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Ubisoft Entertainment UBI

Morningstar Rating
€20.52 +0.03 (0.15%)
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Company Report

Ubisoft is Gradually Improving Operations After Increased Investment Delivered Weak Results

Ubisoft owns some of the best-known video game franchises, including Assassin’s Creed and the Tom Clancy series. We expect these core titles will provide opportunities to create new content that generally produces consistent revenue. Over the past couple of years, however, the firm has sharply increased investment in new game development, but the results have been poor. As Ubisoft scales back these efforts, financial results should improve. Shareholders could also realize outsize gains if one of its newer games turns into a breakout success.

Price vs Fair Value

UBI is trading at a 38% discount.
Price
€20.49
Fair Value
€35.00
Uncertainty
High
1-Star Price
€95.96
5-Star Price
€64.90
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Ubisoft has a deep developer pool with over 30 studios on four continents, allowing it to work on multiple premium and mobile games simultaneously.

Bears

Ubisoft competes with larger first-party video game publishers such as Nintendo, Sony, and Microsoft, which have greater resources and an institutional advantage in developing games for their own gaming consoles.

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News

Trading Information

Previous Close Price
€20.49
Day Range
€20.3320.65
52-Week Range
€18.4731.60
Bid/Ask
€20.50 / €20.53
Market Cap
€2.62 Bil
Volume/Avg
83,987 / 577,729

Key Statistics

Price/Earnings (Normalized)
Price/Sales
1.35
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Founded in 1986 in France by five brothers of the Guillemot family, Ubisoft is one of the largest independent video game publishers. Ubisoft employs a deep pool of developers at studios across the world. The firm owns a number of well-known franchises, including Assassin’s Creed, Far Cry, Tom Clancy’s Rainbow Six and Ghost Recon, Rayman, Trials, and Just Dance. Ubisoft has recently launched several new big-budget titles, including Skull and Bones, XDefiant, Avatar: Frontiers of Pandora, and a new Star Wars game is set to launch in fiscal 2025. The firm also holds the game streaming rights to Activision's existing catalog and any games it develops through 2038.
Sector
Communication Services
Industry
Electronic Gaming & Multimedia
Stock Style Box
Small Value
Total Number of Employees
19,410

Competitors

Valuation

Metric
UBI
EA
TTWO
Price/Earnings (Normalized)
18.8675.11
Price/Book Value
1.704.603.05
Price/Sales
1.354.614.78
Price/Cash Flow
16.9226.12
Price/Earnings
UBI
EA
TTWO

Financial Strength

Metric
UBI
EA
TTWO
Quick Ratio
1.501.210.62
Current Ratio
1.511.330.82
Interest Coverage
−7.6324.38−19.85
Quick Ratio
UBI
EA
TTWO

Profitability

Metric
UBI
EA
TTWO
Return on Assets (Normalized)
−5.97%11.78%−6.34%
Return on Equity (Normalized)
−17.79%21.10%−11.18%
Return on Invested Capital (Normalized)
−6.37%16.37%−7.46%
Return on Assets
UBI
EA
TTWO
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Electronic Gaming & Multimedia Industry Comparables

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Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
NTES
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NETTF
NetEase Inc Ordinary SharesJmbvrs$63.4 Bil
NTDOF
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NTDOY
Nintendo Co Ltd ADRTpkm$58.8 Bil
EA
Electronic Arts IncMbgrkzqvNynwvrq$34.2 Bil
TTWO
Take-Two Interactive Software IncQhfcbqwkDphsvb$25.1 Bil
RBLX
Roblox Corp Ordinary Shares - Class AZlcrffnqDmptkgx$25.1 Bil
NEXOF
NEXON Co LtdVdldcj$13.6 Bil
NEXOY
NEXON Co Ltd ADRTqnvqf$13.6 Bil
BILI
Bilibili Inc ADRMhkgddnjMjly$5.0 Bil

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