(STAR-A) Starbreeze (publ) - Ratings and Ratios

Starbreeze AB (publ) is a Swedish video game developer and publisher primarily focused on PC and console games in Europe and North America, with a notable portfolio under the PAYDAY brand. The company operates through multiple segments including Game Sales, 3rd Party Publishing, Licenses, and Other, diversifying its revenue streams. Established in 1998 and headquartered in Stockholm, Starbreeze has a history of developing engaging games that cater to a specific market niche.

Analyzing the companys operational segments, its evident that Starbreezes success heavily relies on the popularity and sales of its PAYDAY series, which has a dedicated fan base. The companys ability to publish and distribute games through various channels, including third-party publishing, enhances its market reach. However, the lack of P/E ratio and forward P/E indicates that the company is not profitable or has highly variable earnings, which is a common trait in the volatile video game industry.

From a technical standpoint, Starbreezes stock (STAR-A) has shown signs of recovery, with its last price at 0.40 SEK, above both its 20-day SMA (0.36 SEK) and 50-day SMA (0.27 SEK), indicating a potential uptrend. The ATR of 0.02 (6.28% of the last price) suggests moderate volatility, and the stock is currently near its 52-week high of 0.43 SEK. This could imply that the stock is in a consolidation phase or preparing for further upward movement.

Considering the fundamental data, Starbreezes market capitalization stands at 323.54M SEK, and its RoE is -25.57%, indicating significant losses relative to shareholder equity. The absence of a P/E ratio further emphasizes the companys current unprofitability. Despite this, the companys efforts to diversify its revenue streams and its established brand could be seen as positive factors for long-term growth.

Forecasting Starbreezes stock performance involves analyzing both technical and fundamental data. Given the current technical uptrend and the companys efforts to release new content under the PAYDAY brand, theres potential for the stock to continue its upward trajectory. However, the lack of profitability and significant negative RoE are critical factors that could dampen investor enthusiasm. A realistic forecast would be that if Starbreeze can successfully release new games or sequels that resonate with the market, its stock could potentially reach 0.50 SEK within the next 6-12 months, representing a 25% increase from its current price. Conversely, failure to deliver successful titles or further financial losses could result in a decline back towards its 52-week low of 0.19 SEK.