A | Revisions=N/A | GrowthEPS=+94.5% | GrowthRev=-4.2%
EPS next Year (2028-03-31): EPS=0.28 | Chg30d=N/A | Revisions=-27% | GrowthEPS=+154.3% | GrowthRev=+24.4%
[Analyst] Revisions Ratio: -27%