(EMBRAC-B) Embracer (publ) - ST
Sector: Communication Services | Industry: Electronic Gaming & Multimedia | Exchange: ST (Sweden) | Market Cap: 12.899m SEK | Total Return: -45.1% in 12m
Avg Turnover: 38.2M
Qual. Beats: 0
Rev. Trend: -94.1%
Qual. Beats: 0
Warnings
Interest Coverage Ratio -51.6 is critical
Altman Z'' -2.79 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
Confidence
Embracer Group AB is a Swedish media conglomerate specializing in the development and distribution of interactive entertainment. The company operates through four primary segments: PC/Console Games, Mobile Games, Tabletop Games, and Entertainment & Services. Its diversified portfolio extends beyond digital software into physical media, including board games, card game trading, film publishing, and comic books.
The business model relies on a decentralized operating structure where independent studios retain creative autonomy while leveraging group-level distribution networks. This approach is common in the Interactive Home Entertainment sub-industry to mitigate the high financial risk associated with individual AAA game titles. Embracer utilizes a multi-channel sales strategy, reaching global markets through digital storefronts, third-party retailers, and direct physical distribution.
Formerly known as THQ Nordic AB, the firm rebranded in 2019 to reflect its expansive acquisition strategy. As a player in the Communication Services sector, the company competes for consumer leisure time against other forms of digital media. The tabletop and trading card segments provide a physical hedge against the cyclical nature of digital software release schedules.
- Strategic restructuring and asset divestments reduce net debt levels
- Pipeline of AAA PC and console releases drives organic growth
- Mobile segment EBITDA margins stabilize amid shifting user acquisition costs
- Tabletop gaming revenue provides resilient cash flow during market volatility
| Net Income: -5.82b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA 1.06 > 1.0 |
| NWC/Revenue: 22.11% < 20% (prev 19.01%; Δ 3.10% < -1%) |
| CFO/TA 0.09 > 3% & CFO 2.46b > Net Income -5.82b |
| Net Debt (-2.82b) to EBITDA (4.37b): -0.65 < 3 |
| Current Ratio: 1.66 > 1.5 & < 3 |
| Outstanding Shares: last quarter (213.0m) vs 12m ago -7.39% < -2% |
| Gross Margin: 75.73% > 18% (prev 72.62%; Δ 3.11% > 0.5%) |
| Asset Turnover: 47.33% > 50% (prev 69.39%; Δ -22.06% > 0%) |
| Interest Coverage Ratio: -51.60 > 6 (EBIT TTM -6.71b / Interest Expense TTM 130.0m) |
| A: 0.13 (Total Current Assets 9.09b - Total Current Liabilities 5.48b) / Total Assets 26.8b |
| B: -1.59 (Retained Earnings -42.6b / Total Assets 26.8b) |
| C: -0.19 (EBIT TTM -6.71b / Avg Total Assets 34.5b) |
| D: 2.68 (Book Value of Equity 19.5b / Total Liabilities 7.27b) |
| Altman-Z'' = -2.79 = D |
| DSRI: 1.52 (Receivables 3.09b/3.63b, Revenue 16.3b/29.2b) |
| GMI: 0.96 (GM 72.62% / 75.73%) |
| AQI: 0.91 (AQ_t 0.63 / AQ_t-1 0.69) |
| SGI: 0.56 (Revenue 16.3b / 29.2b) |
| TATA: -0.31 (NI -5.82b - CFO 2.46b) / TA 26.8b) |
| Beneish M = -3.04 (Cap -4..+1) = AA |
As of June 25, 2026, the stock is trading at SEK 60.56 with a total of 743,493 shares traded. Over the past week, the price has changed by +1.44%, over one month by -16.45%, over three months by +34.88% and over the past year by -45.05%.
Current recommended Stop Loss: 57.80 (which is 4.6% or 1.1 ATR below the current price).
Embracer (publ) has no consensus analysts rating.
P/E Forward = 10.3627
P/S = 2.1934
P/B = 0.6708
Revenue TTM = 16.3b SEK
EBIT TTM = -6.71b SEK
EBITDA TTM = 4.37b SEK
Long Term Debt = 366.0m SEK (from longTermDebt, last quarter)
Short Term Debt = 959.0m SEK (from shortTermDebt, last quarter)
Debt = 2.14b SEK (from shortLongTermDebtTotal, last quarter) + Leases 489.0m
Net Debt = -2.82b SEK (calculated: Debt 2.14b - CCE 4.96b)
Enterprise Value = 10.1b SEK (12.9b + Debt 2.14b - CCE 4.96b)
Interest Coverage Ratio = -51.60 (Ebit TTM -6.71b / Interest Expense TTM 130.0m)
EV/FCF = 74.65x (Enterprise Value 10.1b / FCF TTM 135.0m)
FCF Yield = 1.34% (FCF TTM 135.0m / Enterprise Value 10.1b)
FCF Margin = 0.83% (FCF TTM 135.0m / Revenue TTM 16.3b)
Net Margin = -35.70% (Net Income TTM -5.82b / Revenue TTM 16.3b)
Gross Margin = 75.73% ((Revenue TTM 16.3b - Cost of Revenue TTM 3.96b) / Revenue TTM)
Gross Margin QoQ = 74.10% (prev 65.46%)
Tobins Q-Ratio = 0.38 (Enterprise Value 10.1b / Total Assets 26.8b)
Interest Expense / Debt = 6.09% (Interest Expense 130.0m / Debt 2.14b)
Taxrate = 25.0% (non-US conservative default 25%)
NOPAT = -5.03b (EBIT -6.71b * (1 - 25.00%)) [loss with tax shield]
Current Ratio = 1.66 (Total Current Assets 9.09b / Total Current Liabilities 5.48b)
Debt / Equity = 0.11 (Debt 2.14b / totalStockholderEquity, last quarter 19.5b)
Debt / EBITDA = -0.65 (Net Debt -2.82b / EBITDA 4.37b)
Debt / FCF = -20.90 (Net Debt -2.82b / FCF TTM 135.0m)
Total Stockholder Equity = 26.6b (last 4 quarters mean from totalStockholderEquity)
RoA = -16.89% (Net Income -5.82b / Total Assets 26.8b)
RoE = -21.89% (Net Income TTM -5.82b / Total Stockholder Equity 26.6b)
RoCE = -24.87% (EBIT -6.71b / Capital Employed (Equity 26.6b + L.T.Debt 366.0m))
RoIC = -23.44% (negative operating profit) (NOPAT -5.03b / Invested Capital 21.5b)
WACC = 8.13% (E(12.9b)/V(15.0b) * Re(8.72%) + D(2.14b)/V(15.0b) * Rd(6.09%) * (1-Tc(0.25)))
Discount Rate = 8.72% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -17.98 | Cagr: -2.15%
[DCF] Terminal Value 75.44% ; FCFF base≈135.0m ; Y1≈135.6m ; Y5≈143.6m
[DCF] Fair Price = 23.72 (EV 2.23b - Net Debt -2.82b = Equity 5.05b / Shares 213.1m; r=8.35% [WACC [floored]]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.04 | # QB: 0
Revenue Correlation: -94.10 | Revenue CAGR: -31.45% | SUE: 0.07 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.20 | Chg30d=+224.69% | Revisions=N/A | Analysts=3
EPS next Quarter (2026-09-30): EPS=0.98 | Chg30d=-26.51% | Revisions=N/A | Analysts=3
EPS current Year (2027-03-31): EPS=5.69 | Chg30d=-0.23% | Revisions=+0% | GrowthEPS=+1359.3% | GrowthRev=+3.6%
EPS next Year (2028-03-31): EPS=7.29 | Chg30d=+3.65% | Revisions=+20% | GrowthEPS=+28.1% | GrowthRev=+7.4%
[Analyst] Revisions Ratio: +20%