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Embracer Group AB
(EMBRAC.B)
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Rating:63Neutral
Price Target:
kr99.00
â–˛(33.21% Upside)
Action:Reiterated
Date:08/19/26
The score is driven by strong technical momentum and an improving financial position (lower leverage and positive TTM free cash flow), but is held back materially by weak and volatile profitability (large recent losses) and a negative P/E that reflects ongoing earnings risk. The very high dividend yield is supportive but raises sustainability concerns given the loss-making profile.
Positive Factors
Low Leverage
Very low leverage gives Embracer greater financial flexibility to fund development, manage release volatility, and absorb weaker trading periods. Reduced debt also limits interest and refinancing pressure, although the benefit depends on the company restoring sustainable profitability over time.
Negative Factors
Deep Losses
Deeply negative EBIT and net income show that the company’s current revenue base is not covering its operating and other costs. Persistent losses would weaken retained capital, constrain reinvestment, and reduce the durability of the otherwise healthier balance sheet.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage
Very low leverage gives Embracer greater financial flexibility to fund development, manage release volatility, and absorb weaker trading periods. Reduced debt also limits interest and refinancing pressure, although the benefit depends on the company restoring sustainable profitability over time.
Read all positive factors
Embracer Group AB (EMBRAC.B) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr19.74B
Dividend YieldN/A
Average Volume (3M)648.35K
Price to Earnings (P/E)―
Beta (1Y)0.70
Revenue Growth-31.46%
EPS Growth-169.01%
CountrySE
Employees4,991
SectorGeneral
Sector StrengthN/A
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-25.18
Shares Outstanding210,806,720
10 Day Avg. Volume603,338
30 Day Avg. Volume648,348
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.52
Price to Sales (P/S)0.64
P/FCF Ratio-18.74
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.82
Revenue Forecast (FY)kr17.33B
Embracer Group AB Business Overview & Revenue Model
Company Description
Embracer Group AB (publ), together with its subsidiaries, develops and publishes PC, console, mobile, VR, and board games for the games market worldwide. The company operates through, PC/Console Games, Mobile Games, and Entertainment and Services....
How the Company Makes Money
Embracer primarily makes money by developing, publishing, and monetizing video games and related IP through multiple channels. A core revenue stream is sales of new game releases (digital and physical) on platforms such as PC and consoles, where r...
Embracer Group AB Earnings Call Summary
Earnings Call Date:Nov 14, 2024
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with significant achievements such as Asmodee's solid performance and the strategic divestment of Easybrain. However, these were countered by notable challenges including a decline in net sales, negative free cash flow, and underperformance in several game releases. While there are promising prospects with upcoming game releases and a strengthened financial position post-divestment, the current challenges balance out the positive aspects.Positive Updates
Asmodee's Solid Earnings Growth
Asmodee achieved SEK 700 million in profitability for the quarter, demonstrating strong earnings growth year-over-year ahead of their listing and Capital Market Day.
Negative Updates
Decline in Net Sales
Net sales declined by SEK 2.3 billion year-over-year, primarily due to the absence of major releases like Remnant II and Payday 3 and the divestments of Saber and Gearbox.
Read all updates
Q2-2025 Updates
Positive
Negative
Asmodee's Solid Earnings Growth
Asmodee achieved SEK 700 million in profitability for the quarter, demonstrating strong earnings growth year-over-year ahead of their listing and Capital Market Day.
Read all positive updates
Company Guidance
In the recent call, Embracer Group's CEO Lars Wingefors provided guidance for the second quarter of the fiscal year 2025, highlighting several key financial metrics and strategic updates. The company reported net sales of SEK 8.5 billion, a decrease from the previous year due to the absence of significant releases like Remnant and Payday. Despite this, Asmodee, a key segment, showed solid earnings growth with SEK 700 million in profitability. However, the PC/Console segment faced challenges, with a 33% decline in organic growth and an adjusted EBIT margin of 8% due to delays and weaker returns on investment. The mobile games segment performed well, generating SEK 1.3 billion in revenue with a 28% adjusted EBIT margin. The company also announced the transformative divestment of Easybrain for USD 1.2 billion, expected to significantly strengthen Embracer's financial position, reducing net debt to SEK 500 million on a pro forma basis. Looking ahead, key releases like Kingdom Come: Deliverance II and the remastered Legacy of Kain series are expected to support future growth.Embracer Group AB Financial Statement Overview
Summary
Income Statement
33
Negative
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.90B | 15.91B | 22.37B | 42.21B | 37.66B | 17.04B |
| Gross Profit | 12.13B | 11.93B | 18.38B | 30.78B | 27.68B | 14.63B |
| EBITDA | 4.41B | 4.17B | 12.02B | 4.70B | 12.46B | 4.61B |
| Net Income | -5.37B | -5.82B | 5.96B | -18.18B | 4.45B | -4.29B |
Balance Sheet | ||||||
| Total Assets | 27.53B | 26.80B | 42.13B | 95.70B | 116.07B | 93.45B |
| Cash, Cash Equivalents and Short-Term Investments | 5.00B | 4.96B | 7.10B | 3.34B | 4.68B | 5.81B |
| Total Debt | 2.04B | 1.65B | 2.35B | 21.18B | 21.75B | 20.31B |
| Total Liabilities | 7.88B | 7.27B | 10.94B | 43.21B | 51.35B | 48.64B |
| Stockholders Equity | 19.61B | 19.50B | 31.13B | 52.42B | 64.67B | 44.59B |
Cash Flow | ||||||
| Free Cash Flow | 1.67B | -546.00M | -252.00M | 529.00M | -1.61B | 220.70M |
| Operating Cash Flow | 2.40B | 2.46B | 3.49B | 7.89B | 5.38B | 4.28B |
| Investing Cash Flow | -2.76B | -3.04B | 14.02B | -9.95B | -15.49B | -37.89B |
| Financing Cash Flow | -1.46B | -1.51B | -12.65B | 832.00M | 8.50B | 25.02B |
Embracer Group AB Technical Analysis
Positive
74.32
Price Trends
78.97
Positive
71.93
Positive
63.36
Positive
Market Momentum
2.87
Negative
57.89
Neutral
79.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:EMBRAC.B, the sentiment is Positive. The current price of 74.32 is below the 20-day moving average (MA) of 85.81, below the 50-day MA of 78.97, and above the 200-day MA of 63.36, indicating a bullish trend. The MACD of 2.87 indicates Negative momentum. The RSI at 57.89 is Neutral, neither overbought nor oversold. The STOCH value of 79.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:EMBRAC.B.
Embracer Group AB Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | kr14.19B | 111.33 | 5.06% | 3.74% | 7.73% | -81.02% | |
64 Neutral | kr491.12M | 21.25 | 5.13% | 3.03% | -19.67% | -68.42% | |
63 Neutral | kr19.74B | -3.49 | -22.49% | ― | -31.46% | -169.01% | |
60 Neutral | kr254.35M | -25.34 | -3.33% | 17.53% | 4.39% | -6331.67% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
47 Neutral | kr168.31M | -0.35 | -221.09% | ― | -27.96% | -152.47% | |
46 Neutral | kr38.85M | -11.00 | -21.84% | ― | 0.55% | 39.82% |
* General Sector Average
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Embracer Group AB Corporate Events
Embracer Group steps up B-share purchases on Nasdaq Stockholm
Oct 13, 2026
Embracer Group AB has executed a large number of buy transactions in its B shares on the Nasdaq Stockholm, with volumes mostly in the low hundreds per trade and prices clustered around SEK 84–85. The aggregated purchases, conducted throughou...
Embracer Steps Up Share Buybacks with Series of Nasdaq Purchases
Oct 6, 2026
Embracer Group AB disclosed a series of buy transactions in its own class B shares on 26 September, executed throughout the trading day on Nasdaq Stockholm at prices mostly in the low- to mid-SEK 80 range. The trades, varying from small lots to se...
Embracer Group Streamlines Capital Structure With B Share Redemption
Sep 30, 2026
Embracer Group AB has reduced its total number of shares and votes following a resolution at its annual general meeting to redeem a portion of its B shares. After the redemption of 9,046,406 B shares, the company’s share capital now amounts ...
Embracer Advances SEK 750 Million Share Buyback to Optimize Capital Structure
Sep 29, 2026
Embracer Group AB has continued executing its SEK 750 million share buyback program, repurchasing 226,100 B shares between 21 and 25 September 2026 on Nasdaq Stockholm. The buybacks are conducted under EU market abuse and safe harbor regulations a...
Embracer Group AGM Retains Equity and Tightens Capital Structure
Sep 24, 2026
Embracer Group AB’s 2026 Annual General Meeting in Karlstad approved the company’s income statements and balance sheets and decided to retain approximately SEK 21.7 billion in non-restricted equity by withholding a dividend. The board ...
Embracer Group Streamlines Financing With New SEK 2 Billion Credit Facility
Sep 22, 2026
Embracer Group has secured a new SEK 2,000 million revolving credit facility with a two-year term and an option for a further two-year extension, consolidating several existing bilateral loans into a single, more flexible financing arrangement. Th...
Embracer Steps Up Share Buybacks in B Shares on Nasdaq Stockholm
Sep 22, 2026
Embracer Group AB reported extensive share repurchase activity in its B shares on Nasdaq Stockholm during week 38, with numerous buy transactions executed on 26 September at prices predominantly in the SEK 80–82 range. The pattern of repeate...
Embracer Group Opens AGM Webcast to Global Stakeholders
Sep 17, 2026
Embracer Group AB, a global games and entertainment company based in Karlstad, Sweden, develops, publishes, and distributes PC, console, and mobile games while also operating in other entertainment segments. With nearly 5,000 employees in close to...
Embracer Expands Share Buyback to Optimize Capital Structure
Sep 15, 2026
Embracer Group AB has continued executing its previously announced SEK 750 million share buyback program, repurchasing 226,100 B shares between 7 and 11 September 2026 on Nasdaq Stockholm. The transactions, carried out via Nordea Bank, bring the c...
Embracer Group Advances Share Buyback to Optimize Capital Structure
Sep 8, 2026
Embracer Group AB has continued executing its previously announced SEK 750 million share buyback program, repurchasing 237,000 B shares on Nasdaq Stockholm between 31 August and 4 September 2026. The purchases, carried out via Nordea Bank on the e...
Embracer Group Steps Up Share Purchases on Nasdaq Stockholm
Sep 1, 2026
Embracer Group AB has executed a series of share purchases in its own Class B stock on Nasdaq Stockholm during the trading session on 26 August, with numerous small-volume transactions clustered throughout the morning. The buy orders, all executed...
Heavy Buying Activity Supports Embracer Group’s Stock on Nasdaq Stockholm
Aug 25, 2026
Transaction data for Embracer Group AB shows a high volume of market purchases of EMBRAC B shares on Nasdaq Stockholm on 17 August, with numerous small and mid-sized orders executed in rapid succession throughout the morning trading session. The a...
Embracer Group Sets September 2026 AGM With Expanded Participation Options
Aug 24, 2026
Embracer Group AB has called its annual general meeting for 24 September 2026 at Värmlands Museum in Karlstad, giving shareholders the option to attend in person, by proxy, via postal advance voting or to follow proceedings through a video li...
Embracer Group Reports Steady Buy Orders in B Shares on Stockholm Exchange
Aug 18, 2026
Embracer Group AB reported a series of buy transactions in its B shares on the Stockholm exchange during Week 33, specifically on 10 August 2026. The trades, executed throughout the trading day at prices around SEK 67.5–68.5 per share, repre...
Embracer Delivers Strong Q1 Growth and Reaffirms Cash EBIT Outlook Ahead of Fellowship Spin-Off
Aug 13, 2026
Embracer Group reported its first-quarter 2026/27 results under a new two-segment structure, with overall net sales up 24% to SEK 3.94 billion and organic growth of 33%, driven by strong performance in the Embracer segment’s PC/console, mobi...
Embracer Executes Steady Buyback of Class B Shares on Nasdaq Stockholm
Aug 11, 2026
Embracer Group AB reported a series of share repurchases of its class B shares on the Nasdaq Stockholm during week 32, with numerous small-volume buy orders executed at prices generally between SEK 66.5 and SEK 67.5. The trades, all marked as buys...
Embracer Group schedules Q1 2026/27 report presentation for investors
Aug 6, 2026
Embracer Group has invited investors, analysts and media to a presentation of its first-quarter interim report for the 2026/27 financial year, scheduled for August 13, with the report to be published earlier the same morning. The event, led by CEO...
Embracer Group Intensifies B-Share Buybacks on Stockholm Exchange
Aug 4, 2026
Embracer Group AB reported a series of share repurchases in week 31, executing numerous buy orders in its B shares on the Stockholm exchange on July 27 at prices mainly between SEK 65 and SEK 68. The transactions, which cumulatively represent a me...
Embracer steps up capital return with fresh B-share buybacks
Jul 28, 2026
Embracer Group AB has repurchased 261,100 of its own B shares on Nasdaq Stockholm between 20 and 24 July 2026 as part of a previously announced SEK 750 million share buyback program. The purchases, executed by Nordea Bank on the company’s be...
Embracer Steps Up Share Buybacks to Streamline Capital Structure
Jul 21, 2026
Embracer Group AB has intensified its capital structure optimization efforts through an ongoing share buyback program on Nasdaq Stockholm. The company repurchased 259,200 B shares between 13 and 17 July 2026, as part of a previously announced SEK ...
Embracer Group Advances SEK 750m Share Buyback With New B-Share Repurchases
Jul 14, 2026
Embracer Group AB has repurchased 273,500 of its own B shares on Nasdaq Stockholm between 6 and 10 July 2026, as part of a previously announced SEK 750 million share buyback program running until March 2027. The transactions, executed by Nordea Ba...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.