ESE Entertainment (ESE) AI Stock Analysis

• Market Cap: $4.77M
• Dividend Yield: N/A
• Average Volume (3M): 38.02K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.10
• Revenue Growth: -81.23%
• EPS Growth: 86.94%
• Country: CA
• Employees: 70
• Sector: Communication Services
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): -0.04
• Shares Outstanding: 86,734,520
• 10 Day Avg. Volume: 18,469
• 30 Day Avg. Volume: 38,016
• PEG Ratio: -0.18
• Price to Book (P/B): 15.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.37
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

ESE Entertainment is currently under significant financial pressure, characterized by persistent losses, declining revenues, and negative cash flows. The technical analysis reflects a neutral to mildly bearish trend, while valuation remains a concern due to negative earnings and the absence of dividends. Despite a positive corporate event, these challenges result in a low overall stock score.

ESE Entertainment Business Overview & Revenue Model

Company Description

ESE Entertainment Inc., an entertainment and technology company, focuses on gaming and esports in Europe and internationally. It consists of multiple assets and operators in the gaming and esports industries. The company's capabilities include physical infrastructure, broadcasting, global distribution for gaming and esports-related content, advertising, simulation racing business unit, and a growing esport team franchise, as well as K1CK Esports. It also engages in the infrastructure business that manages fan engagement for OTT and esports; and provision of gaming related infrastructure, technology, and support. In addition, the company offers out-sourced network services; operates telecommunications network; turnkey simulator packages; builds bespoke simulators; and Virtual Pitstop technology for video game developers, racing fans, and gamers to engage in motorsport related esports. It serves video game developers, publishers, and brands. The company was formerly known as Kepler Acquisition Corp. and changed its name to ESE Entertainment Inc. in August 12, 2020. ESE Entertainment Inc. was founded in 2019 and is headquartered in Vancouver, Canada.

How the Company Makes Money

ESE Entertainment makes money through multiple revenue streams, primarily driven by its esports and gaming operations. Key revenue sources include sponsorship and advertising deals with brands looking to reach the gaming audience, event and tournament organization fees, digital content production and distribution, and merchandise sales. Additionally, ESE benefits from partnerships with gaming companies and technology firms, enhancing its offerings and expanding its reach in the digital media and entertainment landscape. These diverse revenue streams are integral to ESE's growth strategy and financial performance.

ESE Entertainment Financial Statement Overview

Summary

ESE Entertainment is facing multifaceted financial challenges. Persistent losses and declining revenues have severely impacted profitability and financial stability. High leverage and negative cash flows further exacerbate financial risks, necessitating strategic adjustments to improve operational efficiency and financial health.

Income Statement

ESE Entertainment has experienced significant volatility in revenue, with a notable decline from 2022 to 2025. Gross profit margin remains extremely low at around 1% in TTM, indicating challenges in cost management. The company has been consistently operating at a loss, with negative EBIT and net profit margins, highlighting profitability concerns.

Balance Sheet

The company has a high debt-to-equity ratio, which increased notably as equity declined, suggesting elevated financial risk. The equity ratio has deteriorated over time, reflecting a weakened financial position with liabilities exceeding assets. Return on equity remains negative due to sustained losses, indicating inefficiencies in generating shareholder returns.

Cash Flow

Consistently negative operating cash flow and free cash flow highlight ongoing liquidity challenges. The free cash flow to net income ratio is unfavorable, indicating insufficient cash flow to support operational needs. With negative cash flow growth, the company faces difficulties in sustaining operations without external funding.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.53M	2.85M	19.10M	58.82M	11.38M	390.17K
	Gross Profit
43.95K	231.76K	176.92K	7.70M	1.15M	390.17K
	EBIT
-5.21M	-5.72M	-8.46M	-15.97M	-13.22M	-592.10K
	EBITDA
-5.70M	-6.50M	-7.26M	-22.40M	-18.62M	-3.80M
	Net Income Common Stockholders
-6.35M	-6.72M	-6.35M	-29.84M	-18.66M	-5.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
719.78K	909.58K	2.13M	1.11M	4.83M	550.01K
	Total Assets
7.20M	6.86M	9.11M	21.45M	15.94M	842.09K
	Total Debt
1.09M	939.10K	3.30M	6.44M	198.13K	0.00
	Net Debt
441.19K	100.16K	1.18M	5.63M	-4.63M	-550.01K
	Total Liabilities
7.86M	6.88M	6.43M	19.22M	1.43M	378.46K
	Stockholders Equity
359.76K	991.58K	3.59M	2.71M	14.54M	463.63K
Cash Flow		Free Cash Flow
-1.83M	-2.19M	-1.53M	-2.32M	-4.51M	-1.97M
	Operating Cash Flow
-1.93M	-2.19M	-1.53M	-1.75M	-4.49M	-1.97M
	Investing Cash Flow
3.46M	3.36M	3.02M	-7.22M	-2.34M	103.70K
	Financing Cash Flow
-2.14M	-2.44M	-210.93K	5.00M	11.20M	2.25M

ESE Entertainment Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ESE, the sentiment is Neutral. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.32 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ESE.

ESE Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBRD	67 Neutral	C$59.46M	9.94	9.94%	―	25.69%	―
Sector *	60 Neutral	$14.07B	6.89	-3.35%	3.68%	2.42%	-36.25%
OAM	51 Neutral	C$33.99M	―	-1.45%	―	71.98%	87.24%
BRMI	48 Neutral	C$50.59M	―	-49.83%	―	-58.70%	-711.28%
ESE	32 Underperform	$4.77M	―	-337.09%	―	-81.23%	86.94%

ESE Entertainment Corporate Events

ESE Entertainment’s Bombee Partners with EQCO for Construction Innovation

ESE Entertainment’s subsidiary, Bombee North America, has partnered with Évolution du Québec en Construction (EQCO) to sponsor an inaugural event aimed at uniting leaders from Quebec’s construction industry. This partnership highlights Bombee’s commitment to fostering innovation and sustainability through a day of keynote talks and networking, potentially enhancing its industry positioning and influence in event production.

Spark’s Take on TSE:ESE Stock

According to Spark, TipRanks’ AI Analyst, TSE:ESE is a Underperform.

ESE Entertainment’s overall score reflects significant financial challenges, with persistent losses and negative cash flows putting pressure on its financial health. Technical analysis offers a neutral to mildly bearish outlook, while valuation concerns persist due to negative earnings and lack of dividends. These factors collectively contribute to a low overall stock score.

To see Spark’s full report on TSE:ESE stock, click here.

ESE Entertainment Grants 530,000 Restricted Share Units

ESE Entertainment Inc. has announced the approval of a grant of 530,000 Restricted Share Units (RSUs) to certain consultants and an employee under its equity incentive plan. These RSUs are set to vest on April 12, 2026, and will expire if not vested by April 12, 2028. This move, pending approval from the TSX Venture Exchange, reflects ESE’s strategy to incentivize and retain key personnel, potentially enhancing its operational capabilities and market positioning in the competitive gaming industry.

Spark’s Take on TSE:ESE Stock

According to Spark, TipRanks’ AI Analyst, TSE:ESE is a Underperform.

ESE Entertainment’s overall stock score is low, primarily due to significant financial struggles including declining revenue, persistent net losses, and high leverage. The technical analysis supports a bearish outlook, and valuation metrics do not suggest the stock is undervalued. The lack of positive earnings call data or recent corporate events further limits the potential upside.

To see Spark’s full report on TSE:ESE stock, click here.